From available data in the United States, with as low as $45,000, you can successfully start a small but standard dental practice business with less than a handful of employees. Please note that if you are considering starting a medium to large dental practice, then you should budget over $100,000.
If you are considering starting a dental practice, then you should be aware that you are about to start a critical business that requires not just a financial commitment, but also several compliance criteria that must be met.
This is so because a dental practice business operates in the healthcare industry. Dental practice businesses offer a range of oral health services to patients. These services typically include preventive, diagnostic, and treatment procedures related to teeth, gums, and overall oral hygiene.
Going by what a dental practice is all about, it is safe to say that anyone who wants to start a dental practice business should be ready to spend thousands of dollars. This is so because a dental practice business will require a standard and approved clinic facility, dental tools and equipment, and of course, people who will work with you.
The fact that there is no fixed amount required to start a dental practice business means that there are certain critical factors that can influence the cost of starting a dental practice business, and that is what we will discuss in this article.
6 Factors That Influence the Cost of Opening a Dental Practice
Table of Content
The Cost of Licensing and Legal Compliance
If you are considering starting a dental practice, then one of the first decisions you should take is to find out how much it will cost you to meet up with the licensing and legal compliance. This is important because establishing a dental practice often involves obtaining appropriate licenses, permits, and certifications, which can vary depending on the country you want to start the business.
You should make budget provisions for a dental license, business license, facility license, X-ray certification, health department permit, DEA registration (if prescribing controlled substances), OSHA Compliance certification, HIPAA compliance, anesthesia permit (if providing sedation), and laboratory certification (if operating an in-house lab).
You will also spend money on legal and consulting fees. Trust me, the cost can be significant and it can significantly influence the overall cost of starting your dental practice.
The Budget for Infrastructure and Equipment
The nature of the dental practice business makes it impossible to run the business without having the required infrastructure and equipment in place.
Dental practice businesses require suitable operational office space (clinic), dental chairs, dental units, dental lights, dental instruments, X-ray equipment, autoclave/sterilization equipment, digital radiography systems, dental handpieces, ultrasonic cleaners, vacuum systems, compressors, intraoral cameras, etc.
Please note that the amount you are required to spend on infrastructure and equipment will depend on the size of your dental clinic. Please make sure you have a robust budget for infrastructure and equipment because dental equipment and tools aren’t cheap.
The Cost of Recruitment and Training
Another major factor that can influence the overall cost of starting a dental practice is the cost of hiring, recruiting, and training your staff. Dental practice companies typically recruit individuals with dental, health, and medical backgrounds, and people who possess relevant skills and experience needed in the dental practice industry.
Please note that the costs of recruitment and training include recruitment expenses, background checks, vetting, training facilities, and ongoing personnel development for your employees.
The Cost of Insurance Policy Cover
The cost of insurance policy coverage for your dental practice is yet another major factor that will influence the overall cost of starting a dental practice. As it is with any business, you cannot escape not having the appropriate insurance policy coverage for your dental practice business.
You should make plans to purchase general liability insurance, workers’ compensation insurance, professional liability insurance, and medical insurance, amongst others.
Please note that the amount you are supposed to pay for all the insurance policy coverage listed above, and the monthly premium will depend on the nature of your dental practice business and the inherent risks the business is going to be exposed to.
Operational Expenses
Another major factor that can influence the overall cost of starting a dental practice is your operational expenses. Operational expenses in a dental practice encompass various costs associated with the day-to-day running of the organization.
If you are planning to start your dental practice, then you should create a budget for operational expenses like equipment maintenance, repairs, and replacements, as well as the cost of dental supplies such as instruments, gloves, masks, X-ray films, and other consumables, including the salaries of your employees, benefits, operational logistics, travel costs, and expenses for electricity, water, heating, cooling, and other utility services.
It is important to note that operational expenses can vary depending on the size, scope, and geographical location of the dental practice.
The Cost of Marketing and Promoting the Business
Lastly, another major factor that can influence the cost of starting a dental practice is the cost of marketing and promoting the business.
When it comes to starting any business, there must be a provision (a budget) for marketing and promoting the business. Come to think of it, people may not know that there is a new dental practice clinic in their neighborhood until you engage in marketing and promoting the business.
Interestingly, there are different options when it comes to marketing and promoting a business. Some options are cheap, while others are expensive and will deliver different results.