Let’s say you just finished your education as a dentist.
What should you do next?
Most young dentists will start working for one of the local dental companies. They won’t even consider opening a practice of their own. And to be honest, this makes sense for some people.
Starting a dental practice from scratch can be costly.
All that equipment that you need to purchase, wages, lease; these costs tend to pile up! Also, some young professionals are still not confident when they finish school.
But, what if you open your own dental practice startup? What are the biggest advantages and drawbacks?
Let’s go through them right now.
Every new business is risky; that goes without saying.
However, dental practices have their own set of potential issues. You can soldier through some of them, while others will present an insurmountable obstacle. In most cases, it will fall on your shoulders and willingness to invest yourself in the project.
Here are some of the major issues for a dental practice startup:
People often think that it’s easy running a dental office. Given that this profession is really lucrative, we tend to believe that all you need to do is finish your education and start a business. Unfortunately, things are a bit different in practice. Not everyone has business acumen. This is especially true in this economy. If you lack confidence in your skills or ability to run a business, perhaps it’s better you don’t open a dental practice startup. At least not now. Lack of expertise can be another issue. While you will definitely get better, your conversion and ability to retain clients may suffer until you learn the ropes
Many students in the US have to take a loan in order to get their degree. Once they’re finished, they still have a lot to pay off. This makes it almost impossible to buy new things or to invest. Even renting can be a burden! That being said, it makes sense that young professionals will be reluctant to start a dental business. Equipment costs are really high. Even if you’re a seasoned professional, you would have to take a loan to equip your office. It is a great risk that many people are unwilling to take. Ideally, you should rely on your family for support, but then, you will have to make sure that the business succeeds
As already mentioned, not everyone is meant to be an entrepreneur. Some people simply have a rough time running a business. From administration to finances, and all the small things that are important for a successful office, there are lots of ways you can fail.
Miscalculations are really common, so you might find it hard to pay off debts. Some dentists will struggle for years to break even. Lastly, a lot of people don’t have enough marketing acumen that would help them increase their market share and attract new clients.
The worst thing yet is that you can mess only one thing, and everything will go sideways.
However, this should dissuade you from opening a dental practice startup. If so many people managed to do it, there is no reason why you shouldn’t!
You need to be confident, to create a proper business plan, to execute that plan, and slowly start building a name for yourself.
While some of these drawbacks may look scary, it is much more fun being your own boss.
But this is not the only advantage of running a dental practice.
Here are three of the main reasons why you should choose to do it despite all the potential risks:
If you were to base your decision by simply reading “the disadvantages” section, you will probably never open a practice. But, the truth is that people open a practice in order to make more money, not to lose it. Given that you will be taking all business risks, it makes sense that you should receive the majority of the profits. Although the initial period will be bumpy, once you pay off all the debts, it’s smooth sailing. Unlike some other businesses, dental practices are relatively risk-free in terms of finding customers. As long as there are no dentists in your immediate neighborhood, you will be able to make quite a career for yourself
So, the initial investment is a problem? Don’t worry; there is a way to bypass it. A lot of companies are offering great dental loans to practitioners. Given that most dental offices will make solid profits over time, banks and other institutions are not worried whether you will be able to pay back this money. As a result, they can give you a loan at a relatively low-interest rate compared to other businesses. We suggest that you take advantage of this opportunity
Perhaps the most important reason to own a practice is that it gives you a lot of leeway in life. Having a dental practice can be really stressful. It also eats away your time. But, once you get the business up and running, you can enjoy many liberties. First and foremost, you can program your own time. If you go home early, no one can stop you. It is also much easier to plan vacations. Every decision is in your hands, from getting a team of people who suit your character and needs, to designing the office space. Lastly, even if you mess things up, no one will blame you. Of course, it also helps that you will always have a job stability
In order to help you out, we’ve made a list of 10 tips that will help start your journey. Enjoy!
As mentioned before, the owner should create an actionable plan beforehand. It should include every aspect of the business from leasing, to interior design, management, marketing, local competition, etc. One of the best ways to start your journey is by creating a list of potential patients. It’s much better to create a buzz before you invest all this money. For starters, you can rely on family, friends, and friend’s friends for the initial revenues. Among others, your plan should include an exit strategy if anything bad happens.
While we can try and predict numerous factors, it is best to put them all on paper. Business plans are common for any business, and they are an excellent way to predict revenues against expenses. By using it, you can tell when it’s possible to start making profits. ADA Resource Center provides excellent templates for entrepreneurs, and we suggest you give it a try. You can also hire a financial advisor to help you out during this step.
You don’t have to go on this journey all by yourself. Instead, make sure to rely on the assistance of people with a good background. From building an office to creating a financial plan to performing certain tasks, you will need proper help. Some of the guys who can help you out are dental-specific building contractors (will create an office that is suitable for your profession), dental-specific lender (can help you find the best possible loan for dentists), specialized CPA, and dental equipment specialist. Like with any other business, if you manage to find enough good people, it will be much easier running the business and performing the best possible service.
It is rather easy to secure financing if you wish to open a dental practice. However, there are lots of factors that need to be considered when choosing the right loan provider. There is much more to these loans than the simple interest rate. Instead, you need to focus on your personal needs. The most important elements of a loan include the interest rate, pre-payment, loan duration, lender service levels. Each one of these factors is important when deciding which lender to choose. If you have previously hired a financial expert to help you out with the business plan, it might be a good idea to ask him or her about the loan.
Needless to say, your ability to get a loan will depend on your credit score. Almost every aspect of a loan is affected by this score. For example, you might not even be able to get a loan in the first place. Other things, such as interest rate and the money you can get, will also be affected. If you are a young dental expert who has just finished education, it is a good idea to ask one of your family members to take a loan for you. It is not an ideal situation, but given that most young people have a bad credit score, it beats the alternative. Otherwise, there is a chance you will get a loan that doesn’t suit your needs, or that will be much costlier than you previously imagined.
Now, we don’t want you to go back to college. However, you will still have to learn a bit about basic business principles. This will help you not only when you start the dental practice, but will also be beneficial later on. Given that the whole process of starting a business can take a while (especially if you need to redesign space), it might be wise to enlist in some private courses or to find a mentor that will teach you the basics.
We always suggest our clients to focus on dental marketing. Given that Dentie Leads have worked with numerous dental practices all across the USA, we are aware of the importance of marketing and in particular, digital marketing. If you want to start your business the right way, it is necessary to hire a dental marketing consultant. This might seem like an unnecessary risk (especially given that you will already be indebted), but by promoting your office, you will be able to start making money quicker, thus paying off debts sooner.
Staying on budget is one of the easiest things in theory, but in practice, it will undoubtedly cause you a lot of headaches. Once you start spending money on renovation, decoration, equipment, and supplies, you will quickly realize there is always a way to improve things. Whether we are talking about some cool software or small details to your office, it will be very hard to stay on the budget. You need to decide what is important and whether this change will lead to an increase in revenues. While this might be hard (especially if this is your first enterprise), it is something that can and should be done!
People who are full of enthusiasm find it hard to see in the future. Even if they need to predict things several months ahead, they are led by blind optimism preventing them from making the right decision. This is especially true when it comes to personal finances. While debt is something you can count on, it is much more important to establish how long can you leave without making profits. Lack of funding can cause a sudden fall of a company. Try to predict when will you start making a profit and whether you can hold on until then.
Even before you open the doors to the public, you will feel a bit stressed out. It is normal. Unfortunately, getting too stressed can be counterproductive. As someone who does work with hands, you will have to be relaxed and precise. Otherwise, you will lose the clients that you don’t have. So, try to enjoy this journey and take it for what it is: a great dental adventure!
With these dental practice startup tips, you can easily remove the biggest obstacles.
Dentie Leads has extensive experience helping new dental offices. We are masters of marketing, and we can definitely give you a few good tips. Don’t forget to give us a call!
30 November 2019
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Dentie Leads is a dental marketing company that serves dental clinics across the USA. We help dentists grow and their practice by providing high-quality dental leads on autopilot. We have over a decade of experience in dental SEO, Facebook ads for dentists, email marketing, and content writing.
DENTIE LEADS LTD
Address: 196 Woodside Drive, Orange Park
United States Of America
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