Are you wondering how much it cost to open a dental practice? If YES, here is an estimated cost of opening a dental practice.
If you are a dentist and you are interested in starting a business in the healthcare industry, one of the most preferred options is to open a dental practice clinic. With minimal startup capital, you can successfully launch your own dental practice clinic.
Starting a dental practice clinic is one of those businesses that require you to first look at the existing laws in the country or the state you reside in before going all out to start the business. This is so because there is hardly any country that does not pay serious attention to its health sector.
The health industry is usually highly regulated so as to guard against the infiltration of quacks or substandard hospitals, clinics, or health facilities.
The dental practice industry is a very thriving industry that rakes in a whooping sum of $129 billion annually with an annual growth rate projected at 3.4 percent, and interestingly, the industry is open to any aspiring entrepreneur who has acquired the required capital and business exposure.
Estimated Cost to Start a Dental Practice Business
When it comes to starting a dental practice business, one is expected to spend the bulk of the start-up capital on renting and equipping the dental clinic. Aside from that, you are expected to secure the required license and permits, pay your employees and utility bills.
In view of that, here are the key areas where you are expected to spend your start-up capital on if you want to start a dental practice business;
- The Total Fee for Registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of the dental practice- $3,580.
- The cost for hiring a Business Consultant (Writing of business plans inclusive) – $3,500.
- The cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $3,400.
- The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $105,600.
- The cost for dental clinic remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (stocking with a wide range of pharmaceutical items) – $50,000
- Storage hardware (bins, rack, shelves,) – $3,720
- The cost for dental / medical equipment – $150,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost of Launching a website: $700
- Miscellaneous: $5,000
From the rough estimate as listed above, you would need between $350,000 and $550,000 to establish a medium–scale but standard dental practice business in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers to go to the market or directly contact suppliers of the brand of dental equipment they would need to get the real-time prices of these items. The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Having said that, here are some of the general factors that will influence the overall cost of opening a dental practice business in the United States of America.
Factors That Will Influence the Cost Of Opening a Dental Practice Business
The Size and Capacity of the Dental Clinic
A major factor that will determine the overall cost of opening dental practice is the size and capacity of the dental clinic. For example, if you choose to start with a standard clinic and several staff members, you are expected to spend far more than those who intend to start from a small office and with one or two staff.
The Choice of Location
Another major factor that will determine the cost of opening a dental practice business in the United States of America is the location.
As a matter of fact, there are business consultants cum realtors who are specialized in helping people choose an ideal location for their type of business; a location that will guarantee profitability and to breakeven within the shortest time frame.
Your choice of location for your dental practice business determines how successful your business may grow. The truth is that the location you choose to open your dental practice business determines if you will be issued the required business license and permits. Government officials must first inspect your facility to be sure that it is located in the location zoned for such business.
Please note that in the United States of America, zoning violations and citations can be very costly for a business. It is always preferable to make sure you comply with all the zoning and land use laws before you choose a location for your business.
The Required Licenses and Permits
In the United States of America, you cannot open a business without first applying for the mandatory license and permits.
Though requirements vary from state to state, all applicants for dental licensure in the United States must meet three basic requirements: an education requirement, a written examination requirement, and a clinical examination requirement.
You would also need building license, zonal permits, and signage permits amongst others. As expected, these license ad permits cost money and it will influence the overall cost of opening a dental practice business in the United States of America.
In order to get the overall cost of licensing and permits associated with opening a new dental practice business in the United States, we will advise that you reach out to your county, city council, or state government to find out what you need to start your dental practice business. You also need to consider state and federal requirements.
The Type of Facility
The type of facility you want to run your dental practice business from is also a major factor that will determine the overall cost of opening the business. As regards the facility, you have the options of renting, leasing a facility, or designing and constructing your own facility from the scratch.
With renting and leasing a facility, you might just have to spend extra cost to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants.
Let us assume that you want to construct your dental practice business facility from the scratch. It means that you will buy the land or a property, bring up your design and construct and equip the facility. With that, you will agree that you are going to spend way more when compared to people that rent or lease a facility.
Additional Service Offerings
Another key factor that will determine the cost of opening and operating a dental practice business in the United States of America is the additional service offerings of the dental practice business.
For example, a dental practice business may decide to engage in providing independent specialized dental practicing, surgical oral and maxillofacial services, and prosthodontics (fixed and removable). This means that they will have additional facilities, equipment, and staff to handle this aspect of the business. In essence, some of the additional services you are going to be offering will cost you more.
The Cost of Hiring and Paying a Business Consultant and Attorney
As expected, if you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney.
A business consultant will help with drafting a workable business plan document, a marketing plan and strategy, a comprehensive SWOT analysis, and other advisory services that will help you with opening the business. Also, an attorney will help you with registering the business, drafting contract documents, and offer you all the legal expertise that will help you start the business on the right foundation.
You will agree that these services will cost you money and it will indeed influence the overall cost of opening a dental practice business in the United States of America.
The Cost for Branding, Promotion, and Marketing of the Business
The cost for branding, promoting, and marketing the dental practice business is yet another key factor that will determine the overall cost of opening a dental practice business in the United States of America. Trust me, if you need to win a fair share of the available market in your city, you must be willing to pay for effective branding, promotion, and marketing.
It is not cheap to come by an expert in branding, promotion, and marketing that will help you compete with brands that are already determining the market direction of the dental practice industry in your city. So, if you add the cost of paying a branding and marketing expert, it will surely increase the cost of opening your dental practice business.
The Cost for Furnishing and Equipping the Office
Another very important factor that will determine the cost of opening a dental practice business is the cost of furnishing and equipping the facility.
Before you can open a dental practice business, you should budget and buy dental and medical equipment and supplies, flat-screen TVs, sound system, DVD players, Satellite dish and decoder, internet facility, GPS tracker, office furniture (table, stools, and sofas), drawers and cabinets, telephones, filing cabinets, office equipment (cash register, security, CCTV, ventilation, signage), amongst others.
All these will cost money and it will influence the overall cost of opening a dental practice business in the United States of America.
The Cost for Insurance
The cost of paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a dental practice business in the United States of America. Interestingly, in the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your own dental practice business.
The Cost for Registering the Business
The cost of registering the dental practice business is yet another cost that will influence the overall cost of opening a dental practice business in the United States of America. Although the cost of registering a business is affordable, it will no doubt add to the overall cost of opening a dental practice business in the United States of America.
Sourcing Your Supplies and Ongoing Expenses
Another major factor that will determine the cost of opening a dental practice business in the United States of America is the source of your medical supplies and equipment. For example, if you have access to manufacturers of all the medical and dental clinic supplies you would need, it will sure cut down the cost of running the business.
Cost of Recruiting and Training Your Staff
The fact that you are opening your dental practice business as a new business means that you are expected to recruit and train your staff to conform to the kind of dental practice business you want to operate. The training will help you sell the corporate culture of your organization to the new employees.
It will cost you money to hire expert trainers that will help you train and bring your new hires up to speed and that will add to the overall cost of opening a dental practice business.
The Cost for the Purchase and Customizing of Uniforms
Another factor that will determine the overall cost of opening a dental practice business in the United States is the cost for the purchase and customizing of uniforms. Your staff (doctors, nurses, drivers, and assistants) are expected to have different uniforms and they are expected to wear these uniforms when on duty. All these uniforms will cost you money which is why it must be part of your budget.
Please note that there are other factors not listed above that will surely influence the overall cost of opening your dental practice business which is why we will advise that you work with a result-driven business consultant in your city to give you the needed guide and info as it relates to the unique factors in your location that will influence the overall cost of opening your dental practice business.