The Costs of Starting a Private Dental Practice

The Costs of Starting a Private Dental Practice

Starting a dental practice isn’t easy. One of the main determiners of a practice’s success is the management of costs. There are two types of costs: the obvious costs and not-so-obvious costs. We will discuss both in this blog.

The Obvious Costs

These are the costs that you know you must deal with. These are the costs that most dentists understand they must plan for. Usually, these problems are the ones most effectively dealt with.

Lease and Renovations

A practice must be up to your preferences. When leasing office space, there are modifications required for a dental practice. Building these costs into a budget is something most dentists have a handle on.

Dental Equipment

Again, this cost is self-evident. A good practice must have current, up to date equipment. Most dental offices cycle through equipment as technology provides better, more efficient models.

Staffing

Finding great staff is difficult. Budgeting salary to attract the right people is very important. Make sure you invest in systems that help your staff perform to their highest capability.

Marketing

What’s the point of having a great practice if no one knows about it? Hiring proper marketing professionals ensures your practice will always be the talk of the town.

Operational Costs

These are the basic costs of doing business. Operational costs are overhead. They are bills like electricity, gas, water, etc.

The Not-So Obvious Costs

In dentistry, as with any other business, there are costs that you don’t think about until they arrive at your desk. Here are some of those not-so obvious costs.

Self-Employment Taxes

When you are paying yourself, you are under completely different regulations. There are great programs that will help you set aside money for your quarterly taxes and other payments.

Health Insurance

Many folks working for you expect health insurance and you need it as well. Shopping around for the right group plan helps you get a great deal.

Vacation Time

Every time you are away from the office, the office doesn’t make money. Factor in losses before booking those bucket list trips.

Retirement

Eventually, you want to stop working. Retirement is part of the deal. Make sure you sit down with a planner to see how much needs to be set aside to ride off into the sunset.

Repairs and Maintenance

Like anything, dental practices have things break. Make sure you have money set aside for routine repairs and maintenance.

Conclusion

Owning a dental practice is a very satisfying endeavor. Make the most of it by having a sound business plan that includes all of these costs.