Starting up in the Dental Industry

Whether you are recently qualified as a dentist or whether you have been working as an employee for a number of years, the time will arrive when you want to set up your own practice.

The first question to ask yourself is whether you want to purchase an already established dental practice or if you prefer to start a business from scratch? Both choices offer pros and cons, with the former bringing with it the big advantage of existing patients and the latter allowing you to build a practice exactly to your own liking and specifications.

If you opt to create a start-up here are six key areas you will need to take into consideration before moving ahead.

1. Business Plan

It is important for any new enterprise to create a business plan before it gets started. This will establish whether the idea is viable and it will form a framework for the venture in the first couple of years. If you are seeking any external funding from banks or other investors, such a plan will be a prerequisite.

A sound business plan should include the following areas: an examination of the state of the local market and competition for your services; costings for premises, equipment and staff; a sales and marketing plan; and finally financial information such as cash flow and profit and loss forecasts. If you don’t feel confident in each of these areas then reach out to find expert advice, even if it’s from business support helplines or your local chamber of commerce.

2. Business Structure and Legalities

The business structure and legal entity of your new enterprise will also need to be decided. Whether you set up as a sole trader or as a limited company will have a bearing on your tax liabilities and on how much personal financial risk you are comfortable exposing yourself to.

You also need to bear in mind the many regulations you will be required to meet in any small business, including: health and safety; fire regulations; building rules; and insurance cover for you both from a professional standpoint and for public and employee liability. 

3. Location

As with any business the location of your premises will have an impact on your future success. Naturally you need a building which will work for you in terms of consulting rooms and being able to incorporate all the necessary dental equipment. It will also help if your practice has visibility in the local area. The less passing trade you have, the more you will initially need to advertise.

4. Employees

If you are going to be an employer, and you probably will need at least reception staff and dental nurses, you need to consider payroll and issues of employment legislation. It is always wise to seek expert advice when it comes to creating contracts and where any disciplinary or grievance issues are concerned.

The staff you employ will greatly impact how at ease your patients will be, so you need to make sure background checks are carried out to ensure the people you hire are experienced, qualified and will be valuable additions to your new practice.  

5. Equipment and Supplies

Naturally, the dental equipment you need for your practice will eat into a large chunk of your budget. However, this doesn’t mean you can’t make savings in other areas. Shop around to get everyday supplies at the best prices and if you need to employ any contractors for maintenance work, get at least three quotes before you make a decision.

Consumers are also much more liable to choose businesses which demonstrate green credentials. This is good for the environment but also for your business as it can help save you money by lowering your bills.

6. Marketing                                                                             

Finally, once you have set up your practice you need to start winning clients. Initially marketing will be important to spread the word about where you are and what you offer. A website will be essential for getting found locally and any additional strategies you can employ such as social media and local newspaper advertising will be a boost.

As you get established word of mouth will be your biggest asset, so always ensure your patients have a positive experience with you, from the time they are greeted at the door, right through their treatment and aftercare. Customer satisfaction, and therefore personal recommendation, should be the foundation on which your business rests.