For many dental professionals the goal is practice ownership, but when is the right time to start? Whilst there is no one-size-fits-all, there are some things you can assess before taking the next step. To make an informed decision, you need to consider your career stage, financial capabilities, and business skills - and the following tips can be a great place to start.
CAREER STAGE CONSIDERATIONS FOR OWNING A DENTAL PRACTICE
The dream of owning a dental surgery could be within reach no matter what stage of your career you are in. While many business experts and dental professionals will recommend having a number of years of experience under your belt before owning, it is possible to take on practice ownership early on in their career. It’s up to you whether you want to wait until you have some insights from working for others, or you launch straight in and learn along the way.
To be the owner and figurehead of a dental practice you need to be confident in your clinical skills. For many dentists, this can take 5-10 years to evolve and working for an established practice can be a great way to gain this confidence.
Working in someone else’s dental surgery is by no means wasted time. Many practice owners have reflected that working under another person’s management gave them the space to perfect their dentistry without the responsibility of owning themselves. So if you do choose to gain industry experience before owning, we have a few tips for capitalising on that time:
- Get to know your prospective patients,
- Build trust within the industry and with your patients,
- Establish a reputation for dental excellence.
Even though you might not be looking to own a dental practice in the immediate future, this is the perfect opportunity to develop a personal brand. Word of mouth is a powerful marketing tool, and if you are consistently delivering quality service, your future business will bear the results.
On the other hand, there are many cases in which owning a dental practice early in your career is a great option. If your plan is to begin small and steadily grow your business over time, starting the groundwork early can be a great way to go about it. Over the years you will learn the best ways to meet your patients’ needs and run a thriving business simultaneously. If you enjoy being challenged, now could be the right time for you to setup your own dental practice.
FINANCIAL CONSIDERATIONS FOR OWNING A DENTAL PRACTICE
Financial planning for a new business can be daunting. Establishing a dental practice requires a substantial investment which is often financed through a business loan. Healthcare-specific lenders or bank loans are the most common options. We recommend looking into lenders such as DLL who have 30 years experience in healthcare lending. And if you’re unsure about how much you’ll need to borrow, our team at Dentec are more than happy to provide a free, no-obligation consultation to discuss your unique situation and provide you with advice specific to your circumstances. Due to our experience in setting up dental practices, we have a lot of tips for financing a new dental practice.
However, having the money to setup your practice is only part of the story. We recommend developing a financial plan to ensure the business succeeds. While financial lenders tend to view dentistry as low-risk, that doesn't mean businesses should be unprepared. Successful companies will have thorough strategies for how to meet their financial objectives. Setting goals and being familiar with your expenses will allow your dental practice to prosper in the short and long term.
BUSINESS SKILL CONSIDERATIONS FOR OWNING A DENTAL PRACTICE
Many dental professionals are deterred from owning a practice because of the business skills it requires. We understand your concerns but can assure you that owning a practice without advanced business skills is possible, even if right now it seems overwhelming. If you have chosen dentistry as a career path you may have little to no experience in running a business. However, there are many successful business owners - dental and otherwise - that agree business skills are generally something you can pick up along the way. You don’t need to have a business degree to get started as a dental practice owner.
In order to increase your chances of success, we recommend you research the network you'll need around your business. This can include skilled professionals in accounting, business law, marketing, human resources, and business mentoring. Each business owner has their own set of needs, preferences, and strengths to bring to the table and your business plan should reflect that.
Determine what your non-negotiables are and what will make your practice stand out from the competition. Then leverage various resources to assist you in managing your patient database, receiving feedback, marketing your business, setting goals, and keeping your patients satisfied. When you have these fundamentals in place, as well as mentors, industry experts, and reliable staff you will be able to set yourself up for success.
So if you are wondering when the right time is to own a dental practice, the answer is likely to be sooner than you think. And while it can be tempting to rush in, we encourage you to delve a little deeper into what sets a great practice apart from the rest. Download our guide to setting up a dental practice for an informative summary of everything you need to know to get started. It covers the best ways to build trust with your clientele, how to market your practice effectively, and tips on maintaining a steady client base. Our team has helped guide many along their journey to practice ownership and is here to answer any questions you might have. Contact us for tailored advice and to learn more about our fitout services.
