1. Demographics & market research
DO: Conduct thorough market research to assess the saturation of dental offices in your desired area. You want to be close to a 1:1200 dentist to population ratio. You can do this research yourself or hire a professional company to assist. Dentagraphics is what I found to be the most helpful. Some agents will pay for this service or dentagraphics will give a discount for using a real estate agent they have worked with in the past.
DON’T: Assume you can compete without differentiating yourself. If you’re entering a saturated market, make sure to stand out by offering services, technologies, or specialties that others don’t.
2. Location is key
DO: Choose a location that is near an anchor store like Costco or major retailers. If possible, situate your office within a half-mile of these high-traffic areas, even if the rent is higher. In the long run, a convenient location will bring steady growth.
DON’T: Settle for a neighborhood location that limits your exposure to only local patients. Being close to major shopping areas increases foot traffic and visibility.
3. Financing
DO: Approach multiple banks (3-4) for financing options. If one rejects you, don’t be discouraged – use offers from other banks to negotiate better terms.
DON’T: Accept the first offer without negotiating. Nearly every term in a loan contract can be discussed, from interest rates to payment schedules. Always read the fine print and request modifications to any terms that seem unfavourable.
4. Lease Negotiation
DO: Hire a good attorney to review and negotiate your lease. Include protective clauses for unforeseen circumstances.
- Sublease Options: Ensure you have the ability to sublease your space if needed.
- Build-out Clauses: Include who is responsible for improvements and whether any contributions will be made toward the build-out.
- Rent Abatement: Ask for a period of free or reduced rent, especially during the construction phase.
DON’T: Sign a lease without understanding all the legal obligations. Be wary of long-term leases without exit options.
5. Architect vs. MEP Engineer
DO: While you don’t necessarily need a dental-specific architect, make sure your MEP (Mechanical, Electrical, and Plumbing) engineer is experienced in dental offices. The MEP plan is critical for specialized equipment and plumbing needs. The MEP aspect is the heart of your construction documents – this needs to be correct. Make sure to get references from both the architect and MEP engineer before choosing who you want on your team.
DON’T: Overpay for a dental-specific architect. However, make sure to ask for the option to choose your own MEP engineer if needed. You can then refer to your equipment representative to help recommend someone they have worked with.
6. Equipment Selection
DO: Get quotes from at least three different equipment companies and evaluate the quality of their offerings. Arrange demos for high-ticket items like CBCT machines. Visit offices using the same equipment to see it in action and evaluate the images without enhancement. Try to physically see every piece of equipment you are considering. Hire your contractor to build custom cabinets, which are often far cheaper than purchasing dental cabinets from supply companies. Look for pre-owned equipment that can often be purchased at a fraction of the cost. Pick what works best for you and your budget.
DON’T: Rush into purchases or overpay. Don’t purchase equipment being recommended to you by the representative without doing your due diligence and getting feedback from those who have used it. You don’t have to buy all your equipment from one place. For example, you can get chairs and other equipment from one vendor and a CBCT from someone else.
7. Contractor Selection
DO: If your plans are accurate, a non-dental-specific contractor can execute the build. Be sure your plans are perfect and include all specifics to avoid issues. Ask for references before you hire. Ask if your contractor will do the prewiring for your IT. This will save you some money.
DON’T: Let fear-mongering force you into hiring a specialized dental contractor when your general contractor is capable of completing the job with well-defined plans. Don’t accept allowances on the bid; if you are providing that line item, have the contractor remove it from the bid entirely.
8. Management Software
DO: Opt for cloud-based management software for enhanced data protection and accessibility. Test various software options and ensure they integrate smoothly with your x-ray equipment. Try to schedule a demo to get real hands on feel for how the software works.
DON’T: Rush into a decision without fully understanding how the software fits into your daily workflow. Choose software that enhances efficiency and patient care.
9. Marketing & Website Development
DO: Start marketing your practice early, even before opening. Use affordable options for website development (spending $2,000-$5,000) and invest in high-quality photography and videography to make your website stand out.
DON’T: Sign long-term contracts with marketing companies or overspend on a website (e.g., $20,000+), especially if you’re a solo practitioner. Be cautious of companies requiring long commitments and charging more than $5000 for a website.
10. Staffing & Hiring the Right Team
DO: Start by hiring the right core team. Your initial hires, like your office manager, dental assistants, and hygienists, will set the tone for your office. Look for individuals with the right mix of professionalism, experience, and attitude. It’s often wise to invest in people who align with your office values and vision.
DON’T: Underestimate the impact of your team on patient retention and office culture. Poor hiring decisions can lead to high turnover, affecting patient experience and office efficiency.
11. Training & Continuing Education
DO: Invest in continuous education for yourself and your team. Keeping up with the latest technology, treatment techniques, and industry changes will ensure that your office stays competitive and offers the best care.
DON’T: Neglect team development. Proper training on management software, customer service, and new dental tools will increase efficiency and enhance patient satisfaction.
12. Legal & Regulatory Compliance
DO: Ensure your office complies with local, state, and federal regulations, including HIPAA (Health Insurance Portability and Accountability Act) for patient data protection, OSHA (Occupational Safety and Health Administration) for workplace safety, and dental board regulations. It’s also essential to maintain proper licenses, permits, and certifications.
DON’T: Overlook legal requirements or assume compliance is automatic. Non-compliance can lead to costly fines, penalties, or even suspension of your practice.
13. Insurance Credentialing
DO: Get credentialed with insurance companies before opening your practice. Credentialing can take 3-6 months, so start early to ensure that your office is in-network with major insurance providers when you open. I personally used Unlock The PPO and had a stellar experience.
DON’T: Ignore the importance of insurance credentialing. Many patients choose a provider based on their insurance network, and not being credentialed can limit your patient pool.
14. Budgeting & Cash Flow Management
DO: Plan a detailed budget that includes the upfront costs of opening your practice (construction, equipment, marketing, etc.) and ongoing operational costs (rent, salaries, utilities, supplies). Build a reserve fund to cover unexpected expenses.
DON’T: Overspend on unnecessary items early on. Cash flow management is critical in the first year, so avoid large expenses that don’t directly contribute to patient care or revenue generation. You can always purchase these items later.
15. Patient Retention & Follow-Up
DO: Create a solid system for patient follow-up, whether it’s for recalls, treatment reminders, or post-treatment care. Automated systems can help streamline this process and increase patient retention rates.
DON’T: Forget about follow-up communication after a patient’s first visit. Staying in touch through emails, calls, or text messages shows that you care about their long-term oral health, which builds trust and leads to referrals.
16. Technology & Patient Experience
DO: Incorporate modern technology to enhance patient experience, such as online scheduling, digital forms, and telehealth consultations. Patients appreciate the convenience and ease these technologies bring to their appointments.
DON’T: Ignore technology trends that can improve office efficiency and patient satisfaction. Failing to modernize can leave you behind competitors who are offering tech-friendly solutions.
17. Building Patient Trust
DO: Focus on building patient trust from day one by being transparent with treatment options, pricing, and expected outcomes. Offer multiple payment plans to cater to different financial situations.
DON’T: Rush patients into decisions or upsell unnecessary treatments. Establishing trust will lead to higher patient retention and word-of-mouth referrals.
About the Author
Dr. Irena Maredia graduated from The University of Texas Health Science Center in San Antonio, TX, and has been a dedicated practising dentist in her hometown of Sugar Land, TX, for 10 years. Passionate about advancing the field, Dr. Maredia continually shares her experiences and knowledge to help colleagues learn and grow. Her practice focuses on conservative treatments using biomimetic techniques. Dr. Maredia is committed to staying at the forefront of dental innovations by taking continuing education courses. She is a member of the Texas Dental Association and Academy of General Dentistry. She holds certifications in Sleep Dentistry, Cosmetic Dentistry, and management of oral facial pain making others.