How To Start A Successful Dental Business

April 02, 2022

Starting and running a successful dental business can be a daunting task, given the numerous moving parts of managing any medical practice. This is perhaps one of the main reasons why practice ownership among dentists has been reducing over the years. According to the American Dental Association, practice ownership among dentists in private practice has dropped from 84.7% in 2005 to 73% in 2021.

However, those who have been able to navigate the challenges that come with owning and operating a dental business have been handsomely rewarded. The average net income for solo dental practices was $170,160 in 2020, while group practices raked in an average of $865,988, according to the ADA Health Policy Institute's Survey of Dental Practice. In this post, we'll take a look at some of the key things you need to do to start and run a successful dental business.

Find the Right Location And Plan Ahead

The first step to starting a successful dental business is finding the right location. The ideal location for your dental practice should have a high population density and be easily accessible to patients. It should also be close to other medical practices to make it easier for you to refer patients.

After you've found the perfect location for your dental practice, the next step is to create a detailed business plan. A well-thought-out plan should outline your practice's goals, strategies, and how you plan on achieving them. This document will also be used to secure funding from investors or banks if you need to raise capital.

Set Your Dental Practice Apart From The Competition

Differentiating your practice from other dentists in your area is critical for success. There are many ways to do this, but some of the most common include offering unique services or niche treatments, having a modern and technologically-advanced office, providing an exceptional patient experience, proactively seeking referrals and reviews, and marketing it aggressively.

Having the best dental practice in town can't guarantee success if no one knows about it. Marketing your dental practice is essential to attracting new patients and growing your business. There are many different marketing channels you can use, but some of the most effective include online advertising, search engine optimization (SEO), social media marketing, and direct mail.

Ensure that you maintain an interactive, user-friendly website and a positive social media presence that resonates with your target audience. Your brand story, persona, and messaging should be consistent across all marketing channels. These strategic practices can make all the difference in attracting and retaining patients.

Provide Flexible Dental Financing Options

Dental services can be expensive for patients without dental insurance. This can be a barrier to treatment, especially for complex procedures. Offering flexible financing options can make it easier for patients to afford the dental care they need and want, which can be a game-changer for your business.

There are a few different ways to provide financing for dental services. One option is to offer in-house financing, which allows patients to make monthly payments directly to your practice. You can also partner with a third-party lender, such as CareCredit, which offers financing options for dental procedures. Another popular option is to offer a dental discount plan. This subscription-based service gives patients access to discounted rates on dental procedures. Patients pay an annual fee to enroll in the plan and then receive 10-60% discounts on dental services.

Invest In An Insurance Plan

The healthcare business carries humongous risks. You need to protect your business by investing in the right insurance plan. A comprehensive healthcare business insurance policy will safeguard you and your employees against risks unique to healthcare practices and operations, such as lawsuits, property damage, and business interruption. Some of the essential insurance coverage for healthcare businesses include professional liability insurance, which protects you against negligence claims, and workers' compensation insurance, which covers your employees if they are injured on the job.

You should also consider investing in a business owner's policy (BOP). This bundle policy typically includes general liability insurance, property insurance, and business interruption insurance. A BOP can save you money and provide peace of mind knowing your practice is protected from a variety of risks. The type of insurance you need will depend on the size and scope of your dental practice.

Invest In The Right Technology

The dental industry is constantly evolving, so it's important to stay up to date with the latest trends and technology. This will ensure you're providing the best possible care for your patients and staying ahead of the competition. Some of the latest trends in dentistry include digitization, 3D printing, same-day dentistry, and teeth whitening.

At the very basic, ensure that you've invested in a versatile dental practice software. This software will be your business backbone and will be used to manage all aspects of your practice, from easy-to-use patient scheduling and treatment planning to billing and accounting. There are many different options on the market, so it's important to do your research and choose the one that's right for your needs.

Another critical aspect of running a successful dental practice is hiring the right staff. Your team should be composed of highly-skilled and experienced individuals who share your vision for the practice. They should also be friendly and personable to ensure patients have a positive experience at your office. Ensure that you have a well-defined system that ensures that your staff is constantly upscaling their skills to match industry standards.

Starting a dental practice takes a lot of hard work and dedication, but it can be an extremely rewarding experience. By following these tips, you'll be well on your way to creating a successful and thriving dental business.

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