The real cost of opening a dental practice

Before you decide to enter such a challenging venture, you must first understand how much money it requires. So, if you're planning on opening a dental practice, here are the costs you must account for.  

The Premises 

One of the biggest investments when opening a dental practice is the premises. Of course, the amount of money spent on your building will depend on the size and the location. Before jumping into a sale, make sure you receive plenty of quotes from different sellers, as you want to ensure your money goes toward the right place. 

It's not just the initial price of the building you need to consider, though – there is also the valuation and solicitor fees, which can total up to £18,500. 

Dental Equipment and Supplies

Unless you bought a fully equipped dental practice, you'll need to purchase all the equipment necessary for running the clinic. Dental supplies and equipment can quickly run up your outgoings, especially in the early days when you need to buy items like a reception desk, hygiene chair, dental chair, and compressor. In the end, all of the necessary dental equipment could total over £120,000. 

Hiring Staff

During the start-up, you'll need to think about building a team of accountants, dental engineers, and material providers, all of which come with their own bill. That's not even thinking about the team of people you'll need to hire to keep the clinic running throughout the day, like dental assistants and receptionists, whose salaries you must pay. 

Marketing 

The cost of your marketing will depend on how much you put into it. If you want large billboards and plenty of online ads, you'd be looking at a huge bill, but if you start with smaller marketing strategies, it won't cost you nearly as much. Either way, including marketing into your budget is essential, as, without it, you'll find few patients walking through your door. 

Ongoing Costs

The initial costs are hefty, and it doesn't end there – to keep your dental practice afloat, you'll need to keep paying for staff wages, insurance costs, equipment, and more. The average profit made by a dental practice in the UK in its first year is between £40-60K, so consider this when budgeting. 

How to Afford It 

All in all, you could be spending £250,000 just setting your clinic up; a price many people cannot afford straight up. Fortunately, there are finance packages for dental clinics that you can arrange via brokers to help pay for the set-up of your dental clinic. Remember - before applying for a business and finance loan, sketch up a reasonably detailed business plan to convince them that it's worth it. 

By knowing the real cost of starting a dental practice, you can make better financial decisions in the first few years.

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