Why Dentists Want to Start Their Own Practice

Many dentists dream of owning their own practice. And while it can be tough and certainly stressful, it’s also incredibly rewarding.. Imagine calling the shots, setting your own schedule, and managing your own clinic, that’s the sweet side of being an entrepreneurial dentist. However, it requires a load of hard work, dedication, and money. 

I have spoken to many dental professionals over the years who have been wary about taking on the responsibility of buying or starting a dental practice. My advice is always to take the plunge if you have a desire to own your own business. Success and profits are far easier to come by if you are in charge of your own destiny. There are several reasons why this is the case.

In this article, we’ll dig into the entrepreneurial spirit of dentists, the steps to kickstart a private dental practice, and the ups and downs of being the boss in your own dental world.

The journey of a lifetime

Owning a dental practice is the most rewarding phase of your professional life. By providing essential health care and cosmetic dental treatments to the general public, you will grow as a dentist and help to build your community.

With your own practice, you are able to experience the rare thrill of establishing a legacy within the medical community allowing you to affect change on the ground-level of this amazing industry. Through your passion and dedication, you will build a practice that enhances the lives of thousands, while also providing for your family.

The rise of entrepreneurial dentists

Lately, there’s been a noticeable increase in a new breed of dentists – the entrepreneurial ones. These individuals not only have the necessary medical skills for their jobs but also a strong desire to kickstart and manage their own private dental practices.

Traditionally, being a dentist meant working in established dental clinics or joining group practices for a stable career. However, times are changing, and more dentists are embracing their entrepreneurial side. They want independence and the opportunity to build successful businesses on their own terms.

One key factor driving this trend is the changing mindset of dentists themselves. Many dentists now see the potential for personal and professional growth that comes with venturing into business. They’re eager to break free from the constraints of working for others and are adopting well-thought-out business models to achieve their goals.

Moreover, the digital age and technological advancements have played a significant role in empowering independent dentists. The availability of online resources, entertainment platforms, and marketing tools has made it easier than ever to reach and engage with potential patients, establish competitive specialties, and build a loyal customer base.

Furthermore, the evolving healthcare landscape creates new opportunities for dentists to offer specialized services and innovative treatment options, catering to specific niches and patient needs. As a result, the entrepreneurial spirit among dentists has intensified as they strive to distinguish themselves from competitors and provide unique value propositions.

In this article, we’ll delve deeper into the mindset and motivations of entrepreneurial dentists. We’ll explore the challenges they face, the strategies they employ to overcome them, and the valuable insights they’ve gained along the way. 

So, whether you’re a dentist contemplating starting a private practice or simply interested in understanding the entrepreneurial spirit in the dental industry, keep reading for an enlightening peek into the world of the entrepreneurial dentist.

What is your ‘why’?

As we mentioned earlier, many dentists who are buying or starting their first practice factor in a sense of legacy into their decision. Meaning, they want the ability to form a business – based off of quality and trust – that can stand even after they are gone. In fact, we’ve recently seen a huge upswing in family-owned dental practices going back generations for that exact reason.

Perhaps “legacy” isn’t your motivation though – maybe you simply want the ability to determine your own future, without having a “boss” constantly over your shoulder?

In order to begin a dental practice, or any business, it is important to examine your own motivations first. Only by understanding your motivations (your own “why”) will you be able to design your practice to facilitate those goals.

Have a good conversation with yourself and ask what your personal objectives are … Are they financial, or more about your quality of life (spending time with family, etc.)? Where do you want to take your practice? Who do you want to help?

Benefits of owning a dental practice

There are many answers to the question “Why do you want your own dental practice?” – and none of them are wrong. However, there are some crucial benefits to dental practice ownership that make it an incredibly enticing opportunity. Are any of these concepts a motivator for you?

You are your own boss

This is easily the most common answer we hear. When you own your own practice, you have the ability to control every aspect of the business – from staffing to the exterior bricks and mortar. You write policy, you determine the standard of care, and you are in direct control of the well-being of your patients. For those of us with the fortitude to shoulder these responsibilities, practicing ownership is a dream come true. Are you ready?

Build the work environment of your dreams

“Office politics” is listed as one of the top reasons for being dissatisfied at work. Through ownership, you can craft the work atmosphere that you’ve always wanted, with people you hand chose, working a schedule that you decided.

Earn more money

At this stage in your career, it should come as no surprise to you that the vast majority of dental practice owners earn more than their associates. By being your own boss, and potentially managing an entire team of associates, you will maximise your practice’s earning potential by servicing more patients without you having to personally do the work yourself!

Money may not be everything to a dedicated dental professional, but ideally, no one does all that training to settle for less than they are worth. I have seen dentists who are associates and struggle to live a comfortable life. This is not the case for dentists who invest in their own practice.

• Earnings are higher than for associates.
• Equity is always in place.
• Owning means that wealth can grow.

Who would not want to benefit from all of these? Many professionals already have them. At the time I am writing this, there are around 11,000 dental practices in the UK. The UK’s Dental  Industry revenue has grown at a CAGR of 2.5% over the past five years, to reach an estimated £7.2bn in 2023. The question I’m asking is, can anyone really afford to miss out on being part of this exciting growth industry?

Ownership = actual wealth

Having money does not make you wealthy. Wealth, actual wealth, comes from the ownership of assets, things that make money. Historically, the two most profitable assets to own have always been real estate and a business. When you own a dental practice, you actually stack these powerful investments on top of each other, giving yourself a “super asset”. This super asset will accumulate value over the course of your successful career, all while you are earning a significant income for your family.

Tax Benefits!

Business ownership comes steeped in tax incentives. These are benefits afforded to dental practice owners because they are providing a valuable service to their community. These tax-breaks allow you to free-up capital to reinvest in your business, further growing your assets. In fact, one of the most effective ways many of our clients have successfully grown their practice has been by simply taking all of the money they save in taxes, and immediately putting it back into their practice, thinking of it almost as an “automatic business savings plan”.

Click here to read our article on How can dentist reduce their tax legitimately.

Tax is an unavoidable burden for most people, but it’s possible to optimise a tax position by starting up a dental practice. I often find myself advising clients about the numerous tax deductions they are eligible for once they are running their own dental practice. These deductibles include:

• Staffing costs such as salaries.
• Insurance and banking and interest costs.
• Marketing expenses.
• Equipment.
• Energy and other bills.

It’s easy to see that all the important costs of setting up and running a dental practice are tax deductible. Take a look at the UK government’s website for the full list.

And those are only a handful of the hundreds of reasons why dental practice ownership is not only the “more fun” option, but also the most financially sound decision you can make.

Challenges and risks involved in starting a private practice

Lots of dentists who want to start their own private practices find the idea exciting. But, it’s crucial to understand the challenges and risks that come with taking on this entrepreneurial journey.

Money is one of the big hurdles. Starting a private practice involves costs like equipment, office space, staff salaries, and marketing. Finding funding or backers can be tough because banks might see dentistry as a risky business.

The dental market is also very competitive. Established practices and big dental chains may already have a strong local presence, making it hard for new dentists to attract patients. Building trust and a good reputation takes time and effort.

Another risk is the uncertainty of patient flow and income, especially in the early stages. It takes time to build up a group of patients, and dentists might face financial ups and downs. Economic factors, like recessions or changes in insurance coverage, can affect the profit of a private practice.

Click here to watch our webinar on financing your first dental practice.

Running a private practice means taking on different roles besides being a dentist. Entrepreneurial dentists have to handle tasks like administration, staff management, marketing, and following rules. Sometimes, balancing these business and clinical duties can be tough.

Also, the dental field is always changing. Keeping up with new technology, treatment methods, and industry trends requires constant learning. Falling behind could mean losing to competitors or offering outdated services.

Despite these challenges, many dentists are driven by a passion for giving personalized care and the freedom that comes with having their own practice. Entrepreneurial dentists can make their private practices successful by recognizing potential problems and creating a smart plan to overcome them.

Click here to read our article on 5 quick tips when buying a dental practice.

Essential steps to starting a successful dental practice

To create a successful dental practice, you need to plan and carry out some important steps. These actions lay the foundation for a thriving and profitable business in the competitive field of dentistry.

1. Do a Thorough Market Research: Before diving into the world of private practice, it’s crucial to do comprehensive market research. This involves studying the local dental market, understanding the demographics of the area, and identifying gaps or potential opportunities. By gaining insight into the needs of potential patients and existing competition, you can create a strategic plan that sets your practice apart.

2. Create a Strong Business Plan: A well-crafted business plan is a roadmap to success for any ambitious dentist. It outlines your goals, target market, marketing strategies, financial projections, and operational processes. A business plan serves as a guiding document that helps you stay on track, make informed decisions, and secure funding if needed.

3. Secure Adequate Financing: Starting a dental practice requires a significant financial investment. From acquiring equipment and technology to leasing or buying office space, there are various costs to consider. It’s essential to secure sufficient financing through personal savings, loans, or partnerships to cover these initial expenses and ensure smooth operations during the early stages.

4. Choose the Right Location: To attract and retain patients, your dental practice needs to be in the right place. Consider factors like accessibility, visibility, parking availability, and proximity to neighborhoods or other healthcare facilities. A convenient and easily accessible location can significantly contribute to the success of your practice.

5. Invest in Modern Equipment and Technology: In today’s digital age, staying up-to-date with the latest dental equipment and technology is crucial. Patients seek digital treatment options and a pleasant experience. Investing in advanced equipment, digital imaging systems, electronic health records, and other technological advancements not only enhances patient care but also improves efficiency and productivity within your practice.

6. Build a Strong Team: A successful dental practice relies on a competent and dedicated team. Hire staff members with relevant experience and expertise who share your practice’s values and vision. From dental hygienists and assistants to receptionists and office managers, each team member plays a crucial role in delivering excellent patient care and ensuring smooth day-to-day operations.

7. Implement Effective Marketing Strategies: Effective marketing strategies are essential to attract new patients and establish competitive specialties locally. Utilize digital and traditional marketing channels to raise awareness of your practice. Develop a professional website, use search engine optimization (SEO) techniques, engage with patients on social media platforms, and leverage online reviews and referrals to build a positive reputation.

By following these essential steps, aspiring entrepreneurial dentists can position themselves well when starting their own private practice. With careful planning, dedication, and a commitment to delivering excellent patient care, you can build a thriving dental practice that fulfills your entrepreneurial aspirations.

Click here to watch our talk from the 2022 BIDA Dental Showcase on Essential Ingredients for a Successful Squat Practice.

Resources and support for aspiring dental entrepreneurs

Starting your own dental practice might seem challenging, but there are ways to make it happen. Even though it’s not easy to run a successful dental business and be your own boss, there are resources and support networks that can help turn this dream into a reality.

One helpful resource for dental entrepreneurs is professional associations and organizations. They offer mentorship programs, networking opportunities, and educational resources tailored for dentists who want to start their own practices. Connecting with experienced dental professionals who have successfully ventured into entrepreneurship can provide valuable insights and guidance.

Continuing education programs and dental schools often provide courses and workshops on the business aspects of running a dental practice. These educational resources cover practice management, financial planning, marketing strategies, and other essential skills needed to thrive in the competitive dental industry.

Financial institutions and lending institutions play a crucial role in supporting dental entrepreneurs. Many banks and credit unions have special loan programs just for dentists, making it easier for new business owners to get funding for their practice. These institutions understand the dental business well and can offer valuable advice on financial planning and credit repayment options.

Online platforms and communities have become important resources for aspiring dental entrepreneurs. These platforms provide a space for dentists to connect, share experiences, and seek advice from others on the entrepreneurial path. Online forums and communities can be a source of inspiration, motivation, and practical tips to help aspiring dental entrepreneurs overcome challenges and stay focused on their goals.

Whether you’re looking to buy or start your first or next dental practice, Samera Business Consultants are here to help you achieve your goals and build your future. For those embarking on the journey of dental practice ownership, this guide hopes to set you on the path to your future in dentistry!

In conclusion, aspiring dental entrepreneurs should take advantage of available resources and support networks. By utilizing professional associations, educational programs, financial institutions, and online communities, dental entrepreneurs can gain the knowledge, guidance, and support needed to confidently embark on their journey towards starting a successful private practice.

Key traits and skills for success as an entrepreneurial dentist

Becoming an entrepreneurial dentist takes a unique set of qualities and skills to make sure you succeed in starting and running your own private practice. While being a skilled dentist is important, there are other traits that can make a big difference in creating a successful business.

First and foremost, having a strong sense of ambition and self-motivation is crucial. Starting a private practice involves taking risks and facing the challenges that come with running a business. It’s important to have the determination to explore new ideas, constantly seek improvement, and take your practice to new heights.

Effective communication skills are also essential. Building relationships with patients, staff, and other healthcare professionals is crucial for long-term success. Dentists with excellent communication skills can understand treatments, listen to patient’s concerns, and establish trust, leading to a loyal patient base.

Adaptability is another key quality for entrepreneurial dentists. The healthcare industry is always evolving, and being able to adapt to new technologies, treatment methods, and industry trends is crucial. Embracing change and consistently seeking out valuable opportunities for growth and improvement will set you apart in a competitive market.

Entrepreneurial dentists should also have leadership abilities. As the owner of a private practice, you will be responsible for managing a team of dental professionals. To build an effective team, it’s important to lead by example, delegate tasks efficiently, and create a positive work environment.

Another important skill for dentist entrepreneurs is financial acumen. Running a private practice involves managing budgets, tracking expenses, and determining the financial health of your business. The key to long-term viability is being able to use projections and financial data to make informed decisions.

Lastly, a passion for continuous learning and professional development is crucial. The field of dentistry is always evolving, and staying up-to-date with the latest research, techniques, and advancements is essential for providing excellent care to your patients. A commitment to lifelong learning will not only benefit your patients but also position you as a trusted expert in your field.

In conclusion, being an entrepreneurial dentist requires a mix of ambition, effective communication, adaptability, leadership, financial acumen, and a passion for continuous learning. By developing these qualities and skills, you can pave the way for a successful and fulfilling journey in starting and running your private dental practice.

Balancing the clinical and business aspects of running a dental practice

Operating a dental practice involves finding a delicate balance between taking care of patients and managing the business side of things. As an entrepreneurial dentist, your main aim is to give your patients top-notch dental care. However, it’s equally important to understand and handle the business aspects of your practice.

One major challenge in balancing the clinical and business aspects is making the most of your time. Dentists often find themselves torn between caring for patients and handling administrative tasks. It’s crucial to set up efficient systems and assign tasks to your team to overcome this hurdle. Hiring capable staff and empowering them to manage certain administrative duties can save your time for patient care.

Financial management is another vital part of striking a balance. As a dental practice owner, you need a solid understanding of your practice’s finances, including income, expenses, and profit. Implementing effective accounting practices, regularly reviewing financial reports, can help you make informed decisions and identify areas for improvement.

Marketing is where the clinical and business aspects intersect. While delivering excellent dental care is crucial, it’s equally important to promote your practice and attract new patients. Developing a comprehensive marketing strategy that includes both online and offline methods can help you reach your target audience and set your practice apart from competitors.

Staying up-to-date on the latest advancements in dental technology and methods is essential for both business and clinical purposes. Investing in state-of-the-art equipment and ongoing education for yourself and your staff can improve patient satisfaction, enhance clinical outcomes, and ultimately contribute to the success of your practice.

In the end, to balance the clinical and business aspects of running a dental practice, dedication, strategic planning, and a willingness to adapt to industry changes are essential. By effectively managing your time, finances, marketing efforts, and staying current with industry advancements, you can thrive as an entrepreneurial dentist, providing outstanding care to your patients while growing your practice.

Is owning a dental practice worth it?

Whether you are buying your first or next dental practice, ownership of your own dental practice is one of the most rewarding experiences that the medical industry can provide. Being able to offer essential dental care and treatment to your community will be as rewarding you to personally as it is to the public. 

As long as you can attack your new platter of responsibilities as a business owner head-on, you should answer the question above with a confident, “absolutely.”

However, owning your own dental practice requires many, often tedious, tasks that are as confusing as they are strict.

Are you ready to start your own dental practice?

When you own a practice, you need to be good at many things other than dentistry. You may need to deal with complaints, sickness, CQC, Health and Safety, debtors, invoicing, marketing and all of the other trappings of owning and operating your own successful dental practice.

Ask yourself and be honest, do you have the skills to manage these tasks?

As long as you are straightforward with yourself about your skills as well as your limitations from the beginning, you will go far as a dental practice owner with a career hopefully spanning decades.

Our Expert Opinion

“Over the years I have helped many dentists start their own dental practice, primarily because they want to practice the way they want to. This may mean they will over the short term earn less, but over the longer term, they will be able to provide the level of care they want for their patients.

In addition, whilst starting and running a practice is not an easy option it provides them with the real satisfaction of controlling their own destiny. This means setting up in a location they desire with the design and equipment of their choice.

This can be liberating for many dentists, whilst at the same time challenging, but all very achievable.

From my experience most dentists who start their own dental practice rarely look back, and usually wished they had done it earlier in their career!”

Arun Mehra FCA

Samera CEO

You can book a free consultation with Arun here.