Are Dental Practices a Good Investment and How Do You Start One?

Are Dental Practices a Good Investment and How Do You Start One?

Many dentists and associate dentists are unhappy earning a salary and start considering starting their own dental practice. Running or investing in a dental practice is a good option for many reasons. The primary reason being dental practices are good investment opportunities. Like many businesses, it takes time for a dental practice to start off. However, if you have the resources to wait and have patience, the return on investment (ROI) is high compared to other medical practices.

Many dental associates make excellent investors and owners since there is a surge in the purchase of pre-existing dental practices. Dentists also prefer selling to associates since they already understand the field, have a good idea about patient history and understand the area’s demographics. Another reason that associates make excellent investors is that they understand the need for good quality dental equipment and prefer purchasing from a reputable dental shop online instead of settling for sub-par dental equipment and other machinery.

Many people also prefer starting their own dental practices and building their patient base from scratch. While this is a lengthier process, the returns on starting a practice are also higher. You would get a chance to build your brand and its reputation from scratch.

How Do You Start a Dental Practice?

While you may plan to start a dental practice, you should not get into it without planning everything in advance.

Have a Clear Business Plan:

As with any business or investment, it is necessary to have a business plan that outlines your goals, career-wise and financial. You should also keep these goals measurable and straightforward. Quantifiable milestones and goals are easier to assess than others. While planning a business plan, you should have a crystal clear understanding of your budget and overheads. Things like a cash flow statement, investments, resource allocation, and other financial metrics will help increase credibility with financial institutions and lenders. Your accountant will help you with the financial planning.

Your business plan should also have a comprehensive marketing plan and a baseline social media strategy. Understanding the advertising and marketing costs will help you compare actuals versus projected figures on conversion rates.

When making your business plan, it is also a good idea to consider how you will add

benefit and value to your patients. Investors and banks usually see several loans or grant applications a day. You should ensure that you keep your value proposition unique. Some things to consider as value adds could be:

  • Evening appointments
  • Emergency services
  • Walk-in safety regulations and hygiene
  • Children’s services
  • Disabled access or ramps


When considering starting a dental practice, you should consider costs before you approach the bank. The UK is gifted with many specialized accountants who concentrate on dental finance. You should book appointments and retain an accountant at the earliest to help navigate the maze of dental start-up costs and budgeting.

The large overheads usually are rent, utilities, staff salaries, and dental equipment costs for dentists. During set up, the expenses veer towards interiors, licenses (annual), building supplies and materials (if constructing the dental practice), and insurances.

While many of these costs are recurring, you should plan and budget all your buying requirements for up to 18 months. This limit gives you enough time to get the practice started and consider moving a bit close to breaking even.

Always ensure your tax and insurance is up to date. You should also speak to the accountant about any finance packages, allowances, or investment reliefs that you may be eligible for.


Once you have the business strategy and the finances rolling, you should consider the location of the practice. If you specialize in a specific dental treatment like paediatric dental care, senior citizens care, and so on, you should think carefully before choosing a location.

You could select a residential area for children, while for senior citizens, an easily accessible location near senior homes and care facilities would be ideal. Adding a ramp for seniors with mobility scooters will help get you more clientele.

When considering the dental practice location, you should also ensure no other construction sites, noisy areas, and other distractions. Considering the ease of access for your target audience will add relevance and value to your practice.

While selecting the location, you should also consider these aspects:

  • Adequate natural lighting
  • Nearer to popular places or public gathering areas like coffee shops
  • Fresh air access (windows, oversized doors, and more)
  • Building appeal (less clinical, more welcoming)
  • Parking slots

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.