We are looking at 10 tips to run a successful dental practice.
3. Prepare a plan to secure your finances
It is a very vast topic to discuss and requires a separate article.
However, I will try to cover the essential points within the scope of this article.
Starting a dental practice involves many financial aspects.
However, when starting a dental practice the most important financial aspect is taking a bank loan.
Bank Loans: If you are planning to take a bank loan to start your dental practice, then you have a difficult choice to make. You have to consider the banks that provide you a credit at a lower interest. However, the interest rate is not the only factor to consider. What are the points to consider when taking a bank loan?
- Interest Rate: The most important point to check first. Your goal should be to get a loan from the best bank you can manage at a lower rate. So locking in a competitive fixed rate for the next seven to 15 years is your best option.
- Loan Term: While taking a loan you should consider the most extended loan term available (around 10 to 15 years). Breaking the credit for longer years will lower the payments. If your dental practice keeps pace and shows growth, then you have the option to prepay the entire loan in short segments.
- Pre-Payment Option: Pre-payment options vary from lender to lender. Loan prepayment terms are less important in the early years as you open and build your practice, but pre-paying your loan may become an option after your practice is no longer considered a start-up and is looked upon by lenders as an established practice. However, this will again vary from bank to bank.
As a dentist how can you manage your money and profits? You can read this article for the detailed information:
After bank loan, the next financial point to take care is insurances. It is very crucial for the economic safety of your dental practice against damages & litigations. We have previously published a detailed article discussing the various coverages that a dentist can use. You can read the article here:
4. Have a Business Plan & Improve Your Business Acumen
Managing a dental practice has two aspects to it. One point is treating the patients and providing them excellent dental care. The other side of dental practice management is the business aspect of it.
In fact, the business side of dental practice management is as important as the treatment side of it. Many experienced dentists have asserted that the business aspect is the most important.
Why is the business aspect of dentistry so important?
- For success in the long run, the dental practice must show a financial profit every quarter or month.
- Just like any other business venture, a dental practice needs to update and upgrade with the advancements in dental science. For that, your dental practice must have profits.
- Every business in the world that is successful has a plan for expansion. Similarly, if you practice gets successful, then you might want to open multiple branches at different locations. You will also need to hire qualified dental professionals.
The professional career of a dentist goes through 5 phases. Each phase has its demands and requirements. To successfully navigate through all these steps you need need to understand the business concerning all the stages in the career of a dentist.
You can read the article below for detailed business aspects related to all the 5 stages of dentistry.
Improve Your Business Acumen
Dental schools teach us dentistry. However, very few dental schools try to provide the business acumen to the young graduating dentist. Moreover, when that young dentist comes out from the enclosed ecosystem of dental school to the highly competitive world of professional dentistry, he finds it difficult to adjust.
In my opinion, every dental school in the world must have dedicated courses on
- Business Practicality for dentists: Where in they are taught all the practical business aspects of setting up a dental practice.(about the 5 stages of dental career)
- Business Sense/Acumen for dentists: Where the young dentists are taught the business sense of dentistry.
- Business relation-building: Connect with your fellow senior dentists who have been practicing for some time now. They are currently living the dream of having a successful dental practice which you also aim to have in the next few years. Approach them with proper respect, and you will be surprised how willing they will be to share their experiences with you.
So, what are the most prominent points of business acumen about dentistry? Read this article to know about the most practical dental business points.
See Next Slide: for the next two points needed for starting a dental practice
Point #5. Keep a Strict Control on Your Debt
Point #6. Act as per the Professional Stage