The Ultimate Guide to Starting a Dental Practice in 2025

Key Takeaways

• 2025 is a great time to start a dental practice, with advancements in technology and a consistent increase in patient demand within the industry.

• When starting a new dental practice, it's essential to lay a strong foundation by defining your vision, conducting market research, and writing a comprehensive business plan.

• Consider how to develop your services by taking into account factors such as your target audience, location, office layout, and technology.

• You will need to carefully prepare for financing your practice, meeting legal requirements, and staffing necessary positions.

Why Start a Dental Practice in 2025?

Starting a dental practice can be a valuable and rewarding journey for experienced dental practitioners. By opening your own practice, you gain the opportunity to work in an area of the field that you are most passionate about while also providing a valuable service to your community.

Meanwhile, 2025 is an excellent time for opening a dental practice, as patient demand is facing steady growth, and the technology now available makes opening a strong dental practice more accessible.

However, starting any business is hard work and requires a lot of reflection to determine your business model, who your target audience will be, and how to best serve your target demographic. This guide outlines all the important steps and considerations to factor in when starting a dental practice.

Laying the Foundation for Your Dental Practice

Setting the foundational vision for your practice will be crucial for understanding how to move forward in your pathway, so be sure to take the below steps seriously.

Define Your Vision and Goals

Defining your visions and goals will help to guide your next steps and set the foundation for your entire action plan. Understanding tangibly what you want your practice to accomplish will allow you to build out tangible steps to grow it.

In this process, consider the following questions:

• Are you interested in opening a private or a group practice?
• Who is your target patient demographic? (ex. Children, elderly adults, a specific income bracket)
• Will you specialize in a given area? Like pediatric, cosmetic, or general dentistry?

Your answers to these questions and your overarching goals will guide you through the rest of the process. For example, your vision will guide what licensing you need, the staff you hire, and how you connect with your target audience. Be sure not to overlook these questions and fully flesh out your vision before getting started.

Market Research

In creating or growing any new business, it’s good practice to do market research so that you understand the needs of your target audience and what you can do to meet them. This research provides a foundation for how your practice can stand out and offer true value to those in your community.

In your market research, consider the following strategies:

• Competitive analysis – Conduct a detailed analysis of the competitors in your market, what patients they attract, and where you can provide unique value in comparison.
• Community needs assessment - Work to understand the needs of your community and whether your practice is equipped to fulfill those needs.
• Location feasibility study – Consider the feasibility of the location and whether your practice is in a reasonable location.

You can conduct this market research through strategies like local focus groups, social media listening, researching competitors and their reviews online, and tabling at local events. Engaging with your community face-to-face through strategies such as attending local events is also a great way to connect directly with those you look to serve.

Writing a Business Plan

Having a comprehensive business plan is crucial for guiding your business forward and outlining your next steps. You can find many templates for a business plan online based on what seems most helpful to you. These plans will help you clearly lay out your goals and the steps needed to achieve them.

When you write your plan, you should include the following:

• Executive summary of what your business is
• Marketing plan for promoting your business
• Financial projections
• Operations plan for patient flow

Having a strong business plan helps guide you through every step in growing your practice by providing a clear roadmap. It also ensures you have a point of reference for your goals, timelines, and expectations so that you can hold yourself accountable.

Legal and Financial Preparation

Opening up a dental practice comes with significant legal and financial ramifications to consider.

Legal Structure and Licensing

There are two key parts to the legal element of establishing a business. First, dental practices must ensure they meet the detailed legal standards for becoming a business. Second, as healthcare providers, dentists must meet strict requirements for legal compliance and licensure to best care for their patients.

Check all local legal requirements to ensure your practice is in compliance with all requirements. Meanwhile, for compliance with dental-specific requirements, providers should:

• State dental license – All dentists and hygienists must hold valid state dental licenses. These requirements vary by state, so it’s crucial to check with your dental board.
• DEA license – A healthcare facility, like a dental practice, that will handle controlled substances will need to register with the Drug Enforcement Administration (DEA).
• OSHA compliance – A dental practice must also comply with Occupational Safety and Health Administration (OSHA) standards for workplace safety, which include protocols for bloodborne pathogens and employee training.
• HIPAA compliance – Dental offices must have clear strategies in place for complying with patient privacy.
• National Provider Identifier (NPI) – Obtaining this PIN number helps to identify your practice in various transactions and maintain uniformity.

These are the general requirements that most providers must consider. However, it’s advised to review state and local laws to be certain that you meet all requirements for the state dental board for opening a business in your jurisdiction.

Securing Financing

The cost to open up a dental practice in 2025 can range anywhere from $200,000 to $500,000, depending on the type of practice you are looking to open and the location you’re interested in. These costs will include a long list of needs, including property rent or mortgage, dental equipment and technology, employee payroll, utility bills, and marketing costs.

Given the high costs of opening a practice, securing financing will often be one of the most significant challenges in your journey. Having your financing in good standing and having good credit will be an important element in securing financing.

Loan options will likely include:

• Traditional loans
• SBA loans
• Dental-specific lenders

Consider budgeting, saving, and investing early on in your vision so that you can begin building the capital necessary for growing your business. If you have the ability, it may be a good idea to continue working at a separate practice while you build out the foundational plans for your new practice.

Insurance and Compliance

Insurance and compliance with legal standards will be essential for ensuring your practice is operating ethically, responsibly, and effectively. You should have all the following before you open up your practice to protect your business, your staff, and your patients.

Consider some of the following needs:

• Malpractice insurance – Malpractice insurance covers legal defense costs in the event of lawsuits claiming negligence or errors in patient care and is beneficial to protect dentists acting with their best intentions while serving patients.
• Business liability and property insurance – These types of insurance cover risks like patients being injured on the property or damage to any of your equipment.
• HIPAA - Upholding patient privacy regulations set by the Health Insurance Portability and Accountability is crucial for protecting patient data and keeping confidentiality in all your record-keeping and communications.
• OSHA - Occupational Health and Safety Administration sets standards for ensuring you maintain a safe work environment for your employees and protect your staff.

When it comes to complying with legal regulations, a practice should not only adhere to these standards but also ensure that the full team is trained and well-versed in these procedures before opening. For example, training your whole team in HIPAA laws ensures that everyone handles patient information safely and upholds the necessary standards.

Location, Design & Equipment

The logistics of your dental practice will be essential for ensuring its success and meeting patient needs.

Choosing the Right Location

Choosing the right location for your practice will depend on the community you want to serve and where your practice will provide the most value. High traffic, metropolitan areas, residential, suburban areas, and rural areas all provide unique opportunities.

Consider some of the following factors as you make your decision:

• Accessibility and parking for clients
• Proximity to public transportation
• Number of dentists per capita in the area
• Zoning and leasing considerations
• Local competition from other practices
• Cost of living and rent

Often, it’s best to choose a community that you are familiar with, if possible, but consider looking into several towns or cities in your research. Conducting some market research will help you narrow down your ideal location.

Designing Your Office

Strategically design your office to create a positive and welcoming environment for your patients that is also efficient for your staff to navigate. The most difficult factor here is being able to balance both.

Designing the waiting room in a comforting and welcoming manner is valuable for easing a patient's nerves and giving them a positive impression when they first enter your practice. Then, in the patient care area, consider incorporating artwork, plants, and other decor to make the environment more pleasant.

Meanwhile, prioritize ergonomics, access to supplies, and space for movement for your staff in the back so that they can comfortably work. You should also consider the number of chairs, operating spaces, and rooms depending on the number of services you will offer and the number of patients you will plan to serve at any given time.

Consider working with a dental office designer to balance utility with comfort as well as with the interests of your target market.

Equipment and Technology

You will need to have all the proper dental equipment in order and prepared to serve patients when you open your practice. Your arsenal will need to include the basic equipment, like cleaning and examination tools, as well as advanced equipment like imaging and scanning tools.

Necessary equipment and technology will include:

• Dental tools
• Dental chairs
• Practice management software
• Computers
• X-ray machines

When you build out the technology inventory for your practice, you may choose to either start out with top-of-the-line equipment or start with the basics and slowly build up. Having the latest technology, like digital X-rays and 3D imaging, can help your practice stand out, but you may also consider growing over time by starting smaller and gradually acquiring more so that you can preserve your budget.

Hiring and Building Your Team

Your practice is often only as strong as the team of dental professionals you have to support it. When setting the groundwork for your practice, it’s crucial not to overlook the details necessary in the hiring and staffing process to ensure your operations function smoothly.

Filling Necessary Roles

Having strong and experienced staff is essential for providing exceptional care and building your practice’s reputation. Be sure to think about all the services you will offer at your practice and how many staff members you will need to meet your desired demand.

Be sure to fill these key roles:

• Front office staff
• Dental assistants
• Dental hygienists
• Associate dentists (if needed)

These positions are the most necessary for assisting patients on a daily basis. However, you may also choose to hire additional staff to support other office tasks, like an accountant, a payroll manager, or a cleaning team.

Recruiting and Onboarding

Successfully filling these roles will require strategic recruiting across a variety of potential platforms, including job boards, social media, and personal networks. It will be important to have detailed job descriptions that clarify your expectations for the position and what you are looking for in an ideal candidate.

Use both an initial interview and scenario-based interviews to assess candidates' fit in both skillset and personality. Once you have chosen the right hire, a thoughtful onboarding process should include a rigorous training program, providing all necessary legal paperwork, and establishing a plan for mentorship or ongoing check-ins.

Filling open positions with the right talent can be a challenge. Fortunately, a platform like Toothio makes it easier to fill roles when you need them most. With a network of skilled dental hygienists, assistants, and receptionists, you can turn to Toothio whether you need a shift filled from a same-day call-out or are planning for a spike in demand to fill either temporary or permanent roles.

Creating a Positive Culture

Developing a positive team culture will also contribute to the strength of your staff and overall success of your practice by ensuring staff morale and motivation to serve your patients are high. Establishing clear team values will help to ensure everyone is committed to the same goals, improving your ability to move in a forward direction.

Strong communication between the team helps to facilitate smoother workflows and can develop a culture of improvement. Consider a system where you have weekly full-team check-ins or ongoing 1-on-1s to keep your whole team on the same page.

Retention strategies and growth opportunities will also help to engage employees and offer additional fulfillment to their daily work. These strategies often include supporting professional development opportunities, like financing training and certifications. You should also be mindful of recognizing your team’s hard work and celebrating staff success through team call-outs or incentive programs to boost motivation.

Branding, Marketing, and Patient Acquisition

Branding and marketing will be integral to acquiring new patients, building the brand, and developing brand recognition. Having a memorable practice name and a strong logo are the key first steps to presenting yourself to consumers. Then, branding guidelines should also include factors such as fonts and communication style so that you can remain consistent from your advertising to your social media to the experience patients see in the office.

Important marketing steps include:

• Website creation and SEO
• Social media and online reviews
• Local advertising

Once you have attracted and acquired your audience, you’ll need to dial in how you will retain them and keep them coming back. Referral programs and loyalty incentives, like discounts for repeat customers, can also help retain your audience.

Above all else, it’s crucial that you strive to provide a consistently exceptional patient experience. Having an effective team that creates a positive environment for patients will be crucial.

Opening Day and Beyond

Opening day is an opportunity to generate and build momentum that is crucial to take advantage of. Upon opening your practice, you should consider the following steps.

Pre-Opening Checklist

It’s crucial that you take advantage of the momentum that opening day can bring. Before officially opening your practice and welcoming patients, you should move through a rigid checklist to ensure you’re adequately prepared.

Incorporate all the following steps in your opening checklist:

• Test all dental equipment functionality
• Assess staff training and knowledge of procedures
• Perform scenarios and dry runs to ensure staff are prepared for new patients
• Conduct a marketing push for your grand opening to get patients in the door

Taking the above steps will keep you on the front foot and prevent you from being caught off-guard after opening your practice. Keep in mind that starting anything new will come with growing pains, so maintain a positive mindset and be prepared to navigate challenges of unforeseen hiccups as you move through your initial rollout.

Launching Your Practice

Upon opening your practice, you should take advantage of the opportunity to engage your local audience and draw attention to your practice. Consider hosting an opening event, like a giveaway or open house, to give your community a chance to come into the office and get introduced to your team.

Advertising promotions can also get new patients in the door in the process. For example, offering a discounted rate for a first-time cleaning can help attract new patients who either don’t have a dentist or are looking for a new practice.

You may need to consider direct community outreach to reach new patients—you can do this through strategies like sending out mailers to neighborhoods in the area or tabling at community events and festivals. As you first launch your practice, you will need to be creative and consistent in order to build your audience.

Measuring Success and Scaling

Measuring your success is crucial for maintaining a benchmark for how your new practice performs and will allow you to determine how to improve or scale your business. Having pre-defined key performance indicators will offer insight into your operations, their effectiveness, and whether any improvements are needed. Consider key performance indicators for production, collections, and patient flow.

Examples of valuable KPIs include:

• Practice profits
• Annual patient value
• Patient chair time
• Doctor production
• Hygiene production
• Fee-for-service vs. insurance production

As you grow, every decision should be guided by these metrics as they will allow you to refine your processes, define business priorities, and inform dental practice growth strategies, like planning for expansion or offering specialty services. Use your data in combination with patient feedback to make continuous improvements to your practice.

Comprehensive Staffing Solutions from Toothio

Starting a dental practice is a time-consuming and comprehensive process, but it can also be an incredibly rewarding experience that brings long-term benefits. Having a strong staff goes a long way toward ensuring a successful practice launch and sustainable growth.

Toothio seamlessly connects dental practices with quality dental talent, including hygienists, assistants, and receptionists whenever they are needed most. Our network features only the most skilled professionals ready to fill full-time and temporary roles alike. Every professional is carefully selected and vetted by our team to help you fill open shifts for same-day call-outs or prepare for an increase in patient demand the following week.

Post open roles on Toothio and start filling your practices with qualified talent.