Are you planning to start or open a dental practice?
Starting a practice should be an enjoyable and thrilling step forward in your career as a dentist. With the right planning and methodology in place, opening a new practice can be just that! With 20 years of experience working with startup dentists, Cirrus has developed a “Practice Startup Guide” to lead you through a painless and stress-free startup, detailing out the necessary steps and building blocks for success.
Step 1: Create a Business Plan
Begin the dental practice startup process by creating a business plan, including an outline of your goals and objectives for your new practice.
Step 2: Choosing the Right Team
Once you’ve outlined your business plan, it’s time to put a team in place to help make that plan a reality. Select an all-star team that you can trust and depend on, comprised of a dental office designer, dental equipment supplier, technology specialist, financial advisor, builder/contractor, accountant/CPA, and professional dental office lease negotiator.
Step 3: Dental Office Site Selection
In addition to selecting a solid startup team, the right location is crucial for the success of any dental practice, with a number of factors to consider in your search, including:
Step 4: Review & Negotiate the Offer to Lease or Letter of Intent
Once you’ve selected the ideal practice location, you will be presented with the Offer to Lease (OTL) or Letter of Intent (LOI) by the landlord, which is essentially the short form of the dental office lease. These documents outline the key lease terms for the property such as length of term, rental rates, commencement date, options to renew, tenant improvement allowances, deposits, etc. Work with your professional dental office lease negotiator for help with this critical step, ensuring that the final document aligns with your practice needs.
Step 5: Begin the Preliminary Office Drawings
Once the LOI has been finalized, work with your dental supply consultant and office designer to begin planning out your new office.
Questions for Consideration:
Step 6: Negotiate the Details in the Dental Office Lease
Once the preliminary designs are drafted up, the next step is having the details in the office lease reviewed and negotiated by a professional dental office lease negotiator. The lease is a much more extensive and in depth contract than the OTL or LOI, and is typically written in a very landlord-favored way. Landlords strive to increase the value of their properties by enforcing clauses in the lease that enable them to raise rent or prevent a practice sale from happening.
Important Considerations in the Lease:
Research and a thorough lease review and negotiation strategy are essential here as the lease dictates your responsibilities as a tenant to your landlord over the next 10 years; there is no room for error. Your negotiators will work with you to develop a customized negotiation strategy for improving your lease to ensure it meets your practice needs, and properly protects you from risk.
Step 7: Finalize the Site Design & Begin Construction
Once the details in the lease have been signed off on, the office design and improvement plans can commence. Work with your dental office design team to confirm the layout and design of your office, and finalize budgets. Finalize equipment orders, acquire the appropriate permits, and schedule the construction in the case of a ‘build-out’. Begin construction and/or renovations, and the delivery and installation of equipment.
Step 8: Preparing to Open
Prepare a marketing plan for your dental office, developing promotions and preparing the appropriate materials such as direct mail flyers, business cards, office signage, etc. Create a website, and consider email marketing and social media as methods to reach new patients and increase awareness. Ensure you are fully stocked with the appropriate inventory, and your new staff are prepped, trained, and ready to go.
Step 9: Open Your Doors
Opening day! Generate new patient traffic through hard-work, advertising and word-of-mouth.
About Cirrus
Cirrus Consulting Group specializes in helping dental professionals achieve favorable terms and rental rates in their dental office leases. We review the lease for risks and problem areas, and develop a customized dental office negotiation strategy to help our clients secure a lease that aligns with their goals, and promotes practice protection, security and success.
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