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What Are the Real Costs to Start a Dental Practice? Here’s What Every Dentist Should Know
What Are the Real Costs to Start a Dental Practice? Here’s What Every Dentist Should Know
If you're planning to open your own dental practice, you're likely asking one big question right now: how much does it actually cost? You’ve probably heard everything from $350,000 to over a million dollars—and like most things in dentistry, the real answer is a little more nuanced.
After helping guide hundreds of successful startups, I can tell you with confidence: your dental practice startup costs will not hit seven figures if done properly. But that doesn’t mean this will be a small investment either.
Opening a dental office is one of the biggest financial decisions you’ll make in your career. And the truth is, the number is only half the equation. What really matters is what that number includes, what it supports, and how well it aligns with your long-term vision for ownership.
The Average Cost to Open a Dental Practice
Most single-doctor practices with five operatories and leased commercial space fall somewhere between $550,000 and $750,000. That’s the average range we see consistently across the country.
For some dentists, this feels like a relief—especially if you’ve heard inflated numbers tossed around online. But for others, it’s still a hefty number.
Let’s break it down so you can see where that money actually goes.
Where Does That Money Go? Cost Categories at a Glance
Here’s a simplified budget snapshot for a typical five-op startup:
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Construction (leasehold improvements): $240,000
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Equipment, supplies, IT, software, and furniture: $190,000
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Working capital (marketing, payroll, legal, website, rent, etc.): $70,000
That brings your total to about $500,000 to $750,000, depending on variables like region and square footage.
The Two Biggest Factors That Influence Your Budget
Wondering why there’s such a wide cost range? These are the two most significant factors that affect startup costs:
1. Region
Building in a lower-cost area can reduce expenses by up to 20%. But be careful. The region must match your growth goals and patient demographics. A cheap location with poor long-term potential is no bargain—it’s a long-term liability.
2. Square Footage
Want to cut costs quickly? Shrink your floor plan. But before you do, make sure it aligns with your clinical goals. If your vision includes five operatories and future growth, don’t paint yourself into a three-operatory box just to save money now. That short-term decision could limit your long-term success.
Your budget should reflect your vision, not just your fears about cost.
Why Cost-Saving Alone Can Backfire
There’s a big difference between wise budgeting and cost-cutting for its own sake. Choosing the cheapest contractor or smallest space might look good on paper—but if it restricts your clinical flow, impacts your brand experience, or stifles growth, you’ll end up paying more in the long run.
The smartest practice owners don’t just chase low numbers. They align their budget with a proven strategy and a clear practice vision.
How to Afford a Dental Startup—Even If the Price Tag Seems Intimidating
Here are three key strategies we’ve seen help doctors afford their startups confidently:
1. Choose the Right Lending Partner
Not all banks are created equal. The right bank understands dental startups and will structure your loan to match your timeline and practice goals. We’ve seen too many doctors get stuck with the wrong lender, which can mean higher initial payments, slow vendor disbursements, or even roadblocks to future practice sales.
Fun fact: banks love dentists. It’s one of the lowest-default industries they lend to. But don’t let that work against you—some banks are offering terms that sound great at first glance, but ultimately limit your flexibility. Choose a lending partner, not just a low rate.
2. Build the Right Team Around You
You’re not just hiring staff—you’re building an execution team. This includes your contractor, legal and financial advisors, equipment partners, and practice development consultant. The wrong builder can derail your timeline and budget. The right team will keep you on track, on budget, and in alignment with your vision.
3. Start With a Solid Business Plan
This is your playbook. It should cover everything from your financial forecast and growth strategy to your patient acquisition plan and hiring roadmap. A clear, detailed business plan isn’t optional—it’s a must-have for success. It’s also a powerful tool for securing financing and aligning your entire team.
How Affordable Is a Startup Practice, Really?
Here’s a surprising stat. We’ve helped doctors across the country open a fully equipped practice—with construction, equipment, marketing, and payroll included—for what amounts to the production of six crowns per month.
Let’s say you collect $600 per crown. Multiply that by six and you’re at $3,600. The average monthly loan payment for a startup practice we’ve helped structure? About $3,582.
That’s the math. Six crowns a month can cover your entire monthly loan payment.
If you’ve ever thought this was out of reach, think again. The right plan and the right loan structure make practice ownership more affordable than most dentists realize.
What to Watch Out For
Startups aren’t without challenges. You’ll need to manage construction delays, vendor coordination, and cost overruns. But the doctors who succeed aren’t the ones who avoid problems—they’re the ones who prepare for them and have the right team guiding them through.
Your Practice Should Be Built Around Your Vision
If you build your practice around your long-term goals—clinical quality, lifestyle, income, and fulfillment—you’ll create a business that delivers on every level.
It becomes more than a building with equipment. It becomes an extension of who you are, a platform for patient care, and a source of pride and purpose.
Ready to Take the Next Step?
If you're serious about starting your own dental practice and want to explore what that path could look like for you, let’s talk.
Learn more about our process and apply to work with our team through the High Level Consulting Program. We only work with a small number of dentists each year, and we'd be honored to help you build your dream practice the right way.
You only get one chance to open your first practice. Let's make sure you do it right.