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  Congratulations! You've decided to take the plunge… or
            have you? Opening your own private practice can be a very
            exciting but also frustrating period, due to all of the time, paperwork,
            telephone calls and “blind” decisions that are involved.
            Remember, everything you do is a reflection of who you are, so,
            start early, stay organized and manage your time efficiently. Your
            practice will be an extension of you, your personality and your
            philosophies, so be creative, prepared, neat and professional in
            all that you do! 
 1. Choose Your Space and Location
 This is your initial vital decision! Your location will either
            make or break you. I would recommend getting on board with
            a commercial realtor in your area. Consider:
 
 
                2. Establish a Realistic Time FrameDemographics – You need to do your homework on your
                area. Look for growth, new neighborhoods, schools and
                shopping centers.Access for your patients – Is it near a major highway or
                intersection? Will they be able to find you easily?Visibility – Will there be a sign with your name and specialty
                on it?Parking – Will there be adequate parking for your team
                and patients? Your design and construction team will understand what is
            required to deliver a thoughtful and successful project. Listen to
            them! Plan ahead and establish a realistic time frame. Once the items in the pre-design phase are completed, I would plan seven to 10 months for the build-out of leased space and 12 to 20
            months for full building construction. Remember: Draft a realistic
            timeline for design and construction of your new office! Do
            not create additional pressure on yourself by trying to open too
            quickly. You can always open early if you get done sooner than
            planned. You are in charge!
 
 3. Contact a Dental Supply Company
 You need to choose your dental supply company carefully.
            Their goal is to establish a long-term working relationship with
            you while your goal is to find the best possible match with your
            practice. Consider if they will be supplying your dental equipment
            as well as your soft supplies, their reputation (talk to other
            dentists), their turnaround time for delivery of supplies and
            ask if they have a program to assist you in establishing your practice.
            Some companies have financial planners, loan assistance, a
            CAD-CAM program that will help you with your floor plans,
            elevations, etc. Also, ask if they will be available to be on site
            during the construction and installation phase.
 
 4. Begin Initial Lease Negotiations
 You will need to hire an attorney at this point. It is extremely
            important that you have a thorough understanding of your lease
            and all written paragraphs. Seek out an attorney who has experience
            with medical and dental lease negotiations. Remember that once you sign your lease, you are at the mercy of the landlord
            – for the entire period of your fully executed lease! Some items of interest:
 
 
                5. Develop Business Plan/Pro-formaLength of your lease.Up-fit allowance (aka “T.I.” or tenant improvements).Commencement date and certificate of occupancy. Ensure that you will not be charged rent if the build-out
                is not completed by the proposed completion date.
                What is yours? What is theirs? If any alterations or
                improvements are made to the office space, understand if
                it becomes the property of the landlord. Also, if your cabinets
                are built in, you may not be able to take those with
                you if you move.Fire and casualty damage.Insurance.Access.Sufferance rate.Relocation during build-out.Lease execution.Consumer price index (CPI). Basically this is additional
                rent that the landlord can raise you to. Ensure you have a
                ceiling of no more than three percent annually and not
                less than one percent.Common area maintenance (CAM). This is common
                space that has to be maintained, like hallways, building
                restrooms, parking lots, landscaping, snow removal, etc.
                Don’t sign a lease or close on a piece of property without an
                evaluation! There’s nothing more disappointing than discovering
                that the lease space or property you secured is too small to
                accomplish your office design goals – or worse yet, too large and
                more money than you needed to spend. Your business plan is developed to not only eventually guide
            you through your endeavors, but to initially assist you in convincing
            a bank to provide your financial banking. Remember
            that a banking institution may need to be educated on how
            profitable a dental practice can be. You have to educate them! A
            framework outline is given below:
 
                It is highly advisable to have a CPA or practice management
            consultant review your business plan with you. After modifications,
            they should be present during your interviews with all
            financial institutions for clarification and support.Executive summary (mission statement, purpose, the service,
                the market, competition, management team, financial
                information, conclusion)Statement of objectives and qualifications of principalsDescription of services to be offeredBackground of proposed businessMarketing plan (product, price, place, promotion – both
                internal and external)Business plan (goals, inventory, practice income, collections,
                fees)Loan proposalLoan itemization scheduleOrigination expenses (architect fees, legal, accounting,
                practice announcements, first months rent)Dental treatment/administrative expensesOffice space expenses (up-fit construction, working capital)Professional meetings (board review course, board exam, CE)Statement of personal net worthIncome projections for 36 months (profit/loss)Appendices (curriculum vitae, references, proposed floor
                plan, proposed building lease, tax returns, etc.) 
 6. Equipment Selection/Soft Supplies
 One of your largest expenses will be the cost of your dental
            equipment. It is imperative that you estimate as closely as possible
            the amount you will be budgeting for dental equipment and supplies. You will need this number when figuring your loan request.
            When meeting with your dental supply representative, plan to
            spend several hours ordering all of your supplies. Also consider:
 
                7. Develop Theme Office/SketchesYou need to decide if you will be purchasing, renting or
                leasing your equipment. Consider depreciation and business
                expense.Weigh the options of up-fitting all of your operatories
                now (possible discount) or later. Will your equipment be built-in? If you move, it might be
                considered part of your building and you cannot take it
                with you (check your lease).Coordinate with your architect, millwork, plumbing and
                electrical sub-contractors all necessary allocations.Consider your water delivery system – I would advise a
                self-contained water system, as the “dental water line contamination”
                issue is now upon us. This is where you can be the designer… and the doctor too! Let
            your imagination run free – you have to walk through those doors
            every day, so create it the way you want! You want your office to
            reflect a very comfortable, secure and up-to-date atmosphere.
 
 8. Line Drawings for Office to Architect
 It is vital that you convey to your architect your ideas and
            concepts. Be as specific as you can when it comes to details and
            images you want to see developed. Put onto paper as many pictures
            and ideas as you can. When you meet with your architect,
            explain to him what it is you do and the importance of carrying
            out your ideas to best represent what it is you are trying to
            achieve. Consider a curvilinear design (eliminate as many 90-
            degreee angles as possible). What is the best flow pattern for
            patients as well as your team? Remember to plan for the future!
            It is much more expensive to go back and redo than it is to plan
            ahead and be prepared. Most doctors outgrow their dental facility
            in less than five years. The culprit: short-term planning! The
            investment in a new office is too significant to ignore future
            needs. Before starting your project, consider these questions:
 
                I highly advise talking to as many people as possible and getting
            their input on your design. Here are a few ideas:How many operatories do you need today? In the future?How many administrative staff are in the business area
                today? How many do you anticipate in the future?How many doctors and clinical staff are in the facility
                today? How many do you anticipate in the future?What new technology do you anticipate introducing into
                the practice today? In the future?How does HIPAA affect how your office will be layed out?Where will all of the soft supplies be stored? (This is one of
                the biggest problem areas that gets minimized or forgotten.) 
                It is also important to remember that proper zoning ensures
            an efficient floor plan. The first key when reviewing the dental
            office plan is to verify that the zones of your dental office are not
            violated. In other words, spaces that are meant to be together
            (within one zone) are together – and spaces that are not meant
            to be together are not together. The zones of the typical dental
            office are:
            Treatment Zone: operatories, tray prep and sterilization,
            lab, imaging and X-ray.
            Public Zone: reception room, front desk and business
            area, consultation area, patient toilet.
            Private Zone: doctor’s office and toilet, team lounge and
            toilet, storage and dental mechanical area, server room.
            An easy way to identify the zone is to color code your floor
            plan, with each zone a different color. If a disparate color shows
            up inside the same color zone, you have identified a space that is
            “out of zone.” This signals inefficiency in your floor plan design.
            
            
            9. Secure Personal Insurance/Begin Underwriting ProcessColleagues – ask other dentists who are in private practice
                to look at your initial plans. Their experience is invaluable!Assistants and hygienists – have as many clinical team
                members from other offices evaluate your layout and
                patient flow. They are the ones who have to do the majority
                of the running in the office.Front Office Team – the administrative side of the practice
                is the most foreign to us as doctors. You must seek
                advice from as many front office team members as possible.
                They will advise you on what to do and more importantly
                what not to do!Friends – ask your friends what they like and dislike about
                their physician and dentist’s offices and reception rooms. The bank that will be backing your financial adventure typically
            will insist that they are named as the primary beneficiary in
            the unlikely event of your death. Therefore, you will need to
            secure enough personal insurance to cover your indebtedness.
            There are many insurance companies available who deal exclusively
            with medical and dental policies. You will need to begin the
            underwriting process for the following personal insurance (typically
            all of these can be offered by the same insurance person):
 
                10. Initiate Up-fit Bids on Office SpaceLife insurance – term or whole? Which is best for you at
                this stage in your life (based on age, etc.)?Disability insurance – monies paid to you monthly if you
                become disabled and cannot perform your job.Disability overhead insurance (DOI) – monies paid to the
                practice to ensure the office can continue to pay monthly
                overhead expenses while you are disabled.
                 Your commercial realtor should be able to recommend
            highly qualified general contractors to bid on the build-out of
            your office. Usually you will want to have three to five contractors
            bid against each other on the final cost of your build-out.
            This should take no longer than a week. Your commercial realtor
            will guide you through this process. Again, this is a vital dollar
            estimate that will be needed to help you decide on your final
            loan estimate. One word of advice: the lowest bid is not always
            the best choice. Visit other projects that each contractor has
            completed and interview the owner of each.
 
 11. Financial Backing From Bank/Lender
 You will need to interview several financial institutions. As
            mentioned previously, your accountant or practice management
            consultant should be present during your interviews with all
            financial institutions for clarification and support. Points of interest
            that you want to challenge the financial institutions with:
 
                Although most doctors prepare financial projections, many
            fail to include all project costs. Be sure to resource a knowledgeable
            expert for your financial assumptions. Overall project costs
            should include:Revolving line of credit – request that you only get
                charged interest on the money you use.Length of loan – usually this will be five to seven years if
                you are up-fitting in an existing building, based on the
                amount you borrow. This is the time they expect to have
                the loan paid in full. Interest rate – this should be discussed in detail and is
                negotiable.Interest-only payments – request to pay only the interest
                on the amount of money you have used from your line of
                credit for the first 12 months. This will give you time to
                generate an income base when the actual loan payment
                comes due.No penalty for early repayment – ensure there is no
                penalty for paying off your loan early!No co-signer – insist that you do not need a co-signer. There
                is no need to bring anyone else into the financial equation. 
                Consider the following formula:Hard capital costs: construction, land, landscaping, parking,
                etc.Soft capital costs: professional fees, new furniture, accessories
                and dental equipment (soft costs are usually about 25 percent
                of the anticipated construction costs of the building). Cost of function + Cost of aesthetics = Overall construction
            costs
 
 12. Attorney to Review Completed Lease
 Have your attorney complete final revisions of your negotiated
            lease. It is not uncommon for lease negotiations to exchange
            hands between your attorney and your landlord multiple times.
            At each of these revisions, make sure you understand what was
            changed, why it was changed and any implications this might
            have in the future. A word of caution: Be very attentive to the
            amount of time your attorney spends on revisions. This can
            become extremely expensive! Ask him/her for your approval prior
            to discussion with any other individual regarding your lease.
            Numerous phone calls, meetings, discussion, etc. between your
            attorney and another party can add up to a disheartening bill!
 
 13. Secure Office Insurance
 It is time to begin the underwriting process for your office
            insurance. Umbrella policies (where one company underwrites
            multiple policies) are usually more affordable. Shop around, as
            there are many companies to choose from. You will need to purchase
            the following types of insurance:
 
                14. Sign Building LeaseCommercial liability office insuranceBusiness personal property insurancePersonal property of othersPersonal property of premisesMonies and securitiesMalpractice insuranceWorkers’ compensation Once your lease is finalized, you will need to sign it and obtain
            a copy to be kept in a safe. Your space is now officially yours! No
            one can out-bid you and “steal” your office out from under you!
            Thank your attorney and write him or her a big ‘ole check!
 
 15. Sign Equipment List
 Sign your dental equipment and supply list. The equipment
            order can now be placed and you can begin to give your dental
            supply company some general dates when equipment should be
            delivered. Remember that some equipment can take longer to
            order, ship and install… so plan ahead!
 
 16. Secure General Contractor
 Decide on your general contractor and have an initial meeting
            with him to ensure all questions are clarified. Advise him
            that you would like to meet with him and any applicable subcontractor
            foremen who might have questions regarding a dental
            up-fit. Advise him you will be calling him to schedule a
            second meeting with all team players (architect, general contractor,
            dental equipment manager, etc.) He will have you sign a
            contract with him. Obtain a copy of this contract!
 
 17. Set Up Meetings
 Set up times to meet with dental supply companies, your
            general contractor, all sub-contractors (plumbing, electrical,
            millwork, etc.) architect, landlord and your team. Some areas of
            interest to discuss are:
 
                Points of interest to remember and discuss between your
            team members are:Imaging (radiograph) room must follow state radiation
                guidelines.X-ray controls must be located a certain distance outside
                of the room with a view window (lead glass).Special wiring to accommodate pan/ceph and intra-oral
                radiograph unit.Location of mechanical room (compressor, vacuum system,
                phone board, computer exchange board).Air lines run to sterilization and lab (hand piece for acrylic
                trimming, lab work, etc.).Water lines to lab for model trimmer.Plumbing, air, vacuum lines to each dental chair (core
                drilling through a concrete floor will be required).Recessed ultrasonic in sterilization and drainage.Any sterilization equipment that will be placed in vented
                drawers.Special orders for pediatrics (small sinks, urinals, short
                toilets, etc).Placement of master control switches for vacuum and air
                compressor. 
                18. Architect to Seal and Approve
            Plans/ElevationsOnce you feel you have designed the ideal operatory,
                “construct” the operatory from cutout cardboard including
                the dental chair, operatory and assistant stools, cabinets
                and counters. This will give you a chance to try it out
                for size and working space. Do not neglect this step if you
                are designing an area that is different than what you have
                used in the past! Ideally, a closed operatory should be 11
                feet x 11 feet if you utilize technology and plan to have
                seating for a guest in the room.Do not neglect ergonomics in designing your operatories
                and administrative areas. I would recommend working
                with someone who is knowledgeable on dental operatory
                layout, doctor, assistant and patient positioning.Make sure you have sufficient electrical outlets strategically
                placed.Plan which way the cabinet doors in the administrative,
                quiet room and treatment area will open. The “standard”
                way might not work for the assistant or receptionist. In
                some areas, you might not want doors on cabinets. Watch
                the swing of the cabinets and measure them to make sure
                they will not hit anything. Consider sliding cabinet doors.Remember to design signage for bathrooms and other
                doors and areas you need to designate.Place all light switches in the most convenient locations. Do
                a walk-through first before confirming the electrical plan. Dental software – make sure all of your video and audio
                is networked throughout your office. Almost all states will require that an officially certified architect “seal” your plans (his professional approval). Many dental supply companies offer to draw and design your office on a CAD/CAM machine and can even print out realistic “blueprints,”
            but these are not “official” by the state. You will have to
            have your architect makes these “official.” Make certain all cabinetry
            is drawn as you have requested. If uncertain, have your
            architect draw a schedule or detail of it. Once it is in the field, it
            is up to your general contractor to interpret, which can be risky!
 
 19. Up-fit Construction
 On average, the internal build-out of an office space in an
            existing building should take no longer than three to four
            months to complete. The dental equipment and chairs can be
            installed in less than a week. I cannot stress enough to try and
            be onsite with your general contractor as much as possible. I was
            there almost every day! So many minor changes can be made in
            the field that will save you much headache and expense down
            the road. Your contractor will have many questions to ask/confirm,
            and it is important for you to be right in the middle of it
            all! You know how you want your office to look, so ensure that
            every detail is how you want it. You have to walk into this office
            every day… make it the way you want it from the beginning!
            Common items missed that are costly to fix:
 
                20. Interview Staff/Secure Office PersonnelDoor locations and the direction they swing.All outlets are in correct location (consider all below
                counters with drop grommets, any above counter should
                be horizontal and not vertical).Location of all light switches and are three-way switches
                in the correct location?Counter heights: seated counter height, transaction ledge
                height, standing counter height, sink height..Computer monitors mounted on wall and cabling chased
                below counter to hard drive.Flat screen TV’s reinforced wall mounting with power and
                networking cabling behind.Outlets for microwaves, dishwashers, refrigerators, crock
                pots on an island in the kitchen for buffet service.
                 Computer/phone/network close to desk layout in consult
                rooms, doctors’ offices, etc. It will be up to you to interview and hire your initial team.
            I hired my practice administrator first, so that the front was covered
            while I was my own dental assistant for the first few
            months. This way, someone can answer the phones while you
            are producing!
 
 21. Marketing of Practice
 Approximately six weeks prior to opening your office you
            will want to send a letter introducing yourself and announcing
            your practices’ opening to the following groups:
 
                Referral pads, business cards, letterhead, envelopes and all
            office forms should be developed and printed at this time. You
            want to be prepared to open your doors and see patients as soon
            as possible. Remember that your rent begins the day your certificate
            of occupancy (C.O.) is approved!Local general dentistsLocal dental specialistsNew home/home relocation companies 
 22. Open Doors and See Your First Patient!
 I would advise having your staff in the office two days without
            seeing any patients. It will take you that long at minimum
            to ensure:
 
                I am reminded on a daily basis that the decision I made to
            open a practice was the right decision for me. Good luck in the
            pursuit of your dream!Department of radiation protection has surveyed your
                office and approved it with the state.You have walked through with your contractor and made
                a punch list of any imperfections you want corrected.All forms are ready.All dental supplies are inventoried.All staff are trained on your dental software.You have completed “trial runs” without patients including
                printing all patient documents to every printer.All equipment is in working order.You feel comfortable with your environment. 
 
 
                
                    
                        | Author's Bio |  
                        |  Dr. Robert Elliott is a practicing pediatric dentist in Cary, North Carolina (CaryPediatricDentistry.com). He is the founder of Pedo Springboard, a
                        consulting business that helps pediatric dentists successfully open and manage their offices nationwide (PedoSpringboard.com). He can be
                        contacted at The2thFxr@aol.com. |  |