Opening a new dental practice from scratch, often referred to as a “de novo” practice, is an exciting venture that comes with its unique set of challenges and opportunities. MB2 Dental’s roots are deeply embedded in growth via de novos, with more than 40 of our initial practices being new builds. While our strategic focus over the past decade has included a substantial number of acquisitions, our proficiency in de novos has continued to grow, with over 20 new practices built in the last two years alone.
As a dental practice owner, embarking on this journey requires careful planning, strategic decision-making, and a deep understanding of the dental industry, all areas the MB2 Dental team expertly guides our doctor partners on.
Below are just a few tips to consider when building a de novo to position your new practice for success:
1. Create a Detailed Business Plan
A well-structured business plan is your roadmap to success. It should cover your practice’s mission, financial projections, marketing strategies, and operational plans. Understanding the why behind your growth is important. Perhaps there is a new market you want to tap into, you need more space to support your growing patient base, or you’re adding a new associate – these are all great reasons to consider building new. This business plan will not only guide your actions but also be critical if you’re seeking financing.
2. Conduct Thorough Market Research
Before selecting a specific location, it’s important to understand the demographic and competitive landscape of your target area. Historically, we’ve found that the doctor-to-patient ratio within a certain radius serves as a significant indicator of success. In non-rural settings, our focus typically lies within a 3-mile radius, aiming for a minimum ratio of one doctor per 3,500 patients. Alongside this ratio, we prioritize factors such as population growth, income levels, and the annual expenditure on dental services within the market. This data will inform your service offerings, pricing strategies, and marketing initiatives. MB2 Dental possesses expertise in conducting comprehensive market studies tailored to your areas of interest.
3. Choose the Right Location
The strategic placement of your practice is paramount. We aim to maintain a minimum distance of five miles from any other MB2-affiliated practice to safeguard against potential overlap in patient bases. We prioritize gaining insight into the future development trajectory of the area, viewing our offices as long-term investments. Factors such as the construction of new schools and residences, the opening of new businesses, or the relocation of corporate headquarters or facilities are crucial considerations. Understanding these indicators is instrumental in creating a long-term growth strategy for the practice.
Once we have a thorough grasp of the market dynamics, our focus shifts to evaluating specific sites with an emphasis on high visibility and easy accessibility. Additionally, we assess the availability of parking spaces and signage opportunities, which are key factors in enhancing the practice’s visibility and convenience for patients.
MB2 Dental will handle all negotiations to ensure that your practice secures the most favorable terms, rates, and safeguards throughout the lease term, providing you with peace of mind and optimal conditions for success.
4. Develop an Effective Marketing Strategy
A strong marketing strategy is crucial to attract and retain patients. This includes developing a strong online presence by investing in a professional website that is easy to navigate and optimized for search engines (SEO). Use online advertising platforms like Google Ads and Facebook Ads to target potential patients in your area, offer special promotions to incentivize new patients to choose your practice, and drive community involvement and local advertising. Begin running these ads in the months leading up to your open date and follow up with interested patients to begin building your schedule for a successful start.
5. Secure Financing
Opening a de novo practice is a significant financial undertaking. Explore various financing options, including loans, investors, or personal savings. MB2 Dental can provide preliminary budgets to help with your planning, as you will need to consider construction costs, equipment, technology, staffing, signage, and marketing.
There are many factors to consider when building your de novo, and the MB2 Dental team is here to support your entire journey, from site selection and floorplan design to construction, equipment and operational support. In addition, our doctor partners possess a wealth of knowledge and experience expanding their practice’s footprint. We highly recommend connecting with other doctors who have built de novos for valuable insights and guidance.
Interested in learning more? Connect with us by completing the form below and speak directly with an MB2 Dental doctor partner today.
