Buying or starting your first practice is a significant career milestone, one that blends clinical pride with the realities of running a business. Whether you’re buying an existing clinic or starting from scratch, a clear business plan is your roadmap. It doesn’t need to be complicated, but it needs to be realistic, aligned with your goals, and flexible enough to adapt as you grow.
Why Planning Matters
A business plan helps you:
Define your owner vision and your "why."
Map out the financial projections.
Identify and prepare for risks before they became setbacks.
Track progress with meaningful benchmarks.
In the view of Shane Dewling CFP®, FMA, an Investment Advisor at CDSPI Advisory Services Inc.: “Successful practices don’t just happen. They’re built on clarity of vision, sound financial assumptions, and consistent, diligent reviews.”
Defining Your Vision
Start by clarifying what kind of practice you want to build:
Clinical scope:
Services today and in 2-3 years.
Practice size:
Numbers of operatories.
Lifestyle and values:
Pace, hours, and culture you want.
Location:
Demographics, competitions, and growth potential.
Writing this down creates an anchor when decisions start to feel overwhelming.
Making the Numbers Work
Your financial model should connect directly to the day-to-day realities of practice life:
Chair time and operatory use.
Hygiene program strength.
Payer mix and case acceptance.
Build projections “from the chair up”. Lenders prefer this to broad annual estimates because it ties production to real capacity.
Key Performance Indicators (KPIs): What to Watch Early
Practice owners don’t necessarily need to track dozens of metrics. A handful of KPIs may be enough to guide key decisions:
Production and collections trends.
Hygiene production per hour and reappointment rate.
Case acceptance.
A/R aging and overhead by category.
As Shane Dewling puts it: “It’s about measuring what matters and using those insights to make small course corrections before issues compound”.
Guarding Against Hidden Inefficiencies
It’s easy to focus only on growth, but unnoticed leaks can quietly erode profits: under-booked chairs, supply cost creep, overtime pay, or unmonitored write-offs. Scheduling regular efficiency reviews can protect margins.
As Jordan Weinberg, a Partner at MNP cautions, “many inefficiencies start small. A few missed appointments, a few untracked write-offs, but over time they compound into lost profitability”.
People and Processes
Strong numbers only get you so far. How you lead the team and design the patient experience often defines your practice:
Clear roles and cross-training.
Core playbooks for intake, scheduling, and reconciliation.
Consistent patient experience from booking to follow-up.
When buying a practice, putting together a 90-day staff and patient transition plan that you share with key stakeholders helps build trust. If you’re starting from scratch, focus on a launch plan that includes staff and patient recruitment, on-boarding and on-going development.
Moving Forward with Confidence
You don’t need to do this alone. Surround yourself with an accountant, healthcare banker, lawyer, and financial advisor who understands dentistry. They’ll help you avoid pitfalls, negotiate better terms, and build a plan that feels achievable. Advisors from CDSPI Advisory Services Inc. can talk you through the process, and when you’re ready for a deeper conversation about your business plan, our partners at MNP and other professional advisors can provide guidance tailored to your situation.
This information is provided for general information purposes only and does not constitute professional advice. Please consult a qualified professional for advice tailored to your specific needs. While every effort has been made to ensure this information is accurate and current, no guarantee is made to its completeness or applicability.