Dentec industry articles

Starting a new dental clinic in 2025 — What you need to know

Written by Jono Stewart | Dec 20, 2024 12:21:45 AM

Could this be the year you start your new dental practice? Establishing a new clinic is both exciting and daunting, with many decisions and considerations needing to be made. 

In this article, we guide you through these key points, including practical advice as well as inspiration for your clinic design. 

Considerations for opening a new dental practice

When planning your new clinic, there are several factors to consider, including:

Legislation and compliance changes

When planning your new clinic, you’ll need to consider Building Code requirements and Dental Council Practice Standards. Firstly, your clinic fitout must meet the performance standards of the Building Code, with particular attention to structural stability, durability, fire protection, accessibility, moisture, facilities, and energy efficiency. 

Secondly, the Dental Council also sets mandatory standards for clinical competence, cultural competence, and ethical conduct. All practitioners must adhere to these key standards, including putting patients’ interests first, ensuring safe practice, communicating effectively, providing good care, and maintaining public trust and confidence. 

Read our article to learn more about regulatory standards for dental clinic design >

Dental financing

A new practice setup can range anywhere between $150,000 to $550,000, including the design, fitout, and equipment. When financing a dental practice, you can use savings, a bank business loan, or a specialist healthcare loan.

To calculate the cost of your practice fitout, use our Project Cost Quiz >

Bank loans

To obtain a business loan, you will need to create a business plan. This will guide the finance process, indicating the amount of money you'll need, your goals, and how you plan to meet repayments. When you create your plan, check out the advice and templates available from New Zealand Trade and Enterprise. Some bank lenders will also analyse your personal credit history and require security to fall back on, such as personal assets. 

Healthcare financing  

We recommend opting for healthcare-specific lending because they are more experienced in the medical industry and understand your requirements more thoroughly than a bank. For a borrowing of up to $500,000, the only requirement is that you must be registered with the Dental Council. 

These loans can also include a 6-month repayment holiday upfront, allowing you to build a patient base. When the clinic’s income is steady, you can easily cover the loan repayment costs. There are also flexible payment structures available, including deferral, skip, progress, and step payments.

Along with operating and capital leases, they also offer bundled solutions (equipment, consumables, service and insurance payments), and more specific solutions, including software-only financing, inventory/consumable financing or Managed Equipment Services (MES).

No personal credit checks or financial statements are required and there are several specialised solutions for equipment financing. For example, you can lease or lease-to-own to reduce your initial outlay. If you have any questions about financing your new practice, we'll be happy to guide you in the right direction.

Interest rates

When looking into bank loans and launching a new business, you’ll need to be aware of the current interest rates. High interest rates could result in lower revenues, which may be offputting for a prospective practice owner. On the other hand, lower interest rates tend to free up funds for marketing, equipment upgrades, and staff training. 

Whatever the interest rates are when you start your new practice, you must plan for interest rate fluctuations. We recommend securing favourable loan terms, maintaining a financial buffer, and having a clear understanding of how economic conditions influence patients' spending habits.

Design and layout

To enhance the patient experience and increase long-term retention, your clinic design must be relaxed and welcoming. In addition, the space must be optimised for functionality and efficiency, with careful attention to ergonomics that enhance staff well-being and productivity.

Firstly, think about how much space you will need in each room, including the waiting room, treatment rooms, reception, bathrooms, OPG area, and storage rooms. You’ll also need to factor in accessibility, both inside and outside the clinic building. 

When you have a clear layout, think about the materials you want to use, as well as colour psychology, flooring, lighting, and ventilation.

For more inspiration on the visual design of a clinic, download our Inspiration Guide > 

Renovating vs new

Building a new clinic from scratch is generally more efficient, reducing the risk of unexpected problems throughout the fitout. While converting an existing house into a dental clinic may seem cost-effective, it often raises unexpected costs and complications. These projects typically require a full strip back to the bones for rewiring and plumbing. 

Another option is to upgrade an existing clinic so you can expand your services and personalise the fitout. To decide if this option is suitable for you, read our full article answering the question, should you buy an existing dental practice?

Buy vs lease

When starting a new dental clinic, deciding whether to buy or lease depends on your priorities and budget. While buying provides greater design flexibility and the chance to build real estate equity, you will also be solely responsible for repairs and maintenance. 

By leasing your space and avoiding property maintenance costs, you free up more funding for equipment. However, your fitout will be more limited and you won’t build equity. For more information, read our full article about the right time to own a dental clinic.

Service lines

By planning for compressed air, extraction systems, and suction and plumbing lines early in the fitout process, you can optimise your clinic’s layout. The Ministry of Health has specific guidelines to follow, ensuring your service line installation allows for future alterations, maintenance, and equipment upgrades. To comply, you will need qualified installation engineers and technicians. 

This step is often overlooked, causing expensive design adjustments later in the process. To avoid this, contact the Dentec team for a no-obligation site assessment as soon as possible. 

Dental equipment

When starting your dental practice, you must supply a wide range of quality dental practice equipment. This will help your staff to perform their jobs to a high standard, offering high-quality service for patients. By keeping up-to-date with the latest technology, you also communicate to your patients that they are receiving the highest level of care. 

At Dentec, we supply everything you need, from complete equipment packages to one-off replacements. Our extensive range of premium branded dental equipment ensures seamless integration into any clinic fitout. If you ever require repairs or servicing, we have a large network of distributors and technicians across New Zealand who are ready to help.

Dental practice design and dental practice fitout

At Dentec, we understand the fundamentals of starting a dental practice. From initial strategy planning to the practice initiation and opening, we are here to support you as you start your new clinic. Our proven methodology for dental practice construction consists of eight distinct stages, giving you greater control while saving both time and money.

Our team will take care of all the details, freeing you up to focus on what you do best. Our end-to-end design and build services ensure you have a hassle-free experience, resulting in a clinic tailored to your needs. 

To get started, send us a message about your project or try our Project Cost Quiz for an estimate tailored to your project specifications.  

Calculate your dental clinic project costs using our Project Cost Quiz, or enquire with our team today.