To open a dental office in Canada, you need to budget for equipment, staff, location, licenses, insurance and marketing. Equipping a new office can cost $250,000 to $350,000. Buying an existing practice can cost $300,000 to $400,000. Many expenses like staff, materials, insurance and property lease can add up to over $300,000 per year.
Canadian dentists earn good incomes. General dentists make around $771,000 per year on average. Dental specialists make around $1.1 million per year on average. However, dentists spend about 75% of their revenue on overhead costs like staff, equipment and materials. Their actual profit margins are around 25% of revenue.
Urban dental practices often sell for higher prices than rural ones. Practices near residential areas or other healthcare facilities also often cost more. The selling price is mainly based on the practice’s size, patient base and reputation locally. More patients and better reputations increase potential revenue. This leads buyers to pay higher prices for these practices.
Foreign-trained dentists should take a course and exam on Canadian dental standards and practices. Buying a portable dental unit to practice on before opening an office is also recommended. Used units cost $150-$600. Used dental kits with hand tools cost around $2,500-$3,500. These can provide valuable hands-on practice.