The Feasibility Check is a $2,500 flat-fee, go/no-go financial screen for a dental startup, relocation or build. It covers space and site fit, a high-level equipment budget range and a debt-service coverage pre-check against the 1.25x benchmark lenders commonly look for. It ends with a straight answer on whether the project is ready. The fee credits toward the Budget Plan.
It is easy to find out whether a project works only after you have signed something: a letter of intent, a lease, a land contract or an equipment order. The Feasibility Check moves that answer to the front. Before you commit, you find out whether the space, the budget and the debt load fit together.
Who is the Feasibility Check for?
It is built for the moment before the first big commitment. Three situations come up most:
- The startup dentist before an LOI. You have a suite or a market in mind and a rough idea of what you want to build. You want to know if the numbers hold before you negotiate a lease. The guide to opening a dental practice shows where this step sits in the whole sequence.
- The owner weighing a relocation. Your lease is coming up or you have outgrown the space. You want to know whether the move pencils against the production you already have, before you tell a landlord anything. See relocating a dental practice for the wider decision.
- The dentist eyeing land. You have found a parcel and are thinking about a ground-up building. The Alithos estimator assumes $340 per sq ft for ground-up construction at standard finish, double the $170 it assumes for leased space, and land is extra. The screen matters even more. The guide to building a dental office covers the full path.
If you are further along, with a site under control and a lender conversation scheduled, you may be ready for the full Budget Plan instead. The free Project Fit Call is where we sort that out.
What do you get from a Feasibility Check?
Five things, each aimed at a question that kills projects late if nobody asks it early.
A go/no-go screen
A financial screen of the whole project, start to finish, so the decision rests on the full number and not one quote.
Space and site fit
Does the suite or parcel fit the operatory count you need? The Alithos estimator assumes 500 sq ft per operatory for 3-5 ops, 450 for 6-7 and 425 for 8 or more.
Equipment budget range
A high-level range, not a line-item list. The estimator assumes $42,000 per operatory at standard finish and $58,000 at premium, plus imaging.
DSCR pre-check vs. 1.25x
Your projected cash flow tested against the 1.25x debt-service coverage benchmark many dental lenders use as a guideline.
A straight answer
Is this project ready? Yes, no, or not yet, with the specific number that drives the answer.
What does the DSCR pre-check look like?
Debt-service coverage ratio (DSCR) is the cash available to pay debt divided by the debt payments themselves. A dental lender writing in ADA News describes a global DSCR of at least 1.25 as a common guideline, not a strict minimum [1]. Bankrate explains the same ratio for small-business loans generally [2]. Here is the arithmetic for three leased startups at standard finish, using the Alithos planning model:
| Scenario (lease, standard) | Project total (point) | Monthly payment | Cash flow needed at 1.25x |
|---|---|---|---|
| 3 operatories, 1,500 sq ft | $636,100 | $6,171 | $92,566 a year |
| 4 operatories, 2,000 sq ft | $784,800 | $7,614 | $114,205 a year |
| 5 operatories, 2,500 sq ft | $933,500 | $9,056 | $135,844 a year |
The model assumes a 15-year loan at 8.25%, $170 per sq ft for standard leased construction and $85,000 of working capital. It is planning math, not a quote or a loan offer. The real pre-check uses your numbers, and lenders look at global coverage, which includes your personal debts and living costs. That is why the screen asks about your personal financial picture. You can test the ratio yourself with the DSCR calculator.
How does the Feasibility Check work?
- Free Project Fit Call. Thirty minutes by video, no pitch, no obligation. You tell me what you are trying to do. I tell you whether the Feasibility Check is the right step, or whether something else fits better.
- Data intake. You send what you have: goals, any production history, a personal financial summary and any letters of intent or quotes. Gaps are fine. Part of the job is showing which unknowns matter.
- Analysis. I size the space against the operatory count, set a high-level equipment and imaging range, build a rough project total and run the debt-service coverage pre-check.
- Readout. We walk through the result together on video. You get the answer, the number behind it and what would need to change if the answer is no or not yet.
What do you need to provide?
Nothing exotic. Bring what exists and say what does not.
- Your goals: operatory count, services you plan to offer (imaging, specialty work), target opening window.
- For an existing practice: recent production and collections, and current overhead.
- Your personal financial picture: existing debt, including student loans, cash available and household living costs.
- Any letter of intent, lease proposal, listing or site plan you are considering.
- Any quotes or proposals already in hand from dealers, contractors or lenders.
If you want to see the full list of costs a startup budget has to cover, the dental practice startup checklist walks through it.
What does the Feasibility Check cost?
$2,500, flat. The price is published, and it does not move with the size of your project. If you continue to the Budget Plan ($7,500-$10,000, flat fee, scope set in writing before work starts), the $2,500 credits toward it.
For context, an ADA News expert column says opening a dental practice often takes $500,000 at minimum [3]. The Alithos planning model puts a 4-5 operatory leased startup at standard finish at about $746,000 to $980,000 all-in, including working capital. A $2,500 screen is a small fraction of either number. What matters is timing: the screen comes before the commitments that are hard to undo.
I am paid by you alone. I take no commissions, referral fees or kickbacks from lenders, dealers, brokers or contractors, in either direction. See the services overview for how the three engagements fit together.
What doesn't the Feasibility Check cover?
- Not a quote. The equipment and construction figures are planning ranges. Real prices come from dealers and contractors bidding on your actual plans.
- Not a loan approval. I am not a lender. Lenders set their own terms. The SBA 7(a) program, for example, caps loans at $5 million [4], and under SBA rules startups generally need an equity injection of at least 10% of project cost [5]. Conventional dental lenders set their own requirements.
- Not legal or tax advice. I am not an attorney or a CPA. Your attorney reviews any lease or contract before you sign, and your CPA confirms any tax treatment.
- Not design or construction. I am not a contractor, architect or engineer, and I am not a real estate broker. The Feasibility Check is owner-side advisory: it tests whether the numbers work.
How does it compare with free alternatives?
Every dental office project comes with free help. None of it is free; it is priced into the equipment order, the loan or the lease. That does not make those people dishonest. It means they are paid by a different outcome than you are.
| Feasibility Check | Dealer design consult | Lender project manager | Doing it yourself | |
|---|---|---|---|---|
| Who pays | You, $2,500 flat | Priced into the equipment margin | Priced into the loan | Your time |
| Independent of the sale | Yes | No, tied to the equipment order | No, tied to the loan | Yes |
| Tests DSCR against 1.25x | Yes, before you commit | Not its job | Yes, in underwriting, for the bank's decision | Only if you build the model |
| Straight go/no-go answer | Yes | A design and proposal | A credit decision | Whatever you conclude |
Doing it yourself is a real option. The cost estimator and the startup cost guide give you the same planning model I start from. The Feasibility Check adds your numbers and a second set of eyes that is not paid by the sale. For more on how free design works, read what free dealer design really costs.
Feasibility Check FAQ
What do I get from a Feasibility Check?
You get a go/no-go financial screen of your project: a space and site fit assessment, a high-level equipment budget range, a debt-service coverage pre-check against the 1.25x benchmark lenders commonly look for, and a straight answer on whether the project is ready to move forward.
How much does the Feasibility Check cost?
The Feasibility Check is $2,500, flat. The price is published and the fee is paid by you alone. I take no commissions or referral fees from lenders, dealers, brokers or contractors.
Does the $2,500 credit toward the Budget Plan?
Yes. If you continue to the Budget Plan ($7,500 to $10,000, flat fee, scope set in writing), the $2,500 Feasibility Check fee credits toward it, so the screening work is not paid for twice.
What if the Feasibility Check says no?
Then you know before you sign a lease, a land contract or an equipment order. I tell you which number fails, such as space, cost or debt-service coverage, and what would have to change for the project to work. Waiting, resizing or choosing a different site are all legitimate outcomes.
Is a Feasibility Check the same as a lender pre-approval?
No. I am not a lender, and the Feasibility Check is not a credit decision. It tests your project against the coverage math lenders commonly use, so you go into lender conversations knowing where you stand. Only a lender can approve a loan, on its own terms.
Do you work with dentists in my state?
Yes. Alithos Advisory is based in California and serves dentists in all 50 states. The work is done virtually, by video call and shared documents, and the Feasibility Check is available for projects in every state.
More answers on fees, timing and independence are on the main FAQ page.
Not sure the Feasibility Check is the right first step? Book a free Project Fit Call and I will tell you straight. Want to see the planning model first? Run the cost estimator.
Sources
- ADA News, M. Jerkins, "Ask the Expert: How much debt is too much when buying a dental practice?" (2026). adanews.ada.org
- Bankrate, "What is DSCR" (accessed 2026). bankrate.com
- ADA News, M. Jerkins, "Ask the Expert: How to be financially prepared for practice ownership" (2025). adanews.ada.org
- U.S. Small Business Administration, "Terms, conditions, and eligibility," 7(a) loan program (accessed 2026). sba.gov
- Starfield & Smith, "Best practices: a review of equity injection requirements under SOP 50 10 8" (2025). starfieldsmith.com
- Alithos Advisory, cost benchmark from the Alithos estimator (planning model, not survey data) (2026). alithos.co
Prices on this page are Alithos Advisory's published fees. Model figures are planning assumptions from the Alithos estimator, not quotes. How we research and update this page.