

If you’re reading this, chances are you have made the
decision to become a dental practice owner. That’s huge! Congratulations! Now,
will you be buying or building your practice? Have you explored some of the
pros and cons to buying vs. building your dental practice?
If that’s why you’re here reading this, then you’re in the
right place. Dental B-School takes a closer look
at buying vs. building a dental practice because it is important to have all of
the information before making your decision.
As we go through this, keep in mind that there is no wrong decision as
you can be successful under both scenarios.
It all comes down to personal preference.
One of the biggest pros to buying an already established
practice is that you’re likely to inherit a wide patient base who are more
likely to stay with you rather than leave after you purchase. That’s a pretty big one right there. Reducing attrition is vitally important to a
smooth transition.
Another major perk to purchasing an established practice is
that it will also allow you to start working with an experienced staff. The staff will likely stay on with you as
they’ve already been with the practice for x amount of time and have built
relationships with the patients.
We can’t forget about good will. Purchasing an existing practice means that
the previous dentist’s reputation and good will, will benefit your new
practice. If the previous dentist has a
great reputation in the community, this is a huge advantage for you. However, this can also be a con if they have
a less than stellar reputation, so keep that in mind.
All right. Becoming a practice owner is an exciting time and
expectations are usually high. A con to
buying an established practice is that you might not be getting exactly what
you think you’re paying for. You can
mitigate some of this risk however, by doing your due diligence before
purchasing the practice. Remember that
sellers will also show the practice in a favorable light so that they can sell
it and will lead you to believe that buying their practice is less risky than
it may actually be.
Part of the draw for purchasing an existing practice is
their established patient base. However,
this can also be a con. Attrition of
patients must be taken into account as approximately 20 percent of patients
will leave the practice. It’s important
to plan for this when you put together your business plan.
Another con may be the need to upgrade older business
systems or financial policies. For
instance, if the seller has been waiving co-pays or if they’ve maintained paper
records that need to be converted to digital, those are all expenses that
should be taken into account, but that are rarely planned for.
You get to develop your own business systems! Every aspect of the practice will be run your
way as opposed to purchasing an existing practice with systems already in
place. Of course, having to develop your
own business system may seem intimidating, but that’s where Dental B-School can
help as we offer tons of resources and courses to help make the process that
much easier.
When taking the leap into practice ownership, you may want
the flexibility of being able to name your practice whatever you want, picking the location you want, the layout and even the design. By building a dental practice, you have the
ability to do exactly that. You’ll even
be able to pick the equipment and technology that you want, and hand
selecting your staff!
As with everything, building a practice also has some
cons. Starting from scratch means that
it can take around two years to start making enough of a profit to pay back
your loans or even the ability to pay yourself – which can
lead to more stress. In fact, it’s very possible that you may have to work
another job while your practice grows. The cost of construction has also
skyrocketed, which could mean even higher debt than normal. Building your practice
also means marketing. And there’s so
much more to marketing
than just having a website that will require both time and money on your part.
All decisions will run through you. So, this could be both a pro and a con, but
when you’re also a practicing dentist, this could take up a significant amount
of your time. From hiring staff to equipment purchases, it
all falls on you.
Making the right decision for you is personal and will come
down to your own preferences and your financial situation – as well as your
needs. By carefully considering the
advantages and disadvantages of each position, you significantly improve your
odds of making the best choice for you.
Hopefully this information has steered you towards a decision. We have a treat for you! We are offering comprehensive checklists for either choice.
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Wouldn't it be a good idea to create a course?