As you embark on your professional journey, one important decision awaits you: Should you buy an existing practice or start your own? In this blog, we’ll explore the key factors to consider when making this decision, helping you navigate the path to practice ownership with confidence.

Assessing Your Goals and Vision:

• Define your long-term professional goals and vision for your practice.
• Consider your desired level of autonomy, flexibility, and control over the practice.
• Evaluate your risk tolerance and financial aspirations.

Start-up, if you want to

• Practice in a particular location or serve a targeted market.
• Design the office space and brand.
• Choose your own equipment, systems, and staff.
• Crave the challenge of growing practice in your own style.

Additional considerations before setting up an office:

• Be sure your skill set is sufficient. You will need to be comfortable working solo. Be sure your quality and speed of dental services will be sufficient to be successful.
• Identify your trusted advisors. You must locate a banker, accountant, and attorney prior to beginning the start-up. Business advice early and often can prevent regrets down the road.
• Develop a solid business plan that encompasses all aspects of practice. Banks will require you to have a prospectus that outlines your demographic study of the location and population, your plans for marketing the practice, and your work strategy and abilities.
• Make sure you are ready to spend more time than a normal workday during the early years. It takes a lot of effort to establish policies and procedures, secure compliance in all the different areas of business and practice, train staff, keep up with purchasing, etc. If you have life situations, such as an infirm parent or a new marriage or baby, starting a business can add additional complications to an already full life.
• Evaluate your business every day. Are your plans succeeding? What needs to change? Goals are not enough to ensure a successful venture. Actionable feedback from your advisors will keep you on track to succeed.

Buy, if you want to

• Rely on existing office infrastructure, equipment, and staff.
• Generate revenue more quickly.
• Learn from a seasoned practitioner during the transition.
• Avoid stressors of construction and purchasing.

Additional considerations before purchasing an office:

• Consider the reputation of the office. Is the reputation one that reflects your practice style? If the office has a stellar reputation, it will be easy to build on that foundation. If you purchase a practice with a bad reputation, be sure to let patients know that the office is under new management and market to existing patients and new patients on that basis.
• Make sure you are comfortable with the exit strategy of the current owner. It is important that the current owner commits to transitioning the patients. Owners who linger long at the practice, however, may impede patients from attaching to you.
• Evaluate the financials with trusted advisors. You need to engage an attorney to review contracts, and you need an accountant to help you understand the practice’s financial position. A trusted banker can help you understand your obligations on loans and lines of credit.
• Make a new business plan for goal setting. You cannot rely on how the previous owner conducted business. Plan for marketing, recall, patient communication, and compliance. Making goals and evaluating progress are key ingredients to successful business ownership.
• Be aware that the staff may resist the transition changes. Be prepared for some staff to exit and other staff to stubbornly hold on to the past. Be ready to help navigate the relationship-building process and take the initiative to keep staff members informed about how you plan to assist them during the transition.
• Make sure that the equipment is well maintained and that you have proper evidence of the maintenance schedule. Equipment suppliers and repair services can inspect the equipment before the purchase.

Deciding between buying an existing practice and starting your own is a crucial step in your journey to practice ownership. By carefully considering your goals, evaluating the pros and cons, understanding the financial implications, seeking expert advice, and conducting due diligence, you’ll be well-equipped to make an informed decision that aligns with your aspirations. Remember, each path has its own rewards and challenges, and what matters most is choosing the right path for your unique circumstances.

This blog serves as a starting point for your research, and it’s essential to consult with your Whalen professional, who can provide personalized advice based on your specific circumstances and goals. Best of luck on your journey to practice ownership!

• Category: Business, Dental & Health Care