Are you Ready to Become a Practice Owner?
How and When to Become an Owner
Purchasing a dental practice is major life decision and one that should not be taken lightly. Before deciding to become an owner there are several things to consider and questions that you must ask yourself.
- The only true way for a young dentist to build wealth is through ownership of a practice.
- Comfort with ownership typically is when the young dentist is comfortable with practicing clinically.
- Opportunities can come in the form of:
- Purchasing a retiring doctor’s practice
- Buying into a practice
- Starting a practice from scratch
- In any of these cases, it is essential for the young dentist to know exactly what they are looking for. Here are some things to consider:
- Where do you want to live and why?
- What are you looking for in the community?
- How much do you need to earn?
- Do you wish to own real estate?
- What is the availability and need for dentists in the area? What are the Dental Demographics?
- What advisors will you need to help you?
- What type of practice would be interesting to you?
- How well can you manage people?
- Do you want the seller to stay on for a transition period?
- How to value a practice?
- Frequently, a dentist focuses on the amount of debt that will be accumulated purchasing a practice, rather than the more important issues:
- Cash flow needs and the young dentist’s ability to produce the dentistry to satisfy a cash flow
- One of the toughest decisions today for a young dentist is whether to purchase a practice or start up from scratch
- Most important decision in a start up is location
- Other major decisions are:
- Practice Solo or as a Partner?
- How to get financing?
- How long should the process take?
- These are among the many reasons you will need some professional help!
If you think that you are ready to take the leap into practice ownership or if you have any questions about the process, contact Practice Impact.