Starting a Dental Practice vs. Buying an Existing Practice

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Most dentists aspire to own or partner in a practice rather than remain associates throughout their careers. Practice ownership, though daunting, offers unique opportunities: higher income, control, independence, and long-term satisfaction. However, deciding whether to start a practice or purchase an existing one involves weighing numerous factors. Understanding the advantages and disadvantages of each option can simplify this complex decision.

Advantages of Buying an Existing Dental Practice

Turn-Key Operation: An existing practice provides an office, equipment, trained staff, and management systems, allowing the new owner to begin work immediately.

Patient Acquisition: Established practices have a patient base and access to patient records, eliminating the need to attract and intake new patients.

Historical and Future Performance: Historical financials provide insights into the practice's demand and growth potential, offering a sense of security.

Seller’s Mentorship: The seller can assist with the transition and offer post-acquisition mentorship, providing valuable insights into the practice.

Disadvantages of Buying an Existing Dental Practice

Necessary Updates: Older practices may require updates to meet regulatory guidelines and modern standards, including office design, equipment, and technology.

Inherited Reputation and Dynamics: Negative histories or existing staff conflicts may need to be managed, and adapting to inherited policies and business structures can be challenging.

Management Adjustments: Inheriting the previous owner's business structure and policies can limit immediate changes and require adaptation.

Advantages of Starting a Dental Practice

Complete Control: Starting a practice allows the owner to make all decisions, from location to branding, processes, and staff, aligning with personal standards and vision.

Ideal Location: Choosing the practice's location based on personal and professional preferences is crucial for long-term satisfaction.

New Equipment and Technology: Starting from scratch allows for the purchase of brand-new equipment and technology, though expensive, it offers depreciation benefits.

Disadvantages of Starting a Dental Practice

High Risk of Failure: New businesses often fail due to undercapitalization, location challenges, and economic hardships.

Unexpected Expenses: Overlooking needs or working with non-specialized contractors can lead to unexpected costs and financial strain.

Increasing Competition: Competition from larger, multi-specialty practices, especially in certain areas, can pose significant challenges for new practices.

Final Thoughts

Whether deciding to buy an existing practice or start one from scratch, surrounding yourself with experts who can guide you through each step is essential for success. The choice depends on weighing the pros and cons and aligning them with your personal and professional goals.