Are you a dental practitioner looking forward to setting up a successful dental practice? That might seem quite simple to purchase a dental practice. But you have to understand and analyze certain things before making a final decision.
While buying a dental practice, there are two options. One is purchasing an existing practice or the other option is to start from scratch by buying a new practice. Purchasing an existing dental practice is more helpful to grow your business.
Here are some of the reasons why you should choose to buy an existing practice:
- You will get a definite number of existing patients. This helps grow your practice rather than start your own from the scratch.
- Chances of increased and instant cash flow are more in an existing setup as you got the established and already built system
- You get a perspective on business operations that start-ups cannot provide.
- The previous owner may provide you with experienced staff that is another plus point.
- As you have several existing patients, marketing expenses will also be less.
Now let’s have a look at some things you should keep in mind while buying either type of dental practice:
- Discover the Best Practice Area
Before buying a dental practice, you should decide the best area for your practice. You can not just build an office at any place you have. There are a lot of things to consider while determining a practice area for a doctor or dentist.
For instance, you have to check the competition at a particular place. Setting up a practice area where a lot more practitioners are working, will not assure your success there.
Also, you have to check the demographics of the area to get an idea of what type of patients you will get there. If the children population is more in the area, pediatric dentistry will be a good opportunity.
- Decide The Practice You Want To Buy
Once you have decided on the practice area, the next difficult yet important decision is to purchase your desired practice. The professionals behind Griggs Practice Transitions stress the importance of finding someone trained and experienced to help you find the right practice to purchase. Moreover, you can also take help from any other dental broker in the industry.
The Success of your dental practice wholly depends on buying valid practice. Though buying an existing one is beneficial as compared to setting up the new practice. Still, there are some risks associated with it. You should take the decision wisely after taking into account every perspective.
Once you have selected the existing practice you want, make sure to visit it by yourself. Every dental practice has its own way of working. By personally visiting the place, you will get a clear idea about the location, patient number, and system of patient management. This way, you can understand the strong and negative points of that practice and the effort you will need to grow it by yourself.
- Prepare A Budget
You must prepare a budget to help you in organizing your practice and personal expenses. It gives you an idea of what your total income is, what you need for your expenses, and what you have to spend on your office.
Developing a budget will also determine what kind of practice you should buy. If you have purchased an existing practice, you retain the patients from the owner. It will also require funds. This process could be smooth if you have an idea for your budget from the start.
- Negotiate the Price
While purchasing a practice, you should take into account whether the price is fair according to the current market. If you do not have a sound knowledge of market value, you can take help from guidelines developed for the purpose.
For a smooth financial offer, make a financial agreement at the very start. This will motivate both the seller and the buyer to further negotiate the price fairly.
- Value the Existing Staff
If you are going to buy an already established practice, you may be benefited from staff from the previous owner. The existing staff may include the billing team, hygienists, and many other valuable members. You must pay regards to their existence and services. These members can help you not only in understanding the business management of the practice but also for the successful transition of patients. You can use their experience and knowledge for your future success in your field.
Whether you are just passed from a dental school or an experienced practitioner, buying a dental practice is an important step in your career. You should make the final decision by analyzing and keeping in mind all the necessary factors. Before buying the practice, make sure it will work best for you and the health of your patients as well.