Buying an Established Dental Practice vs. a Startup | Baltimore Dental Practice Sales
Dental Practice Sales & Transitions
When you are ready to make the leap from associate to owner, you must decide whether to buy an established office or create a startup. Here are the pros and cons of each.
The Benefit of Starting Your Own Dental Practice
If you have worked for other dentists and said to yourself, “I would never do it this way,” creating a startup may be the right decision for you. It is a bold move but one that offers enormous freedom. You have the chance to do things your way, implement your own practice management systems, and choose your own team. The practice name, colors, and logo are all yours, too. In addition, you will also have unique opportunities to learn — and make mistakes — earlier rather than later in your career.
On the other hand, all financial risks and responsibilities end with you when you start from scratch. It can take several years to reap enough profit to repay loans and give yourself a salary. That can be stressful. You will also have to create a patient base through marketing and a hefty time investment.
For some, spending late nights and weekends in front of a computer — after full days treating patients — is a risk, but one that can reap great rewards.
Why Buy an Existing Dental Practice?
Taking over an established dental practice offers another set of benefits. You do not have to reinvent the wheel when it comes to practice management systems, payroll, and billing. This saves time and effort when you want to put the focus on proving your value to patients.
If you buy a profitable practice, you are in a better position to pay off loans and turn a profit more quickly. You will likely inherit a patient base that is likely to stay, if you handle the transition properly. The existing team will prove to be a great help to you in many ways, not the least of which is extending patient goodwill toward you.
The risks of buying an established dental practice versus creating a startup include the flip-side of the benefits. People can be resistant to change; patients may move on; team members might not stick around. If the seller’s reputation is not as sterling as presented, it may taint you, as well.
If you are faced with such a dilemma, it will be up to you to rebrand, win people back, and live up to your promises to make improvements.
Whether you buy an established dental practice or build one from scratch, consider seeking input from an experienced dental broker who understands your market. Call our office in Towson, MD for an evaluation of your next move.