Owning a dental practice is a big goal for many dentists. When the time comes, you’ll face an important decision: Should you buy or build a dental practice?
The choice affects your career, finances, and lifestyle. Let’s look at the pros and cons of both options to help you decide.
Buying a Dental Practice: Key Considerations
Buying an existing dental practice is a common choice because it offers instant income, an established patient base, and often a trained staff. This option gives you a fully functioning office from day one.
Benefits of buying a dental practice include:
- Immediate revenue: You’ll start earning money right away with existing patients.
- Proven financials: You can review the practice’s financial history before buying.
- Less setup stress: No need to find a location, purchase equipment, or hire staff.
However, buying a practice can come with challenges that may require time and money including:
- Outdated Equipment: The equipment may be outdated.
- Poor Branding: the branding may need a refresh.
- Resistance to Change: the staff may resist changes.
Starting a Dental Practice from Scratch: Pros and Cons
Starting your own dental practice gives you complete control over every detail. From designing the office to choosing the technology, you can create your ideal practice. This option works best for dentists with a clear vision.
Benefits of starting a dental practice from scratch include:
- Total customization: You design the office, workflow, and patient experience.
- New technology: You can invest in the latest equipment and systems.
- Control over branding: Build a brand that matches your values and care style.
But starting from scratch has its challenges, which is why any new practices take longer to become profitable than expected.
- Starting a new patient base: It takes time to attract patients.
- Revenue Generation: It may be a while before you generate income.
- Creating Your Team: It is a significant investment to source and build a team.
Read More: How Much Is Your Dental Practice Worth?
Should You Build or Buy a Dental Practice?
When deciding between building or buying a dental practice, consider the following:
- Finances: Buying requires more upfront investment but offers instant revenue. Starting from scratch may cost less initially but takes longer to become profitable.
- Risk: Building from scratch can feel riskier since success depends on attracting new patients. Buying an existing practice provides stability but comes with potential issues.
- Lifestyle: Buying allows for a quicker start with less downtime. Starting from scratch gives you more control over growth but takes more time.
Count on Our Dental Business Coaches for Personalized Advice
No matter if you’re starting your own dental practice or buying an existing one, managing the business side can be overwhelming. Dental business coaching can help you avoid mistakes, streamline operations, and set you up for success.
Our experienced dental coaches at Davis & Cole, L.L.P. help dentists make smart financial choices. Whether you’re buying a practice or starting from scratch, we provide expert advice to guide you through every step. We understand the challenges unique to dental practices and can tailor our services to your needs.
Ready to take the next step in your dental career? Contact Davis & Cole, L.L.P. today for a consultation and learn how we can help you build a successful practice!
