Buy an Existing Dental Practice? Or Start One from Scratch?

Deciding whether to buy an existing dental practice or start one from scratch is a major step in any dentist's career. Both options come with unique benefits and challenges that can shape your professional path. Understanding the pros and cons of each approach will help you make the choice that best aligns with your goals, skills, and financial situation. For additional advice, check out these practical tips for dental practice success.

Why Buy an Existing Dental Practice?

Purchasing an established practice offers significant advantages that can help you hit the ground running. If stability and faster profitability are priorities, this route may be ideal. Here are key benefits:

• An Existing Patient Base: One of the biggest advantages is inheriting a loyal client base. Patients are already familiar with the practice, which provides immediate cash flow and reduces the need for extensive marketing in the early stages.
• Trained Staff in Place: You acquire an experienced team-receptionists, hygienists, and administrative personnel-who already understand the day-to-day operations.
• Immediate Operational Systems: Existing practices often come with billing, scheduling, and payroll systems in place. This minimizes the hassle of building operations from scratch.
• Clear Financial Performance: With access to profit and loss statements, tax returns, and revenue reports, you gain a clear understanding of the practice's financial health before purchasing.
• Profit Potential in Year One: By eliminating the time needed to attract new patients, you're more likely to turn a profit quickly-an important factor if you're managing student loans or business debt.

However, buying an existing practice isn't without its challenges:

• You may inherit the reputation of the previous dentist, good or bad.
• Integrating into an established team dynamic can take time.
• The practice may not match your vision for equipment, services, or patient experience.

If you're considering this option, it's essential to conduct a thorough appraisal to assess the practice's strengths and weaknesses. For expert help in evaluating your purchase, visit Dental Practice Appraisal Services.

Starting a Practice from Scratch

For dentists who crave complete control and creative freedom, starting a practice from scratch can be a fulfilling journey. This option allows you to shape your practice to fit your exact vision and goals. Key advantages include:

• Total Customization: You choose everything-from the practice name and location to the equipment, décor, and patient experience. Every detail reflects your vision.
• Building Your Own Systems: You have the opportunity to implement business processes and workflows that align with your style of management.
• Hand-Picked Staff: Hiring your own team ensures that every employee matches your expectations and workplace culture.
• Ownership Over Reputation: You build the practice's reputation from the ground up, free from any baggage associated with a previous owner.

While starting fresh offers control, it does come with notable downsides:

• Higher Initial Costs: Startup expenses include equipment, leasing or purchasing a location, marketing, and staffing.
• Time to Build Patient Flow: Without an existing patient base, it may take months or years to reach profitability. Marketing will be critical during this phase.
• Heavy Workload: From securing financing to designing systems and hiring staff, starting from scratch requires significant effort and time.
• Financial Risk: A new practice may not turn a profit for one to two years, which can add financial pressure.

For insights into managing startup challenges, explore 3 Things to Consider When Planning a Practice Purchase.

Which Option is Right for You?

To decide between buying an existing practice and starting one from scratch, consider these questions:

• What's Your Financial Situation? Do you have the capital or loan approval needed for a startup, or would you prefer the financial predictability of an existing practice?
• What's Your Timeline for Profitability? If turning a profit quickly is crucial, an established practice may be the better fit.
• How Much Control Do You Want? If creative freedom and building from the ground up excite you, starting fresh may align with your goals.
• Are You Prepared for the Workload? Launching a new practice requires significant effort, while purchasing an existing practice comes with systems already in place.

For more insight into how brokers can streamline this decision, read Do I Need a Broker?.

Moving Forward with Confidence

Whether you choose to buy an existing dental practice or start one from scratch, the key is aligning your decision with your personal goals and financial readiness. Each option offers unique opportunities for growth, learning, and success. If you're ready to take the next step, explore Dental Practices for Sale or Contact Us for Guidance to start planning your journey today.

Alan Rustom