Should I Purchase a Dental Practice Or Start One From Scratch?

For almost every dentist, the option of practice ownership is a consideration at some point during his or her dental career. In fact, over 88% of dentists currently own their own practice. The biggest question in a dentist’s mind when considering practice ownership is whether they should purchase an existing dental practice or build a dental practice from scratch. There are many factors that need careful consideration when deciding which option is best for you.

We have put together a list of some pros and cons to think about when making your decision:

1. Gain Experience or Use Existing Experience
   If you have little or no business knowledge or experience, you may have a better shot at purchasing an existing business, while someone with extensive business experience will have a better chance starting from scratch. Pre-existing businesses have existing structures in place, including ordering procedures, inventory systems, and established relationships with vendors. In addition, there will already be a staff in place, which can be a huge help to you. As stated in an article click here written by Marie Chatterley, “if you trust [the current staff] and treat them right, they will not only take care of the business aspects of the practice for you, but they will also show you the ropes.”  
2. Establish Your Own Brand Image or Take the Safe Route
   A dentist who wishes to create a unique brand may prefer a start-up as opposed to a pre-existing business. When purchasing a pre-existing dental practice, you are also purchasing someone else's concept and vision. With a startup, you can establish your own goals, procedures, and marketing.
3. Choose a Dental Strategy to Ensure Profitability
   A pre-existing practice will already have a profit and loss sheet that you can review. Once a practice is already successful, it will be easier for you to ask for money to plan an expansion or help develop an existing product. It’s important to keep in mind that a dental start-up may not be profitable in the first year, but an existing dental practice might be.

In the end, purchasing an existing practice versus creating your own start-up is a personal decision, which needs to be made according to your own individual strengths and restrictions. For help along the way, no matter which option you choose, please contact CTC National to speak with a dental consultant.