Purchase Existing Practice or New Start Up?

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Many dental practitioners feel that the only way to have their own practice is to purchase one. In saturated communities and for practitioners with low risk tolerances, this may be correct.  However, some practitioners are successfully placing new start-up practices in leased commercial retail space and generating collections comparable to existing practices.  Good dental practices for sale are hard to find so many young practitioners are taking a second look at start-ups.

Whether you start a new practice or purchase a practice, LOCATION of the practice is vitally important.  The Growth Potential Score (GPS) for every proposed or existing “practice for sale” location should be used to evaluate options.  Typical new start-up practices average $268K in first year collections while those located in superior LOCATIONS regularly generate $500K+ in their first year.  The process of finding a truly great practice LOCATION requires the services of a dental realty expert or practice buyer specialist.

What are the advantages of starting a new practice?

  1. Modern equipment
  2. Modern efficient space plan
  3. Digital, paperless office
  4. Net income in superior locations can be substantial
  5. Specific locations with high growth potential can be selected
  6. Choose your own staff

What advantages favor purchase of a practice?

  1. Instant cash flow from existing patients
  2. Established accounts with vendors and service providers
  3. Can be accomplished in 90 days or less
  4. Existing staff in place which is familiar with patients
  5. Existing dental build-out
  6. Existing equipment

Regardless the decision you make, having experienced professionals to aid in the process is important. Please reach out to the Dental Network Group and find out how we can assist in either scenario.