What Should You Consider When Buying a Dental Practice?
There’s nothing more satisfying than buying a dental practice. It lets you become your own boss, set your ideal hours, provide the best dental care to your community, and make a comfortable living. It also enables you to create a reputation as a competent and trusted dentist.
However, like other worthwhile investments, this power also comes with responsibilities. You must handle different tasks and duties to ensure your dental office runs smoothly and efficiently, such as managing your finances and complying with all applicable regulations.
This article will enumerate ten crucial things you must consider when buying a dental practice.
1. Consider Your Location
Whether you want to stay in your hometown or explore a new state, the first thing you should consider when buying a dental practice is your location. Different localities have varying demand levels, and relocating can offer you more job opportunities or higher salaries.
On the other hand, if you don’t want to feel homesick, you should find dental practices in or near the same area.
2. Understand Your Business’s Essential Numbers
Before opening a dental office, you should also understand patient numbers and behaviors, preferred payment methods, financial records, cash flow, and the business’s statistics. Let an accountant review your business’s financial state and determine why the current owner is selling the practice to ensure you make a sound investment.
3. Identify Your Finances
You need adequate financing to buy a dental practice like other significant investments. You should create a detailed budget of all the expenses and a business plan to present when applying for a loan. We recommend working with a financial expert to double-check the budget’s accuracy and realism and to ensure you can pay back the loan promptly.
4. Find Staffing Options
Another thing to consider when buying a dental practice is your staffing options. If you’re running short on people, you must determine how much you’ll pay to fill the gaps. On the other hand, if your dental office has too many personnel, you must prepare yourself for the legal consequences if you reduce the number.
5. Know the Practice’s Physical Attributes
When setting up a dental office, you must determine what equipment best suits your practice’s needs. You should also invest in high-quality security measures, such as home security systems, and ensure you have the budget to purchase the things you need.
If the existing premises don’t measure up, you’ll incur extra expenses like consulting a practice broker, paying deposits, and letting a professional connect the utilities.
6. Know the Practice’s Potential
To run a successful dental office, you must research the market and competition in the area and determine the cost of reaching out to potential customers. You should also ensure that the current premises are large enough to accommodate your business growth.
7. Permits for Operating a Dental Practice
If you’re moving to another state to practice dentistry, you must acquire a license, and the premise may require you to secure specific permits. Check the legalities at every turn when buying a dental practice. Otherwise, you could face expensive legal trouble.
8. Observe Their Performance
You should actively observe a dental practice to learn customer interactions, identify inconsistencies, and decide if you need to make the necessary changes. That way, you can ensure your dental office’s success.
9. Invest in a Partner
Having a business partner helps reduce financial stress, share the same interests, and discuss professional opinions.
10. Seek Legal and Financial Protection
When buying a dental practice, working with an attorney and accountant can ensure you make an informed and objective decision.
Buying a Healthy Dental Practice
Buying a dental practice is a rewarding but daunting experience for most dentists. Planning and working with professional accountants and attorneys can help you run a successful office.
If you need assistance in buying a dental practice, let us help! Ash Dental CPA provides our dental clients with high-quality but affordable accounting services in Framingham. Contact us today, and let’s buy a successful dental practice.