Buying an Existing Dental Practice or Starting Anew: Key Considerations

In the dynamic world of dentistry, the decision to either buy an existing dental practice or embark on the journey of starting a brand-new one is a pivotal moment for dentists eager to shape their careers. At Healthcare Accountants, we understand the gravity of this decision, and as experts in accounting for dentists and dental practices, we're here to guide you through the intricate web of considerations. 

Starting Your Own Dental Practice: Crafting Your Vision 

When you opt to start your own dental practice, you are granted the power to shape every facet according to your vision. With adequate funding, you have the autonomy to select equipment, assemble your dream team, and establish the ethos of the practice. It's a fresh start where you can align the practice with your values and aspirations. 

• The Gift of Choice: Tailoring Your Location 
  

The freedom extends to choosing the location of your practice. Whether it's near your home or in a strategically profitable area further afield, the choice is yours. This flexibility allows you to cater to your ideal demographic, setting the stage for a thriving practice. 

• What to Watch Out for When Starting from Scratch 
  

However, the journey from vision to reality demands significant investments of time and effort. From securing a suitable building to navigating through planning permissions and mortgages, the initial phase can be intensive. Hiring staff, advertising, and interviewing can also prove time-consuming. Profitability may not be immediate, and the early years might see startup costs outweighing income. 

The Benefits of Buying an Existing Dental Practice: A Head Start 

On the flip side, purchasing an existing dental practice offers a head start that can significantly reduce the challenges associated with starting from scratch. 

• Patients from Day One: Streamlining Marketing Efforts 

One of the most immediate advantages is having patients from day one. This alleviates the need for extensive marketing efforts, as you inherit the patient base of an established practice. The existing patient pool can contribute to a smoother transition and provide a solid foundation for growth. 

• Previous Accounts for Future Certainty 

Due diligence in the sales process provides a level of certainty regarding the profitability of the practice. Previous accounts act as a roadmap, aiding in forecasting profitability. This insight is invaluable, especially when considering expansion or upgrades, as it facilitates the application for loans and funding. 

• Challenges of Buying an Existing Dental Practice: Navigating Change 

While buying an existing practice has its advantages, challenges do exist. 

1. Countering Tradition: Steering the Ship in Your Direction  Implementing change in an established practice can be challenging. Overcoming ingrained systems and ethos might take time, leading to difficult conversations and resistance to change. Successfully putting your stamp on the practice requires strategic navigation. 
   

2. Availability and Fit: Finding the Right Practice  Finding the right fit can be a quest. Whether it's transitioning from NHS to private or aligning with your practice preferences, the process may take time. Patience is key, as the right practice might require a longer waiting game compared to starting your own. 
   

• Factors to Consider: Cost, Planning for Retirement, and Expert Guidance 

1. Cost Analysis: Starting from Scratch vs. Buying  Determining which option is more cost-effective involves a nuanced analysis. While starting from scratch incurs startup costs, building goodwill over time can prove profitable upon selling. Conversely, purchasing a practice may involve paying a premium for established goodwill and reputation. 
   

2. Planning for Retirement: A Critical Consideration  Consider your retirement timeline. If aiming to retire within the next five to ten years, buying a practice may offer a more viable path than starting anew, given the potentially longer timeframe for financial rewards in a new practice. 
   

3. Expert Guidance: Your Partner in Success  At Healthcare Accountants, we are your partners in success. Our dental accounting experts at Healthcare Accountants are ready to engage in an in-depth discussion tailored to your unique situation. Drawing on our extensive experience with dentists, we offer specialised advice, covering expenses, VAT, and tax considerations specific to the dental industry. 
   

For a comprehensive consultation about the best route for your dental career, reach out to our experts at 07425614177 or book a meeting. Let's navigate this journey together, ensuring your success in the dynamic landscape of dentistry.