How about you? How did you do compared to your goals? Was one of your goals that you missed to own or startup a practice?
We can help you with accomplishing that goal in 2018. Here are some steps that will help you check this one off the list by the end of 2018:
- Decide if you want to do a startup practice or look for an existing practice. My advice is to first look to see if there is a practice available in the location you desire. If there is not and you have exhausted your research, consider a startup. Do demographic research to make sure there is room for another location. Contact us and we can help with your research.
- If you want to buy an existing practice, get the word out. Contact all of the brokers to make sure you are on their mailing list and let them know you are actively looking and want to buy a practice in 2018.
- Contact a bank that specializes in financing practices. If you need a list of a few, let us know and we can hook you up with a bank that will do a good job for you.
- Don’t be a tire kicker. The likelihood of finding a perfect practice located on the busiest corner property in a stand-alone building with a huge sign, hygiene at 30% of production or higher, annual collections over $1 million, staff that is paid below market wages, brand new equipment, fully digital with a cone beam and a CEREC, and a patient base that needs a ton of work with a price of 60% collections is zero. So, don’t waste your banker’s, spouse’s, consultant’s, broker’s or your own time by continually looking for the unicorn of a practice – it doesn’t exist. Instead, look for a practice that fits most of what you desire, but if it doesn’t have everything, you can put some work into it and make it a good practice.
- When you find a practice you like, don’t low-ball the offer. If you have looked at a few practices, you know what the price should be. Brokers should be pricing the practices they list at the market price. Yes, you can offer a little lower if you feel you need to negotiate the price. But, if a practice price is at $500,000 and it’s a good practice, don’t go offering $200,000 because you’re trying to get the best deal possible. The seller will be offended and tell the broker to not entertain anymore offers from you as a buyer.
- Buy the real estate if it’s available for sale. With interest rates where they are right now, it makes sense to lock in at a low rate versus paying rent with a 3% increase every year. Even if you pay slightly above market for the property, it can still make sense, as you own the building and you’re not throwing money down the toilet by paying rent.
- Once you have made the offer, continue to push towards the closing and do your work. Complete your due diligence in the practice. Hire a consultant to help you if needed. Continue to work with your bank to get them everything they need.
- Upon closing, keep the practice the way it’s been running if it’s being run well, and don’t make too many changes in the beginning. Let the patients see you a few times before you make drastic changes. If it’s a dog of a practice, yes, make changes; but if it’s doing well, why change what’s not broken?
- Work hard and be present. As soon as you can, quit your associate job and be in the office as much as you can. Chip in and help the staff if it’s slow. Call patients yourself to get them in the door. Do what you need to do in order to be successful.
We wish you a Happy New Year and cheers to much success in 2018!