January 1, 2020 by omniadmin Buyer Articles, Buying a Practice 0 comments
5 Reasons to Purchase a Practice in 2020
Happy New Year! Is this the year you finally take the plunge and buy your own practice? Or are you content with being an associate working for someone else? Here are a few reasons why 2020 should be the year you become a practice owner:
- Interest rates are starting to move up. The past few years have rewarded buyers with interest rates in the 4% to 5% range and some with as low as 3.75%. Interest rates moving up means you may have higher payments on your practice loan.
- Bank financing is readily available. If you think you cannot get financed because of high student loan debt, personal debt, bad credit, etc., then think again. Banks view your diploma and the accompanying school debt as a positive thing. It’s an asset that can be used to generate a good income. Call us and we can hook you up with a bank to discuss your situation.
- Jump in, the water is warm. Studies have shown that those who are successful in both business and in their personal lives take calculated risks. Owning a practice is a well-calculated risk with the failure rate on practice ownership less than .25%. Yet, many doctors continue to be an associate as they deem practice ownership to be a risk.
- Pay off debt and retire sooner. By purchasing a practice this year versus several years down the road, you can pay off your debt sooner, put more money in your pocket and retire sooner. I know of several examples of doctors who bought a practice two years out of school and five years later had their practice completely paid off and are putting that money towards retirement. Plus, practice owners make an average of 25% more per year than typical dentists who are associate employees in someone else’s practice.
- Become independent. Owning your own practice allows you to do the procedures you want to do and refer out those you do not want to do. It also allows you to choose your staff, even choose your patients. You get to work when you want to work and go on vacation when you want to go on vacation. It is all up to you as you are the boss!
Whether you decide to purchase a practice in 2020 or continue to work as an associate, Omni Practice Group would like to wish you a Happy and Prosperous New Year!