January 13, 2012 by omniadmin Buyer Articles, Buying a Practice 0 comments
Scratch Start or Existing Practice?
With so few practices on the market, I often get the question “Should I just start a new dental practice?” Since I am a commercial real estate broker specializing in helping dentists find new locations as well as being a practice broker, I can give you an educated answer. That answer is “it depends”.
Here are 10 questions to ask yourself to see if you are a candidate to do a scratch start practice:
- Do the demographics support another dentist in the area? (1,500 people per 1 dentist)
- Do you have the patience to do a startup? (ADA says it takes 24 to 36 months to break even)
- Do you have another income, or 12 months of cash reserves, to support yourself while you get your new practice going?
- Are you good at project management – managing contractors, designers, vendors, etc., to get things going?
- Have you hired staff before?
- Are you good at self-promoting and marketing? You may need to go door to door to get recognition and to get patients coming in.
- Have you set up insurances, bank accounts, patient financing, etc., before?
- Do you have good credit and some cash reserves in the bank to obtain a loan?
- Do you have enough experience (minimum of 2 years) to jump in and get things going?
- Do you have the fortitude to succeed? There will be down times when you want to throw in the towel. You need to fight through those down times to achieve success.
I have helped over a dozen practices get started in their new practices in the past few years. From finding locations to consulting on the entire setup. Each practice has achieved break-even in less than 18 months. If you are on the fence on whether to do a startup, give me a call, and I can help with analyzing your situation.