For many dentists, owning a practice is the ultimate career goal. However, one of the biggest decisions when preparing to start your own practice is whether to buy an existing practice or open a new one from scratch. Both options have their advantages and drawbacks, and the right choice for you will depend on your goals, budget, and risk tolerance. What are the upsides and downsides of buying vs. starting a dental practice from scratch?
The Benefits of Acquiring an Existing Practice
Instant Patient Base
One of the biggest advantages of buying an established practice is that you acquire an existing patient base right away. This provides you with an immediate revenue stream and reduces the time and effort needed to attract new patients.
Proven Revenue and Cash Flow
Unlike when starting a dental practice, an existing business has financial history. This allows you to analyze revenue trends, expenses, and profitability before making your acquisition.
Trained Staff
When you buy a practice, you often also inherit an experienced team. This reduces the time and expense needed to recruit and train new employees. A skilled team can also help ensure patient retention during the transitional period.
Established Brand and Reputation
Building a reputation from scratch takes years, and starting a new dental practice means starting at step one. Buying a well-known practice means you benefit from its existing credibility, which can make it easier to attract and retain patients.
The Drawbacks of Acquiring an Existing Practice
Higher Costs
The biggest downside of acquiring an existing practice is the cost. Established practices come with a bigger price tag to reflect factors like existing equipment and the patient base. While financing is available, the initial investment is still significant.
Inheriting Problems
While some dental practices on the market are great deals, others are not in the best shape. You may inherit outdated equipment, poor office management systems, or declining patient numbers. Due diligence is crucial to avoid costly surprises.
Limited Options for Immediate Personalization
Buying an existing practice often means working (at least temporarily) with the established systems, policies, and branding. Making major changes too quickly can risk losing patients and staff.
The Benefits of Starting a New Practice from Scratch
Full Control of Your Vision
When you start a dental practice, you have complete control over the office design, equipment, services, and overall patient experience. You can create a practice that aligns with your treatment philosophy and long-term goals.
Branding from the Ground Up
Building a brand from scratch lets you portray yourself exactly how you want. From the name and logo to marketing strategies, you will have full control of your practice’s identity.
New Equipment and Technology
A new practice allows you to invest in the latest dental technology and equipment rather than inheriting outdated tools from an existing practice. This can improve efficiency and patient experience and allow you to provide high-quality care more easily.
Selecting Your Own Team
Unlike purchasing a practice with an existing team, starting fresh allows you to handpick employees who align with your values and vision. This can lead to a stronger, more cohesive team.
The Drawbacks of Starting a New Practice from Scratch
Slower Revenue Growth
Unlike buying a practice with an existing patient base, a startup takes time to build. You may go months without significant revenue, which means you will need a financial cushion to cover expenses.
Higher Marketing and Advertising Costs
Since you will be creating something new and introducing yourself to the local community, you’ll need to invest more in marketing to attract new patients. This includes things like website creation, social media advertising, and promotional offers.
More Time-Consuming
Starting a dental practice requires handling everything from securing a location and obtaining permits to hiring staff and purchasing equipment. This process can take months or even years before your doors open.
Get Your Dream Practice with APEX Reimbursement Specialists
Whether you are interested in acquiring an existing practice or starting something new, APEX Reimbursement Specialists is here to help. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.