Are you thinking about buying a dental practice? If you’ve done your research, you know this is a big investment. Buying a dental practice for yourself can be very expensive, and you’ll want to make sure you have a solid business plan in place before you make the final purchase. From managing cash flow to handling dental financing options, here are five things you should know before you invest in your own dental practice.
1: A Reliable Cash Flow is Essential
The up-front costs of buying a dental practice go beyond just paying for the space and its associated bills. You also need to purchase and maintain equipment, hire a staff, and execute a marketing strategy that will help draw patients to your business. Because the early days of a practice can be unpredictable, handling your cash flow is a challenge. This can be mitigated a little bit with patient financing programs like SimplePay.com. Allowing financing options makes the practice attractive to new patients and lets you get some cash into the business even if your patient can’t pay all at once.
2: Dental Payment Plans Help Early On
Allowing your patients to make a dental payment plan is an attractive way to bring in newcomers, but it is also almost essential to staying afloat early on. If you offer ways to enhance patient financing such as giving a no-credit check financing option, you will make a large dental bill more palatable to your lower-income patients. Moreover, you will have a way to get reliable payment for procedures, which greatly aids in the budgeting process.
3: History is Paramount
Before you buy the practice, you should know why the seller is exiting the business. In some cases, this is merely a matter of an older dentist retiring. In other cases, however, there might be significant hurdles that the previous owner couldn’t overcome. If there is a shortage of new patients, a low-income populace, or a pre-existing problem with various medical financing companies, you should know this up front and have a plan in place to overcome these issues.
4: Location, Location, Location
Investigate the region you will be moving into before you make any final decisions. This gives you a head start on planning your marketing campaign and can also reveal some of the potential problems mentioned above. Knowing the strengths and weaknesses of the patient population lets you identify which procedures are most attractive to locals and what dentist payment plans might work well for the majority of the area.
5: Know Your Staff – Current and Future
You should have some staff in place before you even open your practice. This should include a skilled accountant, a marketing professional, and somebody who is well-versed in dental practice financing. You should also know what features you need in front office personnel and assistants, and how they fit in with the location. Visit other offices if necessary to find out what features work effectively in your area. Hiring the right people can bring you a guaranteed customer base and make the early days much easier.
Ideally, you want people in your new business area to recognize you as a skilled dentist with payment plans for those in need and a friendly, competent staff. By doing your work before the sale is final, you can make this major investment pay off for you.