Choosing the right path for your career in the medical or dental field is an important decision. Whether you’re a recent graduate or an experienced professional looking to take the next step, you typically have two options: buying an existing practice or starting your own from scratch. Each option has its advantages and disadvantages, and understanding these can help you make the best choice for your future. Let’s explore the pros and cons of both approaches.
Buying a Medical or Dental Practice
The Advantages
Established Patient Base
One of the most compelling reasons to buy an existing practice is the established patient base. When you acquire a practice, you inherit a group of loyal patients who already trust the practice and its services. This can translate into immediate revenue, helping to stabilize your finances from day one.
Existing Infrastructure
Purchasing a practice means you also get the infrastructure that comes with it—trained staff, operational systems, and equipment. This allows you to focus on patient care rather than spending time setting up the business processes that keep a practice running smoothly.
Established Reputation
An existing practice often has a reputation in the community. A strong reputation can attract new patients and facilitate word-of-mouth referrals, easing your marketing efforts.
Lower Risk
Buying an established practice generally comes with lower risks than starting a new one. With a history of financial performance and patient retention, you have a clearer picture of what to expect, making it easier to develop future projections and strategies.
Adding on Services
Oftentimes, you will see that a selling practice refers out work to either an associate provider that comes into the office on a part-time basis, or they are referring out work to another practice altogether. If you are able to do the work that the selling practice couldn’t, this bodes well for the financial outlook of your bottom line.
The Disadvantages
Higher Initial Cost
One of the biggest drawbacks of purchasing a practice is the financial burden. The initial investment can be significant, and you may need to secure financing, which comes with its own challenges and responsibilities.
Inheriting Problems
Buying an existing practice means you might also inherit its problems. This could include financial issues, outdated equipment, or staff dynamics that aren’t conducive to your management style. Navigating these challenges can be time-consuming and stressful.
Tied to Existing Operations
Initially, you’ll be tied to how the practice has been run. This might limit your ability to implement your vision and changes immediately, requiring a period of adjustment.
Cultural Fit Issues
Integrating into an existing team can be difficult. If the practice has a strong culture that differs from your own management style, it could lead to friction and challenges in maintaining staff morale and productivity.
Starting Your Own Practice
The Advantages
Freedom to Design Your Vision
When you start your own practice, you have the freedom to design it exactly how you envision. This includes choosing the layout, equipment, branding, and operational systems that align with your goals and values.
No Pre Existing Issues
Starting from scratch means you won’t inherit any existing problems. You have the opportunity to build a practice that reflects your standards, free from the complications of previous management decisions.
Flexibility in Growth and Operations
With a new practice, you can implement systems and processes that work best for you. This flexibility allows you to adapt and change as you learn more about your patient base and what works in your community.
The Disadvantages
Higher Initial Effort and Investment
Starting a practice requires a significant commitment of time, effort, and financial resources. You’ll need to manage everything from securing financing to marketing your services.
Slower New Patient Acquisition
Building a patient base from scratch can be a slow process. It may take months or even years to establish a steady flow of patients, which can create financial strain in the early stages.
Uncertain Financials
Without a history of operations, financial projections can be uncertain. You’ll need to closely monitor your cash flow and be prepared for fluctuations as you establish your practice.
No Community Reputation
Establishing a new reputation in your community takes time and effort. You may need to engage in extensive marketing and community outreach to attract new patients.
Making the Right Choice for You
Ultimately, the decision to buy a medical or dental practice or start your own depends on your personal circumstances, goals, and risk tolerance. If you value a quicker return on investment and prefer the security of an established patient base, buying an existing practice may be the better choice. However, if you’re passionate about creating something entirely your own and are willing to navigate the challenges that come with starting from scratch, launching your own practice could be incredibly rewarding.
Both paths have their merits and drawbacks, and understanding these can guide you toward a decision that aligns with your professional aspirations and personal values. Take the time to assess your goals, resources, and the realities of each option before making your choice. Your journey in the medical or dental field is just beginning, and the right decision can set the stage for a fulfilling career. We consult with our clients on a variety of practice management issues, including whether to buy an existing practice or start their own. If you have questions about buying a medical or dental practice vs. starting your own, please contact us.
