Buying your first practice – the 60-second guide
Here are four factors to consider:
Finance – how much capital do you have or can you raise? Do you understand the cash flow?
Location – where do you want to work?
People – do you want to start with some patients or with none? Do you have favoured demographics? Do you want to inherit a team or build one?
Mix – do you want the dentistry to be funded by the Government, by insurance plans, or by the patients independently?
After that – it’s time to start the X-Factor auditions – looking at numerous agent’s prospectuses, keeping your eyes open and your ear to the ground.
Manage your expectations – it could take 2 years to identify the right deal and another year to complete.
Don’t be in a rush – that can lead to bad decision making – the consequences of which can take years to rectify (or break you).
Buying your first practice is a life-changing event.
Make sure you have mentors around you to point out the pitfalls and advise you to decline the wrong deals – don’t make the mistake of calling the mentor in after you have made the wrong choice.