Buying a Dental Practice vs. Starting from Scratch

So, you’re ready to take the leap into dental practice ownership, congrats! Now comes the big decision… should you buy an existing practice, or should you start from the ground up? Both paths have their perks and pitfalls, so let’s break it down in a way that compares the two ways to go from associate to practice owner.

The Pros of Buying an Existing Dental Practice

 

1. 1. Instant Patients, No Waiting
      Buying an established practice is like jumping on a semi doing 80 down the freeway. The initial jump and sticking the landing is a little bumpy, but when you’re on it’s already going! You’ll inherit a bunch of loyal patients right off the bat, which means you can skip the “Will anyone ever come to my practice?” phase and dive straight into treating those folks with the dentistry you know how to do.

1. 1. Money, Money, Money
      The beauty of an existing practice is that it already has a financial track record. You can see the books, know what kind of profits you’re working with, and avoid the “let’s hope this works out” stage.

1. 1. Team in Place? Yes, Please!
      With an established practice, you’re stepping into a ready team. They know the ropes, the patients, and how the coffee machine works (the important things). No need to worry about building a team from scratch or figuring out how things run.

1. 1. Cash Flow from Day One
      Buying an existing practice means the cash flow starts right away. You won’t have to wait months to turn a profit. This is particularly helpful when you have other financial responsibilities to take care of because bills don’t just stop as we all know.

1. 1. Existing Reputation
      If the previous owner built a solid rep in the community, you get to ride that wave. Patients already trust the practice, and that trust is passed on to you as long as you don’t do anything wild that rocks the boat.

 

The Cons of Buying an Existing Dental Practice

 

1. 1. That Price Tag Though…
      Buying an established practice sounds dreamy, but it generally comes with a higher price tag. You’re not just buying equipment, you’re buying goodwill, the patient base, and years of hard work the previous dentist put in. It’s like buying a luxury watch. It’s pricey, but you’re paying for the brand and quality from day one.

1. 1. Surprise! Here Are Some Problems You Didn’t Ask For
      Sometimes buying a practice means inheriting some less than ideal stuff. Outdated equipment, bad office vibes, or a cranky team member. Whatever it is, be ready for a few surprises. Doing your homework upfront is key to avoid major headaches, but inevitably small ones will still occur.

1. 1. Your Creative Freedom May Be Limited
      The systems, culture, and workflows are already in place, and making changes can ruffle feathers. Staff and patients may resist change, so you’ll need to ease them into your new way of doing things, no matter how great it’ll change the experience.

1. 1. Patient Loyalty Isn’t Guaranteed
      Just because you inherit a patient base doesn’t mean everyone will stick around. Some patients may have been loyal to the previous dentist, not necessarily the practice itself. Most of the time the vast majority stay when you respect the former way of doing things while slowly introducing your own.

 

The Pros of Starting a Dental Practice from Scratch

 

1. 1. Your Practice, Your Rules
      Starting from scratch means you’re the boss in every sense. Want a sleek, modern office with all new fancy equipment? Go for it. Want the best staff in town? Handpick them yourself. It’s your chance to create the dream practice you’ve always envisioned, with no old baggage to hold you back.

1. 1. Cheaper to Start… Usually
      Starting from scratch might actually cost less upfront compared to buying a ready practice. You’ll have to spend on equipment and renovations, but you won’t be paying for goodwill or an existing patient list.

1. 1. Craft the Perfect Patient Experience
      When you’re building your practice from the ground up, you get to decide every little detail about the patient experience from the music in the waiting room to the way the office looks. Want to offer coffee or even go wild with a juice bar? The sky’s the limit. You get to shape the entire ambiance!

1. 1. Modern from Day One
      Since you’re starting fresh, you get to set up shop with the latest tech and sleekest systems. No need to worry about outdated equipment or clunky software, which sometimes they may not even have! You’re building a tech-savvy, modern practice from the ground up.

 

The Cons of Starting a Dental Practice from Scratch

 

1. 1. Where Are All the Patients?
      Starting from scratch means… well, starting from scratch. You’ll need to hustle hard to build up a patient base, which takes time and long nights of questioning your decisions. Marketing, networking, and getting your name out there is going to be your full time gig for a while, while associating will probably still be on your plate.

1. 1. No Immediate Cash Flow
      With no patients walking through the door yet, the cash flow situation is going to be a little rough in the beginning. It’s like planting a tree when there’s no fruit on day one, but with care and attention it’ll grow. Be ready to weather the storm of slow income at first as it is not for the faint of heart.

1. 1. The Hiring Game
      Staffing a brand new practice is a lot easier said than done. You’ll need to find the right people, train them, and build a team from scratch on limited working hours available. It can be a lot of work to get everyone on the same page and create a cohesive unit that will be around for a long time as you grow.

1. 1. Risky Business
      Starting your own practice comes with some risk. There’s no guarantee it’ll succeed, and building something from the ground up is hard work. It’s betting on yourself to another level, but if it works… the rewards are that much sweeter.

 

Which Option is Right for You?

There’s no right or wrong answer here, just the right fit for YOU. If you’re looking for immediate patients, steady cash flow, and less risk, buying an existing practice might be your best bet. But if you crave creative control and are ready to take on the challenge of building something truly yours, starting from scratch could be the adventure you’re looking for.

Whichever path you choose, do your research, talk to advisors, and trust your instincts. Your dream dental practice is just around the corner—whether you build it or buy it!

Copper Dental Transitions was started from the ground up and we owned a dental practice through acquisition, so have experienced both worlds ourselves if you’re curious of our opinion. If you read that and think you want help buying or starting your own practice, contact Kyle Womeldorff with Copper Dental Transitions. We represent buyers and startups in the dental space, where most brokers only want to work with the seller.

Kyle Womeldorff
Founder
480-690-5200
info@dentalbroker.com