Congratulations! You are ready to take the step into dental practice ownership.
Even amid the uncertainty with Covid-19 over the past year, this is a great year to focus on your business goals and your future. Dental practices have adapted to the changes through teledentistry and modified schedules. People still need to see dentists to have their teeth assessed and problems addressed.
At LenDRgroup Consulting, we want you to achieve your business goals. However, dental school may not have prepared you for buying your first practice. We understand that buying a practice can seem daunting and you may have questions or concerns.
Is buying a dental practice worth it?
How many practices fail?
How can I finance my business?
What credit score do I need for financing?
Read on to learn the answers to these questions and more as you start your journey toward purchasing a new practice.
Dental Practice Ownership
As a dentist, your ultimate goal may be practice ownership. From financial incentives to flexibility and control of your schedule, being a dental owner comes with many perks. Of course, it also comes with increased risks.
Is It Worth Buying a Dental Practice?
Owning a business comes with risks and challenges. However, the economic outlook for dentistry is good.
In 2019, JADA published a study showing the effects of recessions on the demand for dental and orthodontic care. While demand was down, compared to other businesses, dentistry fared well. There is a clinical need for dental care that will not go away. People need dentists.
Benefits of Practice Ownership
Switching from dental associate to dental owner comes with many benefits. You will still be a dentist, doing what you love and treating patients. Additional advantages include:
- Flexibility
- Control of your schedule
- Final say in the services offered and number of patients treated per day
- Potential for increased financial gain
What Percentage of Dental Practices Fail?
Compared to other businesses, dentists have a very low default rate on their loans. Dentists have already invested thousands to educate themselves and start their businesses. They are well-trained and competent in their professions. With the right guidance from a business consultant or practice manager, they can learn and develop successful operating practices.
Becoming a Practice Owner
Opening a dental practice or buying a practice is a thrilling venture. However, it requires quite an investment that you may not be able to fund on your own.
How Do You Finance a Dental Practice?
Creating a business plan is the first step in moving from dentist to dental practice owner. This shows lenders that you have seriously thought about business details such as marketing, your objectives, risks, and competition. Contact a business consultant for assistance in developing a business plan.
Then, you can review your financing options. Various small business loans or dental practice loans are available for dentists. Your financial consultant can help you review your funding options and help you apply for the most appropriate loans based on your anticipated cash flow and monthly payments.
What Credit Score Is Needed for Dental Practice Financing?
Part of applying for business financing involves running a credit report to check your credit score. This helps determine if you will be a good business customer and candidate for a loan. Having a good credit score shows that you are less likely to default on your loan and will be able to make your monthly payments.
Each lender has different requirements and standards. Your practice consultant will be able to help you find the most appropriate lender for your situation.
How to Avoid Practice Failure
As you go through the process of acquiring a business loan, your business and financial advisor can guide you through the process of managing your new practice. Adequate funding can help get your dental practice on its feet and stay there as it has time to grow.
The following tips may help you avoid common pitfalls of dental practice ownership:
- Acquire adequate funding for practice growth.
- Be prepared for a shortage of income as your practice gets up and running.
- Avoid overpaying for a practice.
Choose LenDRgroup Consulting
If you are ready to buy a dental practice this year, consult the experts at LenDRgroup Consulting for assistance developing a business plan and financing your new practice.
Experienced Dental Practice Consultants
At LenDRgroup Consulting, our team of experienced dental practice consultants can help you finance and manage your private practice. We can help you establish and meet your goals for practice ownership.
Our team cares about the long-term success of your practice. Whether you need dental practice financing or business consulting services, LenDRgroup Consulting can help. We customize our services based on your practice’s unique needs.
To meet your financial needs, we utilize a lending platform of 300+ healthcare-specific lenders. There is no one-size-fits-all lending process. We built this network to help dental professionals like you achieve their dreams of practice ownership while eliminating the typical obstacles.
To date, we have helped hundreds of dental professionals launch, expand, and grow their practices. We recognize, listen to, and understand your practice’s needs and can provide guidance to help you avoid costly mistakes.
ContactLenDRgroup Consulting today to schedule a consultation. Let us help you buy and finance your dental practice this year!
