So, you have your eye on your own dental practice. You have your degree under your belt and you may even have invested some time at a national dental chain or working under a senior professional. Now it’s your moment to reach higher.
Set yourself up for success by doing your homework before signing on the dotted line. Here are five key tips to getting it right.
Decide on a region where you’re interested in setting up shop. Then, reach out to local dental supply companies, accountants and small business banking specialists to see if they know dentists who are looking to sell or who may be interested in adding a partner. By reaching out to people who know the local dental industry you’ll get an inside look and save yourself time.
Current staff members can also be an invaluable resource. Whenever possible, consider keeping the current hygienists, billing staff and support staff if you should purchase a practice. These people can help current patients feel more comfortable and can bridge a nearly-seamless transition as you learn the ropes.
Visit In Person
The value of visiting a practice in person cannot be overstated. You’ll get a much more accurate sense of how the business is operating by seeing things firsthand. But don’t be put off by some perceivable weaknesses. If you’re able to see these areas for improvement and feel confident in your ability to fix them, charge on!
Crunch the Numbers
Get a realistic idea of what you can afford by considering your student loan amounts, personal expenses and how much you’ll need to make in order to cover both student loans and your new business loan. Share your budget with your banker as you explore your options to ensure you find the right fit.
Learn the Facts
One very important thing to note is there is more than one sale involved when buying a practice. Not only will you need to consider the value and cost of buying the practice itself, but you also must consider the value and cost of buying the building and property. These are not typically one in the same. Consider using a business banking professional to ensure these details do not go overlooked. Not only will they ease your mind, but they will ease the process as well.
Ready to Buy?
Before you place a bid on a practice, there are a couple of things to consider. Be sure the asking price matches the true value of the practice. Often the current owner may over-value his or her business’ worth. Utilize a small business banking specialist who can review the practice’s finances, tax returns and other records and compare them to national statistics.
Secondly, offer to purchase through a third party professional. Emotions can run high during any sale and having a professional run the transaction can help smooth the process.
By doing your research and seeking out help early in the process, you’ll be more likely to end up with a practice that works for you.
Contact us at American National Bank for help on your journey. We have seasoned small business professionals on staff to walk you through every detail and fuel your opportunity.