Dental Startup vs. Practice Acquisition
 - January 12th, 2023

Choosing the Best Option for Your Needs

Choosing between a dental startup or a practice acquisition can be a daunting decision. Most dentists who plan to venture into practice owners are faced with these two choices. And, it’s often one of the most important decisions of their career. 

Either way, dentists are aware that practice ownership will give them more freedom, authority, revenue, and job satisfaction. 

As a professional decision, this can have long-term impacts on you and your family. Therefore, it has to be well thought out and made only after a rigorous and realistic examination of the advantages and disadvantages of each option. 

The difference between a dental startup and a practice acquisition 

Dental Startup

Like any venture, a dental startup has its allure. You are building everything from scratch. From the location of your dental startup to the physical layout, design aesthetics, logo, branding, and marketing outreach – everything can be tailored to your preference. 

This process takes significant time to complete and lots of in-depth planning. Startup practices also aren’t for the risk-averse. There are several factors to consider if you want to be successful. 

First, you have to select the location after a thorough market analysis and performing a study of the demographics. Other than real estate, you must take into account the investment needed for equipment and staffing. 

Then, you will have to develop a sound marketing strategy that helps you retain your working capital instead of burning through it. Of course, then there’s the hard work of getting and retaining clients while maintaining a lean business model

Dental Practice Acquisition

With a dental practice acquisition, you are buying an established business. There is an existing customer base and a functioning business model, along with the necessary physical infrastructure and staff. The premise here is, you acquire it and are ready to hit the ground running on day one. 

But despite what most people think, acquisitions are not a foolproof business. There will be an erosion of the customer base, ranging from 10 to 20%. Some staff could also exit along with the previous owners. 

In addition, you’ll also have other expenses related to improving the facility and upgrading equipment. You may also have to improve current team-flow systems and the IT infrastructure to ensure tasks are completed on time.

Dental entrepreneurship and practice ownership

Before choosing either, you must do your due diligence about each choice regarding its client base, competition, marketing costs, potential gross revenue, and expenditure, among other aspects. 

Dental entrepreneurship has its advantages. Being a business owner can catapult your career to new heights of success. But you should embark on this challenging opportunity with caution and a meticulous strategy.

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