There are several ways for dentists to establish their own dental practice as they desire to have more control of their future earnings including acquiring a dental practice. Reasons to begin a sole practice include reducing their student loan debt, having a more flexible schedule, or just working under a different set of rules, to mention just a few. Some may desire mentorship or associate-to-own opportunities until they decide their actual approach to dentistry.
Whichever way you decide to approach ownership is a decision you will have to make based on your desired finances and lifestyle. The core team most important to assist you in making this critically important step should consist of a trusted lender, attorney, accountant, and insurance broker, just to start the process. You will find once you have determined your goals for the practice, experienced professionals can educate you and keep you on track. Owning your own practice is the most rewarding way to meet your career goals.
Consider an ADA Membership
One very important resource to consider is becoming a member of the American Dental Association (ADA). Through this professional organization membership, you have access to publications that will keep you up-to-date on training programs, continuing education courses, and career centers which could be very valuable for the best chance to succeed. Access to discounted products and supplies through this network could prove to be exceptionally valuable.
If you desire for your practice to be a success, make sure to investigate the area where you want your practice to be located. Consider the number of dental practices in the surrounding area and average household income. Make sure there are enough residents in your target demographic to provide a successful amount of business for your practice.
Develop A Business Plan
In order to assure support from the lender you choose, and others who will advise you along the way, consider developing a business plan that goes along with your business objectives. As a part of your business plan, you must decide whether you will purchase, build, or rent your facility. Always allow for expansion and upgrade. You must determine your days and hours of operation and who you plan to employ and their job descriptions. This includes compensation and benefits for these full-time or part-time staff, as well as established personnel policies.
Based upon the goals you have outlined in your business plan considering accessibility, demographics, competition, quality of the facility and equipment, you must decide how to develop a satisfied patient following that will become faithful to your practice to produce cash flow. Determine ways you will make this happen. By expanding your types of services and focusing on the details, you can provide a great patient experience.
How you engage with team members on a daily basis can determine how your staff members create the service and moments you want them to have with your patients. Some other ways to accomplish patient satisfaction to create a faithful patient base is on-going training for staff. Be involved in the community where your practice is located by sponsoring local schools and events in the area.
These are very important things to consider in order to obtain referrals for future patients. Remember other things to consider when opening your practice will be developing and marketing a brand for your practice, a customer-friendly website, and advertising in print and on social media.
In order to obtain the appropriate amount of financing from your lender, you will have to establish the amount of funds necessary to cover operating your practice and covering overhead expenses until you are up and running. Whomever you choose as your financial advisor or CPA will be critical in helping you with the appropriate amount of cash flow needed. Your lender will take all this into account in making the decision to finance your new endeavor.
Importance of a Contract
One of the most critical items to consider when beginning to work in a dental office or when acquiring a practice is to get a written contract. Verbal contracts often lead to misunderstandings. Important things to include in your contract are details of compensation all the way down to payment terms of bonuses. Make sure to include non-compete language and how to transfer ownership in the event you or a partner decide to leave the practice.
“A contract should clearly spell out every element of a practice sale – including penalties for changing the terms.” Just remember, having a written contract protects both sides to reduce future problems and loss of relationships. Contracts need to be read carefully. Your lawyer should read and review your contract and inform you of any concerns. The ADA Center for Professional Success offers an eBook, Dentist Employment Agreements: A Guide to Key Legal Provisions, should you need further advice.
Acquiring the right dental practice, however and whenever you decide is the right moment for you, is based on your experience, lifestyle, and financial position. Make sure you consider your short-term as well as your long-term goals when making this life-changing commitment. For more information regarding the when, where, and why to begin the process of preparing to open your own dental practice, visit PPO Solutions at www.pponegotiationsoltions.com.