Buying an existing dental practice is very different from launching one from scratch and will require a different mindset and process. Buying a business that already has a revenue stream and an established customer base can be very advantageous. However, there are just as many risks when buying a dental practice as there are when starting one fresh.
While there are plenty of guides available that can take you step by step through the business buying process, there are some key areas that are all too easily neglected. If you’re thinking of buying a dental practice, then these tips might make the process much simpler. The results could transform the future of your business model.
Location is Crucial
Most business buying guides will mention that location is important, but many fail to stress the value of location research. Where your business is based will play a large part in your potential to profit and grow. Research is the key. Considering that you will most likely need to live close to the practice, you will have personal factors to consider, like schools, access to shops, and the needs of you and your family. You will also need to be aware of competing dentists in the area. Remember to narrow down your choices and visit each practice in person to gain a better understanding of the environment and geographical potential of the surrounding demographics.
Dive into Financial and Growth Analysis
Once you have decided on a practice that you’d like to buy, you need to study their financial state. Evaluate cash flow and determine the profit and loss statements as well as the current balance sheets. Expenses are an important factor to take note of. Many businesses that have been trading for a while will have accumulated outdated business practices, especially when it comes to supplying equipment. Those are expenses that can be reduced if you research UK dental suppliers and find a new provider of equipment and supplies for a lower price, with suppliers like www.kentexpress.co.uk leading the way for dental practices to run more efficiently.
As well as the finances, it’s also a good idea to evaluate the marketing strategies of the practice that you’re interested in. Older businesses will often rely on nothing more than word of mouth and an existing patient list to survive. The internet has transformed the potential marketing options for dentists. Always have a marketing strategy in mind when you plan to buy an existing business.
Learn what you can about where they’re going wrong, and develop a plan that will extend your audience reach and get you seen by the people that need dental treatment. Being more visible online can have a big effect on your ability to generate profits, so don’t underestimate its importance to your business.
Hiring someone to help coordinate the transition can prove to relieve stress and greatly reduce the chance for error. The process can be long and drawn out and involve lots of back and forth negotiations. Normally there are more buyers than there are dentist selling practices, so there will be competition for the purchase.
While a transition expert can help ease the process of buying an existing business, it’s a good idea to do your own research as much as possible. After all, you are taking the risks, and it’s you that will ultimately benefit. Don’t assume that every dental practice can be turned into a profitable venture. Do your research, and know the dental practice inside out, and your steps to a successful future will be much easier to achieve.