Dental CPA Answers Your Top Questions: What You Need to Know with a Dental Transition
If you’re looking for a general dental practice for sale so you can start out on your own, you need some expertise from those who have walked this path before you. Check out tips below before you get started so you can have a successful transition into a thriving dental practice.
Dealing with Non-Clinical Issues
As a dental practice owner, you will deal with much more than just patients. Non-clinical issues can take up a significant amount of time, so knowing how to deal with them is important to running a successful practice. Issues that come up with your employees or your patients should be dealt with straightforwardly, honestly, and quickly. Ignoring an issue will not make it go away, it will only make it more difficult to address as time passes.
Decision Making in Your Practice
Before you start looking for a general dental practice for sale you need to learn how to think ahead when making decisions. It may be easy for you to decide on a care plan for your patients, but how do you decide when to replace dental equipment, buy a new copier, or hire a new hygienist? Below are some basic things to think about before you make decisions within your practice.
- Back End Costs. Remember to factor in regular maintenance and usage costs for the things you buy. For example, buying a new copier might be a good idea for your practice, but you need to factor in all the additional costs to own this new copier. The ink and paper might cost more, meaning that instead of budgeting $50 per month on ink, toner, and paper, you are now spending $75. The cost to run and upkeep equipment is a long-term cost you need to account for.
- “Me Too” Costs. If you have multiple employees be aware of “me too” costs you may encounter. This happens when one employee needs a new piece of equipment, for example, a new computer. Suddenly, your other employees are expecting the same upgrade, and you have to decide whether everyone needs an upgrade, or just wants what the first employee got.
If you’re feeling anxious about managing employees, you are not alone! How do you motivate your team and create the type of atmosphere you want to work in? Many dentists find a morning meeting helpful so they can talk through the day, what patients are coming in, and any issues that have come up. Here are a few more tips for managing your employees well.
- Create a Vision Statement. You surely have a vision for your practice. You know how you want it to run, the atmosphere you want to create, and the types of patients you want to attract before you even go looking for a general dental practice for sale. Create a vision statement and share this vision with your employees so they can help you create the practice you have worked so hard for.
- Employee Motivation. Take the time to get to know your employees and find out how to motivate them. This will be different for everyone. Some employees thrive with words of affirmation while others desire additional training. If you can motivate your employees, your practice will reap the benefits.
A Successful 5-Year Plan
What will your life look like after you open your new practice? Do not make the mistake of thinking that buying a general dental practice for sale rather than building your practice from scratch means you can enjoy a large revenue stream immediately. You have paid for an established practice, but you still need to run the practice wisely and work to retain patients. Following this general 5-year plan will help you set realistic expectations for growing your business into a lasting venture.
Year 1 – Use this year to learn how to manage costs and create an atmosphere at your practice. You may not be building revenue as quickly as you want, but keeping costs down and finding a good rhythm will set you up for future success. Try to build value into your practice rather than getting as many new patients in the door as possible. When your patients value the work you do, they will come back and refer their friends.
Year 2 – When you’re comfortable with how your office runs you can start building revenue. Find out how many patients you can see in one day. Advertise or offer patient referral incentives. Building revenue slowly will help you and your staff adjust and learn without feeling overwhelmed. Remember you are running a marathon not a sprint.
Years 3-5 – After two years running your practice you will learn how to anticipate your overhead costs. Take a look around and decide what to invest in next. Do you need to buy new equipment? Should you hire a new hygienist? Find out the rate of return for any staff you hire or equipment you buy before you move forward with these decisions.
During the first five years of your dental practice, surround yourself with trustworthy advisors. Finding an attorney, financial advisor, and other experts who you trust to give you advice will help you with any difficult decisions you could face in the future.
How to Find a General Dental Practice for Sale
When you’re ready to make a transition in your career, whether it is buying a general dental practice, or selling your practice, call DDSmatch Southwest. Our team makes the transition seamless by matching buyers and sellers for the best possible outcome. For more information set up a consultation today.