Hindley Burgmaier Group has worked with many dentists embarking on the journey to own a dental practice. It is an exciting endeavor, filled with both opportunities and challenges. For many dentists that I have worked with in the past, the path to practice ownership rarely ever involves first working in the practice they plan to purchase. While this approach can offer firsthand experience and insights into the inner workings of the practice, it also comes with its share of cons that aspiring practice owners should carefully consider.
Pros:
- In-depth Understanding: Working in the dental practice you plan to purchase can provide a comprehensive understanding of its operations, culture, patient base, and potential for growth. This firsthand experience can allow you to assess the practice’s strengths, weaknesses, and opportunities for improvement.
- You Will be Able to Establish Patient Relationships: Building rapport with existing patients as an associate may allow for a smoother transition to practice ownership. Patients already familiar with you are more likely to continue seeking care at the practice after the transition, providing a stable foundation for future growth.
- Familiarity with Systems and Staff: Working alongside the existing team allows you to become familiar with practice management systems, workflows, and staff dynamics. This familiarity streamlines the transition process and minimizes disruptions to patient care during the ownership transition.
- Financial Insights: Working in the practice beforehand can provide valuable insights into its financial performance, revenue streams, expenses, and profitability. This knowledge is crucial for assessing the practice’s financial health, identifying areas for improvement, and making informed decisions about its future.
- Opportunity for Improvement: As an associate in the practice, you have the opportunity to identify areas for improvement and implement changes after ownership. Whether it’s upgrading technology, enhancing patient experience, or expanding services, working in the practice allows you to plan on making strategic changes to drive growth and profitability.
Cons:
- Limited Autonomy: As an associate, you may have limited autonomy over clinical decision-making, practice policies, and strategic initiatives compared to practice owners. This lack of control can be frustrating for those eager to implement their vision for the practice.
- Financial Investment: Transitioning from associate to practice owner requires a significant financial investment. Purchasing the practice involves upfront costs, such as the down payment, closing costs, and potentially financing arrangements, which can strain personal finances and require careful planning.
- Managing Relationships: Balancing relationships with staff, colleagues, and the previous owner during the transition period can be challenging. Navigating these dynamics requires effective communication, leadership skills, and a collaborative approach to ensure a smooth transition and maintain practice harmony.
- Risk of Unforeseen Challenges: Despite thorough due diligence, unforeseen challenges may arise after purchasing the practice, such as regulatory changes, economic downturns, or unexpected expenses. Managing these challenges requires resilience, adaptability, and a proactive approach to problem-solving.
- Work-Life Balance: Owning a dental practice often entails long hours, administrative responsibilities, and on-call duties, which can impact work-life balance. Transitioning from associate to practice owner may require adjusting to increased responsibilities and workload, potentially affecting personal time and well-being.
Should you become an associate of the practice you will eventually purchase?
Working in the dental practice you plan to purchase could offer invaluable insights, relationships, and opportunities for growth, but it also comes with its challenges and complexities. Aspiring practice owners must carefully weigh the pros and cons, conduct thorough due diligence, and prepare for the financial, logistical, and interpersonal aspects of practice ownership. With careful planning, dedication, and a clear vision, transitioning from associate to practice owner can be a rewarding and fulfilling step in a dentist’s career journey.
