So you are thinking of starting your own dental practice? Whether you are working for a dentist that is interested in selling his practice or you want to set out on your own to blaze your own trail, there are few things you should know before you purchase a dental practice or begin the work on your own dental practice start-up.
The most important step you can do before you even consider a private dental practice is to do your homework. The average dental practice can range in the $400k-$500k range to complete. This cost also includes some working capital and a marketing budget. You should consider whether purchasing an existing practice would be more cost effective than a start-up.
If you are going the purchase an existing practice route, make sure you get a fair and independent practice valuation. This will ensure that both buyer and seller will receive a fair market price for the practice. A rule of thumb that most practice valuations follow is that a practice is likely to sell for between 40% and 60% of the average of last 3 years of gross income. However, many other factors go into determining the value of a practice.
Also, it is a good idea to have a demographics report of the area that you interested in that covers all surrounding zip codes. Get to know how many dentists are in the surrounding area and considering their marketing tactics. Will you be able to compete and grab new patients? Also, check out if dentists in your area are supplementing their marketing practices with a company that does SEO for dentists, this can have an effect on local search rankings.
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