The new year is often a time for fresh starts and big decisions. As a dental, medical, or veterinary professional, you might be considering taking the leap into practice ownership. Whether you’re dreaming of creating a brand-new practice or purchasing an existing one, the journey to becoming your own boss is exciting, but requires careful planning and foresight. Let’s explore what it takes to make this dream a reality.
Why become a practice owner?
Owning your own healthcare practice comes with significant benefits, such as:
- Control over your career: Owning your practice gives you the freedom to align your career with your personal values and long-term goals. You get to shape your practice’s culture, set your own schedule, and decide how you deliver care to your patients.
- Financial growth: With the right planning and financial management, owning a practice can be considerably more financially rewarding than working as an employee.
- Building equity: Your practice becomes an asset that can grow in value and serve as a nest egg for your future.
- Flexibility: You have more control over your schedule and work-life balance.
However, it’s essential to weigh these advantages against the realities of practice ownership.
The downsides of practice ownership
While rewarding, running your own practice has its challenges:
- Financial risk: Owning a practice requires a significant investment, with no guaranteed returns.
- Administrative burden: Managing a business, handling staff, and dealing with compliance can be time-consuming.
- Workload: The responsibility of running a business often means long hours, especially in the beginning.
Understanding both the benefits and challenges will help you decide if this is the right step for you.
What to consider before starting or buying a practice
Before diving into practice ownership, it’s important to ask yourself these key questions:
- What are your goals? Define your professional and personal goals for owning a practice.
- Do you have the financial resources? Assess your budget for setup costs, equipment, and operational expenses.
- Are you ready for the responsibility? Practice ownership is a massive commitment, and requires business skills in addition to clinical expertise.
- How will you handle the financial side? Managing finances is crucial to your practice’s success. Partnering with a specialist accountant like Amalgam Advisors can help you stay compliant and financially sound.
Should you buy an existing practice or start from scratch?
Buying an existing practice
Pros:
- Established patient base and revenue stream
- Existing staff and systems in place
- Easier to secure financing
- Less risk due to existing patient base
Cons:
- Higher initial investment
- Potential challenges in adapting to existing systems or culture
- May not be the ideal location or type of work
Starting a Practice From Scratch
Pros:
- You start with a clean slate and create the practice you want
- Location of your choosing
- Designed the way you want
- No “baggage” from previous owner
Cons:
- No immediate revenue stream
- Requires significant time and effort to attract patients and hire staff
- Can be more difficult to get finance
What’s the next step?
If 2025 is your year to go out on your own, don’t do it alone. Navigating the complexities of practice ownership requires expert guidance, from managing finances to structuring your business for success. At Amalgam Advisors, we specialise in supporting healthcare professionals on their journey to ownership. We understand the issues that are prevalent in the dental, medical and veterinary industries, terminology, and systems. Our team has the skills required for you to smoothly and successfully purchase or set up your own practice.
Ready to take the next step? Contact us today to get started on making your practice ownership dream a reality.
