5 Mistakes to Avoid If You Buy a Dental Practice

In order to buy a new dental practice and learn to run it successfully, you’ll have to digest a lot of information in very little time. Along the way, you’re bound to make mistakes, but with guidance, you can avoid the most damaging.

Here are five basic pieces of advice when you do purchase a practice to keep you from getting too battered and bruised as you climb the very steep learning curve.

Don’t go on a spending spree.

If you’ve purchased an existing practice, chances are the dental equipment they have been using is in working order. Although it may not be the latest and greatest, it’s functional. Before you dump all the “old” for new equipment, spend some time working with what you’ve been given. THEN, assess your needs and buy new equipment as you save up to purchase it without going into more debt.

Don’t alienate your new staff.

Unless your dental school offered you an education in employee relations, you will want to go into your new business with a light touch, especially at first. If you already understand the pitfalls of dealing with employees, then you already know to tread lightly. Getting up to speed with your new practice will be difficult under the best of circumstances. It will get much, much harder if you have to start out with infighting, resentment, and having to hire a new staff.

RELATED ARTICLE: Aspects of GREAT employee teams

Don’t forget to pay your taxes.

The world of business ownership means your taxes will become a lot more complicated.

While you can deduct interest on your mortgage payments, depreciation on your property, and a variety of other things, there are other expenses you can’t deduct, such as principal payments for real estate. So, as far as the federal government is concerned, your income is your take-home pay plus your principal payments. In addition, you will have to pay self-employment taxes.

If this sounds complicated, you’re not wrong. Make sure you have the right professional help so you can minimize uncomfortable interactions with the IRS.

Don’t get wrapped up in your day-to-day ups and downs.

Some months will be busy, and others won’t. December and July, for instance, will be slow because of the holidays and vacations. If you look at your finances month to month you’re going to make yourself crazy. Instead, you have to review your practice’s situation from a quarterly and annual point of view.

Don’t try to do everything yourself.

Once you go into business, every marketer under the sun is going to want to meet with you. Don’t let them.

You should be looking at the big picture of your practice. You don’t need to analyze every product or service someone wants to sell you. Instead, you should have an office manager who can talk to the people who want to sell you insurance policies, office equipment and the like.

Here at Financially Simple, we have helped dozens of young dentists purchase their practice, then get on their feet over the years. If you have questions about your practice, let’s get together for a (free) consultation.