Why are so many associates reluctant to become a practice owner?
- The money factor
With a student loan and a large house mortgage, the idea of borrowing $1 million-plus for a practice is scary. However, purchasing your practice is an excellent investment. The extra money you earn will pay back the purchase loan comfortably over ten years. Your bank will be pretty keen to lend you the entire purchase price.
- The self-confidence factor
You may shy away from practice ownership because it is outside your comfort zone. You are guaranteed success with lots of hard work, a passion for doing the best for your patients, and looking after your staff.
- The fear of failure factor
No matter how thoroughly you investigate the target practice, you will never eliminate the element of risk. Many dentists overestimate the risks. For instance, many purchasers project more significant patient attrition than is the case.
- The spouse factor
Never buy a practice in a location that your spouse does not particularly like. The decision to buy a practice must be made jointly. Having your spouse on your side will save you the grief and possibly a costly future practice relocation.