Buying a Dental Practice: The Mandatory Background Research

It is a very important that you give yourself due consideration in deciding where to buy, how to go about it, and what kind of practice to purchase.

Take your Time

Pace yourself. You are building the foundation of your future. Where do you want to live, how responsive will the community be to your new practice, how much of a rapport do you already have with the community?

Deciding on Location

Where is it that you would like to live? You’ll want to be a big part of this community, so you’ll need to make sure it’s a good fit. Establishing a connection with the locals will help your business succeed. And ensuring a shorter commute could also pay off. Trading off time spent in commute with time spend amongst family and friends is not a bad deal.

Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Intercity or rural–what’s best for your family? Let the location of your competition inform your decision. Will your spouse be able to find work? Will your kids end up in a school district that will nurture them and grant you piece of mind?

Deciding on the Ideal Practice for You

Lay out a working business plan. What size of dental practice do you anticipate? And do be careful to leave room for growth. Will you be establishing a specialized or generalized dental practice. Can you establish relationships with other practices in the community that can give you referrals? Does working a full five-day schedule with a large list of clients appeal to you? Or maybe you’d prefer a smaller practice that allowed for more time off. Naturally, these decisions will affect your finances and may dictate your level of day-to-day stress too.

Get the Proposed Business Appraised

Seek an appraisal through a certified public accountant. And opt for a professional that has experience with dentistry practices. This will help you establish a clearer point of view. This will give you necessary information in making a purchase and could save you plenty.

Assemble a Team of Professionals

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. You’ll have to rely on the expertise of others as your patrons will have to rely on you. Trusted advisors can save you plenty of trouble. Here are a few people you’ll need:

• A certified public accountant with a successful track record of aiding dentistry practices and other small businesses on maximizing deductions and remaining tax compliant. You should seek a Certified public accountant who can help you develop tax strategies. You will want a certified public accountant that can advise you on how to structure your business entity (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
• A Bookkeeper that is already well-versed in an accounting software system like Quickbooks. A certified Quickbooks Advisor is a level of distinction in which a bookkeeper certified by by Intuit as proficient with the bookkeeping program.
• A legal professional to review documents and legally protect your interests.
• A consultant also will likely prove useful in helping you avoid pitfalls.
• Establish a relationship with a bank early on. Getting prequalified, and ready to finance, informs how much you can afford when putting in an offer.
• An insurance agent will evaluate risk and assess the value of the business to see exactly how much coverage you’ll need.
• It is wise to seek advice from a mentor or business confidant of some kind, perhaps a veteran dentist who once went through the same process you’re going through now.
• A marketing expert-preferably someone with knowledge of internet marketing.

When starting a dentistry practice, go into it with a team that can make sure you get it right.

Tax CPA John Huddleston has a law degree and masters in tax law from the University of Washington School of Law. He has been a guest tax expert on the radio. He advises small businesses in the Seattle Bellevue Tacoma & Everett area on various tax and accounting issues. His firm, Huddleston Tax CPAs, also provides tax preparation service, quickbooks consulting, business valuation, general accounting and bookkeeping service. Profile information on CPA John Huddleston and the CPAs employed by Huddleston Tax CPAs is available at CPA Profile, Seattle CPA.