For dentists setting up a new practice, or renovating an existing practice the costs can soon add up. Real estate, dental suites and professional equipment are expensive business and require capital up front. Property will either need to be rented or purchased, planning permission may be required if the building is undergoing change of use to be used as commercial dental premises.
For dentists who are starting out, financing may be a consideration. Capital can come from savings, family, personal or business loans or other flexible finance options. Each option has advantages and disadvantages.
Securing financing for a practice is not always easy, in particular as the university training for dentists is long and expensive, so dentists will be loaded up with debt upon graduating.
If a dental professional is seeking to establish their own practice, significant upfront costs will need to be met in order to source a suitable building, furnishings and equipment. This is in addition to staff costs and marketing costs in order to attract new patients.
If a professional wants to acquire a practice, significant costs will also be incurred as this would require buying an established practice from another dentist or business owner. However the advantage here is that the business is already established and has monthly cashflow thanks to the patients who are registered with the practice. Some dentists when retiring simply close their practice and refer their patients to another local dentist who they know, like and trust to take care of their patients. Not everyone is lucky enough to have large numbers of patient referred to them free of charge.
Some professionals team up with others in order to form a team and then build a practice together, pooling their resources in order to leverage their position and reduce costs. Many practices are formed by teams or partnerships. This does not preclude professionals from later setting up their own practice but it can provide significant advantages when starting out. Therefore reducing the costs and need for financing. In terms of lifestyle there are also many other advantages, such as sharing the workload and being able to have more freedom in terms of hours and holidays.
Having a dental practice also means being a business owner which can mean a lot of stress and long hours, it is therefore not surprising that dentists choose to work in partnership with other dentists. It also means they are able to provide a broader range of treatments such as cosmetic dentistry which can attract more patients seeking specialist treatments, such as dental implants, orthodontics, cosmetic dentistry, Invisalign etc. A broad range of treatments, including private treatments will attract more patients and provide added income and profitability for the practice.
Setting up in partnership therefor provides many advantages and should be considered by professionals seeking to establish their own practice or acquire an existing practice.