The decision to become a dentist is a big one—but the decision about how you want to practice could be even more important. Deciding to open your own practice sets off a string of events that will affect your career for years to come. You must be strategic about accomplishing your ultimate goal of practice ownership.
Working as an associate under a solid mentor for a few years works great for some. Others are more inclined to move faster and make moves toward ownership right after graduation.
Every individual is different, and what works for them may not be the same path you should take—so, how do you choose? Start by understanding your options.
The first option is to go through a more gradual process of practice ownership. You work with a current owner for a few years (or for a shorter time) as an associate and then transition into an ownership role.
The new dentist will generally receive a set salary for the time that they work as an associate. That salary can be a solid dollar amount or a percentage of dollars in the door. In many situations, this transition coincides with the timeline in which the mentor wants to retire completely or move to a more part-time practice.
In many situations, a mentor-to-ownership arrangement will be established at the outset of the relationship. You may need to review and sign a contract that a purchase will occur within a set number of years based on a specific value or value calculations.
Keep in mind that the mentor-to-ownership model is similar to the associate career path, but it is not the same. Instead, there is a strong emphasis on mentorship rather than just working alongside the current owner. The ultimate goal is true ownership (often on your own) instead of just buying into the existing practice.
Not every practice will work well for this type of transition. A practice that is too busy can drown a new dentist before they get their feet under them. The practice needs to be busy enough that a new dentist can make a living, but they will not get overwhelmed before they really get the hang of things. Having the mentor move to a more part-time role can help with this transition.
In addition, the new dentist should generally take on the role of performing or supervising all clinical dentistry at the outset. This arrangement provides a good experience and helps them establish themselves with patients right away.
In general, most mentor-to-ownership relationships focus on general dentistry, but that isn’t required. If there are some specialty cases, the mentor likely needs to handle those for a while until the new owner is trained properly to take them over.
As part of this dentist mentor relationship, the mentor might gradually remove themselves from the practice, such as being onsite as necessary, but not every day. They want to train their replacement and ensure that their practice continues for years to come. The mentee gets the benefit of both training and walking into an established practice with “built-in” patients to serve immediately.
The major benefit for the new dentist is that they get the advice and knowledge of someone who really cares about whether the practice succeeds. They also do not have to start a practice from the ground up—they can initially focus on providing patient care rather than attracting patients.
The mentor gets a solid plan to remove themselves from the practice, without worrying about whether their patients will be cared for in the future.
There are certainly some drawbacks involved in the mentor-to-ownership relationship model. First, you are stepping into someone else’s practice. It can take years or even decades to really make it your own. This is the direct trade-off for taking over a fully functioning practice.
While you can change various aspects of the practice, if you make those changes too quickly, you run the risk of losing your current patients. You also take the practice “as is” regarding other aspects of it as well, such as staff, equipment, and physical location.
The second option for new graduates is to jump right into dental practice ownership without any transitionary period. Many new dentists are intimidated by this rather quick transition, but it can be a great way to get a jump start on your career if you do it correctly.
In general, there are two ways to begin ownership right away after graduating from dental school.
You can create an entirely new dental startup right out of the gate. This type of move requires that you do things like find a physical location, create a brand and image for the practice, attract and retain new patients, invest in necessary items for the practice (from equipment to waiting room sofas), and hire staff.
This type of ownership creates the ultimate form of independence for your practice, but it also means that you get no internal guidance from anyone. There are lots of resources to start your practice (such as Dental B-School), but you do not walk into an established practice, so you have to figure a lot out on your own.
While many new graduates assume that they cannot purchase a dental practice right away after graduation, you may be surprised just how accessible this option can be for new dentists. If you want to own a practice right away after graduation, purchasing a practice from an established dentist (who often wants to retire) can be the best way to do that.
Despite what you might think, banks are interested in providing business loans to budding professionals, even if they have outstanding student loans. However, they will take a closer look at your finances, business plan, and a lot more if you want to purchase a practice right after graduation.
Perhaps the biggest benefit of owning a dental practice right out of dental school is that you are immediately your own boss. You can practice however you would like, take on clients that you prefer, and run the practice the way you want it to be run. The only person you answer to is yourself—and your clients.
You also have the option of creating a practice where you believe there is an immediate need. Establishing a practice in a rural area, for example, can be a great way to serve clients who need dental care near them. When you go through that type of transition, you can really serve a community and get to know clients on a personal level.
When you start off on your own, you can pick whatever location you want. If you buy an existing dental practice, you have to be careful to actually pick a dental practice for sale that is physically located where you want to be long-term.
While independent practice ownership is exciting, it can be very scary too. You still have to pay the bills even if you have trouble attracting or keeping patients. You have to learn how to run a practice on your own, from hiring staff to keeping up with insurance requirements. Creating and running your own practice requires far more than simply serving patients.
Regardless of which path to dental practice ownership you take, Dental & Medical Counsel is here for you. We offer an array of legal services (including acting as a dental startup consultant in some cases), and we have extensive resources to help your transition to practice owner be a success. The attorney team at Dental and Medical Counsel works with dental practices so we understand your needs. Contact us to set up a complimentary consultation with attorney Ali Oromchian.
At Dental & Medical Counsel, PC, we understand dentists have trouble navigating the legal process. We believe every dentist deserves the best advice and service so doctors can do what they do best, treat their patients. We make dentists' lives easier by providing expert guidance, so they can focus on their personal and professional aspirations.
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