By: Nilesh Patel, VP, Regional Business Development Officer, Bank of America Practice solutions
I enjoy working with prospective dental practice owners to aid them to realize their dreams. Supporting these individuals is rewarding and inspiring because I get to help them answer crucial questions. This includes the most important question of all:
“Should I acquire an established practice or build a brand-new office?”
To help answer this question, dental professionals must first consider their personal and professional goals and how becoming a practice owner can help achieve them.
The Benefits Of Ownership
When you own your own dental practice, you can benefit in many ways:
- AUTONOMY You have full control of your practice: the direction, the operations, and, most important, the culture. Practice dentistry the way you want and implement new ideas and treatments that help attract and retain patients.
- FINANCIAL INDEPENDENCE Compared to being an associate, you have the potential to earn a higher income and build equity over time.
- GROWTH OPPORTUNITIES You can expand your practice, offer new services, and take on additional staff and associates as your practice grows.
- FLEXIBILITY Set your own schedule and manage your practice to fit your lifestyle and personal preferences.
- PATIENT EXPERIENCE Being an owner comes with the freedom to create deeper, more meaningful patient relationships that ultimately lead to greater loyalty.
Building Your Legacy
You may have heard the quote,
“If you don’t build your dream, someone else will hire you to help build theirs.”
One of the most common reasons a doctor desires to have their own practice is the ability to have full command of how it’s managed. The dental industry is rapidly changing, and more and more doctors are setting out on their own to run a business and serve clients in their own way.
With your own practice, you don’t have to answer to a boss who may have a different style, or to a corporation that has its own set of priorities that may not align with yours.
Ownership also comes with a sense of belonging and connection for you and your patients in the community. Once your practice is well established, you’ll experience a new phase in your journey: growth. You may want to expand, by opening additional offices through a new build or acquisition. You might even take less of a producing role and hire associates. In the end, owning your practice means you have many options and can control your own destiny.
Getting Started With Ownership
There are many positives to having your own practice. However, there are sacrifices, too.
Ownership comes with:
- Longer hours
- Staff management
- Patient management
- The need to adapt to changes in the dental industry
Over time, these responsibilities can ease as you become more established. At that point, you may want to hire associates to take over some of the production or an office manager to assume managerial duties.
To help you tackle major challenges as you begin running your own practice, it’s also a good idea to surround yourself with subject matter experts. These might include a dental-specific CPA who can help prepare your financial records, an experienced dental marketing company that can promote your practice and attract new patients, and a practice coach who can help you create more efficiencies in your operations.
Starting From Scratch Or Acquiring A Practice
There’s a lot to think about when considering a startup practice versus an acquisition.
Your preference will depend on several factors including your:
- Goals
- Resources
- Risk tolerance
- Market conditions
Starting a practice from scratch allows you to pick your desired location, hand-select your team, get the latest and most innovative dental equipment, and create your own culture within the practice. On the other hand, an acquisition can provide instant cash flow, quicker access to established resources, and potentially accelerated growth. It ultimately depends on what aligns best with your personal and professional goals.
I encourage all doctors to explore both options simultaneously-and the first step for both is to understand your borrowing power. Financial requirements for a startup or acquisition can vary, so it’s important to understand what you qualify for.
A conversation with your local Bank of America Practice Solutions Business Development Officer is a great place to start. We can discuss the financing offerings for first-time practice owners, connect you with industry experts, and be there for you from the moment you see your first patient as an owner and throughout the rest of your career.
In Conclusion
As you navigate this process, the path ahead will become clear. At every stage, stay focused on your goals: practicing dentistry your way, accumulating wealth, and creating a healthy balance between your personal and professional life. Remember that there is strength in numbers. Build a team that can guide you through your entire practice ownership journey. Look beyond the cost of services and realize the valuable knowledge, experience, and support that professionals can provide, from dental-specific lenders to healthcare space finders and skilled contractors.
With the right team, a clear vision, and plenty of hard work, you can ensure continual success as a practice owner.
NILESH PATEL
VP, REGIONAL BUSINESS DEVELOPMENT OFFICER
850.443.6944 | NILESHPATEL@BOFA.COM
*1 All programs subject to credit approval and loan amounts are subject to creditworthiness. Bank of America may prohibit use of an account to pay off or pay down another Bank of America account. Other underwriting standards and restrictions may apply. Bank of America, N.A. provides this article for your discussion or review purposes only. Please consult your financial, legal, and accounting advisors, as neither Bank of America, nor its affiliates or employees provide legal, accounting or tax advice. Bank of America Practice Solutions is a division of Bank of America, NA Bank of America and the Bank of America logo are registered trademarks of Bank of America Corporation, ยฉ2024 Bank of America Corporation. MAP 7491048 01/2025
Photo by Andrea Piacquadio
