Dental Practice Purchase -Before you buy

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?

Choosing the Best Location

Where is it that you would like to live? You’ll end up being a big part of this community, so you’ll want to make sure it’s a good fit. Participating in local activities and mingling with neighbors will help your business grow. A short to medium commute is an important consideration. When you can avoid the long commute, those hours you might have spent on the road can be paid forward and spent instead with family and friends.

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? These choices will dictate how many competitors will be in close proximity. 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

Are you pursuing a specialized dental practice or a generalized dental practice? Who is your competition? Will you be able to gain referrals from local practices (and likewise return the favor)? Is there room for your particular niche? You’ll want to lay down a business plan that is thorough.

Get the Proposed Business Appraised

Have the business appraised with the help of a certified public accountant or valuation specialist. A professional with experience in this industry is preferable. 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.

Round-up the Troops

Just as your business cannot operate without the support of patrons, you’ll never realize your full-potential without the aid of experienced professionals. In the long-run, investing in advisors will save you a lot of trouble. Here are a few people you’ll need:

• A certified public accountant experienced in helping dental practices and other small businesses on saving tax dollars and remaining tax compliant. You will need an accountant who can help you establish tax-saving strategies. You will need an accountant that can advise you on how to structure your business entity (S corporation, C corporation, limited liability company (LLC), professional limited liability company (PLLC), sole proprietor).
• A Bookkeeper who is versed in an accounting software system like Quickbooks. A certified Quickbooks Advisor means they are certified by Quickbooks as skilled with the bookkeeping software.
• An attorney at law to protect your interests and review documents.
• A consultant also would likely prove valuable in helping you navigate toward success.
• From the beginning, you should establish a relationship with a bank. Getting prequalified helps you keep perspective on how much you can afford when putting in an offer.
• An insurance representative will assess the value of your business and evaluate risk to see how much coverage you will need.
• It never hurts to seek the aid of 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.

Starting your dental practice is a big deal. Establish a team that can help you get it right.

Tax CPA John Huddleston is the author of the Self-employment Tax Guide which is a free resource for small business owners and the self-employed for tax saving strategies and tax-filing requirements. 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 the profile tab. Huddleston Tax CPAs. We now proudly serve Mercer Island, WA and beyond.