1.You earn MORE MONEY! The vast majority of dental practice owners have a greater net
income than dentists who work for someone else.
2. You can build the practice of your dreams. Unlike working for someone else (in which you work under the conditions established by the owner), you can build the practice of your dreams. This means you can adopt the type of facility you want, practice philosophy and a schedule that is desirable for you.
3. You are your own boss. When you own your own practice, you have the unique ability to control what happens in your practice.
4. Ownership means wealth. Most independently wealthy people “own things!” If you own your own dental practice, you are building a business with value, all the while you are earning a significant income. If you are working for someone else, there is no equity and no wealth accumulation.
5. The IRS is your “friend.” Unlike a “W-2 employee,” when you own your own business there are many expenses that are deductible or depreciable by you that would not be eligible as an employee (or subject to limitations). Some of these deductions can be pension plans, savings plans, dues, insurances, continuing education fees, car leases, promotional expenses, travel expenses, entertainment and meals. Hence you are able to pay for many things and have the government pick up a share of the cost.
6. Bankers love dentists! Financing the purchase of your dental practice is easy. At times people are reluctant to own their own practice because they believe the financing is unavailable. We work with several financial institutions that understand dentistry and why buyers have little or no net worth; however they also understand that buying a dental practice is a tremendous investment. As a result, practice acquisition loans are readily available at very competitive interest rates. So even if you think you have little net worth, large indebtedness and a hefty monthly budget, don’t worry – they’ve got the money!
7. If they were any cheaper, it would be a felony! When you buy a dental practice, you can get some incredible bargains. Today you can purchase a dental practice for an incredibly low price (particularly in non-suburban and rural areas). These amazingly low practice values greatly contribute to the attractiveness of owning your own practice and your bottom line!
8. The return on your production cannot be beat! As was stated above, typically the owner of a dental practice makes more money than an associate dentist (in absolute terms), and makes significantly more as a percentage of the owner’s personal production. A dental practice owner should make between 40% and 50% on their own personal production (since hygienists and other associate dentists are producing some of the revenue for you). Thus, all things being equal, owners can make 2-3 times what associate dentists can make.
By: Kevin Shea, President of Shea Practice Transitions, P.A.