Why start your own dental practice?
More articles in the 'Starting a Dental Practice' section:
I have spoken to many dental professionals over the years who have been wary about taking on the responsibility of buying or starting a dental practice. My advice is always to take the plunge if you have a desire to own your own business. Success and profits are far easier to come by if you are in charge of your own destiny. There are several reasons why this is the case.
The financial incentive
Money may not be everything to a dedicated dental professional, but ideally no-one does all that training to settle for less than they are worth. I have seen dentists who are associates and struggle to live a comfortable life. This is not the case for dentists who invest in their own practice.
- Earnings are higher than for associates.
- Equity is always in place.
- Owning means that wealth can grow.
Who would not want to benefit from all of these? Many professionals already have them. At the time I am writing this, there are 12,034 dental practices in the UK, with an expected revenue for 2019-19 of £6.8bn (1). The question I'm asking is, can anyone really afford to miss out on being part of this exciting growth industry?
The tax incentive
Tax is an unavoidable burden for most people, but it's possible to optimise a tax position by starting up a dental practice. I often find myself advising clients about the numerous tax deductions they are eligible for once they are running their own dental practice. These deductibles include:
- Staffing costs such as salaries.
- Insurance and banking and interest costs.
- Marketing expenses.
- Energy and other bills.
It's easy to see that all the important costs of setting up and running a dental practice are tax deductible. Take a look at the UK government's website for the full list.
Funding is easy to set up
If anyone does not believe me, try it. Securing a practice acquisition loan is not as hard as people might think. Do not let a limited net worth, a mountain of monthly expenses or a significant amount of debt be a problem. There are options for dental loans out there, and they do not come with extortionate rates of interest.
I have helped clients to secure funding numerous times and I know that funding acquisition should never be seen as a mountain that cannot be climbed. The opportunities are there to be grasped with both hands. Our team of commercial finance experts help dentists everyday raise finance for start up’s and acquisitions.
Low cost practices are available
I'm not going to pretend that anyone will find the ideal practice to buy right on their doorstep, unless they are very lucky. For any dental professional whose goal is to be successful, this should not be a problem.
In popular urban locations, practices can be priced at the higher end of the spectrum but rural areas can provide the best value for money. For instance, it's possible to pay significantly less for a practice in the Cornish landscape than it is for one in London.
Finding a dental practice for sale that is excellent value may involve moving across the country, but it provides the perfect opportunity for skilled professionals to build a reputation, profits and wealth
Starting or buying a dental practice is not a risk to be avoided, it's an opportunity to be embraced. I have been in this business for many years, and I have seen clients transform from being an associate dentist getting by on the job from day to day, to a successful business owner using their skills while also obtaining the large financial rewards they deserve.
Welcoming the opportunity to set up and grow a dental practice is just the start. Then it's time to complete the work of setting up a practice. I will talk about the steps that need to taken in the following chapters. They are:
- Choosing the right practice.
- Registering with the Care Quality Commission (CQC).
- Creating a business plan.
- Financing the purchase.
- Putting a team in place.
Let's start off the journey of dental practice success together.