Buying A Dental Practice One Year Out of School: My Journey and Lessons Learned

The Story of My First Dental Practice Acquisition

Introduction

Coming out of dental school, I knew one thing for certain: I wanted to own my own practice. The idea of being in control of my career, my schedule, and the way I practiced dentistry was incredibly appealing. However, the path to ownership wasn't straightforward. It involved a series of experiences, challenges, and lessons that I want to share with you. If you're considering buying a dental practice early in your career, read on to learn from my journey—the pros, the cons, and whether I'd recommend others to do the same.

Starting Out: The Desire to Own a Practice

From the moment I graduated, I was in contact with practice brokers, scouring for the perfect opportunity. Unfortunately, I couldn't find a practice that felt like the right fit straight out of school. Additionally, banks typically want to see some production history and prefer if you have savings of around $50,000 to $75,000—money I didn't have fresh out of dental school.

So, I decided to work as an associate first. This wasn't just a fallback plan; it turned out to be a valuable stepping stone.

Gaining Experience as an Associate

Before I received my dental license—which in my state takes about five to six weeks—I started working at a dental office in a role similar to a dental assistant. This experience was invaluable. I learned the inner workings of a dental practice, from front-desk operations to the intricacies of the practice management system.

Once I obtained my license, I began working as a dentist alongside two other practitioners. These dentists were producing astonishing numbers—$2.5 million and $1.8 million per year, respectively. They worked extremely hard, efficiently managing their time and patients. Observing them was like a masterclass in productivity and clinical speed.

Increasing Clinical Speed

Coming from dental school, where I might see one or two patients a day, transitioning to a high-volume practice was intense. These dentists had streamlined their procedures to the point where they used just four burs for all their operations. Their efficiency allowed them to perform up to 15 crowns in a single day. Working alongside them forced me to up my game, enhancing both my speed and efficiency without compromising the quality of care.

Learning to Treatment Plan Effectively

Despite the high production numbers at this first associate job, I felt there wasn't enough room for me to grow. The practice was so established that new patients were scarce for a newcomer like me. I decided to move on and took a position at a Medicaid clinic as the sole dentist.

This clinic was a different world. With expanded function dental assistants capable of placing fillings, my role focused on prepping teeth and performing hygiene checks. Some days, I saw over 100 patients—though not all required treatment. This experience was crucial in honing my treatment planning skills. I learned to make quick yet accurate decisions, especially when dealing with patients who had extensive dental issues.

The Search for My Own Practice

While working as an associate, I never lost sight of my goal to own a practice. I continued to network with practice brokers and educate myself on the business side of dentistry. Initially, I aimed to find a practice in a specific city, but opportunities were limited. Expanding my search radius proved fruitful.

The First Attempt and Lessons Learned

The first practice I attempted to buy didn't work out. There were issues on both sides—some due to the seller, some due to my inexperience. Looking back, guidance from someone who had been through the process would have been invaluable.

Finding the Right Practice

Not discouraged, I pressed on and eventually found a "diamond in the rough." The practice I purchased had been underperforming because the previous dentist was winding down before retirement. This presented a significant opportunity. Upon taking over, I discovered a wealth of undiagnosed treatment needs. In my first six months, I saw an influx of patients requiring crowns, fillings, and other procedures.

The Financial Rewards of Ownership

As an associate, I earned around $200,000—a respectable income. However, my first year as a practice owner, I made $700,000. The financial leap was substantial and affirmed my decision to pursue ownership.

Overcoming Challenges: Hiring a Practice Coach

Running a practice wasn't without its challenges. The existing office manager didn't stay on, and I had to hire a new one immediately. I also realized there was a lot I didn't know about running a business. To bridge this gap, I hired a practice coach, investing around $3,000 to $4,000 per month. This might seem steep, but it was worth every penny. The coach helped me streamline operations, manage staff, and implement systems that boosted profitability.

Pros and Cons of Buying a Dental Practice Early

Cons

1. Increased Responsibility: Owning a practice means you're the decision-maker. You're responsible for staff, overhead, equipment maintenance, and more. It's a significant shift from being an associate where your primary focus is patient care.

2. Less Mobility: As a practice owner, relocating becomes more complicated. Selling a practice takes time and effort, whereas associates can typically give notice and move on more easily.

3. Perceived Risk: Many fear the financial risk of owning a business. While startups carry more risk due to the lack of an established patient base, purchasing an existing, successful practice mitigates much of this risk.

Pros

1. Control Over Your Practice: You set your schedule, choose your staff, and create the work environment you desire. Whether it's selecting the music that plays in the office or deciding on office décor, the choices are yours.

2. Higher Income Potential: Ownership opens the door to significantly higher earnings. Plus, you have the opportunity to grow the practice and increase its value over time.

3. Building Equity: Owning a practice is an investment. As you pay off loans and grow the business, you're building equity that can result in a substantial payout if you decide to sell.

4. Diversifying Your Role: Being an owner allows you to engage in the business side of dentistry. This can make your work more varied and fulfilling, preventing the monotony that can come with clinical work alone.

Final Thoughts: Is Practice Ownership Right for You?

So, would I recommend becoming a practice owner shortly after dental school? Absolutely—but with caveats.

If you're in a stable life situation and know where you want to settle, practice ownership can be incredibly rewarding both financially and professionally. It offers control over your career that you simply can't achieve as an associate.

However, it's essential to approach this step strategically:

• Educate Yourself: Learn as much as you can about the business side of dentistry before taking the plunge.

• Seek Guidance: Don't hesitate to hire a practice coach or mentor who can guide you through the nuances of ownership.

• Choose Wisely: Opt for an established practice with a solid patient base. This reduces risk and sets you up for immediate success.

• Be Prepared for Responsibility: Understand that ownership comes with challenges and be ready to tackle them head-on.

Conclusion

Owning a dental practice one year out of school was one of the best decisions I've made. It accelerated my career, increased my income substantially, and provided a level of professional satisfaction that I didn't experience as an associate.

If you're contemplating this path, start exploring your options now. Reach out to practice brokers, network with other dentists, and begin educating yourself on what it takes to run a successful practice.

Remember, every great achievement starts with a decision to try. If practice ownership aligns with your career goals and life situation, don't let fear hold you back. The rewards can be life-changing.