STEP 1: Before You Buy
You’re Probably Ready Sooner Than You Think
A lot of dentists say they want to own a practice, but instead of data they talk about their feelings. While understandable, it can be an expensive mistake. Instead of hard data, numbers or statistics they say things like:
“I don’t feel ready.”
“I feel like I need to practice a little before I settle down into ownership first.”
“I feel like I need to get my student loans under control, and then I’ll be ready to own a practice.”
Feelings are important. I never want to diminish the importance of someone’s feelings. But, let me give you some perspective on what it actually takes to feel ready to own a practice. With some education and additional information, you might feel ready a lot sooner than the average dentist.
The Five Things You Need to Buy a Practice
You’ll need five things to buy a practice. These five things are generally dictated by the banks from whom you’ll be borrowing the money you need to buy the practice.
- Production History
- Credit Score over 680
- Clean Credit History
- About 1 Year’s Worth of Experience