practice models
THE
PRACTICE
by Haylee Davis and Justin Kendall
It’s a common question:
What is the best way to start your own dental practice?
T
he early reality in dentistry was that
nearly every dentist would simply
“hang a shingle” and begin seeing
patients. Starting a new practice was fairly inex-
pensive and for the most part, straightforward. In
today’s world, however, practice ownership is
neither inexpensive nor simple, yet it still has
potential to be one of the most rewarding expe-
riences in a dentist’s career as long as funda-
mental principles are considered.
18 HOUSTON DENTISTRY | www.houstondentistrymagazine.com
Purchase vs. Start-Up
Purchasing a profitable, existing practice can bring instant cash-
flow, an established patient base, valuable human capital, and
operational systems. For many doctors, the predictability of pur-
chasing an existing practice is desirable, but for others, the
opportunity to craft a new office designed strategically to meet
the specific standards, tastes, desires and needs of its owner is
unparalleled and worth the risk.
Preparation – Experience & Stability
Preparing to start a dental practice is critical and the two most
important pieces of preparation are experience and financial sta-
bility. Most lenders require the borrowing dentist to have a min-
imum of two years of post-dental school clinical experience as
well as cash reserve, minimal debt and a part-time associateship
that will continue after the new practice opens. Generally, an
average mortgage, car payment and student loan are acceptable,
but credit card balances, larger mortgages or multiple install-
ment loans give lenders cause for concern. The average dental
start-up provides around $100,000.00 in income to its owner
during the early years, and the new owner’s lifestyle, accordingly
to many lenders, should be sustainable within that range. If the