Dental supply companies will frequently advise their dental customers to open new practices because that is where they, as suppliers, can make the most money. Why advise a new dentist to
buy someone’s old office with used dental equipment, (and possibly, an existing population of patients) when more equipment
and supplies can be sold to a dentist opening a new practice from
scratch? But these same dental supply companies neglect to
inform new buyers that dentists who start a practice from scratch
earn on the average $2.5 million dollars less over their practice
lifetime than those dentists who purchased an existing practice.
Even some well-meaning dental schools invite so-called outside
experts to “advise” their junior and senior students. There are
instances where these advisors have financial ties to certain
commercially owned dental practices, and may advise students
against buying their own practices in favor of going to work for
one of these commercial practices as an associate to build up
their production skills before striking out on their own. If these
trusting students, already burdened with school debt, follow this
advice, then they may face years of much lower income (we have
seen compensation as low as 8.7% of production!) and rising
interest-related debt before discovering that they have no future
where they are, have lost hundreds of thousands of dollars of
unrecoverable earnings that they could have made if they had
owned their own practice, and have provided support to the very
companies that are going to be competing with them and their
colleagues for the same business they’ll need to survive themselves. Many associates usually don’t discover this error for 5 to
7 years, thereby compounding the hidden cost of this bad advice.
Keep an open mind, think logically and find a “guide that knows
the territory.” Just remember, it’s your future. And yes, millions
are at risk! Take advantage of good advice, and no one
will take advantage of you.
Dr. Richard V. Lyschik’s transition, management and
coaching experiences go beyond the traditional single
general dental practice sale. His Dental Office Network
Team has helped thousands of dentists acquire,
expand, merge multiple practices, build from the
ground up, as well as guided older, disabled and
“burned out” dentists sell with dignity. The Practice
Rescue Department has resurrected practices in
demise, saving them from imminent disaster. Over
50% of dentists return 2-3 years later to invest in another dental practice!
Dr. Lyschik has broken numerous industry records as the highest producer in the
country! Just ask any major lender – they all know him! To discuss your transition
plans with a seasoned fellow dentist who “speaks your language” and a recognized Premier Transition Specialist, or to schedule your free appraisal, contact
Dr. Lyschik by email at [email protected] or call (214) 893-0410.
www.northtexasdentistry.com
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