|04-21-2003, 10:13 PM||#1|
Join Date: Apr 2003
solo practice better or group practice?
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Which type of practice is better in terms of net income...solo or group?
Say...would it be better if you open your own practice or
if you open practice with your brother who is also a dentist?
What are advantages and disadvantages of each type?
How would income differ in eacy type of practice?
I would appreciate any input.
|04-24-2003, 10:44 AM||#2|
Solo vs group practice, alot of this answer has to do with how well you know yourself. In a group setting there are certain advantages and disadvantages.
Advantages: You have someone else to bounce ideas/questions off of about cases, you have someone to cover for you while you're on vacation, you have someone to keep the office open and making money while you're on vacation, you have someone else to split the overhead costs with
Disadvantages: You have someone with whom you're in a business partnership with that you might not end up getting along with/disagree with about things, you have someone that you are spliiting the office profits with, you'll end up having a larger overhead in gross dollars due to the need for more space/staff/supplies(although the net overhead is often the same percentage or even a touch less in many cases), you might up with "philosophical differences" with you're business partner
Advantages: You're the boss(this works very well if you know that you generally have a tough time getting along with others professionally), all the profit is yours
Disadvantages: When you're not working(i.e. vacation, CE days, sick days) the office is closed and you're not making money, you yourself have to deal with ALL staff issues (hiring/firing/raises/etc)
you don't have anyone immediately there to bounce ideas off of about cases.
In the big picture you won't see much of a difference in individual profits between most solo and group practices. Obviosuly in gross dollars the group will have bigger numbers, but your actual take home net is often very similiar. It really does depend on how you feel that you can/can't get along with a business partner and the associated benefits/drawbacks.
For example, as I'm here typing this in my office in CT, my partner is on his way to Florida to compete in a masters swim meet, and I have the office fully open with all our hygenists working and making the practice money, and my partner can focus on swimming fast and not have to worry about his patients potential emergency needs. He'll return that favor for me in a week and a half when I goto the American Association of Orthodontists national meeting with my wife(the orthodontist) in Hawaii. In both circumstances, we're not in the office, but are making money from the hygiene profits of the office.
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