Practice Owners, how much was your practice and how long did/will it take you to pay it off?

[Faux]

topic

GP owners!

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[THS]

No answers for Faux?

I'll share what I have read on Dental town so far.

A typical practice will sell for %60-%70 of its yearly production. Small rural practice with 50% overhead producing $500k per year? Expect to buy it for $300k-$350. Assuming 95% collections, you'll take home $225k.

Busy urban practice producing $1.2MM with 70% overhead? You'll pay $720k-$840k. Assuming 95% collections, you'll take home $300k.

If you can find a practice with less than 50% overhead, increase in production may be as simple as having better marketing, and case presentation skills than the selling doc. Best way to increase YOUR take-home.

 

[Daurang]

Built 1500sf 3-ops from scratch in 2000 for $80k; paid off after 5 years.

 

[OhioDMD]

As long as your financing permits, realistically 5-7 years unless you buy the building with the practice. Then you may get 15 - 20 depending on the loaning entity.

 

[grivacobae]

Built 1500sf 3-ops from scratch in 2000 for $80k; paid off after 5 years.

How long did it take you to get a big enough client pool to break even? How difficult was it?

 

[Daurang]

I had positive cash flow after 3 months, starting from zero patients. Had I built a $400k practice instead of $80k practice, it'd take much longer break even to start building my wealth.

 

[grivacobae]

I had positive cash flow after 3 months, starting from zero patients. Had I built a $400k practice instead of $80k practice, it'd take much longer break even to start building my wealth.

Are you an outlier for cost when it comes to starting up your own practice? Or what would average be? Seems like you really cut costs and made a really feasible future, financially.

 

[syap]

I had positive cash flow after 3 months, starting from zero patients. Had I built a $400k practice instead of $80k practice, it'd take much longer break even to start building my wealth.

Did you have a company like Henry Schein design your operatories, etc? Any company you recommend?

 

[Daurang]

Henry Schein designed and redesigned it to my satisfaction; I would recommend them. I only bought 2 chairs, pano, xray, developer, autoclave, compressor, and vacuum from them. I bought handpieces and instruments elsewhere cause Schein is 20-50% more expensive. A couple waiting chairs, minifridge, fax, and desktop was all that's needed to open for business. There were zero dental cabinets because they were too expensive; I had my contractor put in Home Depot sinks and cabinets for free as part of contruction cost. I'm not sure why people spends a couple hundred thousand grand for a new office. Vast majority of patients don't know and don't care how hi-tech your office is or if you have laughing gas.