Building vs. Buying a Practice:

Both building and buying a practice have perks, however, there are some considerations to make before making your first move.

Building a practice is not an easy task. First, you must obtain financing (which can be extremely difficult), and assuming you do, the break-even period is generally 3-5 years as there is no immediate cash flow. However, if you are determined to build a practice from the ground up and make decisions on important aspects such as the building layout, selecting equipment, recruiting staff, and decorating and landscaping, buying a practice could be the best route.

Buying an established practice has much less work up front in the financing aspect, but you’d be adopting someone else’s taste, ideas, etc. However, these are easily remedied with landscaping, decorations. A large upside to this is that you would inherit the practice’s clientele. The average period for a client is 3-5 years, so you would have them during that time. You would also inherit staff who are familiar with the practice. Because of these reasons, the transition would be easier than building from the ground up.