Buying vs. Starting a Dental Practice: Which is Right for You?

For dentists ready to take the next step in their careers, one of the biggest decisions is whether to buy an established dental practice or start a new dental practice from scratch. Both paths come with unique advantages and challenges, and the right choice depends on your goals, financial situation, and risk tolerance.

At CTC Associates, we specialize in dental practice transitions, helping dentists navigate the complexities of buying a dental practice or starting your own dental practice. Below, we break down the key considerations for both options.

Buying a Dental Practice: Faster Growth and Immediate Cash Flow

Purchasing an established dental practice allows you to step into a fully operational business with an existing patient base, trained staff, and established cash flow.

Advantages of Buying an Established Dental Practice

• Immediate Income – Instead of building a patient base from scratch, you’ll have an active schedule from day one.
• Existing Staff and Systems – Trained team members, proven workflows, and established marketing strategies are already in place.
• Easier Financing – Lenders often prefer funding a dental practice acquisition because established practices have financial records demonstrating profitability.
• Reduced Startup Stress – Instead of dealing with lease negotiations, equipment purchases, and marketing from scratch, you can focus on patient care.

Challenges of Purchasing a Dental Practice

• Higher Initial Investment – An orthodontic practice for sale or general dental practice acquisition can be expensive, especially in high-demand locations.
• Legacy Issues – You may inherit outdated technology, poor financial management, or a patient base that prefers the previous dentist’s style.
• Limited Customization – While you can make changes over time, transitioning to your preferred workflows and culture may take effort.

Starting Your Own Dental Practice: Full Control but Higher Risk

A startup dental practice allows you to build your dream office from the ground up. While the process is exciting, it requires careful planning and patience.

Advantages of Starting a New Dental Practice

• Total Control – Choose the location, design, equipment, technology, and services tailored to your vision.
• Brand Development – Build a reputation under your name and create a practice culture that reflects your values.
• Newer Equipment & Technology – Unlike purchasing a practice with older systems, a dental office startup allows you to invest in the latest advancements from the beginning.

Challenges of a Startup Dental Practice

• Significant Financial Investment – According to the American Dental Association (ADA), the average dental office startup costs range from $350,000 to $550,000, depending on location and equipment.
• Longer Growth Timeline – Expect 12–24 months to establish a profitable patient base, requiring strong marketing efforts and dental practice financing.
• Higher Stress Levels – Managing lease agreements, hiring staff, and building operations from scratch can be overwhelming.

Key Considerations: Which Option is Right for You?

Financial Readiness

If securing funding and managing dental practice startup costs is a concern, buying a practice with existing revenue may be a safer option. However, if you have access to dental practice financing and prefer full control, a startup might be worth the investment.

Location and Market Demand

Research local demand before deciding. In saturated markets, it may be harder to compete with established practices, making a dental practice transition a smarter move. In underserved areas, a startup dental practice can thrive with minimal competition.

Your Long-Term Vision

If you want to walk into a functioning practice and start earning immediately, buying is ideal. If you have a specific vision for patient care, services, or office design, starting your own dental practice gives you full control.

Get Expert Guidance on Your Dental Practice Journey

Whether you’re looking for an orthodontic practice for sale or planning a startup dental practice, expert advice is essential. At CTC Associates, we specialize in dental practice valuation, acquisitions, and transitions to help dentists make informed decisions.

Ready to explore your options? Contact CTC Associates today for expert guidance in navigating your dental practice transition.