Having a successful dental practice transition.

The key factors to a successful transition are the size of the patient base, location and a high net profit. If you are purchasing a practice that has these key elements, chances are that this will be a long term and a successful acquisition.

There are obviously other factors that you should consider such as; quality of services offered, practice type, size and condition. All these factors should be taken into consideration before buying a practice.

Location

Just as with other businesses such as retail and real estate, the key to a successful business is the location of the business. Deciding on the location of your practice is very critical. If you are not familiar with the community around the dental practice, you should prepare a good demographic analysis of the community so as to have a good understanding of the community. A demographic analysis will give you important data about the community's population, employment rate, future growth potential, unemployment rate the future growth potential. Inlude the dentist to population ratio into your statistics.

Size of Patient Base

You cannot operate a successful dental practice business without having a good number of patients. The size of the number of patients is a critical factor that will greatly influence your success rate. The higher the number of patients, the higher the chances of a higher revenue for your business. The long term success of your dental practice will depend on the number of patients that you have because a dental practice relies on the number of patients they have to market the practice to other people by word of mouth. Take note on the composition of your patients including their age and employment status. To have a good understanding of the patients, you should prepare an age and zip code analysis.

Zip Code Analysis

Understanding the distance that your patients travel in order to come to your clinic is very important. If you have bought a dental practice that the dentist has practiced for more than 20 years, it is very likely that the patients of the clinic arre second generation agents who may be traveling from long distances to visit their dentist. If they have been travelling for the long distance, then their preferred dentist retires, then there is a possibility that their patients are going to find a new dentist closer to them. This is because they have no connection to the dental clinic, but to the specific dentist. This may force you to even retain the current staff so as the patients can have a connection to the dental office.

Age Analysis

This is another very important analysis you should conduct. Understand the key aspects of the patient's age and the distribution across certain age groups. The type of services that you are going to provide in your dental clinic will change, depending on population and age of your population. Does the patient base consist of an older patient base, a younger patient base or a good cross section of ages?

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