Consultant's Corner – Q&A with the Industry Experts
Question: What advice do you give to a first time practice buyer?
"Same advice I give to any buyer: Know why you want to be a practice owner. It seemed like a good idea? You want to make tons of money? You hate Walmart? All of the above? Get serious and do some soul searching first. Figure out why you really want to own. List all of the reasons and start prioritizing them. Practice ownership is not easy but it can be quite rewarding. You might be halfway through a deal to buy a practice or 6 months after the deal is done and ask yourself...Why the heck did I do this? At that point you can go back and re-connect with your goals and vision, put your day-to-day challenges into perspective and stay dialed-in.
Next, figure out whether a start-up practice or a practice acquisition is better for you. Most of the time I believe it's better to buy – You're walking into a going concern business with established cashflow and patients. That being said, every practice is not the right fit for every doctor. Sometimes a startup can be better, though it is time-consuming and requires a lot of staying power. Miscalculating startups can be very costly. You definitely need a practice consultant. – Christopher Majdi, Optometry Practice Broker & Appraiser"
See the next release of Consultant's Corner for Mr. Majdi's thoughts on What are Red Flags for Practice Buyers?