Job Autonomy
For many dentists this is a major reason to go into ownership. They may be disillusioned and have a lack of control over their current associate position. For example, they may not be able to order certain materials or they feel clinically impeded or they may want the staff trained in a certain way. Job autonomy is certainly important for many dentists. However, this is a double edged sword as once the associate becomes an owner they start seeing things from a different perspective. When once the cost of a certain material had no bearing on whether it would be ordered or not as an associate all of a sudden as an owner it does. Cash flow becomes an issue and unfortunately the cost of materials starts to matter. When once it seemed so easy as an associate to implement staffing changes all of a sudden staff start revolting against you as the owner and you have to juggle competing interests.
The biggest tip I can give in this regard is to really try to understand some of the reasons behind why your practice’s owner does things a certain way.
Financial Freedom
This is another reason Dentists go into ownership. Indeed, well run multi chair practices do have the ability to generate considerable passive income. However, getting to this point can take many years and for some this point may never come. Also, if these associates start-up or buy in highly competitive areas it may also mean they take a significant pay cut if they had previously held busy associate jobs. The financial strain caused by a drop in income can cause significant mental stress.
If you are a high earning associate, you really need to consider the possible drop in income before you take the leap into ownership.
Practice ownership is not for everyone and it is important that you are fully aware what you’re getting yourself into from the outset.
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Our next practice ownership seminar is coming up in Brisbane on the 17th and 18th of August 2019 and Brisbane on the 12th and 13th of October 2019. We cover all these topics and more, these seminars have sold out in previous years so please register ASAP:
https://practiceownership.com.au/seminars/
We also offer expert guidance in various areas of practice ownership. Please see the below link for more information.