Mar 27, 2023
Recently, I received a very important question from one of our listeners. The question came from a dental entrepreneur who finds himself in a position where his business debts are paid and he has an excess of cash in his reserves. Likewise, he's taken steps to secure his personal finances by diversifying outside the business. He finds himself in a position where he can't take on anymore clients because he's already at capacity, but still wants to grow his practice.
The question is this, "What are the pros and cons of buying a
practice to grow my current dental practice?" In this episode, I
answer this question, addressing the pros and cons of such a
strategic move. I also discuss some of the ways to mitigate the
risks involved. Although this question is framed to speak directly
to dental entrepreneurs, the information can still be applied to
many different industries.
This week on The Financially Simple Podcast:
-
(1:13) Laying the groundwork/Who asks this type of question?
-
(2:26) Why you should think about buying another practice
-
(7:06) Calculating market share
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(7:33) Why you shouldn't consider buying another practice
-
(10:17) Avoiding the pitfalls
-
(12:39) A real-life example
Our Favorite Quotes:
"Knowing where you and your competitors sit within your market can
enable you to make informed decisions about a strategic acquisition
to grow your practice." - Justin Goodbread
"Remember, your team is an asset. It's necessary to invest in them if you want the best from them." - Justin Goodbread
About The Financially Simple Podcast
If you are looking for a podcast that speaks directly to the
challenges and puzzles of running a business, you’ve come to the
right place. The Financially Simple podcast was built for you. With
over 400 episodes and counting, our host Justin Goodbread covers a
broad range of topics, from starting a small business, to prepping
it for sale, to growing your personal wealth. Justin’s combination
of analytical skills, tough love, and a healthy dose of experience
delivers practical ideas that will benefit business builders at
every stage of their business journey.
If you have questions, or comments for Justin, submit those at:
https://financiallysimple.com/ask-justin/
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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.