Let’s talk about Buying a Dental Practice Right Out of School
So, you just finished dental school, and instead of slaving away as an associate for the next 10 years, you’re thinking…
“Screw it, I’ll just buy my own practice.”
First off—hell yes! That’s the entrepreneurial mindset that’s going to make you rich, free, and in control of your career. But let’s be real: buying a dental practice right out of school is a beast of a challenge.
Most new grads take the “safe” route: working for a PPO-heavy corporate office, grinding long hours for low reimbursements, and dreaming of the day they can escape the insurance hamster wheel.
But you’re different—you want ownership, freedom, and a business that prints money while you sleep.
This guide will show you how to:
✔️ Buy the right practice (without getting screwed)
✔️ Scale it fast using smart business strategies
✔️ Ditch PPOs and create predictable, recurring revenue with a membership plan
✔️ Build Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) like a boss
Let’s go.
Step 1: Buying a Dental Practice (Without Going Broke)
Buying a practice isn’t like buying a used car—you can’t just kick the tires and hope it works out. Here’s how to do it right:
1️⃣ Look for a Cash-Flow Positive Practice
Red flag: If the practice you’re considering barely breaks even, run.
Look for practices with:
✔️ Annual collections of $750K+
✔️ Net profit margins of at least 30%
✔️ A patient base that isn’t 90% PPO-dependent
Pro Tip: Buy a practice that already has a strong hygiene program. Hygiene = built-in, recurring revenue.
2️⃣ Don’t Overpay (Avoid Golden Handcuffs)
Banks will lend you $500K+ even if you have more student loan debt than a small country. But just because you canborrow that much doesn’t mean you should.
✔️ Only buy a practice where you can net at least $200K/year.
✔️ Negotiate like your financial future depends on it—because it does.
✔️ Avoid crazy long seller transitions (you don’t want the old doc hanging around for 3 years).
3️⃣ Get a Killer CPA & Lawyer
You’re a dentist, not a financial expert. Don’t go into this deal blind.
✔️ Hire a dental CPA to break down the financials.
✔️ Get a dental attorney to negotiate the deal.
✔️ Make sure the seller isn’t dumping a dying practice on you.
Pro Tip: Ask for at least 3 years of financials and production reports before signing anything.
Step 2: Optimizing Your New Practice for Profitability
Now that you own the practice, it’s time to make it wildly profitable.
Here’s how:
1️⃣ Fire Bad PPOs (Or Reduce Their Impact)
PPOs suck the life out of your profits. If you’re getting paid 50% of your fee schedule, you’re basically working half the time for free.
Solution?
✔️ Analyze which PPOs are paying the least (and drop them first).
✔️ Offer a patient membership plan as an alternative to insurance.
✔️ Focus on high-profit treatments (cosmetic, implants, etc.).
Case Study: Dr. Sarah dropped 3 low-paying PPOs and replaced them with a membership plan. Within 6 months, she had 250+ patients paying $35/month—adding over $8,750/month in predictable revenue.
Want to set up a membership plan? Use BoomCloud to automate everything.
2️⃣ Increase Revenue Per Patient (Instead of Just Chasing New Patients)
Most dentists focus on getting more new patients when they should be focused on getting more revenue per patient.
The math is simple:
✔️ A one-time patient is worth $500-$800/year.
✔️ A membership patient is worth $1,500-$3,000/year (because they come back more and spend more).
How?
- Offer whitening for life to keep them engaged.
- Use same-day treatment plans (don’t let them walk out without scheduling).
- Train your team to sell treatment, not just diagnose it.
Pro Tip: Membership patients spend 2X to 4X more on treatment than uninsured patients.
3️⃣ Build Monthly Recurring Revenue (MRR) with a Membership Plan
STOP relying only on one-time procedures to make money.
Smart business owners (Netflix, Amazon, Apple) all have subscription models—why don’t you?
A dental membership plan:
✔️ Gives patients an affordable alternative to insurance
✔️ Creates predictable revenue every month (MRR)
✔️ Boosts patient loyalty and retention
Example:
- 500 patients paying $35/month = $17,500/month ($210,000 ARR!)
- Plus, they spend more on treatment.
Use BoomCloud to set up your plan in minutes.
Step 3: Scaling Your Practice Like a Boss
Once your practice is profitable and optimized, it’s time to scale.
✔️ Hire an associate (so you can step back and focus on business growth).
✔️ Expand into a second location (once you’ve maximized profitability).
✔️ Use digital marketing & ads to attract high-value patients.
Pro Tip: Use Facebook & Instagram Ads to target uninsured patients and sell your membership plan!
Case Study: How Dr. Mark Built a $300K Membership Plan in 2 Years
Dr. Mark bought a $1M practice fresh out of school. It was 90% PPO-based and barely profitable.
His Game Plan:
✔️ Launched a membership plan with BoomCloud
✔️ Ran Facebook Ads promoting “$1 to join”
✔️ Trained his team to promote the plan over PPOs
Results After 2 Years:
✔️ 800+ membership patients paying $35/month
✔️ $28,000 in Monthly Recurring Revenue (MRR)
✔️ $336,000 in Annual Recurring Revenue (ARR)
✔️ PPO dependence dropped by 60%
Want these results? Check out BoomCloud
Final Thoughts: Buying a Dental Practice Right Out of School is Risky… But Worth It
Most new grads take the slow road—working as associates for years before owning a practice. You don’t have to.
Follow this roadmap to success:
✔️ Buy a profitable practice (not a fixer-upper)
✔️ Optimize revenue per patient (don’t chase new patients endlessly)
✔️ Build a membership plan to create MRR & ARR
✔️ Use marketing to scale fast
Want to build predictable, recurring revenue?
Start your membership plan today: BoomCloudApps.com
