Start, acquire or buy in: What are the pros and cons?

Read time 3 min

Tuesday, 25 Feb 2025

This article was originally published on October 9 2024, and updated on February 26 2026.

There are several pathways you can take into private practice: starting your own solo or group practice from scratch, acquiring an established practice or buying into a practice. While choosing the right strategy depends on your personality and vision, we outline the pros and cons of each option to help you make an informed decision.

Starting a solo practice

Starting a solo practice has clear benefits, giving you full control and flexibility.

Business risk is usually relatively low because you work for yourself, and you reap all the financial rewards. You can also implement practice systems that suit your needs and be agile and flexible when new opportunities arise.

However, there can be challenges. Inexperience in managing a business can be a disadvantage with a steep learning curve. As a sole trader, scope for expansion can be limited. If you decide to bring in other specialists later, you may need to re-structure. For example, moving from a sole trader into a company and/or trust.

Starting a group practice

Similar to starting a solo practice, taking this pathway means you can decide how the practice runs and what systems are implemented to suit your own needs. Multiple practice owners gives you the opportunity to build a collegiate environment. You can also share responsibilities, costs and resources. Scaling up investment to grow the practice is easier too, whether it’s at your current location or by adding new sites.

However, starting a group practice has its challenges. Initial start-up costs are usually higher and getting all practice owners to agree on the direction of the practice can be difficult. Conflicts can also arise when juggling multiple personalities and visions, and the practice’s growth can slow when owners are not aligned on the growth plans/strategy.

Partners’ plans can also change, and unfortunately, business relationships can sour over time. A clear ownership agreement can help mitigate these risks.

Joining an established practice as an associate

This option offers stability with no set-up required. A big attraction is that everything is already in place. You gain an immediate referral network, and financial risk is limited.

However, unless you can buy into the business, your financial upside may be limited too. You may have little say in shaping the practice’s direction. You will also inherit existing systems, staff and work processes.

Buying into an existing practice

This pathway provides some of the benefits of joining an established practice, while having some say in how it’s run.

You skip the set-up phase, your workload is guaranteed from day one and you have an immediate referral network at your fingertips. Typically, there is also a faster track to profit distributions when you buy into the equity of the business.

This option does come with some downsides. Your control and influence may be lower than if you ran your own practice. You may be lower in the pecking order, with limited opportunity to shape the direction of the practice. Inherited ownership structures, decision-making processes and succession plans can be a disadvantage. You also inherit the practice’s existing liabilities.

Assembling your team  

Whichever pathway into private practice you choose, you can’t do it alone.

To maximise your chance of success, you need a great team around you. People who understand your vision and can help you bring it to life. You will need advisers to assist with business planning, funding, business and tax setup, legal documents, insurance, practice operations and property location.