Finding Diamonds
A term that I was introduced to when I first started to explore practice ownership was this idea of a “value add practice.” I view these opportunities as diamonds in the rough. For example: an aged practice where the cost to enter is low, but cash flows are also less than ideal. Now, some people would prefer to spend more and have the security of cash flow off the bat. I agree, it’s great to have the security of built in cash flow; but, another way to look at value add opportunities, is like a start-up with a little bit of a head start.
Recently, myself and one of our associates went out and partnered on a satellite location, as an alternative to blowing out a wall and expanding (only because that is not an option with our building–otherwise I prefer that solution), but ALSO as an alternative to going out and buying or renting a bigger facility and getting into an expensive new build out.
An aging 6 op practice came across our plate for about two-thirds of what it would cost to build a 2500 square foot start-up. We evaluated the opportunity and jumped on it.
Polishing Diamonds
Below, you’ll see the face lift to the patient lounge. It looks like a whole new office, but all it cost was some paint, lighting and furniture. In the op’s we swapped out for bigger monitors, in steri and lab we ripped off the cabinet doors and put in tip out bins. Finally, my experience has been that most older dentists are pack-rats and hoarders so we cleared all the junk out to fit our minimalist approach. We implemented our systems and softwares and now we are off to the races.
To ramp up patient flow, we are doing many of the typical marketing strategies as well as getting out in the community with various grassroots campaigns. We often get caught up in SEO, postcards, adwords–all important, but getting our faces out there and meeting people can go a long way and really help the momentum of any business that is trying to grow.
There are also many old charts, inactive patients that we have been able to recapture. Many practices lost patients when covid hit and those patients have not circled back to the dentist. We are finding that these patients are actually motivated to come back in and are glad that we tracked them down.
There are a multitude of different ways to get into practice ownership. None right. None wrong. If you’re looking to own your first practice or expand, I share this as an opportunity to reflect on what opportunities are available and how you can capitalize. Don’t be afraid to think outside the box and do the work.
To your success,
Dr. Chris Green
Dental Success Blackbelt Coach
Co-Founder The Practice Launchpad
www.thepracticelaunchpad.com