Your decision to become a dentist may be altruistic or economic. You may have chosen the field because it was the family business or because a guidance counselor stated it was the perfect career for you. So, you invested and sacrificed a lot of years and money into earning your DMD or DDS. You made choices and became a healthcare professional - you earned the title of doctor. But what the professors, book work, and practical education didn't prepare you – you are now a business owner! You are prepared to treat patients, but now you must negotiate real estate leases, equipment leases, insurance, hiring, firing, payroll taxes, business income taxes, design, marketing, customer service, customer retention, profit and loss statements, IT, and . . .
WHOA!
I’m just a dentist.
No just about it. You are a doctor dedicated to improving your patients’ quality of life. But to do so you must also manage a successful business of dentistry.
"Don't worry, I'm a professional."
Hanging Out Your Shingle
When you decide to open your own practice you are in full control of your income. You decide this by the number of operatories in your practice, how many days a week you want to work, your hours of operation, your specialties, your staff , your location, your equipment, and how you market yourself. This series of articles will help you recognize pitfalls, practice strategies, practice operations, and quality of life to help you build a successful dental practice.
"Hi, I'm Dr. Matthews. I'll be removing your molars today."
If You Build It, They Will Come
Your first step to business ownership is where to practice. To reiterate the adage, “Location, location, location.” You need to determine to whom you are marketing (families, business professionals, baby boomers, retirees) and where they are concentrated. One successful Chicago practice opened a second location on a floor of a prestigious downtown hotel. Th is allowed them to capitalize on the business people commuting into the city. [But, this was a second location. They already had a successful suburban practice and were a recognized brand.]
You should select a location with high visibility from the road, convenient parking and easy access. A busy intersection with traffic backed up for blocks can be as big a deterrent to new patients as a medieval castle moat. Don’t take the landlord’s word that it is easy to get in and out of the parking lot – do it yourself, at different times of day. Be sure to note if it’s difficult to access the proposed location based upon time of day, and if your vehicle scrapes asphalt entering or exiting the parking lot – because your prospective patients will notice.
Once you have selected a site it’s time to build out your practice. You should minimize exposure to a long-term lease while allowing for a lease renewal favorable to you. An extended lease may have a favorable monthly cost, but can shackle you to a location that may not meet your needs in a few years. When negotiating your lease Include internal finish work to meet your current needs as well as projected growth. Include clauses to exit the lease based upon significant road construction which can hamper business, the departure of multiple tenants from the property, or an overall economic downturn within a 5-mile radius. You don’t want to be the last business in an abandoned strip mall.
"Choose an AFFORDABLE location, but not so affordable
it puts you, your staff and patients at risk."
Who Are You Trying To Impress?
How you equip reception and the waiting room is as important as the equipment used in your labs and operatories. What impresses other dentists may not make an impression upon your patients. Pleasant decor, proper heating and cooling, comfortable seating and open-access Wi-Fi will make a larger impact with patients than a $100k piece of equipment in your lab. Pay as much attention to interior design as you do your digital x-ray equipment and autoclave.
"Can I get you a martini while you are waiting, Mr. Bond?"
Regarding your equipment – GET MULTIPLE BIDS! Regardless of what your sales rep tells you, they are not “your partner in success” – they are your vendor. Request a bid, remove items you don’t need, then give another company a blind copy of the items you want. Compare the individual prices, the overall bid, the lease terms, warranties, service agreement, and interest rate on equipment financing.
Most importantly, you need to conserve your cash for operating expenses and payroll. Hygienists and office staff don’t work for free.
No comments:
Post a Comment