You’re Gonna Need a Bigger Boat…

You’re Gonna Need a Bigger Boat…

According to the ADA, the demand for dental services will increase as the population ages and as research continues to link oral health to overall health. Currently, there is a shortage of dentists in the US, and this trend is estimated to continue until 2033. Dental practices have the lowest failure rate of all businesses and the dental industry is growing at 6% annually. These factors create a tremendous opportunity for doctors to expand their business now to take advantage of the increased demand for quality dentistry. Making a smart growth plan to expand your existing space, or build a new larger office to accommodate the demand for treatment is the smartest decision you can make at this point in your dental career.

In the business of dentistry, across the country, it is typical for a practice to collect $250,000 per operatory that is in production 4 days a week. Think of it this way, you have three operatories and room to expand for two more. You are on the fence about the expansion, but you know you have a strong dental team and very productive hygiene department and patients who love your practice. Building two additional operatories can yield $500,000 annually and improves your ability to offer treatment in a timely manner and in fewer appointments, which is even more convenient for your patients. Everyone wins!

In the case of a start up a typical plan will include 3 operatories with room to build out 2 more. As soon as the practice has grown to produce $750,000 annually and has approximately 700 patients, it is time to get a bigger boat! By adding the additional 2 operatories, you have already proactively planned for, you will have a practice capable of collecting $1.25 million and provide high quality care to 1400 patients.

The doctors I worry about the most have 5-6 operatories and over 1800 patients. Bringing in a second provider seems like an obvious way to manage the workload, but it does not expand production to the optimal level that is possible in a two doctor practice. In this scenario there is a shortage of operatories. The office needs to have 9-10 ops in order to have enough space for hygiene production and for doctors to have room to efficiently provide treatment. If one doctor needs 5 operatories for a healthy practice, 2 doctors need 10. Your production will rise by $250,000 per op. Not expanding can cost you $1,000,000 per year, cause stress, and lower you patient experience because of long waits for appointments due to lack of space.

We can make a customized plan including, the financing, a timeline and a breakeven point for your investment. Costs of expansion or start up practices can be formulated to make sure you are not leaving money on the table in your practice. My reputation, experience, advice and insight are the greatest assets I have to offer my clients. The relationship I have with my doctor clients is a long-term commitment to the ongoing health and growth of their business. The customized treatment plan I develop for you is key to the successful execution of their project vision and I continue to be a dedicated trusted advisor long after that vision becomes a reality! Please take a moment to view featured projects and read testimonials from doctors about their projects. You can also fill out Getting Started forms on my website. Let’s meet to discuss ways we can work together to plan and build the successful modern dental practice of your dreams.

(Small boat photo courtesy Melanie Hamlett)

My Dental Practice 6 Photo Challenge

My Dental Practice 6 Photo Challenge

When was last time you evaluated your practice with a critical set of eyes? Take a really close look at the flow of your work space, the age and functionality of your equipment, and the impression the appearance of the office makes on your patients. They say a picture is worth a thousand words, and so many of you sent photos earlier this year that I wanted to post this challenge again for a second round!

My Dental Practice 6 Photo Challenge

Take the following 6 photos of your office:

1. Operatory
2. Sterilization area
3. Technology
4. Reception Area
5. Whatever bothers you most
6. Front of your building

These pictures tell the story of your practice. They reveal areas in need of improvement, lost production opportunities, and the messages you are sending to your patients.  It is easy, in the rush of day to day operations to lose sight, of the bigger picture. Let’s begin your path to practice growth with a review of your 6 photos.  Email or text them to me and I will or arrange a private consultation in your office to provide a customized assessment and a plan for updates that will dramatically impact the success of your practice.

To be even more prepared for our consultation, take a few moments to fill out the practice growth survey on my website. The survey can help you get focused and is a great starting point for goal setting and planning.

My experience helping doctors launch and expand dental practices can save you time, help you avoid common pitfalls, and ensure that you have the guidance and support you need to make a practice growth strategy that is right for you. There is no better time to take charge of your future, achieve the productivity and success you’ve always dreamed of, practice state of the art dentistry, and love what you’re doing more than you ever thought was possible!

Post Dental School Roadmap to Private Practice Ownership: The Pathway to Success

Post Dental School Roadmap to Private Practice Ownership: The Pathway to Success

 

If you have recently graduated or have been Associating for 2+ years don’t let anyone convince you that owning a private practice is out of reach, or an unrealistic goal. The ADA has projected that there will be a shortage of dentists available to serve the needs of the US population until the year 2033. Dentists who can provide good quality dental care will be in great demand for the foreseeable future. This means opportunities, options, and choices for successfully launching your own private practice will be very high!

Just the other day I read a blog by Travis Hornsby, CFA and founder of Student Loan Planner, entitled Corporate Dentistry vs. Private Practice: The Impact on Your Student Loans. He is a leading student loan expert and financial planner. He makes an excellent case for private practice ownership as the best solution for tackling student loan debt and achieving professional autonomy. Corporate dentistry and DSO offer tempting promises to guarantee a salary, remove the uncertainty of practice ownership and to help pay down debt to entice students right out of school to sign on. The security of these promises sells short the opportunity you have as a private owner to get out of debt sooner and keep more of the revenue you will be generating for yourself.

My experience with dental practice owners over the last 25 years has consistently proven that, with the right plan in place, private ownership is a lucrative and extremely viable option. Students and recently graduated doctors need to consider carefully the current need for good dentists to meet the demand of the public for quality, convenient care. Take some time to evaluate all aspects of committing to a lifelong career in corporate dentistry, or in a DSO managed practice, and get good advice about how your debt and financial goals may be much better managed and attained by owning your own practice.

If you do decide you want to launch a dental practice I can help you avoid common pitfalls, and ensure that you have the guidance and support you need to make a practice growth strategy that is optimal for you. I recommend these 2 steps in your postgraduate plan:

Step 1: Spend 2-5 years getting experience in a private or corporate practice as an associate. This is really part two of your dental education, learning how to be a practicing doctor and learning all you can about business management and operations, clinical skills, and what kind of practice you want to build for yourself.

Step 2: Contact me about two years in to allow yourself time to plan responsibly. Forming a strong relationship with a trusted advisor will help you make a solid 2-4 year plan including financials, location options and all the other issues and concerns that will arise as you proceed. Having the insight and support of an advisor will prove invaluable and save you time, headache and money.

There is no better time to take charge of your future, achieve the productivity and success you’ve always dreamed of, practice state of the art dentistry, and love what you’re doing more than you ever thought was possible!

The Business of Dentistry

The Business of Dentistry

How Will You Build a Practice?

As you begin to consider an expansion for an existing practice, opening a start-up, or even adding a second location the business of dentistry is actually very predictable. There are tried and true formulas and plans that reliably deliver the outcome you seek. In fact, the biggest variable that influences the experience and the success of the final result is probably the advisors and company you choose to coordinate the project for you. I can customize a team of professionals for you including contractors, designers, commercial real estate experts, lawyers and lenders that take unnecessary worry, and expensive trial and error out of the equation.

Bill Pellicano and Patterson Advantages

  • Doctors I work with can expect the project to be completed on time and on budget.
  • New patient numbers will meet or exceed your growth goals because of careful pre-planning and analysis done to determine an ideal high traffic, high volume location.
  • Breakeven point in the 8th month is the average for my projects. Many doctors are concerned it will take three years to begin to see ROI.
  • Growing your infrastructure in the office lets you accommodate more dentistry even with existing patients. It’s basic math: with 5 ops you can accommodate 1200-1300 patients at an average of about $1000/per year that is $1.2 million. Expand the numbers in proportionally from there according to the number of operatories you will build.
  • Your new practice will accurately reflect the work you do including the state of the art technology and equipment that take you to the next level in the eyes of your patients.
  • The very least growth we’ve even seen is 15%, but by doubling your number of operatories you are doubling your collections.

Testimonials From My Clients

“Everything went smoothly. The professionals Bill recommended were all amazing, talented and on time. From the decorator to the contractor the project was not only seamless, but actually fun. Six months of planning, tweaking, and executing resulted in our relocation from a 1800 square foot, four operatory office to our current 5200 square foot, twelve operatory masterpiece.” Dr. Stephen Hamelburg and Dr. Helyne Hamelburg

“We used Bill and his team to design and build three practice locations. I cannot imagine trying to complete one of these locations without his expertise and guidance.”  John Collins, Practice Business Manager

“Bill has proven reproducible results whether it’s with a novice starting my first practice during a Pedo residency, or moving to expand my practice. I wouldn’t hesitate to call on Bill again and again…..” Dr. Lee Thach

Whether you are looking to start, looking to grow, or have reached a plateau in your business I can meet you wherever you are at in the process and work with you to plan for your goals. Talking about what’s possible is always the first step. Take a look at some of my featured projects and read testimonials from doctors about their success stories. You can also fill out Getting Started forms on my website. Let’s meet to discuss ways we can work together to plan and build the successful modern dental practice of your dreams.