Let's Buy a Dental Practice

[TheSculptor]

I think that there will still be a need for perio in the years to come. Yes there is a trend of GP's placing implants but there are still plenty of GP's who don't (myself included) and on a more complicated case requiring sinus lifts and grafting some of the implant placing GP's will want to refer out.

I think that Monreal brings up what I would consider the more likely problem which is GP's not wanting to refer to a perio whose wife is a GP working in the same office. I would be concerned that some GPs might be afraid that you would steal their patients once their perio treatment was finished.

In my last office I had an orthodontist work a few days every month in my office for years. It never really caused a problem with the other GP's in the area but I had been in practice several years and other dentists in the area had already been referring denture cases and other more complex cases so . I already had a reputation for sending patients back to the referring dentist when I was finished with them. In fact the only person who really got pissed off at me was another orthodontist in a neighboring town. He had been the only orthodontist in the county and two other adjoining counties since the 70's and had a lock on the ortho since then. In fact it was because of his more than caustic bedside manner and the complaints that I had received from my patients that caused me to seek out another ortho to come to my office in the first place.

I'm not really sure what an effective solution to this would be outside of you limiting your practice to one field like prosthodontics, endo etc. I would love to hear some other opinions on what other dentist have done in this situation.

I have noticed an increasing trend of G.Ps doing extensive training in fixed/major orthodontics (eg. Tip Edge courses) besides Invisalign. Also, an increasing number of G.Ps are performing more perio surgery (eg. gum grafts,bone grafts,block grafts crown lenghtening) and implantology (not just the prosthetic portion but sinus lifts and surgical placement of implants as well).

A wise proprietor tries to keep everything in-house. If they can't do the procedures themselves, they try to get the associates to compensate for that. It must be getting tougher for specialists to get referrals when G.Ps are getting their fingers wet with everything which used to be referred to the specialists in the past.

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[The Hammer]

OK sorry I have been pretty non existent on this thread for awhile but I had to have surgery and I've been out a few weeks recuperating. Once I was able to practice I really had to kick it in to play catch up. So.....

Does anyone have any questions that they want answered or feel that I haven't answered yet?

Also I have been approached by a University Publisher to write a book about buying a Dental Practice and how to get one started once you do. Do you guys think that anyone would buy it and would it be worth the time that it would take me to write it.

I would really appreciate your opinion on this good or bad before I invest the time in an undertaking of this scope. It is one thing to answer questions and give my opinions on a board and quite another to write a manuscript and have it published. Kind of like the difference between doing a class one amalgam and a full mouth restoration

 

[7 Iron]

OK sorry I have been pretty non existent on this thread for awhile but I had to have surgery and I've been out a few weeks recuperating. Once I was able to practice I really had to kick it in to play catch up. So.....

Does anyone have any questions that they want answered or feel that I haven't answered yet?

Also I have been approached by a University Publisher to write a book about buying a Dental Practice and how to get one started once you do. Do you guys think that anyone would buy it and would it be worth the time that it would take me to write it.

I would really appreciate your opinion on this good or bad before I invest the time in an undertaking of this scope. It is one thing to answer questions and give my opinions on a board and quite another to write a manuscript and have it published. Kind of like the difference between doing a class one amalgam and a full mouth restoration

I'm not sure what type of training that dental students get with respect to the business side of things or what types of books already exist on the topic. However having said that, I sense that the business of dentistry is not emphasized very much in school and students wish they had more experience in this area. I've read a lot of what you've written here and I must say I will be coming back to this thread throughout d.s. and especially as I'm nearing buying into a practice or starting one. I would definitely buy your book if you published one!

 

[New2Philly]

I would buy one!

 

[The Hammer]

I would buy one!

Cool it will be interesting to reread this thread and see what I think about what I've written now that I've had my practice a little over 6 months.

 

[DentSchools]

Very good topic. Interesting discussion.

 

[youknowthedrill]

Welcome back Hammer. I'll buy one!

I do have a question. I have noticed that most of the dental practices in my town are clustered near the hospital (older, east side of town). I am wondering about locating on the side of town where most young, professional families live (west side of town). Is there a need to be near the hospital in case of a medical emergency? I'd love to live 5 minutes from my practice when the time finally comes.

 

[Underxman]

If in E-book format, i'll buy one.

 

[cl263]

The same goes for my community, with the highest concentration of dentists near the hospital. And they complain that their rent is ridiculously high for it. Why? What gives? I would think that if I wanted to stand out, I'd go stand out somewhere, not be in the building with 20 other dental offices. There's a building in San Francisco, we call it The Dental Building (creative, huh?), 450 Sutter St. I walked in and counted all the dentists and practices. Over 100 people (this includes a handful of each specialty and other specialists as well as a few labs!) in the dental field, in one building! Why? Does it work? It seems to.

I'm guessing that each type (the stand alone vs. the pack) attracts a different clientele and there's a need for both and most people still go to the dentist recommended them by a friend or relative. Then how do you get those brave souls experimenting with new dentists to try YOU out and make recommendations to everyone else?

 

[cl263]

At UoP we had a mandatory 2-quarter Practice Management class run by the school and an independent outside consulting firm as part of our curriculum.

There wasn't a lot of advice regarding location or marketing tactics like The Hammer has given us, but it was foundational in regards to creating Pro-Formas, Business Plans (a required assignment), realistic practice budgets, etc. It's not as much fun as reading this thread, but it was important. I'd expect other schools have similar requirements.

I've learned a lot in this thread about how to think and assess my marketing strategies, my employment tactics, managing people, etc. Thanks Hammer. I'll keep reading if you keep writing.

 

[The Hammer]

The same goes for my community, with the highest concentration of dentists near the hospital. And they complain that their rent is ridiculously high for it. Why? What gives? I would think that if I wanted to stand out, I'd go stand out somewhere, not be in the building with 20 other dental offices. There's a building in San Francisco, we call it The Dental Building (creative, huh?), 450 Sutter St. I walked in and counted all the dentists and practices. Over 100 people (this includes a handful of each specialty and other specialists as well as a few labs!) in the dental field, in one building! Why? Does it work? It seems to.

I'm guessing that each type (the stand alone vs. the pack) attracts a different clientele and there's a need for both and most people still go to the dentist recommended them by a friend or relative. Then how do you get those brave souls experimenting with new dentists to try YOU out and make recommendations to everyone else?

This is just my opinion but I would go where the families are. My first two practices were in big shopping centers. The practice I have now is close to the hospital. The reason that a medical center tends to attract dentists is probably more for stability than for anything else. Hospitals don't tend to move around much whereas the "hot" shopping area might change every 10 years.

The Wal-Mart in the previous county that I practiced in moved 3 times in 20 years. If you had a practice in a shopping center that had Wal-Mart as an anchor you ran the risk of hearing the crickets chirping if the Wal-Mart up and moved which is what happened to me. I built another office in front of the new "Super" Wal-Mart and was smoking again.

 

[The Hammer]

At UoP we had a mandatory 2-quarter Practice Management class run by the school and an independent outside consulting firm as part of our curriculum.

There wasn't a lot of advice regarding location or marketing tactics like The Hammer has given us, but it was foundational in regards to creating Pro-Formas, Business Plans (a required assignment), realistic practice budgets, etc. It's not as much fun as reading this thread, but it was important. I'd expect other schools have similar requirements.

I've learned a lot in this thread about how to think and assess my marketing strategies, my employment tactics, managing people, etc. Thanks Hammer. I'll keep reading if you keep writing.

If your school taught you that then that is great. I had no clue how to make a business plan when I graduated.

If I do write this book I am going to work close with my accountant to show how to figure decide how much you will need for things like working capital, how to determine fees, salaries, set a budget and determine what your production should be

 

[SoulPower]

I'd totally buy a book that is composed based on what is being discussed and brought up in this thread. It has been a very intelligent, enlightening, and well thought brainstorm of practice management and when I get out of school I know I'll be looking for a resource such as this.

 

[Eledental]

I'm just beginning my fourth year in dental school, and I'm already getting interested in purchasing a practice. This university doesn't teach any fundamentals of the business side of dentistry, other than "be honest". Only a select few of the clinical faculty (which end up leaving quickly) are successful in private practice. My own clinical professor is leaving at the end of this quarter because he owns two practices and wants to get back into the swing of things.

Talking to people like this is the only real side of private practice that one sees. Most dental students don't have a clue about private practice unless they speak with someone on the outside; even then they only get a glimpse.

A book, pamphlet, or article with the Hammer's examples would drastically change dental students' knowledge, and especially those practicing dentists who are ready to purchase.

 

[MacPreDent]

Also I have been approached by a University Publisher to write a book about buying a Dental Practice and how to get one started once you do. Do you guys think that anyone would buy it and would it be worth the time that it would take me to write it.

I would really appreciate your opinion on this good or bad before I invest the time in an undertaking of this scope. It is one thing to answer questions and give my opinions on a board and quite another to write a manuscript and have it published. Kind of like the difference between doing a class one amalgam and a full mouth restoration

Have no idea if it's a good investment for you but I for one would buy it right away. Books are rarely bad investments.

 

[DocInDaHouse]

I just spent the last 3 days reading this whole thread. Lots of great information Hammer. Thank you for sharing

 

[Mr Tooth Fairy]

Would buy, and thanks for all the info, advice, and tips you have already shared.

 

[UBDent19]

http://www.youtube.com/watch?v=r0MwOv175hk

 

[UFRalo]

A few quick questions Hammer...

1) My girlfriend/most likely future wife does not want to stay in FL after I graduate from dental school. However, with the lack of state income tax, I am more than inclined to want to stay here. I think you practice in Tennessee, so I guess my question is if you think there is a significant advantage to staying in FL other than for the lack of state income tax and fact that I will pass the FL boards and not have to take another set to move elsewhere.

2) Assuming I stay in FL, I am from an area that has a severe lack of dental care for the kids. I don't really want to go through any more school after DS, so I was pondering just working as an associate with a general dentist (eventually moving on to partner after buying in) and trying to bring more kids into a practice. The potential for that market is absurd, as most kids are forced to go wayyy out of town to get care. My question I guess would be whether this is feasible or should I be thinking more about Pedo residency or just taking over a practice and seeing kids? At this point I don't forsee myself working solo in a practice, but I'm sure my view on that may change in the future.

Thanks for all you do and I would buy a book fo sheezy

 

[The Hammer]

So I've begun to take the idea of turning this thread into a book seriously. I had my receptionist print off all of the pages in this thread and I put them in a 3 ring binder so I could read over them and make notes in the margins.

Printed this thread is 280 pages long. WOW!

When I started looking for a practice to buy this time last year I never dreamed that this thread would still be up and people still reading it. On one hand I am really happy that I am able to help and give you all something to think about.

On the other hand I am really disappointed that you apparently aren't getting this stuff in dental school. Considering the amount of money that you are being charged for tuition you ought to be getting SOME of this information before you are handed a diploma and a handpiece and shoved out into the "real" world.

I know that some of you have been waiting very patiently for me to finish writing about how to find and hire good employees (and office managers). I promise I haven't forgotten about it and your patience will be rewarded very soon.

 

[DocInDaHouse]

thanx man

 

[rockclock]

as valuable as this thread already is, it's basically the equivalent of reading the transcript of a seminar Q&A...it's great to have Hammer put out advice, bounce ideas off other practicing dentists, and take questions from pre-dents but having it all distilled and organized into a book by the man himself would be much more valuable.

honestly I'd prefer an e-book version myself since that's how I like all my books these days, but I'd still be willing to put up in the neighborhood of $30 for a hardcopy. we're definitely behind you on this one, Hammer. trust me, it will help out a lot of future dentists and be worth your while at the same time.

 

[The Hammer]

as valuable as this thread already is, it's basically the equivalent of reading the transcript of a seminar Q&A...it's great to have Hammer put out advice, bounce ideas off other practicing dentists, and take questions from pre-dents but having it all distilled and organized into a book by the man himself would be much more valuable.

honestly I'd prefer an e-book version myself since that's how I like all my books these days, but I'd still be willing to put up in the neighborhood of $30 for a hardcopy. we're definitely behind you on this one, Hammer. trust me, it will help out a lot of future dentists and be worth your while at the same time.

Thanks man I really appreciate the encouragement. It's funny but a lot of non-dentists think writing a book would be a great idea as well e.g......

1. My accountant who is now a venture capitalist ( he owns the company that makes Breath-Rite nasal strips) said that he would be glad to write a chapter or two on the financial side of the transaction e.g. how to get a loan, what tax laws you need to take advantage of, depreciation of equipment, making sense of the monthly practice financial statements etc.

2. A DEA agent said he would love to write a chapter on how the drug laws apply to you and how to protect your Controlled Substance license.

3. Several lawyers have stepped forward wanting to write how to protect yourself from a lawsuit and risk management

4. And last but not least my friends that work with Frank Spear want to add a chapter about the importance of getting quality CE and how to find quality CE.

This book is becoming more and more interesting the more that I get into it.

 

[Mudfever]

2. A DEA agent said he would love to write a chapter on how the drug laws apply to you and how to protect your Controlled Substance license.

Sadly, this is becoming more of a needed topic. I know of several dental and medical professionals in fed. prison right now for not being careful with this stuff. (Some of them were outright crooked, but others simply trusted their office staff too much!)

Looking forward to your printed wisdom. (And if you could get this done in the next 2-3 years before I plan to purchase a practice, that would be greattt, mKay! In my Bill Lumbergh voice!)

Mud

 

[New2Philly]

Thanks man I really appreciate the encouragement. It's funny but a lot of non-dentists think writing a book would be a great idea as well e.g......

1. My accountant who is now a venture capitalist ( he owns the company that makes Breath-Rite nasal strips) said that he would be glad to write a chapter or two on the financial side of the transaction e.g. how to get a loan, what tax laws you need to take advantage of, depreciation of equipment, making sense of the monthly practice financial statements etc.

2. A DEA agent said he would love to write a chapter on how the drug laws apply to you and how to protect your Controlled Substance license.

3. Several lawyers have stepped forward wanting to write how to protect yourself from a lawsuit and risk management

4. And last but not least my friends that work with Frank Spear want to add a chapter about the importance of getting quality CE and how to find quality CE.

This book is becoming more and more interesting the more that I get into it.

This could be a textbook... "Hammer's Introduction to Practice Management for Dentists."

 

[7 Iron]

Thanks man I really appreciate the encouragement. It's funny but a lot of non-dentists think writing a book would be a great idea as well e.g......

1. My accountant who is now a venture capitalist ( he owns the company that makes Breath-Rite nasal strips) said that he would be glad to write a chapter or two on the financial side of the transaction e.g. how to get a loan, what tax laws you need to take advantage of, depreciation of equipment, making sense of the monthly practice financial statements etc.

2. A DEA agent said he would love to write a chapter on how the drug laws apply to you and how to protect your Controlled Substance license.

3. Several lawyers have stepped forward wanting to write how to protect yourself from a lawsuit and risk management

4. And last but not least my friends that work with Frank Spear want to add a chapter about the importance of getting quality CE and how to find quality CE.

This book is becoming more and more interesting the more that I get into it.

Wow, if you could get those additional people to contribute to your book, that makes it even better. Let's face it, we'd like to think we know everything, but accountants and lawyers exist for a reason... they're good at it!

 

[rockclock]

Thanks man I really appreciate the encouragement. It's funny but a lot of non-dentists think writing a book would be a great idea as well e.g......

1. My accountant who is now a venture capitalist ( he owns the company that makes Breath-Rite nasal strips) said that he would be glad to write a chapter or two on the financial side of the transaction e.g. how to get a loan, what tax laws you need to take advantage of, depreciation of equipment, making sense of the monthly practice financial statements etc.

2. A DEA agent said he would love to write a chapter on how the drug laws apply to you and how to protect your Controlled Substance license.

3. Several lawyers have stepped forward wanting to write how to protect yourself from a lawsuit and risk management

4. And last but not least my friends that work with Frank Spear want to add a chapter about the importance of getting quality CE and how to find quality CE.

This book is becoming more and more interesting the more that I get into it.

wow, all that would be absolutely fantastic. like I said, (1) organization and (2) getting to the heart of all the keys ideas on each topic (this is def one of your strengths stylistically I would say) is what is going to make this book awesome. A breadth before depth situation, if you will, with some carefully placed placed depth in all the key areas. If you really take the time to get your ducks in a row before you write this and then put out a polished, well-executed product, I could definitely see this book taking hold in the community as a one-namer...i.e. Hammer's Guide...

 

[Santiago12]

A book like this would be great Hammer, hopefully a required piece of reading material in our dental classes... I know you are still in the brainstorming phase, but do you have any tentative timeline in mind on when you'd like to publish the book?

 

[youknowthedrill]

Hammer,
I'm also interested in:
1) Ways to prevent embezzlement.
2) Do you close the practice when you're on vacation or can some of your employees still work?
3) Types of insurance we need to carry- malpractice, life, disability, etc. I have a friend who is a physician in south Mississippi. His office was severely damaged by Katrina and his practice was closed for a few weeks. Luckily he had insurance that paid for the building repairs and also some type of insurance that replaced the practice income while it was closed. He was fortunate that his insurance provider recommended it or he never would have know it was available.
4) How do you handle after-hour emergencies?
Thanks!

 

[The Hammer]

A book like this would be great Hammer, hopefully a required piece of reading material in our dental classes... I know you are still in the brainstorming phase, but do you have any tentative timeline in mind on when you'd like to publish the book?

I may be totally naive about this but I was hoping to have it written within one to two years

 

[The Hammer]

Hammer,
I'm also interested in:
1) Ways to prevent embezzlement.
2) Do you close the practice when you're on vacation or can some of your employees still work?
3) Types of insurance we need to carry- malpractice, life, disability, etc. I have a friend who is a physician in south Mississippi. His office was severely damaged by Katrina and his practice was closed for a few weeks. Luckily he had insurance that paid for the building repairs and also some type of insurance that replaced the practice income while it was closed. He was fortunate that his insurance provider recommended it or he never would have know it was available.
4) How do you handle after-hour emergencies?
Thanks!

1. If you cross check your daily sign in sheets with your end of the day print outs (the ones that show who came in and what was done) embezzlement is harder to do. Also since very few people pay in cash that also makes it harder to steal from you, but it can still happen. You just have to be sure to follow the money and see where it ends anytime something looks fishy on your daily and monthly financial reports

2. It depends on state to state but a hygienist can usually work at least 8 hours unsupervised. Since I have always practiced with an associate I usually never close my office when I am on vacation or gone to a CE class.

3. Yes OK being serious you will need disability, malpractice, an Umbrella type insurance that covers your practice in the event of fire, theft, flood etc, you will also need liability insurance in case someone slips in your bathroom and wants to sue, insurance if one of your employees slips and wants to sue etc. The easiest way to take care of this when you are first out in practice is to have the ADA insurance company to set you up with the insurance that you will need for your new practice or to go with what the previous owner carried. After you are settled in your practice then you can start looking for more competitive rates

4. I give all of my patient's my personal cell phone number to call in case of an emergency. Most of the time most emergencies can be handled over the phone (keep all of the local pharmacies phone numbers stored on your phone). If I need to see someone I then determine if this is something my assistant can do or if I need to go in to see the patient. I bought my assistant an Android and I pay the bill on it so I also give that number to my patients as well.

If I need to go see the patient I call my assistant or Office Manager and let them know who I am going in to see, what time I am seeing them, the problem that I'm seeing them for and I have a pre-arranged time for them to call me back on my cell phone. I also have a "safety" word that I have to say to let them know everything is ok. If I don't answer or if I don't give the proper word they are to hang up and call the police immediately. We also follow the same procedure if they have to go to see a patient as well.

 

[The Hammer]

A few quick questions Hammer...

1) My girlfriend/most likely future wife does not want to stay in FL after I graduate from dental school. However, with the lack of state income tax, I am more than inclined to want to stay here. I think you practice in Tennessee, so I guess my question is if you think there is a significant advantage to staying in FL other than for the lack of state income tax and fact that I will pass the FL boards and not have to take another set to move elsewhere.

2) Assuming I stay in FL, I am from an area that has a severe lack of dental care for the kids. I don't really want to go through any more school after DS, so I was pondering just working as an associate with a general dentist (eventually moving on to partner after buying in) and trying to bring more kids into a practice. The potential for that market is absurd, as most kids are forced to go wayyy out of town to get care. My question I guess would be whether this is feasible or should I be thinking more about Pedo residency or just taking over a practice and seeing kids? At this point I don't forsee myself working solo in a practice, but I'm sure my view on that may change in the future.

Thanks for all you do and I would buy a book fo sheezy

Sorry I wasn't ignoring you I'll answer your questions now

1. Work where you want to live and raise kids. If you like living in FL I would stay in FL. I personally love FL and reluctantly turned down a position at a dental school there right before I started to write this thread.

As you know Florida has its own boards. This makes it a little less likely to have dentists from other states decide to "retire but still practice" in Florida. It is protectionistic but probably not a bad idea. I wouldn't want to be a new grad opening a practice where every dollar and every patient counts and have a "retired" dentist who is financially set open a practice across the street from me. If you like the sunshine state then I'd start deciding where you might have an opportunity.

I like practicing in Tennessee because I understand the people here and most people don't look at me like I am ******ed when they hear my thick southern accent

2. I think staying a gp but gearing your practice towards kids is a brilliant move. You are actually building your patient base from birth that way. Depending on your school you should graduate with a pretty good set of pedo skills. Most of the pedo specialty programs are more hospital/early intervention ortho IIRC. If there is a pedo or a pedo resident reading this please correct me if I am wrong. While we are on the subject of kids I'll give you my 2 cents about pedo patient technique

1. If the patients parents or sibs haven't already totally scared the **** out of
them then you have it made.

2. I NEVER NEVER NEVER lie to a kid. Those little bastards have perfectly functioning BS detectors. If they ask "Am I going to get a shot?" I say "No, you are going to get several." If they ask "is this going to hurt" I say "Not unless I really screw up." And I laugh a lot when I tell them this like what we are going to do is no big deal because really, it shouldn't be. If you are nervous, tense or show a lack of confidence the kids will pick up on it and you will be in for a wild ride. I keep it low key because it should be low key.

3. ALWAYS USE GAS!! When the kid hits the chair I crank up the gas. I use scented disposable gas noses. I also turn SpongeBob on the 42" plasma TV in my op. Liberally apply a good topical and use a reasonably non-burning anesthetic like Citanest plain and you are good to go.

If you are planning on making pedo a majority of your practice I would definitely seek out some quality pedo CE. You will usually find these offered by dental schools and not necessarily by places like Pankey or Scottsdale

Whatever you decide to do good luck

 

[New2Philly]

Sorry I wasn't ignoring you I'll answer your questions now

1. Work where you want to live and raise kids. If you like living in FL I would stay in FL. I personally love FL and reluctantly turned down a position at a dental school there right before I started to write this thread.

As you know Florida has its own boards.

Whatever you decide to do good luck

I believe that Fl will be taking new NERB passes to get a Fl license. At least that is what one of the administrators at my school said.

 

[The Hammer]

I have noticed an increasing trend of G.Ps doing extensive training in fixed/major orthodontics (eg. Tip Edge courses) besides Invisalign. Also, an increasing number of G.Ps are performing more perio surgery (eg. gum grafts,bone grafts,block grafts crown lenghtening) and implantology (not just the prosthetic portion but sinus lifts and surgical placement of implants as well).

A wise proprietor tries to keep everything in-house. If they can't do the procedures themselves, they try to get the associates to compensate for that. It must be getting tougher for specialists to get referrals when G.Ps are getting their fingers wet with everything which used to be referred to the specialists in the past.

A wise man knows his limits - Dirty Harry

 

[The Hammer]

I believe that Fl will be taking new NERB passes to get a Fl license. At least that is what one of the administrators at my school said.

Really? Wow, that is amazing if that is true! I really thought that Florida would be the last holdout on reciprocity

 

[Cold Front]

This is just my opinion but I would go where the families are. My first two practices were in big shopping centers. The practice I have now is close to the hospital. The reason that a medical center tends to attract dentists is probably more for stability than for anything else. Hospitals don't tend to move around much whereas the "hot" shopping area might change every 10 years.

The Wal-Mart in the previous county that I practiced in moved 3 times in 20 years. If you had a practice in a shopping center that had Wal-Mart as an anchor you ran the risk of hearing the crickets chirping if the Wal-Mart up and moved which is what happened to me. I built another office in front of the new "Super" Wal-Mart and was smoking again.

I opened my office in a new strip mall, with many businesses i.e. Walmart, SAMs club (two of the same), business parks (corporate offices), etc nearby, all surrounded by large existing and upcoming residential communities. The bottom line is, go where the traffic is. Hospitals are good locations too, but people make more trips to their work place, malls and gas stations daily. People are all about convenience too (saving time and money), just as we are for our private practice(s). I learned this through how other companies evaluate their ventures, and they spend a hell of a lot more money than a dentist do on an office.

Keep up the great advice Dr. Hammer!

 

[The Hammer]

I opened my office in a new strip mall, with many businesses i.e. Walmart, SAMs club (two of the same), business parks (corporate offices), etc nearby, all surrounded by large existing and upcoming residential communities. The bottom line is, go where the traffic is. Hospitals are good locations too, but people make more trips to their work place, malls and gas stations daily. People are all about convenience too (saving time and money), just as we are for our private practice(s). I learned this through how other companies evaluate their ventures, and they spend a hell of a lot more money than a dentist do on an office.

Keep up the great advice Dr. Hammer!

Thanks and good luck with the office! Cold Front is absolutely correct in going where the traffic is. To echo what Cold Front said certain businesses will only build in certain locations due to the amount of traffic. A Dairy Queen or a Hardy's will locate almost anywhere, a Home Depot or Lowe's however has to have more traffic than a Wal-Mart. I think I have already talked about this somewhere in this sprawl of a thread.

One thing that Howard Farran (Dr. DentalTown.com) taught me was that he located near a very large grocery store because women make 86% of the dental appointments each year (I learned this in 1995 so I'm guessing this data is way out of date)

Thanks for the info Cold Front, please keep posting about your experience with your new practice.

 

[The Hammer]

Here's a photo of my summer reading list for anyone who might be interested ( I just bought a Nikon 5100 and I'm trying it out)

 

[7 Iron]

Nice camera

 

[8 SNAKE]

Here's a photo of my summer reading list for anyone who might be interested

Have you read Jack Stack's The Great Game of Business? The principles outlined in that book would add an excellent depth to the discussion of operating and managing a successful practice.

 

[The Hammer]

Have you read Jack Stack's The Great Game of Business? The principles outlined in that book would add an excellent depth to the discussion of operating and managing a successful practice.

I haven't read that book so thanks for the recommendation

 

[The Hammer]

OK who wants to hear about buying a dental practice in the real world? Well join me as I venture into the world of debt, a retiring owner/dentist, practice brokers, issues with the remaining staff, retaining patients, talking with the bank for a loan, pouring over financials, demographic surveys, production predictions, future overhead calculations, interior design, logo design, practice rebranding, advertising, patient recruitment, staff recruitment, debt management and having a hostile ex-wife who still lives in the area. Plus I will try to address issues that are unique to recent grads looking to go into practice and to answer any questions that you might have. Also I am going to use real numbers but I will change just enough information so that I don't violate any confidentiality agreements that I have already signed. So lets get started

Wow, I started this thread exactly one year ago on the 20th and it has had almost 80k views. I hope that I have been able to give you all something to think about.

If nothing else you can see that I am a pretty much average dentist in an average practice and I haven't gone broke yet

If I can make it work then you guys will be fine once you graduate

 

[The Hammer]

Nice camera

Yeah the Nikon 5100 is great and so is the 3100. I'm traveling to the UK this summer for a wedding and I wanted to take some great photos so I went with the Nikon.

 

[noles]

Here's a photo of my summer reading list for anyone who might be interested ( I just bought a Nikon 5100 and I'm trying it out)

Great info as always hammer, thanks. I've read some of those books and just added a few more to the kindle. A few questions:

Is there any public info available on the corporate structuring of any of the major dental chains? I doubt it but worth a shot? Also, can you recommend any books on general corporate structuring, such as business model, ownership distribution, employee payment/benefits, CEO, HR, etc?

 

[8 SNAKE]

I haven't read that book so thanks for the recommendation

If you read the book, I'd like to hear your thoughts about applying open-book management to a dental practice and how you would specifically relate it to your staff. I think it would be a great discussion.

 

[Cold Front]

Here's a photo of my summer reading list for anyone who might be interested ( I just bought a Nikon 5100 and I'm trying it out)

I'm more interested in whether you got a good deal or not on the 5100!

 

[The Hammer]

If you read the book, I'd like to hear your thoughts about applying open-book management to a dental practice and how you would specifically relate it to your staff. I think it would be a great discussion.

If by "open book management" you mean sharing the financials of the practice with your staff then yes I've been doing that almost since the beginning.

Unless the staff have the real numbers they can't understand that just because the office produced 80k your take home for the month is not going to be 35% of that. Letting them know the financials lets them see that their work directly effects the health of the practice. This is a lot more empowering than you would think.

The only thing that I do no share with the staff are the individual staff salaries. That is a very very bad thing. In fact if I find out that any staff member has been discussing their salary with the rest of the staff that is an automatic firing offense.

 

[The Hammer]

Great info as always hammer, thanks. I've read some of those books and just added a few more to the kindle. A few questions:

Is there any public info available on the corporate structuring of any of the major dental chains? I doubt it but worth a shot? Also, can you recommend any books on general corporate structuring, such as business model, ownership distribution, employee payment/benefits, CEO, HR, etc?

Corporate structuring is way out of my depth. My accountant however I'm sure could suggest some good books to that end. I'll ask him when we talk today and see if he has any ideas for you.

 

[The Hammer]

I'm more interested in whether you got a good deal or not on the 5100!

Yeah I guess I did, I bought it from an Amazon dealer online. If you are looking for a really good digital camera this is definitely one that I would recommend checking out

 

[8 SNAKE]

If by "open book management" you mean sharing the financials of the practice with your staff then yes I've been doing that almost since the beginning.

Yes, that's precisely what I meant. Do you have regular, planned meetings with your staff to go through the books? I assume that each member of the staff understands his/her role and how it relates specifically to the numbers that are reviewed at each meeting?

The basic idea behind the book is empowering your staff to understand how they impact the numbers and turning business into a game that everyone plays to win (grow profits). At least that's what I took from it.