Congratulations! Beginning your career as a dentist is a smart choice. Whether you choose to begin from scratch or choose to purchase an existing practice and move it toward your dream, it is an exciting time.
The following question always comes before graduation: “So, where are you going to practice?” For some, the answer is simple. They will gain experience working as an associate, while they continue their education in the “real” world. For others, the question leads to a dream: starting their own practice where they can shape their future.
Where do you start? How do you know if taking the risk of starting your own practice is financially feasible? The answer always comes back to the same place: set your stage. Begin by thinking the process through. Assemble your players. Seek expert advice. The following steps will ensure future success:
Begin with a clear financial plan: Create a personal budget and try your best to stick to it. Consider your outstanding debt, your assets and your liabilities. Prior to acquiring financing, any bank or lending institution will need this information. You’ll need to put together financial and business plans outlining all of your goals. This will assure the lender that you are a good investment risk.
Acquire non-clinical skills: Work on your organizational, leadership and communication skills. At times, treating patients can become very one-sided. In order to build a successful practice, it is essential to hone your interpersonal communication skills. These will become invaluable in your practice and in life. Consider joining community groups, public speaking groups or volunteering. Activities such as these will give you the confidence to speak with others about who you are and what you do. This will also help develop your leadership skills.
Acquire technological skills: The future of dentistry will be technology-driven. Outside of the clinical arena, more of your potential patient base is using the Internet, e-mail, etc. to research dentistry. As you are building your practice, think about the type of technology you would like to have in your office. It is never too early to begin your education of digital dentistry. In addition, research practice management software and how it can help you manage your practice efficiently.
Learn about your future business: Write a business plan that outlines your qualitative and quantitative goals. Create a marketing plan. Choose an accountant that has experience working with dentists and one that can advise you on proper financial planning. Learn about tax incentives, business types, overhead, expenses, and tax strategies. In addition, it is important to learn from excellent leaders. If you have a mentor that has life experience and is an excellent example, take him or her to lunch.
Focus on you: Opening your own practice can be overwhelming mentally, emotionally and financially. Be sure to keep your goals in mind, as you begin your journey and throughout the process. Keeping your eye on your goals and periodically reviewing them is key to achievement. Post them on your wall! It is very easy to lose sight of yourself and your goals in the process.
Gather your experts: Hire as many people as you can to assist you in your planning. Consult the advice of those who have been through business start-ups with other dentists. The following relationships are key:
ADVISOR: To create financial plans for you and the practice;
ACCOUNTANT: To assist you in setting up your business type and to maximize tax strategies;
LENDER: To pre-qualify for a loan, assist you in budgeting, and give you a real idea of cost versus investment;
PRACTICE COACH: To assist you in the inner workings of your practice: hiring, marketing, business planning, budgeting, and setting up your system efficiently.
DENTAL SUPPLIER: To assist you in the selection of products, equipment, design and service.
ATTORNEY: To assist you in lease or purchase negotiations and legal agreements.
Choose your demographic: Decide where you would like to practise. Many studies are available to assist you in properly planning the placement of your practice. These reports will give you an idea of potential patient base, competition and growth areas.
Buying old versus starting new: This question is posed by many new dentists. How difficult is it to start a practice versus purchasing an older one? The answer lies in your goals and your available cash flow. An important factor to consider when purchasing a practice is to ask for a fair market valuation (FMV) of the practice. At Transitions, we represent the buyer as an advocate and examine the potential purchase. We review the advantages and disadvantages of any particular practice and the work it would take to make the practice successful.
Starting your practice
Once you have your goal in mind, have gathered your experts, and are on the path to opening your office, it is important to review your objectives. Tackle them one at a time. New students have many questions about how to succeed in a start-up. Reviewing the above steps will start you on your path to success. Maintaining a clear perspective on your costs and investments — peppered with the right amount of patience — will help you achieve your goals. As you begin to practise, understand it is a slow process of growth. There are easy ways to grow the practice that may not be the best financial choice for the health of your practice. Be aware that everything worthwhile takes time to grow. But down the road when you review your goals, you’ll be able to check items off your list. You’ll be surprised at all you have accomplished.
THESE STEPS WILL ENSURE FUTURE SUCCESS
* Begin with a clear financial plan.
* Acquire non-clinical skills.
* Acquire technological skills.
* Learn about your future business.
* Focus on you.
* Gather your experts.
* Choose your demographic.
* Buying old versus starting new.
* Begin with a clear financial plan.
* Acquire non-clinical skills.
* Acquire technological skills.
* Learn about your future business.
* Focus on you.
* Gather your experts.
* Choose your demographic.
* Buying old versus starting new.
Lisa Philp, RDH, CMC, is the President of Transitions Group North America. Lisa is a certified facilitator in Integrity Selling, a Certified Management Consultant as designated by the Academy of Dental Management Consultants. Philp is the Director of Team Training for Canada’s Millennium Aesthetics Programs, and is a key opinion leader with Benco Dental, CareCredit, Philips Oral Health Care (Canada) Ltd., and Dentsply Canada Ltd. She currently provides training to students at the University of Toronto, Faculty of Dentistry and is a guest lecturer at the University of Western Ontario and the University of Montreal.
