Growing gains
Featured Products Promotional FeaturesPosted by: Dental Design 18th March 2024
Thinking of expanding? It’s a big decision but it could pay big dividends
I like that quote from business mentor and motivational speaker, Tony Gaskins, who says: “If you don’t build your dream, someone else will hire you to help them build theirs.”[i]
Running your own dental practice is liberating and, if you’re doing it right, successful and profitable. One of the advantages of a single practice is that it’s simpler to have everything under one roof. It’s less risky too as you’re not spreading your assets too thin. But one of the problems is that it has limited growth. Once you’ve hit capacity, you’ve hit a barrier.[ii] In a world where demand for dental provision is high – as many as 3,000 people per NHS dentist in some areas[iii] – that puts you at a disadvantage.
Indeed, perhaps you’re currently at the stage where your practice has grown so much that your building can no longer house all the treatments you need it to. Maybe it’s time to think about opening a second site?
Owning multiple dental practices can offer numerous benefits. One of the primary benefits is the potential for increased revenue. With multiple locations, dentists can tap into a larger patient base and provide services to a more extensive geographical area. This allows for the diversification of income streams and can lead to higher profitability.[iv] Additionally, having multiple surgeries enables the economies of scale,[v] as dentists can centralise certain administrative functions and share resources, resulting in cost savings.
Expansion can provide dentists with the opportunity to delegate responsibilities and achieve a better work-life balance. Hiring the right people[vi] and the ability to delegate is therefore key.[vii] By distributing their workload across different locations, practice owners can potentially reduce their overall stress levels.
Competitive edge
Leading on from this, dentists who own multiple practices have a competitive edge when it comes to recruiting and retaining talented staff members. With more locations, there are more opportunities for dental professionals to join your business and advance their careers. Additionally, the ability to offer career development opportunities within the organisation can help retain skilled staff members[viii] who may otherwise seek positions elsewhere. Given the current recruitment crisis, this is a real plus.
Owning more than one practice can open up avenues for personal professional growth and development too. With each additional location, practice owners can gain valuable experience in managing and leading a team, marketing their services, and handling business operations. This experience can help dentists enhance their management skills and build their leadership qualities.[ix] Moreover, multiple practices provide opportunities for collaboration and sharing of best practices – both commercial and clinical – between different locations, allowing dentists to continuously learn and improve.
Enhanced reputation
Expanding your dental practice can contribute to enhancing your professional reputation.[x] Having multiple locations suggests that your practice is thriving and successful, giving patients more confidence in your services. It is also likely to attract new patients who may be seeking dental care from established and reputable dental providers.
It’s important to be aware that owning multiple practices doesn’t necessarily equate to owning multiple profitable practices. While acknowledging there are many advantages to operating multiple practices, including the ability to make bulk purchases, expanding buying power, more capacity for leverage and the opportunity for greater exit planning – it’s not without its challenges. After all, there is the increased responsibility, more staff to manage, the potential for higher debt and the associated stress that goes with all of this to consider too.
However, owning multiple dental practices does offer dentists distinct benefits. From increased revenue and patient access to improved work-life balance and professional growth, the advantages are many. By expanding their footprint, dentists can provide dental care to a wider population, enhance their reputation, and create a successful and thriving business.
When you are 100% sure that it’s the right move for you, the Dental Elite team is on hand to help you build your dream. We have more than a decade of experience in the buying and selling of dental practices. To find out how we can assist with your business decisions, contact the team today.
For more information contact
the Dental Elite team on 01788 545900
https://dentalelite.co.uk/
Laura Dewes Bio Senior Business Account Manager at Dental Elite
“Laura’s journey with Dental Elite began in the spring of 2016. Her dedication and commitment have propelled her through the ranks, and she currently holds a pivotal role within the Sales Progression Team, having achieved a well-deserved promotion to Senior Buyer Account Manager in September 2023. Before her tenure with Dental Elite, Laura demonstrated her exceptional organizational skills by coordinating various charitable events, including several notable London to Paris cycle rides.”
[i] The Dream Chaser, Tony Gaskins. https://www.amazon.co.uk/Dream-Chaser-Build-Someone-Theirs/dp/1119318904
[ii] Linkedin https://www.linkedin.com/pulse/5-best-tips-knowing-when-its-time-grow-your-business-milly-anne-njeri
[iii] Sky News https://news.sky.com/story/taylor-swift-tickets-easier-to-get-than-nhs-dentist-appointments-ministers-told-13044908
[iv] Forbes, Houston M https://www.forbes.com/sites/melissahouston/2023/05/24/empower-your-business-by-diversifying-income-streams/?sh=1bfe9f948641
[v] Investopedia https://www.investopedia.com/insights/what-are-economies-of-scale/
[vi] Business mentor Robin Waite https://www.robinwaite.com/blog/tips-to-fine-tune-your-hiring-process-during-business-expansion
[vii] Evolve to Grow https://www.evolvetogrow.com.au/resources/why-you-must-delegate-and-let-go-to-scale-your-business/
[viii] Built In https://builtin.com/company-culture/employee-development
[ix] McKinsey https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/choosing-to-grow-the-leaders-blueprint
[x] Harvard Business Review https://hbr.org/2007/02/reputation-and-its-risks
