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The Savvy Dentist Podcast- with Dr Jesse Green
The Savvy Dentist Podcast- with Dr Jesse Green
Strategies to help ambitious dentists accelerate the growth of their practice so they have more patients, more profits, and less stress.
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jessegreen
jessegreen

5 Stages of Dental Practice Growth (Where Are You?)

5 Stages of Dental Practice Growth (Where Are You?)

6/1/2016 8:42:19 PM   |   Comments: 0   |   Views: 238
Understanding the stages of your dental practice’s growth will help you assess where you are in the chain and propel your business forward.

For example, usually dentists in the start-up phase will spend an extraordinary amount of time doing everything. As they get their dental practice management, marketing, and systems in place, they take a step back.

All businesses go through the same stages of growth.

We’re going to look at the stages of dental practice growth through income, in particular, EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation and Amortisation.

1. Survival: EBITDA <$150k

Focus: Vision and patient flow
Time: Part-time

While this can be a challenging phase of growth for dental practices, it is also extremely exciting. This is where you, as the owner, will do much of the work. But rest assured as you move through the growth cycles you will start to delegate a lot of the tasks and responsibilities.

This is where you must focus on getting new patients, patient flow, and retention. It should always be your number one goal, but it is most important in this phase.

2. Stability: EBITDA $150-$350k

Focus: Vision, team and systems 101
Time: Full-time

A dental practice in this stage is now working more efficiently and is turning over some profit. Your next task as the business owner is to make sure you hold on to that profit and project into the future.

Of course, you still need to gain new customers and retain existing ones. You’ll also need to make sure you have dental practice systems and processes in place to capture a return on investment, plus get the right people in your team.

3. Scaling: EBITDA $350-$550k

Focus: Vision, capacity, systems 202, team, leadership and financial management 101
Time: Overtime

You’re at the stage where you’re making good money but have limited time. This stage is often referred to as the ‘Golden Handcuffs’ because it can feel like the practice runs you rather than you running it. At this point, some dentists decide to reclaim their time by introducing an element of scalability.  That is, to ensure the practice earns a higher portion of its income through the efforts of others.

Some options include putting on more staff, opening for longer hours, splitting shifts or opening in more locations. Or you may simply want to maintain what you have established already. And that’s OK. However, if you do decide to scale up, you’ll need to revisit your systems and processes, develop your leadership skills, and look at your capacity and team.

4. Success: EBITDA $750k-$1.5m

Focus: Vision, leadership, leverage, team and financial management 202
Time: Wealth time

At this stage, your dental practice can run without you, is completely systemised and creates immense value. Your team is focused and team members are in line with your goals.

Now you can focus on turning your team into leaders, growing sales and profits more, and turning your practice into a legacy. Here you’ll be working on your business and not so much in it unless you want to. 

5. Star: EBITDA >$1.5m

Focus: Vision, contribution and influence
Time: Legacy time

Now it’s about giving back, contributing to your community and influencing your industry. Your dental practice becomes bigger than you. You will identify new opportunities, explore new areas, manifest new plans and create change in the world.

Where are you at in theses five stages of dental practice growth?

Look at your business from a holistic point of view. Is it practising to its full potential?

 
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 About Jesse

Dr Jesse Green is a dentist, entrepreneur, best-selling author and renowned thought leader in the field of dental practice management.

Grab your free copy of How to Build a High Performance Dental Practice, and have more patients, more profit, and less stress, now!
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