RevUp Dental

Is your dental practice stuck growing? It's not your dental skills holding you back, it's what's happening under the hood. RevUp shows you where you're losing patients and fixes it with proven systems, training and marketing that makes you money.

Blog By:
Nick Fotache

Key Areas to Focus On: Patient Numbers and How Much Money Your Practice Makes

When someone is looking to buy a dental practice, they mainly look at two things: how many patients the practice has and how much money it makes. These are important because they show whether the practice is doing well and will continue to do so.

Expanding Your Patient Base: The number of active patients regularly visiting your practice is a strong indicator of its health and potential for growth. Increasing this number can be achieved through effective marketing strategies targeted at attracting new patients and a robust recall system that encourages existing patients to return for regular checkups and treatments. This not only stabilizes your income but also enhances the appeal of your practice to prospective buyers.

Boosting Your Practice’s Earnings: The profitability of your practice plays a crucial role in its valuation. Focusing on high-margin services, such as routine dental hygiene, can significantly enhance earnings. These services require lower investment in terms of time and resources while providing a steady flow of revenue. Additionally, implementing an efficient billing system and cutting unnecessary costs can improve your bottom line, making your practice more attractive to buyers. 

What to Invest In: Do’s and Don’ts

Do Invest in Appealing Facilities: First impressions matter. Investing in cosmetic upgrades like fresh paint, new flooring, or comfortable furniture can greatly enhance the appeal of your practice. Such improvements are relatively inexpensive yet can significantly influence a buyer’s perception, potentially increasing the sale price.

Don’t Overspend on High-Tech Equipment Unless Necessary: It might be tempting to invest in the latest dental technology to make your practice look cutting-edge. However, unless this technology will directly increase your earnings through new or improved services, it might not be a wise investment. Buyers are interested in profitability, not necessarily in having the newest gadgets.

Do Focus on High-Return Services: Adding or expanding services that have a high return on investment, such as dental implants or cosmetic dentistry, can be a smart move. These services attract new patients looking for specific treatments and increase the average transaction size, boosting overall profitability.

The Benefit of Basic Dental Services

A Gateway to Higher-Value Treatments: Services like teeth cleaning and routine check-ups might seem mundane but are essential for patient care and retention. They provide a steady income and help to build a relationship of trust with your patients. Once trust is established, patients are more likely to consider additional, more lucrative treatments offered by your practice.

Cost-Effectiveness: Basic dental services are not only in constant demand but also cost-effective to provide. The overheads are low, and they do not require expensive equipment or supplies, which means more of the revenue they generate is pure profit. This boosts your practice’s financial profile, making it more appealing from an investment perspective.

Building a Patient Foundation: By focusing on essential dental care, you create a foundation of regular patients who provide recurring income. These patients are also likely to refer others to your practice, organically growing your patient base and increasing the intrinsic value of your business over time.

In conclusion, as you prepare to sell your dental practice, consider these strategic areas for investment and focus. By enhancing both the number and loyalty of your patients and choosing the right areas in which to invest, you can significantly increase the value of your practice and attract serious buyers. Remember, a successful sale is not just about what your practice looks like now, but about its potential for continued success and growth. 
For further insights into effective dental practice management and marketing, we invite you to explore our YouTube channel or visit our website. If there's a specific topic you'd like us to cover, please feel free to leave a comment below.