Expanding a dental practice

Vincent Cardillo, MBA

In last month’s article, I introduced the six stages of growth that map out the progression and key decisions necessary to evolve from a solo practice into a multilocation group practice, or dental service organization (DSO). As someone with 20-plus years of experience successfully growing DSOs, I identified all practices’ progress through the same six stages. If you aspire to become a growth-oriented expanding practice, the dental industry is ripe with opportunity. Developing your solid foundation for growth as explained in Stage 1 is your first step.

As you enter Stage 1, you’re likely working as an associate and being mentored by an established dentist-owner about the business and clinical aspects of the practice. In fact, after honing your clinical abilities and observing the day-to-day operations, you may think you can own your own practice. By the same token, you may be a current owner-doctor experiencing challenges with Stage 1 relative to niche, location, or office culture, preventing you from transitioning into Stage 2 (two to three offices).

In either case, the five components of Stage 1 are your blueprints for success—niche, location, buy or build, office name, and office culture. The decisions made in Stage 1 are all intertwined, and you will need to make choices in tandem. Once you accomplish Stage 1 and decide to take more steps toward entrepreneurial growth, my subsequent articles will continue to guide you through this process.

Niche

Niche is defined as a key segment of a market. The type of dentistry you want to practice—implantology, cosmetic, etc.—are examples of niche. So, what type of dentistry will you practice? This decision is often based on your interests, education, and experience, as well as the demographics of your market. Identifying your niche is key to determining where you will potentially practice. It is important to complete basic demographic research, including gathering census information and investigating the number of offices that exist in your location of interest by niche.