What things can I do now to increase the value of my dental practice?

Hey, everyone. This is an AI conversation covering our recent personally authored blog post on our Practice Orbit website. Enjoy.

Hey, everyone, welcome back. We're doing deep dive today into increasing the value of your dental practice. And we're going to be looking at this article from Practice Orbit, a platform that helps dentists buy and sell practices.

Yeah. They're in the trenches. Right.

They know what's up and they break it down into three areas.

Yeah.

Boosting collections, trimming expenses, and sprucing up your office.

Right.

So let's jump right into collections because the article points out a lot of times people are thinking of selling because they're burnt out.

Yeah.

And trying to increase revenue when you're already feeling that way can be tough.

Well, yeah, and it's important to understand that the falling knife concept.

Okay.

Like, you know, you don't want to be trying to catch a falling knife if your collections are already trending downwards and you're feeling burnt out.

Yeah.

You know, pushing to increase them might not be the best move.

Wow, that's a powerful image. So how do you know if you're in that falling knife situation?

Well.

You know, it's not just about feeling tired. It's about looking at the numbers.

Right.

Are your collections consistently decreasing? Are you struggling to attract new patients? Are you finding it hard to keep up with the demand? If you're seeing those trends and feeling burnt out, it might be time to consider selling.

Yeah, that makes sense. But what if you're not quite there yet? What if you have some gas left in the tank and you want to boost those collections before selling?

Well, then it's all about strategy and timing.

Okay.

The article really emphasizes upward trends are a good sign, even if it's a recent rebound.

Okay.

Like let's say you saw a dip during COVID like a lot of practices did.

Yeah.

But now things are picking back up.

Okay. So even a short term upswing can make a difference.

Absolutely. Because banks often look at three year averages when they're evaluating a practice.

Interesting.

So recent positive changes actually carry more weight than those from years ago.

So it's like you're building momentum.

Exactly. You're showing them that things are moving in the right direction. Okay. It's what the article refers to as seasoning your financials.

Okay. So seasoning means showing that recent growth, those positive changes are consistent and likely to continue.

Yeah, exactly. It's not just a one time blip, but a sustained upward trajectory.

Gotcha. And that makes your practice more attractive.

Absolutely.

To buyers.

To buyers. Yeah.

So if you're listening. Take a look at your recent collections data.

Yeah.

Are you seeing that upward momentum, or are you more in a falling knife situation?

Right.

And remember, if you do decide to go for those higher collections, timing is crucial.

Absolutely.

You need enough time to show those positive trends to potential buyers.

Yeah. Think of it like training for a marathon. Oh. You don't just show up on race day.

Right.

You need months of preparation.

Yeah. You gotta build up to it.

Exactly. So if you're aiming to sell your practice at a higher value, you need to give yourself enough time to train those financials.

All right, so let's say we've tackled the collections piece.

Okay.

Now it's time to shift gears and talk about managing expenses. The article dives into this, even suggesting cutting out unnecessary subscriptions. You know, like maybe even that Netflix account.

It's a humorous example, but it highlights a good point.

Yeah.

There's always something to trim.

Yeah.

No matter how small.

Easier said than done, though, right?

Well, yeah. Especially when you've gotten used to certain spending habits.

Right. And let's be honest, it can be tough to make those decisions, especially when it comes to staff.

Absolutely.

You know, your team is like family.

Yeah. And we can't ignore the current labor market.

Yeah.

Staffing is a challenge these days.

The article calls out payroll as the biggest expense for most dental practices. So how do you navigate that challenge when you're also trying to control costs?

Are you looking to sell a dental practice? If you're a seller, how do you find a strong list of potential buyers? There's no MLS or Zillow for dental practice sales. In such a fragmented market, with transaction costs so high, many dentists selling their practice feel discouraged. That's why I built practiceOrbit.com practice orbit is modernizing how dental practices are sold through its online marketplace platform. It brings together buyers, sellers, and their professional teams directly. Sellers can easily and anonymously showcase their practice on the site for free. Practice Orbit offers two options to sell your practice. Option one, for 2% of the sale price fee, you'll get access to all Practice Orbit tools to sell your practice, along with a dedicated human assistant to coordinate the sale. And you only pay that 2% if you sell through the practice orbit system. Option two, practice orbit also offers a fully brokered option, a full 4 to 6% of the sale price. With our fully brokered option, you'll be assigned an experienced practice sales agent to help you determine a price, identify a buyer, and navigate the entire transaction. If you're thinking about selling your dental practice, create Your free account today at www.practiceorbit.com.

That's where strategic staffing comes in.

Okay.

Sometimes, and this might sound counterintuitive.

Okay.

Hiring more people can actually increase your revenue.

Wait, hold on. Explain that one. Yeah. How does spending more on staff lead to higher revenue?

Well, think about it this way. What if you hired another hygienist, maybe one who can perform expanded functions. That frees you up to focus on more specialized higher revenue procedures.

So you're essentially investing in your team's capabilities to ultimately increase the output of the practice.

Exactly. And that directly impacts the value of your practice.

Okay, so we've pumped up the collections, tightened the belt on expenses.

Right.

What's next on the checklist for increasing that practice value?

Well, according to the article, it's time to roll up our sleeves and make sure the office looks the part. Okay, we're not talking about a complete renovation, but just making sure things are clean, modern, and presentable.

Right. It's like staging a house before you sell it.

Exactly.

You know, you want buyers to walk in and feel good about the space.

Precisely. And this is what that emotional element that the article mentions comes in.

Okay.

You know, banks might only care about the numbers.

Yeah.

But buyers are influenced by how the practice makes them feel.

Right.

Imagine walking into a dental office that's dated, dingy, has old equipment.

Oh, yeah. No.

Does that inspire confidence?

Probably not.

Yeah.

Now, on the other hand, picture walking into a practice that's clean, modern, maybe even has some cool artwork on the walls.

Absolutely. Even small touches can make a big difference.

Yeah, for sure.

A fresh coat of paint, updated flooring, a welcoming waiting area. Yeah, these things can transform the entire feel.

It's interesting how we're not just selling a business, we're selling an experience.

Exactly. First impressions matter. You want buyers to walk in and be excited about the prospect of taking over your practice.

So we've covered the big three. Boosting collections.

Are you looking to buy or sell a dental practice? If you're a seller, how do you find a strong list of potential buyers? There's no MLS or Zillow for dental practice sales. In such a fragmented market, many dentists selling their practice feel discouraged. That's why I built practiceOrbit.com. practice Orbit is modernizing how dental practices are bought and sold. It's a platform technology. Y' all know them. Zillow, Airbnb, Uber, and OpenTable, just to name a few. These technologies do two things. First, they help match buyers and sellers by centralizing the marketplace. Second, once the Match between buyer and seller is made. These technologies help them navigate the sale to a successful close. Here are a few of the features inside a Practice Orbit users can determine a reasonable sale price for practice in just minutes. All they need is the most recent business tax return. Practice owners can use the directory to find important service providers like practice brokers, attorneys, accountants and bankers. Practice owners and their brokers can invite those service providers into the platform. So all parties are coordinating the sale together. Practice owners will have a beautiful digital listing of their practice, like a home on Redfin. And importantly, the listing will be anonymous. And personal information like your address, name and page pictures are only released after an NDA is signed and approved by you or your broker. Practice buyers can create saved searches to be auto notified when new listings come on the platform that fit their desired specialty and location. And hey, dental practice brokers, you can list all your practices on the site for free. By doing so, you'll get access to Practice Orbit's large pool of buyers, all of whom have created profiles and saved search searches to be auto notified when new listings come for sale. You can use the platform to introduce your listings to a targeted set of buyers. Additionally, and optionally, you can use the platform tools such as a built in NDA, a customizable LOI, and a workflow tool to navigate the sale from LOI to closing. In fact, you can manage all your listings on the system, from listing the practice to NDA to loi, and finally to closing the deal. Create your free account today at www.practiceorbit.com.

Trimming expenses, sprucing up the office. Right, but I have a feeling there's more to the story. Right?

You're absolutely right. We've talked about the tangible, the financial side of things, which is obviously crucial. But what about the intangible factors?

Okay, I'm intrigued.

Yeah.

What are these intangibles we need to be thinking about?

Well, stay tuned because in the next part of our deep dive, we're gonna explore those hidden gems that can make all the difference.

All right, sounds good.

Yeah.

We'll be right back. Welcome back. Before we went to I guess not a break, we just kept talking. But before we moved on, we were talking about those tangible things you can do to increase the value of your practice. Boosting collections, trimming expenses, making sure the office looks good. But now we're getting into, I think, the more interesting stuff.

Yeah, those are the elements that don't show up on a spreadsheet.

Right.

But they can be absolutely crucial to a buyer.

Okay, so what kind of intangibles are we talking about?

Well, think about your patient relationships. A loyal patient base is like gold.

Yeah.

It takes years to build that trust and rapport. And it's not something a buyer can just create overnight.

Right. You're handing over a community, not just a list of names.

Exactly. And. And it has a huge impact on the financial success of the practice.

For sure.

Imagine taking over a practice where patients aren't just satisfied, they love coming there. That's a strong foundation for future growth.

So how does a dentist who's thinking of selling demonstrate the strength of those relationships?

Well, it's about showcasing that quality of care.

Okay.

And the positive experiences you've provided over the years. You know, testimonials, online reviews, patient retention rates, These all tell a story about the type of practice you've built.

And speaking of online presence, that seems like another intangible factor.

Absolutely.

That could have a big impact.

Huge. In today's world, your online reputation is everything.

Oh, yeah.

Think about it. If you were a buyer, wouldn't you check out the practices online review?

Oh, for sure. Before even considering making an offer.

Exactly. So managing your online presence is crucial.

Yeah.

You know, responding to reviews, engaging on social media, having a good website.

It's not just about what's happening inside the office anymore.

Right. It's about how you present yourself to the world.

And it's not just about attracting patients.

It'S about attracting buyers.

Yeah. You want them to see that your practice is thriving.

Exactly.

In the digital space. Okay, so we got patient relationships, we got online reputation.

Don't forget about your systems.

Oh, okay. Systems. What do you mean?

You know, the internal processes that make your practice run smoothly.

Okay.

Think about scheduling, billing, patient communication.

Right.

Those might seem like mundane details.

Yeah.

But they make a huge difference in the day to day.

Right.

So if you're a buyer walking into a practice where everything is streamlined and organized.

Yeah, that's a good sign.

It shows that you're not just buying a collection of assets, you're buying a system that works.

And that can be super valuable.

Incredibly valuable.

I'm starting to realize that increasing the value of your practice isn't just about checking boxes.

It's about creating a culture of excellence that permeates every aspect of the business.

That's a great way to put it.

Yeah.

So for those of you listening who are thinking about selling down the road, maybe take a moment to reflect on those elements that make your practice special.

What sets you apart, what are you most proud of?

Because those intangible factors can be just as valuable, if not more so than a shiny new piece of equipment.

Absolutely. And even if you're not planning on selling anytime soon.

Right.

Focusing on these aspects can only benefit your practice in the long run.

Yeah. You're building a business that thrives.

Exactly. Regardless of who's at the helm.

Well said. We've covered a lot of ground today, from the financial stuff to these more nuanced aspects of practice value. And if you're feeling overwhelmed or just want some guidance, the Practice Orbit platform seems like a great resource.

Absolutely. They offer a wealth of information and they even have a podcast.

Oh, wow.

That's dedicated to this stuff.

Okay, cool. So now, before we wrap up, I have one final thought I want to leave you with.

Okay.

We talked about the importance of patient relationships, but what about your relationship with your team?

The human capital. Often overlooked but incredibly important.

Exactly. A happy and engaged team is essential for a thriving practice. And when you create a positive work environment, it shows.

It really is.

Patients can sense it, buyers can sense it.

It permeates everything.

So as you're working on increasing the value of your practice, don't forget to invest in your team.

Absolutely.

Because their dedication and expertise are truly invaluable assets.

Couldn't agree more. It's been a pleasure diving deep into this topic with you.

Likewise. And to our listeners, thank you for joining us on this journey of discovery. We hope you've gained some valuable insights and maybe even a renewed appreciation for the amazing teams that keep our smiles bright.

Absolutely.

Until next time, keep those smiles shining. It's funny because we were talking about the team. There was remembering something from the Practice Orbit article about leveraging your staff to actually increase collections.

Oh, yeah, you touched on that.

It's that whole strategic staffing thing.

Right. It's not just about having warm bodies. You gotta have the right people in the right roles.

Right. And give them the power to really contribute. Like they gave the example of maybe bringing on another hygienist or one who can do expanded functions. So that frees up the dentist to focus on the higher paying procedures.

Yeah, it's all about maximizing everybody's skills and talents. Right. If your hygienist can handle the routine cleanings and maybe even some basic restorative work, then the dentist can focus on more complex cases.

It's like putting together a championship team.

Exactly.

You know, everyone's got their strengths and when you put them together, the whole team performs better.

And when you have a team that's well trained, motivated and working together seamlessly. It doesn't just boost productivity, it creates a positive atmosphere.

And that positive atmosphere, that's another one of those intangible things that we were talking about.

Yeah. Patients can tell when a team is happy and cohesive, and that can lead to increased patient loyalty, more referrals. It all just contributes to the overall success and ultimately, the value of the practice.

So whether you're thinking about selling your practice soon or just want to create a thriving business.

Yeah.

Never underestimate the power of your team.

Invest in their training, create a supportive and positive environment, and, you know, give them the opportunity to really use their skills.

Because at the end of the day, a happy and engaged team is the heart of any good practice.

Couldn't agree more.

And that's a value that goes way beyond the numbers.

It really does. It's been great exploring all of this with you.

Same here.

Yeah.

To all of you listening, thanks for joining us for this deep dive. We hope you found it helpful and inspiring.

Yeah.

Remember, building a valuable practice is a journey.

It is.

And you don't have to do it alone.

You don't.

Until next time, keep those smiles shining.