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Dental Practice Audit

dental practice audit 20142013-2014 Audit Guide For A Successful Dental Practice
 
Start 2014 Off Right!
 
The end of the year is a great time to evaluate progress towards goals, the greatest successes, and the most significant failures of a dental practice. Owners of dental practices are emotionally invested in their closely held businesses so these are very sensitive and difficult conversations for owners to discuss. In order for a dental practice to grow in value, become more profitable, and provide emotional satisfaction for the owner, a year-end audit is a necessary process.  The audit should include an analysis of progress towards current goals, analysis of all successful initiatives, and analysis and termination of all failed campaigns.
 
Each year new goals should be established for a dental business. These goals could consist of production goals, new patient goals, or collections goals. The goal should be written down and progress towards them reviewed regularly.

Increasing Your Dental Practice Valuation for 2014 part B

Five More Investments To Increase The Value Of Your Dental Practice In 2014 (Part B)
 
As dentists progress through their careers, there will be certain key years when important decisions must be made. After making the decisions, execution of the important plans could lead to a significant increase in income (revenues) and value of the dental practice. Some of the decisions that need to be made in the current business environment involve technology which was discussed in the previous article. Other decisions will be much more relevant to the nuts and bolts of a regular dental business.

Increasing Your Dental Practice Valuation for 2014

Dental Practice ValuationThe Five Best Technology Investments In 2014 To Increase The Value Of A Dental Practice

Over the last century, the practice of dentistry has not changed that much. What has changed are the materials, medications, and technology. The business model for managing a dental practice has, for the most part, remained unchanged. In the past, the most important marketing tools for dentist were a good listing in the phone book and word-of-mouth marketing from patients, family, and friends. A major paradigm shift occurred in the 1990s. Now many individuals do not have phone books at home as they rely on the Internet. And, social media has amplified the effect of word-of-mouth marketing (for positive and negative reviews). The owners of a dental practice could rapidly and significantly increase the value of their business by improving the functionality of their website, improving the quality of the content of their website, developing a social media campaign, making the interaction with their patients more efficient, and using technology to educate their patients.

Sell Your Dental Practice or Merge: Comparing Dental Practice Exit Strategy Options

Sell Dental PracticeTransitioning a dental practice to a new owner as a boutique practice will have much more value for the seller then simply merging it into a large conglomerate practice.
 
A great deal of change is happening in the dental industry at this time. The amount of uncertainty related to The Affordable Care Act  within the marketplace is very high. Many seasoned dentists are considering retirement, or selling their practices, as they do not want to have to deal with the change that is coming. The number of solo dental practitioners is declining across the United States. The number of single doctor practices for sale is also declining. Single dental offices represents a unique boutique practice opportunity which can be transitioned to a new owner at a high price due to the limited number of practices, the growth of the conglomerate of dental businesses, and their unique position in the marketplace.
 
All one has to do is look around any community, and it is obvious that the number of single dental provider offices is decreasing.

Dental Practice Ownership in Uneasy Times

buy-dental-practiceHow are Stock Market Indices, The National Debt, and Availability of Capital Affecting the Sustainable Future of the Sole Dental Practice Owner?
 
The recent dive in the stock market indicators and indexes has been related to the current political and economic turmoil. The Republicans and Democrats had not been able to agree on a plan to raise the debt ceiling and slow or eliminate the increase in our national debt. An agreement has been reached between Republicans and Democrats that will allow our government to stay open. The agreement is only temporary and has to be renegotiated within a few weeks. The government has done what it always does and kicked the can down the road to deal with this issue. In 2014, our government is going to have to deal with the issue of the current national debt, raising the debt level, and rapidly increasing debt due to entitlements.
 
The United States of America has seen a recent escalation in our national debt level.

Selling Your Dental Practice Sooner. . .What Will the Future Hold?

How will the shortage of dentists impact the dental industry in the future?
 
The baby boomers are starting to retire and there are not enough young dentist to replace them. Not all practices which are advertised for sale will be able to find an appropriate buyer in the future. A selling dentist may want to take advantage of the current inflated prices, ease of access to capital for a new dentist to purchase a practice, and low interest rates to sell their practice at this time. It is unlikely in the future that access to capital will remain as easy as it is now and interest rates will remain as low as they are now. Currently, there are more buyers than sellers so this is a good time for a dentist that is approaching retirement age to consider selling his or her practice. If a dentist was to wait too long and not take advantage of current market conditions, the practice they own may not be as readily sellable in the future.
 
Currently, there are more dentists interested in purchasing practices then there are practices for sale.

Affordable Care Act and the Dental Industry

The Affordable Care Act has created a tremendous amount of fear and uncertainty in the dental industry. Many dentist do not have any understanding about how this law will impact their business or themselves personally. Many seasoned dentist are interested in retiring before The Affordable Care Act is fully  implemented so they will not have to deal with the coming change. Dentist who are currently considering purchasing a practice may want to take advantage of this fear to purchase a practice at a great price with great terms. While The Affordable Care Act will certainly impact the dental industry, there will be a demand in the future for dental services. The dental business is likely to remain profitable.  And, dentists who educate themselves and learn about the impact The Affordable Care Act will have on the dental industry will be in a unique position to operate their businesses without fear or a sense of uncertainty.

The Recent Government Shutdown; An Opportunity For Dentist and Investors

government shutdown and dentistry graphicThe recent government shutdown stimulated a sense of fear among some business owners, investors, and individuals. The level of fear was palpable among many business people. Most individuals did not possess a full understanding of what was going on but they could sense a lack of stability and uncertainty in the business community.   This emotional market fluctuation has created a unique opportunity for buyers of dental business. The recent government shutdown brought back a level of fear, created a feeling of uncertainty, and hindered the recovery that had started.
 
Many Americans have elected to ignore the recent issues of the debt ceiling debate by  government politicians. The network news shows have been running stories about the lack of agreement on a budget and the debt ceiling. Many individuals do not understand the ramifications of the fact that the government could not agree to raise the debt ceiling for more than a few weeks. The lack of understanding has created fear and uncertainty in the market. Both individuals and businesses are currently stagnated.

Dental Practice Valuations

Dental Practice ValuationCreative Ideas to Grow a Dental Practice for Greater Valuation
 
If a new practice is about to be purchased or an existing practice has hit a wall and just cannot seem to find creative methods to bring new patients into the practice, non-traditional methods may need to be explored.  Dentist are now competing with other dental business for new patients.  The large conglomerate dental business have marketing departments staffed with college educated marketing professionals.  Small practices cannot afford these large marketing campaigns.  Small practices can build their brands and business by target marketing groups with a focused attention.  Dentist can become experts in management of dental treatment for athletic patients, cardiac patients, pregnant patients, and oncology patients.  Management of these patients is done in small communities where there is extensive trust among providers.

Sell a Dental Practice

Sell Dental PracticeThe Best Method to Sell a Successful Dental Practice 
 
The decision to sell, or transition, a dental practice will be complicated, but can be one of the happiest times of the life of a successful dentist.  Successful dentists can make the decision to sell without stress as they have taken care of the financial aspects of their lives.  The transition is going to be more about taking care of the patients, staff, and community by providing continuity of the business and continuing care of the patients.  Successful retiring dentists can transition their practices comfortably by preparing the office, creating or updating the internet presence, making sure the practice is current with all regulatory agencies, and educating themselves about the process.
 
The dental office needs to be prepared for sale.  The dentist needs to do more than a good old fashion spring cleaning.  Old instruments, dental treatment systems, and equipment need to be removed from the office.  Many of these items of clutter will sell great on EBay!  Potential buyers need to see a  neat and clean office without clutter.

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