What Stands Out in the 30,000 Foot View of Your Practice?
What can you do now to make your dental practice more profitable now, and more valuable in the future? In our next series of blog posts, we will explore the CoreValue framework of value drivers — a set of 18 factors that impact the value of an enterprise. All of these value drivers make your dental practice more profitable now and increase its value when you sell. This week we’ll examine Company Overview.
Company Overview is best understood as the 30,000 foot view of your business. Does your dental practice stand out in contrast to the other dental practices in your region? Is there something your practice does better than the competition? Or is there something your practice does differently than the competition? Positive differences mean your loyal patients refer all their friends and family, and can make your practice more valuable when you sell.
What do you want your practice to be like?
Your practice is a reflection of your vision for your life. Dentistry as a profession is about helping people. Dentistry is also a means to reach certain monetary and lifestyle goals. Achieving those goals will not happen if you don’t know what they are. And without a vision for your life, your practice will blend into the plain vanilla of most dental practices. As Benjamin Franklin said, “If you fail to plan, you are planning to fail.”
First, what kind of practice do you want? What do you most enjoy doing? Are you most satisfied with highly demanding technical skills, or do you most want to serve communities that don’t have access to good health care? Choosing one over another has nothing to do with your income or lifestyle goals. There are many dentists who make a very good living serving underserved communities, as there are many specialty dentists who struggle monthly to pay their bills.
Your practice can differentiate from the competition not only in what you do but in how you do everything. Setting up systems to run every aspect of your practice like a well-oiled clock will maximize your profits. It can also make your practice more appealing to a buyer who can simply step into your shoes at the transition of owners.
How much income or wealth is enough?
I am continually surprised by the number of dentists who have no answer to this. Without this basic goal in mind, it’s easy to be derailed by the latest shiny object that crosses your vision. And I am also continually saddened by dentists who are seduced by the desire to drive the newest car, live in the biggest house, and buy the expensive jewelry or toys at the expense of their long-term financial stability.
What is your vision?
What does the 30,000 foot view of your practice look like? When was the last time you stepped back from your practice to think about your vision? Does it match the vision you have for the ideal practice for you? Call our office and we’ll help you develop that vision and move your practice towards it!