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Should You Lease or Own Your Dental Practice Building?

If you’ve decided to own a dental practice, there are lots of things to be mindful of to be successful beyond the day to day operations. Your time, money and other resources need to be spent on marketing, effective management techniques, and bookkeeping. In addition to all of these, you also need to factor the whereabouts of the physical location of your business. And with that comes the need to think about what your plans are for your practice for both the long and short term.

Do you want to have more flexibility for the physical location of your practice? Do you have access to funds for a down payment and mortgage for your practice space, if desired? These types of questions can help you hone in on the more practical option for your business needs and goals.

And these questions lead to a very important one.

Should you own or lease the office space for your dental practice?

 

PROS OF LEASING

Leasing is essentially the same thing as renting your office space. If location is of utmost importance to you, leasing allows you to have more flexibility than owning real estate. There’s a higher likelihood of being able to find short term leases, for example, if that’s something you feel you need. In many cases, leasing gives you more options in terms of property locations. Finally, you won’t need to have a large amount of capital to invest in real estate property if you decide to lease.

 

CONS OF LEASING

If you’ve had experience with renting at all, you know that one of the biggest drawbacks is that rental rates consistently increase over time. If you’d like your dental practice to remain in the same location for the long haul, signing onto a long-term lease might not be in your best interest. You also don’t get the benefits of property ownership, namely equity value and tax advantages, if you lease your office space.

 

PROS OF OWNING

Real estate ownership offers many advantages and benefits in general, and the same is true if you want to purchase property for your dental practice.  Some of the most compelling benefits are flexibility in controlling location and any future expansion projects, the ability to build equity as you pay down the financial terms, and to eventually earn a return on your investment.

 

CONS OF OWNING

In contrast, owning your dental practice location requires a significant amount of upfront capital. As a property owner, you would also be responsible for any upkeep and maintenance, including fronting the cost for any property-related damages. These responsibilities can take away from other tasks necessary to growing and sustaining your practice,like marketing, staff management, and accounting.

The decision to lease or own your dental practice property is based on a combination of your personal and business needs. It’s good to think through all of your options with either choice.

 

WONDERING WHERE TO BEGIN?

Are you just starting out with your practice? Sign up for Dr. Coughlin’s program that details the principles of success to learn what it takes to have a successful, thriving dental practice!

Do Your Potential Patients Know Your Dental Practice Exists?

Effective marketing can mean the difference between a successful, thriving business and one that’s just barely making ends meet. A clear, consistent marketing plan attracts the right customers, at the right time, in the right location. If they have a good experience, these patients then share your practice with others, come back for dental services, and the cycle continues. If this happens regularly, you’re likely to have a thriving dental practice. But what happens if you don’t reach these target customers?

They don’t discover your business, so they go elsewhere. And you (and your practice) suffer for it.

Luckily, there are some surefire ways to market your business, and are well worth it because of the return on investment (ROI). Interested to know if you’re taking advantage of these effective marketing channels for your business? Read on.

 

LIST YOUR PRACTICE ON GOOGLE MY BUSINESS

If you haven’t listed your business on Google, you’re missing out on a huge opportunity. Customers who search for dental practices typically are from your local community. And because they’re already searching for dentists on Google, you’ll be able to see what brings your patients to your door. That information alone is beyond valuable.

 

GET IN TOUCH WITH YOUR LOCAL CHAMBER OF COMMERCE

Have you joined your Local Chamber of Commerce yet? Since most dental practices are based locally, this marketing strategy is a great choice for you. Once a member, most local chamber chapters give you the option to list your business in their main directory. You can also participate in networking and other organized events throughout the year for additional community exposure.

 

BE ACTIVE ON SOCIAL MEDIA

Social media remains an effective and popular marketing channel for many businesses. In today’s fast-paced digital world, social media provides a way for you to keep up with your customer’s demands, expectations, and desires easily. Customer service usage options abound. You can even create targeted ads to reach your patients that perhaps may not have found you otherwise.

 

CREATE EMAIL MARKETING CAMPAIGNS

While social media is great, don’t forget about tried-and-true marketing strategies like email marketing and direct mail. Did you know that a recent study showed that 99% of Americans check their email at least once a day? That’s a lot of potential eyes on your content. If you haven’t built an email list for your dental practice, start today. Email marketing can be particularly helpful for retaining current patients, which can end up being more lucrative to you and your business than acquiring new patients alone. Try sending a monthly email newsletter or put together an email drip campaign that provides recipients with valuable information.

 

INVEST IN DIRECT MAIL ADVERTISING COLLATERAL

Finally, direct mail marketing collateral can be an effective way to market your business, particularly if you target patients in and around your physical practice. Send out a basic flyer with an introductory offer or collaborate with other local businesses to cross-promote your services.

 

WANT MORE GUIDANCE?

It can be time-consuming and frustrating to try and figure out the most effective way to market your particular dental practice. If you want personalized guidance by a fellow dentist and dental practice owner that’s been there, contact Dr. Coughlin today. We will help you find the right marketing approach that’s based on your specific ideal target audience that effectively meets your business goals.

 

 

Go From Preparing to Practicing Dentistry

Completing dental school is an amazing accomplishment. For so long, your days have been full of learning what you love and chasing the goals you’ve longed to achieve. You’ve worked hard to get where you are, and your career is closer than ever. But, before you wear that white coat, you might be wondering what it’s like outside the classroom and inside an actual office. Oftentimes, newly graduated dentistsfind that they feel alone as they stumble through the unfamiliar realms of sales, customer service, and hiring staff.

At Ascent Dental Solutions, we know exactly what it takes to run a practice, maintain a practice and grow a practice – and we’re here to help you do the same. So, what should you know before you get there? How can you ensure your success as you transition from student to dentist?

By this point, we know you have the skills to serve patients and perform the routine duties that come with being a dentist. But, we also know that dental schoolrarely prepares you for the day-to-day issues that are just as important. Sure, you’ll spend a lot of time fixing teeth and filling cavities, but you should be spending just as much creating, maintaining, and improving your dental practice. This is essential in providing the upmost of patient care and offering quality services that will help your practice grow.

As with most jobs, your success starts with how hard you want to work. To make the most of your dental career and run a practice you’ll be proud of, Dr. Kevin Coughlin can help. As a 35+ year veteran of dentistry, he runs a successful multi-location dental practice in Massachusetts. He’s also one of a small amount of dentists in the country with both a Fellowship and Mastership in the Academy of General Dentistry and has worked with both DSO’s and MSO’s during his career. But beyond serving patients, he also loves helping new dentists discover the joy in establishing their careers – and he’s coached countless of them to prepare them for this leap. Whether you’re planning to start your own practice or join an existing one, Dr. Coughlin can make sure you’re prepared and help you establish a success plan for your career path.

Having a leader to learn from can be the key for your career. You’ll increase your confidence, gain first-hand knowledge from one of the best in this business, and relieve stresses that might be holding you back.

Find out more about Dr. Coughlin’s proven blueprint for success, and how you can use it as you trade in the classroom for your long-awaited career.

Podcast: Gary Wilson talks The Business of Corporations

Mr. Gary Wilson chats with Dr. Coughlin about the business of corporations – when and where to invest in your practice, passive income, and how to achieve a little bit more financial freedom besides the clinical aspect of dentistry.

Dentists need to adopt a business mindset

I’m a working dentist.

However, all my success has come because I run my practice as a business.

If there is one major complaint I have about dental schools, it’s that they focus on the skills you need to perform exactly one half of your job – clinical skills.

But being a successful dentist who runs one or more practices takes a lot more than knowing your way around the gumline. It takes business sense.

When I was starting out I had to learn these lessons. I wasted a lot of time and a lot more money making mistakes and learning from them. In the end I figured it out and was able to grow my business to include 14 practices.

I did this by developing processes and procedures that I was able to replicate over and over again.  

Today’s young dentists have it even harder. Many of them graduate with so much debt that setting up a practice of their own right out of school is prohibitively expensive. So they join an existing practice as an associate.

Even then there is very little preparation provided in schools to help them land that first job or succeed and prepare for a financially secure future.

That’s not to say established dentists don’t have their own issues when it comes to the business of running a practice.

With Managed Service Organisations (MSOs) and Dental Service Organizations (DSOs) growing and expanding into just about every marketplace, established practices are increasingly feeling the competitive pinch.

It hard to compete when your competitor has the power to muscle suppliers and vendors because of the scale of their purchasing power.

So can an independent dentist succeed in this environment? Of course they can. But it means managing the practice as a business first. Dentists need to constantly reevaluate processes and procedures and offer superior service that makes every patient a brand ambassador who happily refers them to friends and family.

So how do you develop the skills necessary to manage your career in this business? If you are struggling at the beginning of your career or you are worried about MSOs and DSOs eating your lunch then you might want to start by looking at coaching programs for new dentists or advanced business coaching for dentists.

I’m happy to chat and help you decide what your next steps should be so that you can enjoy the success you deserve without wasting a lot of time trying to figure it out yourself. Drkevin@ascent-dental-solutions.com