Dental Entrepreneur Spring 2016

Dental Entrepreneur

CLASS OF 2016 | SPRING ISSUE

DENTALENTREPRENEUR.COM

Business Beyond the Classroom

Top Tax Strategies for Young Dentists

Chris Sortman, DDS My Story

Do You have What it Takes to Be a Successful Practice Owner?

Like us on Facebook!

Follow us on Twitter!

IT’S IT’STIME TIME TO TOPUT PUT PATIENT PATIENT SAFETY SAFETY FIRST. FIRST. Deep-discount Deep-discount dental products dental products that appear that appear “too good “tootogood be true” to be aretrue” often are just often that.just While that. While low prices loware prices appealing, are appealing, the risksthe may risks outweigh may outweigh the rewards. the rewards.

Protect Protect your dental yourpatients dental patients from potentially from potentially unsafe gray unsafe market gray and market illegal andblack illegalmarket black products. market products.

Learn more Learn about more about . . gray market gray dental marketsupplies dental supplies and Patterson’s and Patterson’s commitment commitment at DentalSupplyIntegrity.com at DentalSupplyIntegrity.com

*“Dental Equipment *“Dental Equipment and Supplies andManufacturing Supplies Manufacturing in the U.S. and in the ItsU.S. International and Its International Trade” Supplier Trade” Relations SupplierUS, Relations LLC, Irvine, US, LLC, CA, February, Irvine, CA,2014.

February, 2014. **“Shades of **“Gray” Shades Mentor, of Gray” Santa Mentor, Ana, Santa CA, December, Ana, CA, December, 2013.

2013. ***“Are you ***“ using Are‘gray-market’ you using ‘gray-market’ or counterfeit or counterfeit dental products?” dental products?”

Journal of American Journal ofDental American Association, Dental Association, June, 2010.June, 2010.

P151409 (3/15) P151409 (3/15)

PATIENT SAFETY IS AT STAKE Potentially unsafe “Gray Market” or illegal “Black Market” refers to products and materials often found at deep discounts through unauthorized channels. These include products that are: Recalled

Counterfeit

Expired

DENTAL SUPPLY

$6 BILLION The U.S. dental supply market is a $6 billion industry*

Toxic

Mislabeled

Banned

15% Some estimate nearly 15% of the U.S. dental market is gray or black**

5-8% OF

PRODUCTS

One manufacturer estimated 5-8% of products carrying their label were in fact counterfeit***

Visit DentalSupplyIntegrity.com

Spring 2016

Welcome

One of the things I love about our profession is the relationship we develop with our patients. I have known Kenneth since he was in middle school.

Considering how he comes in every six months, I have witnessed his growth and maturity. He earned a degree in electrical engineering and after three years of working for an engineering company, he decided to start his own business with a couple of buddies. He became an entrepreneur!

VOLUME 18, ISSUE 3

Editor & Publisher Anne M. Duffy RDH Assistant Editor Michael Duffy Production Ruthie Gordon Publishers Press Inc. Editorial Board Dr. Dirk Fleischman Dr. Gene Heller Dr. Harold Sturner Dr. Ryan Dulde Dr. Earl Douglas Rachel Teel Wall, RDH, BS Dr. Tom Snyder Derek Champange Dr. David Rice Dr. Hugh Doherty Layout and Design John O’Connor

Class of 2016 Contributors Chuck Blakeman Jeremy Brown, JD Josh Contrucci, VP Gene Heller, DDS Mark Hollis, CEO Tom Lenfestey, JD, CPA

Roger Levin, DDS, MBA David Rice, DDS Gavin Shea, VP Chris Sortman, DDS Megan Weber, JD

Charter Sponsors Oral‑B Laboratories Ultradent Products Inc. Procter & Gamble Wm. Wrigley Jr. Corp.

Glidewell Laboratories Benco Dental Co. Tess Corp.

Dental Care Alliance

The Pride Institute The Snyder Group McKenzie Management Caesy Education Systems, Inc. Warner‑Lambert Co. Phillips Health Care Oxyfresh Worldwide

Editorial Office

12233 Pine Valley Club Drive Charlotte, NC 28277 704/953-0261 Fax 704/847-3315 anneduffyde@gmail.com Send materials to: Dental Entrepreneur Magazine 8334 Pineville Matthews Road Ste. 103-201 Charlotte, NC 28226 When you have finished enjoying this magazine pass it along to a friend and PLEASE RECYCLE Copyright 2016 Dental Entrepreneur, Charlotte, NC Material herein may not be reproduced, copied or reprinted without prior written consent of the publisher.

Acceptance of advertising does not imply endorsement by the publisher.

2 Spring 2016 Dental Entrepreneur

CLASS OF 2016 SPRING ISSUE VOLUME III

Last December, he finished his MBA at a very prestigious program (let’s just say they lost to Oregon in the NCAA tourney). I asked him, “Did your MBA help you navigate the world of entrepreneurism?” He said, “Honestly, no.

It was valuable mostly for networking.” How about that?

As you look to your future, know it is up to you to do what it takes. You network with leaders through organized dentistry and continuing education programs, you network with your alumni and peers through IgniteDDS, and you learn how to run your business by reading Dental Entrepreneur, The Progressive Dentist, Dentaltown and others.

Here at DE, we invite you to reach out to the experts that he have featured throughout the issue. They know the business of dentistry and want to help you. This is going to take more hard work, so why would you stop now? You are just getting started on YOUR journey and writing YOUR story.

That’s why I am excited to introduce to you to Dr. Chris Sortman, who graces our cover. Chris went from a career as a military dentist in the Navy to an owner of a successful private practice that went from grossing $750,000 to $3.5 million. Through it all, though, he remembered the lessons his parents taught him when they owned a series of businesses.

In his article, Chris talks about how those keys helped shape him and even adds some further food for thought for aspiring professionals.

In addition, we have Josh Contrucci, who writes on behalf of Bank of America about how to deal with debt, and frequent contributor Gene Heller, who focuses on associateships.

All in all, we’ve packed this issue with the best minds in the fields that you’ll need to address as you embark on your personal journey. Just like my friend Kenneth, I know you have the wherewithal to have successful careers. We just hope to provide a guide to facilitate that!

All the best,

Anne M. Duffy Publisher

DentalEntrepreneur.com

Contents Prologue 4 My Story

Chris Sortman, DDS

Getting Started 6 Taking the Fear Out of Debt Josh Contrucci,VP

8 Associate Compensation Needs vs. What Today’s Employers are Willing to Pay Gene Heller, DDS

12 Is Your Future So Bright You Have to Wear Shades? How to Write a Business Plan Gavin Shea, VP

14 Do You have What it Takes to Be a Successful Practice Owner?

Jeremy Brown, JD

20 Should I Work for Someone Else?

Roger Levin, DDS, MBA

Business Fundamentals

The Power To Succeed 32 Don’t Be a Mosquito In A Nudist Colony.

Why Lifetime Goals are So Important Chuck Blakeman

34 The Dental House of Cards David Rice, DDS

22 Common Types of Contracts Young Dentists See After Dental School Megan Weber, JD

26 Top Tax Strategies for Young Dentists Tom Lenfestey, JD, CPA

28 Your Patient Expects It, HIPPA Requires It. Does Your Software Protect Your Patient’s Information with Encryption?

Mark Hollis, CEO

DentalEntrepreneur.com

Dental Entrepreneur Spring 2016 3

Prologue

My Story Chris Sortman, DDS

I

am frequently asked how I was able to buy a practice grossing $750,000 and turn it into a thriving practice grossing $3.5 million in just eight years.

Are the answers simple? No. Is it a secret? Not really. Here is my personal story, written for your benefit!

My parents were serial entrepreneurs. We had a succession of Dairy Queens, sandwich shops, craft show products and photography businesses. Although my parents’ dreams never amounted to much, their goals became mine.

Observing them in business, their definition of entrepreneurship was clear. If there was a rulebook that they followed, it was something like this: 1.

2.

3.

4.

5.

The customer is always right If you have time to lean you have time to clean If you own the business, you’re always on the job Numbers rule the decision making Re-investment is not an option, it’s a requirement

These unwritten rules became part of the reason I am where I am today. I watched in fascination as other dentist’s practices declined while mine grew. What about their internal rulebook was different than mine?

After being a Navy dentist, I knew that owning a business was not simply an option for me. It was a requirement. While the U.S. Military is a fine institution and gave me much needed experience, it does not embody good business values in any sense of the word.

The first handful of years as a private practice owner were very difficult. I purchased a “successful” practice and had my seller stay on as an associate … in 2007 at the cusp of the financial crisis! As we stared the struggling economy in the face, my internal rulebook became more of a dominating force in the office. Customer service became a must. Presenting a wide range of services meant survival. Advertising became a lifeline. Insurance participation stopped being a dirty word. During this time, I made too many mistakes to count. I learned, however, and grew from each mistake. Below, I’ve enumerated a short list of my advice.

First, you have to leverage your skills. Expand your skill set!

4 Spring 2016 Dental Entrepreneur

Extensive investment in education enabled me to be proficient in orthodontics, oral surgery – including IV sedation and implant placement – surgical and non-surgical endodontics, and headache management, to name a few. I leveraged the first asset I had, which was my dental degree. This alone increased my income significantly. Unless you are willing to do this in one form or another, you need to re-examine goals. I see many who would expand their careers but cringe at spending $5,000-$20,000 for a good course. Evaluate the risk versus reward ratio, and then take the plunge!

This points to a second principle of success: monetary assets need to be leveraged correctly. In order to grow yourself, reinvestment needs to be key. When I started out, it was extremely

DentalEntrepreneur.com

hard to write checks for non-essential items! The truth is that most dentists suck the lifeblood out of practices by paying themselves every spare dollar available.

Make it a habit to pay yourself the bare minimum and keep the rest of the money in the practice. Then take advantage of opportunities when they arise, and you’ll have great latitude to strike out in new directions. If you are an associate, this might manifest itself by not spending everything you earn, or by forming an s-corp. Become an independent contractor and keep dividends to a minimum.

Maybe then you’d have extra money set aside to buy in to your practice when that time comes!

Third, it’s imperative to see that the horizon is always moving. Goals in life are ADS.south209

2/25/09

1:42 PM

like the horizon. As soon as I think there is an endgame, it shifts just out of reach.

Unless happiness comes in the journey, there is no good endgame. Each day as a practice owner brings its ups and downs.

Ultimately, the best thing I have learned over the last 10 years was to enjoy working as much as possible! If owning a practice is more stress than you can handle, your happiness should win out. Either get a partner to share the load, or work for someone else and use the skills of entrepreneurship in a different way!

Put yourself out there. Follow your passions, and don’t ever think you have to fit in any one else’s mold!

Dr. Christopher Sortman graduated from University of Michigan Dental School in

2004. Prior to studying at Dental School, he attended Hope College, where he earned a B.S. in Biology. Following dental school, Dr Sortman became Lieutenant Sortman and served as a Navy dentist with the Marines in Okinawa. While there, he completed an Advanced Education in General Dentistry (AEGD). The AEGD gave him sshoulderto-shoulder experience with specialists in every field of dentistry. This experience was a springboard to becoming a leader in providing ‘comprehensive’ dentistry.

On a personal note, Dr Sortman is married to his college sweetheart, Holly. They have four children; Spencer, Saige, Piper and Orly. He enjoys spending time with family, pursuing interests in varying topics and most of all helping others to become the best they can be!

Page 1

Practice Makes Perfect “Dr. Earl Douglas and the staff at ADS South have been real helpful in steering me in the right direction in the purchase of my first practice. Dr. Douglas’s experience, organization and detail-orientation, pointed out to me where improvement is needed and how to go about achieving it.”

Elizabeth H. Guerrero, DDS Get off to the perfect start. Call your ADS transition specialist for AL, GA, LA, MS, NC, SC, TN and VA today.

ADS South (770) 664-1982 ADSsouth.com DentalEntrepreneur.com

Dental Entrepreneur Spring 2016 5

Getting Started

Taking the fear out of debt:

Financing a dental practice after student loans Josh Contrucci

T

he landscape for new dentists can be quite scary. For example, the average dental student graduates with more than $240,000 in student loan debt. This amount represents an increase of more than 66 percent over the last decade. This debt load can jeopardize the aspiring business owner’s motivation to purchase their first dental practice. After all, is it smart to take on an additional $450,000 in practice loan debt?

Let’s take a different approach to looking at debt. When a person buys a business – in this case, a dental practice – the business pays the debt, not the individual. Even though almost all dental practice loans require a personal guarantee, the borrower of the money is the actual business.

Making loan payments on a new car, taking on credit card debt to pay for an expensive vacation, or even purchasing a new home 6 Spring 2016 Dental Entrepreneur

can be troubling when a person is saddled with high student loan debt. Why? None of these outcomes actually make the borrower money. Borrowing money to purchase a dental practice can actually create a better cash flow position even after adding debt.

Also, 100-percent financing to purchase a dental practice is readily available, so there is no need to invest current liquidity – and that protects the dentist’s current personal financial statement.

Here’s an example: Let’s assume a dentist has been working as an associate for three years and has made an average annual salary of $150,000. The associate is now interested in buying a practice for $450,000. Historically, this practice generates revenue of $600,000.

On average, a dental practice nets 44-percent profit to the owner.

So in this scenario the practice net income would be $240,000. A 10-year loan for $450,000 requires roughly $4,700 monthly pay-

DentalEntrepreneur.com

ments, or $56,400 annually. After the dental practice pays the loan, the net income to the owner is $183,600 ($240,000 original net minus the $56,400 debt payments). We can see that the associate in this example will actually increase their annual income by $33,600 even though they took on an additional $450,000 in debt. Let this way of looking at debt – and the example above – serve as motivation to fulfill your dream of owning a practice. The current student loan situation can be overwhelming, so most new dentists will graduate with a goal to pay off all of their debt as quickly as they can, and they’ll be prudent about borrowing more money. They will work as associates in practices for longer periods of time than necessary because they fear acquiring additional debt. But

as an Account Manager in the Syndication Division managing Dental, Medical, and Veterinary transactions. In 2007 he was promoted to an Account Manager working with dental practice transitions in the Southeast. In 2010 he was promoted to Regional Business Development Officer relocating to Philadelphia to cover PA, DE, MD, DC, and VA.

buying a practice could be a way to pay off the debt more quickly. By purchasing a business and allowing it to pay the practice debt first, a dentist can increase income and improve cash flow. Borrowing money is intimidating – and so is taking the leap from associate to practice owner – but the additional debt can actually be worth it in the end.

Josh earned a Bachelors and Masters Degree from Kent State University.

Josh Contrucci joined the Practice Solutions Division in 2004 as Sales Assistant working in the Columbus, Ohio, office. From 2005-2006 he worked

Josh lives in Media, Penn., and enjoys coaching his sons’ Little League teams. He is also involved with the PTA at Rose Tree Elementary School and volunteers for many after-school functions.

WITH OUR SUPPORT, YOUR DENTAL CAREER CAN BE A WALK IN THE PARK. Henry Schein Professional Practice Transitions is with you every step of the way. From the day you graduate and begin your first Associateship, to the day you retire...and every day in between.

www.henryscheinppt.com

1-800-988-5674

n

PRACTICE SALES n VALUATIONS n TRANSITION CONSULTING/ PLANNING n ASSOCIATESHIPS

© 2016 Henry Schein, Inc. No copying without permission. Not responsible for typographical errors. 16PT3680

DentalEntrepreneur.com

15PT3680_PARK_7.3 W x 4.7.indd 1

12/18/15 Dental Entrepreneur Spring 20169:40 7 AM

Getting Started

Associateship Goals vs. KEY Employment Considerations!

Associate Compensation Needs vs. What Today’s Employers are Willing to Pay Gene Heller, DDS

T

he majority of today’s dental graduates, after their primary dentalschool education, general practice residency and/or any specialty school training if applicable, will begin their dental careers as an associate. At Henry Schein’s Practice Sale Division or from Schein’s Associate Placement Division, one of the most frequently asked questions we receive is what associates should be looking for in compensation and benefits for an associateship position?

Before answering, there are two questions that need to be addressed before we discuss a response to what can an associate expect as compensation in today’s marketplace. The first is, “What are the associate’s primary goals for the position they are seeking?” and the second is, “What type of practice are they interviewing for or with?” This discussion will provide answers to what is being offered in the marketplace for the different types of practices and which type of practice delivery model will best suit the personal needs/goals of the applicant.

Goals of Employment From a compensation perspective, there are two primary goals any new dentist must consider. The first is income with no future ownership, and the second is income with a possible future owner-

8 Spring 2016 Dental Entrepreneur

ship opportunity. Compensation includes both salary/compensation considerations and additional desired or needed “fringe benefits.”

Compensation is typically structured as 25-35 percent of expected dollars generated as a result of services performed on behalf of the employer. This percentage is applied against “collectible” production/collections. If the practice provides services to a number of “discounted dental plans,” the employer cannot afford to pay the percentage on services that have a base fee that is different than what the employer will actually receive in payment for those discounted services. As an example, at a compensation of 30 percent, if the fee for the service rendered is $100. But after a 20-percent discount is applied,

DentalEntrepreneur.com

the “collectible” fee is $80, and the associate earns 30 percent multiply by $80, or $24, for that service. This is the basic compensation structure for most employment agreements.

Most new dentists desire a guaranteed fixed salary because they need immediate income. They simply cannot afford to take a position that does not guarantee some minimal fixed monthly salary. While for general dentists, few employers can offer strictly a fixed salary, many specialty practices can and do. For general dentists, most employment agreements structure this income guarantee need through a “guaranteed draw” against the anticipated actual earned compensation. Monthly guaranteed minimum compensation draws range from $5,000$10,000 per month for general dentists and $10,000-$15,000 per month for specialists.

The amount of this draw is dependent on the type of service provider (private practice versus corporately owned practices), whether potential future ownership will be offered and what the practice owner feels they can both afford to pay versus what the marketplace is paying to secure associates.

For private practices and MLSP’s, initial draws are typically lower than DSO/MSO and guarantees end after 6-12 months for all practice categories.

In addition to base compensation, required/desired fringe benefits are another consideration for every new dentist. Most common insurance needs include health and malpractice insurance, but unless the practice has group coverage for all employees, disability and life insurance are typically not available. Another consideration is some type of continuing education cost allowance/reimbursement.

While most employers cover the cost of personal protective equipment, uniform allowances are sometimes covered, but with annual cost limitations. Most practices allow vacation and/or personal time off, but because there is no production during these periods, the time is unpaid. Some DSO/ MSO groups offer, as part of their base

DentalEntrepreneur.com

For general dentists, most employment agreements structure this income guarantee need through a “guaranteed draw” against the anticipated actual earned compensation. compensation, limited profit sharing. While some practices have some type of retirement plan, participation is typically at the cost of the employee through an offset to their earned compensation or lower beginning compensation percent.

Secondary non-compensation goals of the associate are the second “goal related” consideration. Most common goals, after compensation, include developing clinical service skills, increasing speed of service delivery and learning new skills. All practices offer this. The other most common goal we see is a desire to learn the “business” side of practice and practice ownership, including dealing with insurance companies, accounts receivable management, understanding profit and loss statements versus the costs of operation, personnel and human resource management, required operational and personal insurance needs, and embezzlement protection methodologies. While these are common secondary goals for most new dentists, the reality is that few employer dentists are willing to provide this training as part of their employment offer.

Classification of Service Providers Today’s dental service providers are broken down into three types. The first

type is the traditional Solo/Small Group Practice. The Small Group practices typically have 1-3 owners and 1-3 practice locations.

Traditionally, about 80 percent of all practicing dentists have operated dental practices in this manner. Many, but not all, of these types of practices will look for associates who are not just interested in employment, but also want future ownership. Many will consider hiring an associate in anticipation of selling their practice and retiring from ownership and/or totally retiring from clinical practice.

The second type of dental service providers are large, corporately owned practices.

These practices are commonly referred to as Dental Service Organizations (DSO’s) or Dental Management Organizations (DMO’s). Their growth in the marketplace typically follows one of two paths. The most common is through practice acquisition, and the less common method is through start-up (de novo) practices. Many of the companies that started in the marketplace as de novo practice groups, in an effort to speed their growth and market share, have added practice acquisitions to their growth model.

These corporately owned practices offer professional management systems, and have “branded” their organization under one name. They typically have 20-200-plus practices under one ownership group. As a result of their size and success in the marketplace, most have unlimited capital resources to fund their growth. These groups have also become the largest employers of new dentists. Some of these groups have been around for 20-30 years. Most of these large groups offer employment only and no promise of possible future ownership, but some may include stock or similar ownership in the entire organization as a means of practice ownership.

After seeing the success of the DSO/ DMO groups, the marketplace has seen the emergence of the newest group of service providers. Most are owned by entrepreneurial dentists who have entered this field

Dental Entrepreneur Spring 2016 9

as “Mid-Level Service Providers” (MLSPs).

These groups are defined by both their ownership model and the number of practices under common ownership, typically 3-20 practices. Their market is typically more local (usually within one or two states or limited to one large city and immediate surrounding area), as compared with the DSO/DMO practices which typically cover 2-10-plus states. Funding for future growth of the MSLPs is almost always a challenge, and subsequently many of these MLSPs offer future ownership possibilities for their associates. This is not only the newest group but also the fastest growing group.

As a result of the popularity and growth of the DSO/DMO/MLSP organizations, the number of dentists continuing to practice as solo practitioners or small group practices has been in a steady decline. While historically 80 percent of all dentists have practiced that way, it is currently estimated that this number today is closer to 60 percent.

Comparison of Goals vs. Practice

10 Spring 2016 Dental Entrepreneur

Ownership Models The following chart compares the typically seen employment offers with the various employment group types. This will allow the new dentist seeking employment to compare their goals of employment with the various types of possible employers. It is designed to allow a new dentist to compare these employers and determine which type of employers will best match the needs of the new dentist.

Final Considerations To protect their practices, all employers will require non-compete/non-solicitation agreement. For this reason alone, a legal review of any agreement is advised. In addition, as noted by this discussion, the specifics of any employment agreement are complicated and associate candidates should have any employment agreement carefully reviewed by an attorney familiar with dental practice employment agreements before signing and entering into any employment agreement. From a cost perspective, the

typical review cost we have observed is $500$1,000, and at the start of your career, this is one of the best investments a new dentist can make. Important note: before hiring any attorney, make certain what the cost will be.

You are asking the attorney to review the agreement and let you know any concerns they may have. You should not allow the attorney to “negotiate” the agreement. This will not only add considerable cost for their review, but also exponentially increase the chances that the employer may withdraw their offer of employment.

Dr. Eugene W. Heller is the VicePresident of Pro- fessional Practice Transitions, a nationwide dental practice sales and consulting organi- zation. He can be reached at 1-888-477-8552.

DentalEntrepreneur.com

Looking to purchase an existing practice or start one from scratch?

We have the financing you need to make it happen.

You can rely on the industry leadership and experience of Bank of America Practice Solutions. We have provided financing for thousands of healthcare professionals and understand the challenges that accompany them. Let us help you. We encourage you to call the experts at Bank of America Practice Solutions to discuss.

Practice acquisition*:

Practice start-up*:

• Up to 100% financing for your practice — up to $5,000,000

• Up to 100% financing for everything — architectural fees, construction, equipment, cabinetry and more

• Principal reduction and early payoff options • Practice purchase and real estate combination loans

• Working capital to help you get started • Competitive terms

• Working capital to help you with the transition

• Rate lock through the project build-out phase

• Competitive terms

• Demographic Site Analysis to help you select the ideal location and attract the patient base you want†

• Practice Heartbeat® program access at no cost♥

• Practice Heartbeat® program access at no cost♥

Let’s talk For more information, contact one of our Practice Specialists:

Call 800.428.2847 Visit bankofamerica.com/practicesolutions or scan the code to learn more

* All programs subject to credit approval and loan amounts are subject to creditworthiness. Some restrictions may apply. The term, amount, interest rate and repayment schedule for your loan, and any product features, including interest rate locks, may vary depending on your creditworthiness and on the type, amount and collateral for your loan. Bank of America may prohibit use of an account to pay off or pay down another Bank of America account. ♥ Bank of America Practice Solutions makes no express or implied warranties with respect to any aspect of the Practice Heartbeat® program, nor does it guaranty any success or promise any results, and hereby disclaims the same to the extent allowed by law. The opinions of Bank of America Practice Solutions are based upon prior experience, and it makes no promise or guaranty that you will achieve any particular measure of success or results by participating in the program. You are not bound by any recommendations provided under this program and retain full responsibility for the results achieved by your professional practice. † Bank of America Practice Solutions engages Scott McDonald & Associates, a national marketing firm specializing in demographic research, site analysis and profile reports for health care professionals to produce a demographic report to assist health care professionals in evaluating where to locate their professional practices. Scott McDonald & Associates charges a fee for this service, which is passed on to the customer.

Bank of America Practice Solutions tool within this advertisement requires Internet access. Bank of America does not offer or provide an Internet service provider for your personal access and usage purposes. Please check with your Internet service provider due to charges and fees which may apply. Bank of America is a registered trademark of Bank of America Corporation. Bank of America Practice Solutions is a division of Bank of America, N.A. ©2015 Bank of America Corporation | AR9AB890 | Rev 12/14

Getting Started Is Your Future So Bright You Have to Wear Shades? How to Write a Business Plan Gavin Shea

W

hether you’re a new dental school graduate or a veteran practitioner, one of the best ways to secure your future is to document your expectations in an annual business plan. It’s an indispensable tool for communicating business objectives to lenders, contractors and equipment vendors as the need arises.

And by making it a habit to refresh your business plan every year, you remain prepared for any unexpected opportunities such as the perfect new location or a great deal on equipment for your practice.

Below are some of the key components of an effective business plan. At Wells Fargo Practice Finance, we offer a variety of free business plan templates available online (see wellsfargo.com/ practicefinance) to help organize your planning and research.

I. Executive Summary – Provides an overview of your plan and should include the following: • Practice Description – a brief overview of your practice and services, including where your practice is located, your ideal patient and any specialty services you offer.

• Mission Statement – outlines your practice philosophy and rationale for creating your practice.

• Financing Requirements – provides a summary of the capital you will need to get your practice up and running if you’re a new practitioner, or cover overhead for the next year if you have an existing practice.

II. Practice Description – Goes into greater detail about the structure of your business, your qualifications for managing the business and your business resources. This section should demonstrate that you have the personal know-how and resources to ensure practice success, including: • Practice History – describes your professional experience to date including your professional education, or if the practice is established, more about the practice growth.

• Management Team and Key Personnel – identifies the principals responsible for financial performance, key team members and their roles, and professional advisors and how they will help you grow your business.

12 Spring 2016 Dental Entrepreneur

III. Market Research – Demonstrates that your practice is based on a solid grasp of the local market and potential for success. This includes: • Market Description – describes who lives in your practice community and what sort of growth you have experienced, or is predicted for this area over the next 10 years.

• Perspective Customer – describes your ideal patients, including characteristics, needs, income level, education, gender and age.

DentalEntrepreneur.com

•

•

Competitive Environment and Analysis – defines how many other dentists are practicing in the area and the range of services they provide.

Competitive Advantage – describes what benefits or advantages your practice offers that competitors in the area do not.

IV. Marketing Plan – Describes the internal and external marketing activities you plan to use to attract patients and grow your practice. For example: • How will you create awareness and ensure repeat visits?

• How will you set yourself apart from the competition?

• What is your marketing budget for the next year?

• What is your marketing mix – the balance between print advertising, promotions, referrals, email and other elements of marketing?

V. Operations – Details the day-to-day needs and functions of your practice. This should include the following: Location and Premises – includes why you chose your location, the number of operatories and whether you will own or lease the space.dental_entrepreneur.pdf 1 8/25/15

•

•

•

Hours of Operation – describes what the work week looks like for every employee and associate.

Equipment and Supplies – describes the equipment required now and in the future, in addition to who your major suppliers will be.

Staffing – includes recruitment plans, staff roles, compensation and personnel policies. Identifies the resources you are using to create job descriptions.

VI. Financial Forecast – The financing package you receive from your lender is based on the numbers in your forecast, so it is critical that you do your homework and make these calculations as accurate as possible: • Income and Cash Flow Projection for the first 12 months of practice operation.

• Capital and Operating Expenses – enumerates the total funds needed to build and/or operate your practice. Be specific and include categories such as contractor costs, loan payments, staff salaries, rent, utilities, lab fees, supplies and other minor expenses.

10:47 AM

Consult with your advisors to ensure your business plan is realistic and set an annual date to review and refresh your plan. There is simply no better way to ensure a bright and successful career than to make a solid business plan and update it regularly.

Gavin Shea is the Senior Director of Sales and Marketing for Wells Fargo Practice Finance. With more than 17 years of banking experience with an emphasis in practice lending, he leads sales and marketing strategy development and implementation throughout the national footprint.

His industry background offers practitioners a unique perspective as they approach some of the most important decisions in their professional lives. With more than 25 years of healthcare experience, Wells Fargo Practice Finance specializes in helping healthcare professionals acquire, start and expand their practices with various financing options and a signature Practice Success Program. You can reach him at: Gavin.m.shea@wellsfargo.com or 844-626-4317.

C

M

Y

CM

MY

CY

CMY

K

DentalEntrepreneur.com

Dental Entrepreneur Spring 2016 13

Getting Started

Do You Have What It Takes to Be a Successful Practice Owner?

Jeremy Brown, JD

D

ental schools provide an excellent platform for training students to practice dentistry, but they also fail to prepare them for the realities of private practice ownership. Today’s young dentists are faced with increased competition like never before. The biggest challenge facing future practice owners is the increased number of corporate clinics. The pressure imposed by the corporate dentistry movement is further accelerated by young graduates’ lack of business experience. Now, more than ever, it is essential that dentists understand what it takes to be a successful practice owner.

Wall Street, Venture Capitalists and other investors are rapidly acquiring and starting-up dental practices. These corporate con-

14 Spring 2016 Dental Entrepreneur

glomerates are backed by hundreds of millions of dollars to grow their portfolio of dental practices. Gone are the days of a dentist hanging a shingle, placing an ad in the yellow pages and enjoying a steady patient flow in their practice. Increased competition demands that dentists possess excellent clinical skills as well as savvy business acumen. More and more dental practice owners have the title of MBA – not DDS. So do you have what it takes to be a successful dental practice owner in the current environment?

After reading the preceding paragraphs, if you are not frightened away from practice ownership, I have some good news for you. Owning your own dental practice can be very rewarding, both financially and professionally. The path to becoming a suc-

DentalEntrepreneur.com

cessful practice owner requires careful planning and hard work, but practice ownership is attainable and should be the goal for most dentists. Below is some advice to help you succeed as a practice owner.

Three Roles of a Successful Practice Owner One of the biggest myths among dentists is, “If my clinical skills are exceptional, I will enjoy success.” Although providing quality patient care is essential, it is only part of the formula for a successful practice ownership. Any successful practice owner requires balancing these three major roles: clinician, entrepreneur and manager.

Clinician: A dental practice owner should always look to expand and improve their clinical skills. The role of clinician is typically the easiest role to master as a practice owner, but should be a lifelong pursuit. You can increase your clinical skills by joining study clubs, attending continuing education courses, doing online research and working with an experienced mentor.

Entrepreneur: Entrepreneurs bring vision to the business. It is important that a practice owner start with the end in mind. Whether starting a practice from scratch or acquiring an existing practice, an owner should set both short- and longterm goals to achieve their vision.

Manager: Day-to-day business operations require a great deal of attention to detail. A quality manager ensures that the practice is well-organized and stays wellinformed of current industry trends. A practice owner should carefully monitor the production, collections, new patient count and overhead of the practice each year, quarter and month.

Typically, businesses fail because the owner neglects one of these roles. Most practice owners can naturally fulfil one – maybe two – of these roles, but rarely can one person intuitively fulfill all three roles. Practice owners should identify

Dental practice owners who are dishonest with their staff and patients will be caught in a perpetual chain of deception. and master their weakest role to ensure they enjoy a successful practice for years to come.

The Franchise Business Model Every dental practice needs a business model that provides a roadmap to profitability. The best model for building a successful dental practice is the “franchise model.” Using the franchise model ensures that every aspect of your business is well documented and operates like a well-oiled machine. Although you may never own a second or third practice location, your dental practice should be your franchise operations model for doing so. In the beginning, be flexible as you learn what works and what does not. Write down your systems and simplify the process so that an employee with minimal experience can easily duplicate the process.

Corporate dental groups use the franchise business model to manage many successful dental practices. Corporate dental practices plan every detail in the business, from hiring staff and hygiene recall to advertising and collecting accounts receivable.

The challenge most practice owners face is how to maximize the amount of time you spend working on your business rather than in your business. Over time, the dental practice will thrive without the owner’s constant supervision because the

staff has been trained to follow a methodical approach to each task.

Principles of Success Most dental practice owners strive to provide quality care to patients, earn loyalty from their staff and establish a good reputation in the community, while also becoming financially wealthy. Long-term success as a practice owner requires commitment to time-tested principles. The ability to implement and embrace these principles will serve as the foundation for your practice and determine your ultimate success.

Follow Your Passion The first principle of success is passion.

Passion is the excitement or enthusiasm to become or achieve something great.

Harriet Tubman said, “Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience and the passion to reach for the stars to change the world.”

Successful practice owners are passionate about their business. As an owner, certain business areas will be more enjoyable, and you will want to handle these areas personally. However, other areas of the business will take a back seat due to the owner’s inexperience or lack of passion.

It is important to enjoy what you do, but make sure the areas you find tedious or difficult to complete do not suffer. If you lack the passion or ability in a certain business area, hire someone with that particular skill. Keep your passion alive by finding that balance between what you must do with what you can hire someone else to do.

Ask yourself: Are you filled with passion to become a successful practice owner?

Do you have the drive to be more than an employee and chart your own destiny?

Be Humble C. S. Lewis stated, “Humility is not thinking less of yourself, it’s thinking of yourself less.” Humility allows us to rec-

ognize that success in life is attributable to many individuals. Every successful practice owner has most likely enjoyed help from colleagues, family and staff. Practice owners will find greater success as they look outward and surround themselves with great influences, give back to the community and earn the loyalty of their staff and patients.

Ask yourself: Do you listen to others with a desire to learn what to do and not do? Are you willing to help your staff and referral sources achieve greater success?

How much of your energy is focused on helping others instead of managing the business with a “what’s in it for me” attitude? The principle of humility will improve patient satisfaction and staff performance, and increase new patient referrals.

Live with Confidence A great business leader has the confidence to make decisions and be accountable for his or her actions. Patients, staff and the community will trust a confident dentist. Life coach Barrie Davenport teaches that, “Low self-confidence isn’t a life sentence. Self-confidence can be learned, practiced and mastered – just like any other skill.”

Ask yourself: Have you prepared yourself to take risks and move into the unknown?

Do you trust yourself to make good decisions and avoid self-doubt? Do you spend less time worrying about the future than making your future? Confidence comes in small victories. Recognize your achievements, learn from your mistakes and focus on what must happen to achieve success.

Make Discipline-Based Decisions Success as a practice owner is a journey, not a destination. The daily decisions made by an owner require discipline. Entrepreneur and author Jim Rohn reminds us that, “Discipline is the bridge between goals and accomplish-

16 Spring 2016 Dental Entrepreneur

ment.” Success is made in the small decisions that often seem insignificant. Being fiscally responsible is vital for the stability of the practice. The practice owner should constantly monitor the practice overhead and distinguish needs from wants.

Ask yourself: Do I manage my practice within a budget? Can I postpone purchases that would have a negative impact on the practice cash flow? Maintaining low overhead is a critical component to success. A practice owner can save thousands of dollars each moth by negotiating a favorable lease rate, basing salaries off production, shopping for gently-used equipment and selecting insurance plans with higher fee schedules.

Maintain Integrity Doing the right thing when others are watching is expected. Doing the right thing when no one is watching is the test of integrity. When a practice owner lives a life of integrity, he or she is honest with themselves, the staff and patients.

Integrity is readily sensed by others.

Warren Buffett advises, “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

Ask yourself: Do I keep my word and follow through on my commitments?

Am I honest in my treatment planning?

Do I look for ways to hide the truth if it benefits me? Dental practice owners who are dishonest with their staff and patients will be caught in a perpetual chain of deception. Although it might cause temporary pain, integrity will always lead to long-term success.

Bonus Principle Tips 1. Provide your patients with personal care. Know your patients’ names and be cognizant of their life situations. Call them within 24 hours after a procedure to check on them and answer their questions.

2. Ask for testimonials and referrals.

Be comfortable asking your patients to post their positive experiences online.

Carry your business cards with you at all times and share them with others when appropriate.

3. Be the expert. Look for ways to speak as the expert on a certain topic at dental study clubs or community events. Write an article and keep a blog.

4. Employ and train good people.

Your employees interact with patients and potential patients on more occasions than you. Take the time to hire the right people, provide the appropriate training for each position, support your staff to be successful and show your appreciation to instill their loyalty.

Being a successful practice owner requires more than just being an excellent clinician, but also fulfilling the role of entrepreneur and manager. Success is seldom achieved by luck and is best achieved when the owner creates a business model based on the most efficient and effective ways to run the practice. Lastly, the owner must have a commitment to principles that will breed success. There are no short cuts to success, but that’s a good thing.

Practice ownership will make you a better dentist while also helping you reach your professional and personal goals.

Jeremy Brown earned his law degree from Texas A&M University and completed his undergraduate studies at Brigham Young University. Mr. Brown focuses on preparing practice appraisals, drafting employment contracts and consulting doctors with practice transitions. In his personal life, Jeremy enjoys following college football, backpacking and playing with his wife and four kids outdoors. He can be reached at 469222-3200 or jeremy@adstexas.com.

DentalEntrepreneur.com

E-11218-0216.qxp_E-11218-0315 2/11/16 4:59 PM Page 1

2016 Graduates and Residents: New AGD Member Insurance Benefit

}

“Have you heard? The AGD New Graduate Professional Liability Insurance Coverage will provide up to 12 months of professional liability insurance coverage at no cost to you!”*

“Yes, and the cost of the coverage is assumed by the AGD and is available through Dentist’s Advantage.”

{

Find out why people are talking about the latest member benefit…

Along with easy and affordable practice protection, the AGD New Graduate Professional Liability Insurance Coverage will offer you all of the benefits Dentist’s Advantage program is recognized for — unparalleled financial security, $1 million/$3 million coverage limits, and comprehensive risk management support — plus Dentist’s Advantage is an AGD Member Savings & Offers program participant, and Lead Corporate Sponsor.

}

Give us a call or visit us on the web to hear more about this exciting, new insurance benefit for new grads!

Enroll Today!

Professional Liability Insurance

888.778.3981 www.agd.org/NewGrad

*The cost of coverage is assumed by the AGD. Policy coverage is effective May 1, 2016, through April 30, 2017, for qualified applicants who enroll by April 30, 2016; for those who sign up after this date, coverage applies from the enrollment date through April 30, 2017. Qualified applicants must graduate from an accredited U.S. or Canadian dental school or complete an accredited U.S. or Canadian general dentistry residency program between Jan. 1 and Dec. 31, 2016; be entering their first year of licensed dental practice in the U.S.; be an active AGD member at the time of enrollment; and maintain active AGD membership through Dec. 31, 2016.

Dentist’s Advantage is a division of Affinity Insurance Services, Inc.; (TX 13695); (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc., (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency. © 2016 Affinity Insurance Services, Inc.

E-11218-0216

Resource Guide ADS Dental Transitions

Dentist’s Advantage

888-ADS-4237 www.ADStransitions.com ADS is the nationwide leader in dental practice sales, associateships, buy-in/buy-outs, partnerships and appraisals. ADS is comprised of the industry’s most experienced professionals, including dentists, attorneys, and CPAs. We can help you with each step of your next transition. To view a complete list of practice opportunities available in your desired area, visit us at ADStransitions.com.

Please see our ad on page 14.

888-778-3981 www.dentists-advantage.com Since 1949, Dentist’s Advantage has provided dental practitioners with access to a comprehensive professional liability insurance program that offers a vigorous legal defense against allegations of dental malpractice. More than 17,000 dentists across the nation depend on Dentist’s Advantage to protect their practice, their license and their financial security.

ADS South 770-664-1982 www.adssouth.com ADS South is the premier dental transition organization in the Southeast. We provide associateship placement, dental practice sales, appraisals, and expert testimony services. Our company was founded over 26 years ago by Earl M. Douglas, DDS, MBA, BVAL, and we continue to control the cutting edge of transition technology. Please see our ad on page 35.

Aspen Dental 877-330-1349 www.AspenDentalJobs.com At Aspen Dental we recognize that our success is a direct result of empowering and supporting ambitious dental professionals. We provide a professional, fast-paced, entrepreneurial work environment based on a mutual respect that keeps our interests aligned together, we build and develop successful, patient focused dental practices. Please see our ad on page 27.

Bank of America Practice Solutions 800-428-2847 www.bankofamerica.com/practicesolutions Dental practice financing designed to help you succeed.

Bank of America Practice Solutions offers a full range of dental practice financing options from purchasing an existing practice or starting your own practice. We provide critical knowledge you need to establish and develop your business. See our ad on page 21.

Comfort Dental

Henry Schein Nationwide Dental Opportunities 866-409-3001 www.dentalopportunities.com Henry Schein Nationwide Dental Opportunities (HS NDO) offers Dental Associate recruitment and placement services that pair job opportunities listed by dental practitioners with qualified, prescreened dental associate candidates. HS NDO matches dentists based on skillset, practice philosophy, and style to ensure a high success rate. We are specialists who work confidentially to help doctors fill critical roles within their office by defining the job, attracting qualified candidates, and managing the interview/placement process. Dentists can make a decision with confidence, knowing that we have helped them through the process. And candidates can rest easier knowing that there is never a fee charged to them.

We work to make the match a win-win situation for both the hiring doctor and the Associate with our personalized placement service and years of success. See our ad on page on the inside back cover.

Henry Schein Professional Practice Transitions (PPT) 800-988-5674 www.henryscheinppt.com/ Henry Schein Professional Practice Transitions is the leader in dental practice brokerage (sales and buying), transition services, and practice valuation. We have a broad range of dental practice listings nationwide and have closed sales in all 50 states, yet have the expertise and knowledge of your local area. Our responsive support gives you a clear advantage and we can help you to refine your plans and create new options as your practice goals change.

We offer valuable webinars, seminars, and other resources to support dentists throughout their career, as well as many value-added services such as practice valuations. See our ad on page 9.

www.comfortdental.com The Best of Both Worlds At Comfort Dental, we combine the old-style neighborhood dental practice with today’s modern group practice. Equity ownership, autonomy, management of your own business, and long- lasting relationships with your patients is combined with our economics of scale, prime locations, mass marketing, and overhead control. It truly is the best of both worlds. See our ad on page 25.

18 Spring 2016 Dental Entrepreneur

DentalEntrepreneur.com

Business Beyond the Classroom IgniteDDS

Sirona Dental Systems, LLC

716-912-7970 david.rice@ignitedds.com Building the bridge between dental school and tomorrow’s most successful, quality-conscious private practices Mission: Fueling Passions Beyond The Classroom for dental students, new dentists and new dental team members Description: igniteDDS empowers the next generation of dental professionals with the knowledge and resources you’ll need for tomorrow’s treatment and practice decisions!

800-659-5977 http://www.cereconline.com CEREC AC from Sirona is the most advanced dental CAD/CAM system available. With its Bluecam, capturing fast, precise digital impressions and then creating high quality esthetic restorations is a reality. CEREC AC delivers access to efficient, precise, scalable and affordable solutions, including CEREC Connect. Call 1-800659-5977 or visit www.cereconline.com. Please see our ad on page 15.

MacPractice, Inc

Ultradent

402-420-2430 MacPractice.com MacPractice DDS is the leading practice management and clinical application for dentists who prefer to use a Mac, featuring electronic insurance submission, Mac native digital radiography and photos, charting, Electronic Dental Records, Kiosk, Web Interface, iPhone Interface, speech dictation, and Mac stability and ease of use.

Please see our ad on page 11.

800-552-5512 www.ultradent.com info@ultradent.com Ultradent Products, Inc. is a leading developer and manufacturer of high-tech dental materials, devices, and instruments, world-wide.

Founded in 1978 as a family-owned company, Ultradent’s vision remains to continue to improve oral health globally by creating better dental products that set new industry standards. Ultradent also aims to improve quality of live and the health of individuals through financial and charitable programs. Please see our ad on page 23.

PARAGON Dental Practice Transitions 866-898-1867 www.paragon.us.com Offices located Nationwide. PARAGON offers professional consultation and related services to healthcare professions with primary emphasis on the dental profession: comprehensive dental practice valuations (including a written valuation and analysis report); practice sales; pre-retirement sales; practice acquisitions; practice mergers; associateships; partnerships; practice consolidations and practice management. References available by request. Please see our ad on page 29.

Patterson Dental

Wells Fargo Practice Finance 888-937-2321 wellsfargo.com/dentists practicefinance@wellsfargo.com Wells Fargo Practice Finance provides customized financing supported by experienced specialists and practical planning resources to help dentists acquire, start and expand their practices. The only practice lender selected especially for ADA® members and endorsed by ADA Business ResourcesSM, we understand the business of growing successful practices and are here to help you achieve your goals. Please see our ad on the back cover.

800-873-7683 www.pattersondental.com Patterson Dental Supply Inc. is a full-service distributor of a complete range of dental products and services to dentists, dental laboratories, institutions and other healthcare providers throughout North America. As one of the nation’s largest dental distributors, Patterson Dental sells consumable dental supplies, digital and other dental equipment and practice management software. Please see our advertisement on the inside front cover and page 7.

DentalEntrepreneur.com

Dental Entrepreneur Spring 2016 19

Getting Started

Should I Work for Someone Else or Open My Own Practice?

Roger P. Levin, DDS

I

t’s one of the most important decisions you’re likely to make in your career … Will you join an existing dental team or create your own? The question is certainly not a new one, but in today’s challenging dental market, it’s more important than ever to make the right choice for you. If you don’t think it through carefully, weighing the pros and cons and factoring in your personality traits and career goals, you could easily set off on the wrong career path. Even though you could probably correct such a career misstep, you’d lose precious time. And as they say, time is money.

Without knowing you personally, I can’t say what the right direction for you would be. I can, however, spell out factors for you to consider. Respond to these points honestly – noting not only what you think but also what you feel about each – and you’ll clearly see which answer will work best for you.

Being an Employee I used the word “employee” here so you can see if it disturbs you. That reaction could be very meaningful. Working for someone else could take many forms, each of which has its good and not-so-good points. Joining a solo practice versus signing on with a large corporate operation would result in radically different experiences. Becoming an associate with the possibility of future practice ownership bears no resemblance to climbing an organizational ladder. Allowing for those kinds of variations, here are some general pros and cons of finding a job: Advantages • Steady Paycheck – This might have tremendous appeal if your student loan debt feels oppressive. Also, of course, a salary will enable you to put food on the table, drive a decent car, go out occasionally, etc.

• Immediate Application of Clinical Skills – If someone hires you, there are already patients for you to treat.

• Opportunity to Observe How a Practice Runs – Whether small or large, the practice where you work will be a hands-on lesson in how to operate a dental office.

This can serve as preparation for running your own practice someday.

20 Spring 2016 Dental Entrepreneur

•

Minimal Administrative Responsibilities – Unlike a practice owner, you will not have ultimate responsibility for team-building, systems implementation, practice finances and the many other demands of running a small business.

Disadvantages • Limited Financial Rewards – In exchange for the security of a steady paycheck, you will not profit from practice growth the way you would as an owner (though this would change with a buy-out agreement).

• Less Autonomy – Much of what you do, chairside and otherwise, will be dictated by others. You may influence but will not control staffing, technology, scheduling, caseload or other factors that have a direct bearing on your performance and satisfaction.

• Dictated Clinical Opportunities – When you join a practice, you will most likely be given the less desirable cases … at least initially.

• Exposure to Outdated or Inappropriate Methodologies – Many established dental practices have developed bad habits or have simply not kept up with the many changes in dentistry. Also, in DSOs, much of what you learn would be applicable only in corporate dentistry.

Going into Solo Practice Like many young people who dream of becoming a dentist, you may envision yourself as an entrepreneur and owner of your own practice. This traditional path, though more challenging than ever, still makes sense for a large number of young dentists.

As you consider this option, keep these points in mind: Advantages • Autonomy – The greatest appeal of going into practice for yourself is “being your own boss.” If you have an entrepreneurial spirit, this alone may be the deciding factor.

• Opportunity to Translate Your Vision into Reality – Your treatment philosophy, powered by the knowledge and skills you’ve acquired in dental school and residency,

DentalEntrepreneur.com

•

•

will come to life in your own practice.

Greater Professional Pride and Prestige – Your sense of accomplishment, as well as your standing in your community and among your professional peers, will probably be greater if you are selfemployed.

More Income Potential – If you run your practice well, you could earn a very attractive living and accumulate a considerable amount of personal wealth.

Disadvantages • Heavy Responsibilities – As they say, it’s lonely at the top … even in a small business like a dental practice. Financial matters, team management, marketing and all the other aspects of providing excellent oral health care and run-

•

•

ning a business will ultimately be in your hands.

Potentially Low and Unpredictable Personal Income – Unless you manage to build a stable, productive patient base quickly, you’ll have some stressful days and sleepless nights.

The Need for Continuing Business Education – You’ll need to learn about leadership, management and marketing as quickly as possible, not to mention committing to continuing this learning process until you reach the end of your dental career.

Conclusion Like most important decisions, this one is not black-and-white. Many young dentists today are conflicted about what direction to take at the outset of their careers. By studying the pros and cons of

working for someone else versus having your own practice, you’ll be able to make the right decision and get your dental career off to a great start.

To learn about how to run a profitable, efficient and satisfying practice, subscribe to Tip of the Day for free daily emails from Dr. Levin.

Dr. Roger Levin is a third-generation general dentist and the Chairman and CEO of the largest dental practice consulting firm in North America, Levin Group, Inc., which has served more than 22,000 dentists and specialists since 1985.

DENTAL PRACTICES FOR SALE ADS DENTAL TRANSITIONS HAS EXCELLENT PRACTICE OPPORTUNITIES AVAILABLE. TAKE THE FIRST STEP IN BECOMING A PRACTICE OWNER AND VISIT:

ADStransitions.com/forsale 855.830.0080

ADS companies are each independently owned and operated.

Business Fundamentals

Common Types of Contracts Young Dentists See After Dental School Megan Weber, JD

G

raduating from dental school is an exciting time. After years of hard work, young doctors are finally ready to begin practicing. During this pivotal period of their careers, there are several contracts the new doctor may encounter. These contracts typically have far-reaching implications and can play a prominent role during their dental careers.

Below is a summary of common legal contracts and a few tips to ensure that they are successfully navigated.

Associateship Agreements For dental school graduates looking to enhance their clinical skills and earn income without the financial risks, an associateship is a great option.

A written associate agreement defines the terms of the relationship between associate and host doctor(s), and ensures that both parties begin on the same page while laying the groundwork for a successful relationship.

When presented with an associate agreement, these are a few elements that should be present: • Term - The agreement should have a stated term or duration and attention should be paid to if and how the agreement can be renewed.

• Compensation - The agreement should provide the basis for the associate’s compensation and the frequency of pay. Compensation can be structured a number of different ways, including: a flat daily rate, annual salary, or a percentage of adjusted gross production or collections. The structure and amount can vary greatly depending on several factors such as practice location and specialty.

• Restrictive Covenant - Most associateship agreements will include restrictive covenant and non-solicitation provisions.

These provisions are enforceable in most states. The terms of these provisions should be reasonable in scope and duration.

Reasonableness of scope will vary depending on practice location and specialty. The duration of the restrictive covenant for

22 Spring 2016 Dental Entrepreneur

•

an associateship agreement is typically 12 to 24 months, but should not exceed 24 months. If the practice has more than one office location, the agreement should specify to which location(s) the restrictive covenant provisions apply. Typically, the restrictive covenant should apply only to the locations in which the associate primarily provides services.

Termination - The agreement should address how it may be

DentalEntrepreneur.com

REASON #46:

I VALUE THE CAMARADERIE OF COLLEAGUES With access to over 1,000 colleague dentists supporting and encouraging personal and professional success, Heartland Dental supported dentists are never alone in dentistry.

Through continuing education courses and forums, our supported doctors receive incomparable experiences and advice from mentor doctors. Find the value and comfort in having camaraderie among fellow supported doctors with Heartland Dental.

THERE ARE 100 REASONS FOR CHOOSING HEARTLAND DENTAL. DISCOVER YOURS TODAY! CALL

888-272-9815

CLICK

www.Heartland.com/Reason46 ADV021916ES

ADV020416JG

terminated, the procedure for doing so, and the length of notice that is required.

Offers to Purchase/Letters of Intent An offer to purchase, or letter of intent, is a non-binding document that should highlight the important negotiation points of a transaction.

At a minimum, the offer should detail the structure of the transaction, purchase price, how the practice real estate will be handled, and contingencies that must be met prior to closing.

Partnership Agreements It is increasingly common to share ownership of a practice through a partnership.

Partnership agreements should include the following provisions: • Division of Expenses and Income – The agreement should specify how the income and expenses of the partnership will be allocated among the partners.

• Duties – The agreement should set forth the duties of the partners to the partnership, and delineate any management responsibilities.

• Termination or Withdrawal – The agreement should address how the partners may be terminated or withdraw, and how their share of the partnership is handled should this occur. The agreement should also include the appraisal method to be used in valuing the partner’s share upon departure.

• Non-Compete and NonSolicitation – The agreement should include non-compete and non-solicitation provisions that will become effective if and when a partner withdraws or is terminated from the partnership.

Asset Purchase Agreements These agreements are used for dental practice purchases or buy-in transactions, and should address the following issues:

24 Spring 2016 Dental Entrepreneur

•

•

•

•

•

•

Included and Excluded Assets The agreement should identify all included and excluded assets of the transaction. Examples of assets that would be included are: supplies and instruments, clinical equipment, patient files and records, office furniture, and goodwill. Excluded assets would be any personal effects of the seller and any cash on hand.

Transaction Structure - The most common structure is an asset sale, but may be a stock sale or hybrid approach. The agreement should also include an allocation of the purchase price among the tangible assets and the goodwill of the practice.

Buyer and Seller Representations - The parties will make certain representations and warranties to each other relating to items such as, ownership of the assets and their authority to enter into the transaction.

Treatment of Accounts Receivable and Credit Balances - The parties should address the issues surrounding the collection of outstanding accounts receivable. Generally, there are three options: the buyer purchases the accounts receivable, the buyer collects the outstanding accounts receivable on the seller’s behalf and typically receives a nominal fee for doing so, or the seller retains the accounts receivable and collects them outside of the transaction.

Warranties should also be included stating that all creditors have been paid by the seller.

Work in Progress and Prepaid Fees - If the seller is planning to remain with the practice after the sale for a period of time, work in progress is typically not an issue. However, if the seller is retiring or otherwise leaving the practice after the sale, then determination of any unfinished cases and prepaid fees should be addressed.

Restrictive Covenant and Non-

Solicitation Provision for the Seller – These post sale covenants restrict the seller from competing with the practice within a certain area for a period of time, typically three to five years, and prohibits the seller from soliciting patients and employees of the practice for the same duration.

• Bill of Sale – This is typically a one-page document produced with the Asset Purchase Agreement that serves to legally transfer the assets from the seller to the purchaser.

Of course, knowing the types of contracts that may be encountered is only half the battle. Here are a few general tips to successfully navigating them: Negotiation When negotiating these types of agreements, always negotiate in writing. Dinner table negotiations are not binding and ineffective. It is always best to use qualified advisors. The use of advisors helps side step the issues that often arise when emotions run high. Lastly, one should keep in mind the bigger picture; a deal should not be lost over a minor issue.

Costs The costs of each type of agreement varies widely. Young students should expect to spend less during the associateship process than a buyer would when purchasing a practice. Most advisors in the industry charge a flat fee which helps to facilitate open communication between themselves and their clients. Save money by using an advisor that is specific to the industry. Doctors do not want to find themselves in a situation where their advisor is learning the industry on their dime. Young doctors will find that surrounding themselves with a team of experienced advisors, such as dental attorneys, dental CPAs, insurance advisors, and wealth management advisors will save them time and money, and help them navigate through the early years of their careers.

DentalEntrepreneur.com

The first few years after dental school are not only important from a clinical perspective, they are also some of the most important years for building the foundation of a dental career. As young dentists navigate these years, it is imperative that they arm themselves with the knowledge of contracts that will be encountered and how to navigate them.

Megan Weber, JD Jordan Law Group Megan is an attorney with Jordan Law Group and focuses her practice on assisting associates, buyers and sellers in dental practice transitions. She can be reached at 704.461.8711 or at mweber@legaldent.com.

Please reach out to our authors and our advertisers. They care about you and keep us in print!

dentalentrepreneur.com

DentalEntrepreneur.com

Dental Entrepreneur Spring 2016 25

Business Fundamentals

Top Tax Strategies for Young Dentists Tom Lenfestey, JD, CPA Taxes, taxes and more taxes. Tax efficiency in your dental practice is always a key goal, but it is sometimes hard to know which strategy may be right for you or your practice and then finding the time to review and make sure it fits your situation. At NC Planning, our proactive review and planning model ensures review of tax efficiency as part of your legal planning.

Here are some of those key strategies, which may be applicable to you or your practice:

1 2 3 4 5

Cost Segregation: If you own the real estate and recently upgraded or expanded a substantial portion of the practice, then consider this valuation procedure to help accelerate deductions for depreciation.

Charity: Whether it is service, money or property, always consider the deductibility of charitable contributions. The key is to make sure these are evaluated before year-end and the right assets are gifted to maximize any deduction. The full value of the property is tax-deductible as a charitable contribution if held for a minimum term.

401K or IRA: Consider funding your retirement plans to the fullest with pre-tax dollars for that beneficial tax-free growth. Even if not deductible from income they provide great retirement savings strategies and have creditor protection status as well.

S-Corporation Salary: Make sure you have reviewed and considered what amount should be taken as salary vs. profit as an employee-owner of your practice. Significant savings in payroll taxes are possible with the proper review and report-

ing.

Buy, Buy, Buy: If you are looking for that year-end deduction amount, then nothing is more known than the purchasing of supplies, lab, practice expenses and higher ticket items such as equipment before December 31.

26 Spring 2016 Dental Entrepreneur

6 7

Rent the Beach House: As long as you rent that vacation home less than the IRS maximum allowed any income received can be tax-free. Even better is to consider having a retreat, meeting or other practice gathering there and allow the practice to pay the rent expense.

Keep Track of Reimbursements: Make sure the practice reimburses you for all business-related expenses that came out of your personal wallet. It is sometimes surprising how much the travel, entertainment, vehicle expenses, dues, legal and other planning fees add up to. If you are only an employee and not an owner, still keep track of any that aren’t reimbursed, but you do have to meet a percentage floor of your adjusted gross income to be able to deduct.

8 9

Fully Deductible Expenses: Make sure you keep track and let your accountant know which of those expenses are for travel, lodging, continuing education, in-office meetings or lunches as those are typically fully deductible vs. only 50-percent deductible.

Estate Planning: Never forget that taxes not only play a part in the now of your practice and life, but are also a huge factor in your practice succession, retirement and estate planning. Careful consideration should be given to taxes that may impact structure and goals.

DentalEntrepreneur.com

10 11 12

Mortgage and Debt Efficiency: If you have loans make sure they are tax deductible, if possible. Consider the shift of certain debt which is otherwise not tax deductible to loans or equity

lines which are.

13

Review the Rent: If you also own the real estate for the practices (typically in a separate LLC) then make sure you review the rental rates and how the Medicare and other taxes play into the total picture of rental income. However, if you increase the rent to market rate, it may also provide potential to reduce payroll taxes or to other lower-income owners of the LLC.

Goodwill: Not always something that is considered when you are running the practice, but don’t underestimate the value of goodwill if you are buying into a practice as a junior equity partner or if you are fully selling your practice ownership or assets to an outside third-party.

The depreciation benefits can be tremendous.

14

Family Business: If reasonable, consider employing your spouse and children if there is productive work for them to do. This not only helps the practice, but also sometimes allows income to be taxed at lower rates and for spouse to contribute to social security and/ or retirement savings plan.

DISCLAIMER: The information contained herein is for personal informational purposes only and should not be relied upon for any other purposes. © 2016 NC Planning, a service of Adams Howell Sizemore & Lenfestey, PA. Reproduction in whole or in part is strictly prohibited.

Buy the SUV: Consider purchasing that SUV or truck which the IRS allows some specific tax breaks on. Not a truck/SUV person? Still consider purchase of the vehicle, especially where it is predominantly used for business purposes.

NC Planning is a law firm that handles all the planning needs that may arise throughout each phase of a dentist’s legal life cycle, including associateship, ownership, growth, and succession. Partner Attorney and CPA, Tom Lenfestey, and his team understands the importance of planning in the healthcare industry, which allows them to provide focused legal assistance to individuals while also helping them address their goals and concerns for the future.

DON’T DELAY … AUTOMATE ELIMINATE PAPER AND GET ORGANIZED! AUTOMATE YOUR SAFETY DATA SHEETS, WITH AUTOSDS. New OSHA Hazard Communication requirements go into effect June 2016.

Patterson Dental and Global Safety Management™ (GSM) present AutoSDS, a new online database of Safety Data Sheets specific to your practice.

Together, we’ll help you meet OSHA’s June 2016 Globally Harmonized System compliance deadline.

For more information and to register,

visit autosds.com.

16P0027 (5/15)

DentalEntrepreneur.com

Dental Entrepreneur Spring 2016 27

Business Fundamentals

Your Patient Expects It. HIPAA Requires It. Does Your Software Protect Your Patient’s Information with Encryption?

Mark Hollis

D

ata encryption, privacy and Internet security are frontpage news. Presidential candidates have debated it.

Apple is defending itself in federal court. Stories proliferate 60 Minutes regarding government-employed hackers in China and a growing threat of more than 5000 hackers worldwide targeting Americans and American businesses, and a lucrative black market for Americans’ identities with a premium on identities that include healthcare information. It’s clear there is a national data security emergency. Dentists cannot bury their heads in the sand and hope the emergency goes away.

A recent NBC News story estimates that 1 in 3 of us have had our healthcare record compromised (most of us unaware), and in last year alone, more than 100 million records were exposed. It is only a matter of time before patients, who today predominantly choose their dentists on the Internet, require dentists to provide them specifics about how their data will be secure before providing it to them, as is their right. This is serious business for all Americans, and dentists need to get ahead of it.

Adhering to HIPAA guidelines, at a minimum, to protect patient’s

28 Spring 2016 Dental Entrepreneur

health information including x-rays and photos is the dentist’s responsibility. The HIPAA Security Rule became effective September 2013, and ignorance is not a defensible excuse. The HIPAA and state penalties for non-compliance can be high for dentists who do not comply, as well. The loss of patient identity can be a financial and emotional disaster that could take years to correct, if at all. Patients may never forgive or forget a dentist who does not protect their information

DentalEntrepreneur.com

If you are not using the right software, you’re not protecting your patients’ personal information.

You may be fined $1.5 Million.

Most dentists’ software does not encrypt their patient’s personal information on their network and their drives or integrate secure email. Most dentists are therefore at risk for HIPAA fines up to $1,500,000 in 2016.

MacPractice DDS is the most advanced and robust practice management and clinical software, with best in class features including; ONC/ACB Certified AES data encryption, HIPAA compliant secure messaging and so much more. Welcome to the future of dental software. Welcome to MacPractice.

www.macpractice.com/dds/HIPAA | (855) 679-0033 LEARN MORE & REGISTER FOR WEBINARS

MacPractice Simplicity in practice

under HIPAA guidelines and is required to report a breach that potentially exposes their personal data.

The HIPAA Security Rule standards for the protection of Electronic Protected Health Information (ePHI) include encryption of “data at rest,” “data in motion” and a unique database password. Dentists should understand that while HIPAA requires them to comply, dental software developers are NOT required to provide software that encrypts their patients’ data. Dentists cannot presume without verification that their software supports their compliance. In conjunction with securing data at rest and in motion, the Security Rule also requires secure email, and the penalties can be as much as $50,000 per email up to $1,500,000.

What is Data Encryption?

Data encryption transforms patient data collected and maintained by you, ePHI as defined by HIPAA, to be indecipherable by hackers without your unique encryption key.

Encrypt Data at Rest Data on your computer hard disk or flash drive is called “data at rest” contained in your practice-management and imaging database(s) and on backups should be protected by a strong password that is unique and also encrypted. Recently, the largest practice management software was found to have the same, easily discoverable, hardcoded database password for every practice.

Unbelievable, but true.

Encrypt Data in Motion Data passed back and forth on your network between your server and terminals in your office or from outside (including remote secondary offices) is called “data in motion.” Data in motion also includes emails, text messages and any other electronic communication you have with patients, as well as other practitioners and insurance carriers about patients.

How Does HIPAA Apply?

HIPAA requires that doctors protect

30 Spring 2016 Dental Entrepreneur

patients’ personal identity and health information at rest and in motion using AES encryption at a minimum.

2016 is expected to be the year for auditing practices for HIPAA compliance. Fines can reach $1.5 million. Your patients expect you to protect the personal identity and health information they have entrusted to you. Patients expect you to comply with HIPAA Privacy and Security Rules.

Make Sure Your Software Secures Your Patient’s Information Without question, you should be using software that utilizes industry-standard AES data encryption and integrates secure messaging to protect your patient’s information and communications. Recently, the largest dental software company was fined $250,000 to settle Federal Trade Commission charges it falsely advertised the level of encryption it provided to protect patient data.

A $10 billion company being fined is small potatoes compared to the bigger story that most dental software isn’t encrypting patient data. Conversely, MacPractice DDS is one of only a few single-database practice management and EHR software programs that is ONC-ACB Certified, meaning your data is encrypted at rest and in motion. With MacPractice, you qualify for Safe Harbor and are not required, as you would otherwise, to report a breach to HHS to your patients and to the media.

How Do You Protect Yourself?

Ask your software company if your software has built in AES encryption (you might want to request third-party verification) for both data at rest and data in motion.

If your software is not using AES encryption, consider full disk encryption on all of your computers and backup media with Apple’s FileVault for OS X or BitLocker in recent versions of Windows. Retain an IT consultant to help you purchase equipment and to install a VPN for your network and for outside connections. There will likely be some performance degradation.

Implement secure email instead of the

standard email you are very likely using now, preferably using industry-standard Direct messaging, from within your software if that is possible. Using standard email in your practice is like running an explorer under water and saying it’s clean and ready to go.

Unfortunately, that is also a thing of the past.

More information about HIPAA Security Rule requirements, encryption, and Direct messaging are available at www.macpractice. com/hipaasecurity.

Mark Hollis is the cofounder and CEO of MacPractice, Inc. and provided practice management consulting services to 650 practices over 25 years. Mark represents MacPractice as member of HIMSS Electronic Health Records Association (EHRA), which advises the CMS, ONC and HHS, and as a contributing member of Commonwell, a non-profit created by top US EHR vendors to address the national challenge of patient identity related to EHR interoperability.

Please reach out to our authors and our advertisers. They care about you and keep us in print!

dentalentrepreneur.com DentalEntrepreneur.com

“YOU’D NEVER AGREE TO BE A DOC-IN-A-BOX. WE WOULDN’T EITHER.” –Aspen Dental owners

There are a lot of myths out there about Aspen practices. But the fact is, Aspen is just like other private practices, only you have all the clinical control and none of the administrative headaches.

We also offer major perks like faster ownership. Just compare:

TIME TO OWNERSHIP TRADITIONAL

MAYBE NEVER

AS LITTLE AS 6 MONTHS

Give us 10 minutes, and we’ll give you a great career.

Call 866.529.2361 or visit AspenDentalJobs.com/WeAgree.

Aspen Dental-branded dental practices are independently owned and operated by licensed dentists. For more information, visit aspendental.com/about.

KHJ22241_ASP526_TimetoPrint_7x10_mech.indd 1

2/10/16 1:44 PM

Power to Succeed

Don’t Be a Mosquito In a Nudist Colony Why Lifetime Goals are So Important to What I Do Tomorrow, and Why Tomorrow is Important to My Lifetime Goals.

Chuck Blakeman

T

he mosquito in the nudist colony looks around and says, “I know what to do, I just don’t know where to begin. So much opportunity, what should I do first?”

Prioritizing what to do daily is critical to our success in dentistry. Our destiny for the next year will be the accumulation of 365 days, one day at a time.

Begin With the End in Mind How do we understand the importance of tying the actions of each day to our future? Stephen Covey quoted me in his final book, The 3rd Alternative, regarding living a mission-based, meaningful life. I was just starting to connect with him when he died tragically in a bicycling accident. He understood why choices we make every day are so important to where we end up, saying, “Until a person can say deeply and honestly, ‘I am what I am today because of the choices I made yesterday,’ that person cannot say, ‘I choose otherwise.’” Start with what we want when we’re done–what we call our Lifetime Goals–and then back into what we should be doing today to get there.

We must tie every day to the long haul. If we focus on just today, we claim victories that are only imposters. If we focus too much on the future, we get fogged or discouraged by the lack of measurable progress today. The actions of every day must be connected to where we want to end up.

The key is to always keep today’s action plans and our future Ideal Situation in clear view at the same time, while continuously making the connection between the two.

Here’s a progression that clearly gives us that connection, starting with the end in mind: • Lifetime Goals What are the things I want to do the rest of my life that I can

32 Spring 2016 Dental Entrepreneur

never check off as completed …. the big, continuous stuff? Every one of these goals is something you can do the rest of your life without ever finishing. We also refer to this as Your Big Why. Your Lifetime Goals are success and significance expressed in values and life beliefs. I’m using my business to get me to my Lifetime Goals. If I don’t know my Lifetime Goals, I’ve got no clue why I’m in business. Get clarity on your Lifetime Goals. It is foundational to understanding how today matters. He who aims at nothing hits it every time. Aim at something.

• Ideal Lifestyle Once I understand my Big Why, I need to know how much time and money it will take to realize it. We call the convergence of sufficient time and money, the Ideal Lifestyle for living out your Big Why. Most people are aiming for an Ideal Lifestyle that isn’t connected to any deep motivation for having it. It’s just about the money.

But time and money are just resources–It is what you do with them that makes them valuable. It’s no wonder most people never reach their Ideal Lifestyle. They don’t know why they want it. People who try to make money rarely make a lot of it. People with a bigger reason to make both time and money, a Big Why, are much more likely to make a lot of both.

• Pick a “When” Critical to escaping the Mosquito/Nudist Colony problem is knowing when I want to arrive at my Ideal Lifestyle? We call this a Business Maturity Date (BMD). Pick an exact date and time, even if it’s five years out. The BMD is usually tied to when you can begin to regularly get away from your practice and it still makes money when you’re gone.

Pick an exact date and work toward it. You might decide that at your BMD you will achieve 50 percent of your Ideal Lifestyle (time and money). Be very intentional and specific about your

DentalEntrepreneur.com

objective–you get what you intend, not what you hope for. Once you’ve reached your BMD, every year after that you can set a new objective until you reach your full Ideal Lifestyle, which might take a few more years.

• Determine Annual, Quarterly and Monthly Actions What are the two or three big things you need to accomplish this year in order to get to your BMD, or if you’ve already reached that, to your Ideal Lifestyle?

Figure that out, then decide what you need to do in the next three months to accomplish those twelve month objectives, and then what you think you can accomplish this month toward that quarterly objective.

We suggest doing this with a simple two-page Strategic Plan. This Plan is reviewed weekly, revised monthly, updated quarterly and pushed back out to cover twelve months. It is a rolling 12-month plan that runs your practice every day. It’s your boss. The first page is purely strategic–why you’re in business, the impact you want to have on the world around you and the means by which you make money. The second page is purely tactical.

It outlines what needs to be done in the next 12 months to grow a practice that makes money when you’re not around. Be realistic and create success. We regularly overestimate what we can do in a month and underestimate what we can accomplish in a year.

Only include things that will resolve long-term business obstacles, not the relentless list of urgent things that need to be done but don’t actually help us build a better practice. And keep it as simple as possible. If you capture everything, you will likely do nothing. That’s why we encourage you to keep it to two pages.

• Chose One Big Thing a Week Each Monday, take a look at what needs to be done this month to help you

DentalEntrepreneur.com

build a better practice and decide what you can do this week to help you get there. Eat the elephant one bite at a time.

One Big Thing First, Every Week Covey gave the illustration of filling a vase with big rocks, then small stones, then sand, and finally water. But never start with the water or the sand. They will keep you from putting in the big rocks.

The point? When you start with the small stuff every week, there’s no room for the big stuff. Most of us wake up every Monday morning consumed with the small stuff; the water and the sand of business. This makes us hostages to our practice because nothing ever really changes. Is it any wonder we end up where we are a year later?

We need to ask ourselves, “What am I pretending not to know?” You might realize you are pretending to own a practice when in fact, the practice owns you and all you are getting out of it is income, but not a life. Pick one big rock a week, one strategic thing that will help you get to your Lifetime Goals, and make sure you put that in your schedule first. If you do, there will be plenty of time for the pebbles, sand and water of daily life.

But if you pick the small stuff first, you’ll never get to the big stuff.

If we know our Lifetime Goals, we can then back into what we need to be doing tomorrow. Remember, these are goals we can never check off. And by clearly knowing WHEN we want to be in our Ideal Lifestyle for living out those Lifetime Goals, we can then back into what we need to be doing tomorrow to get there. If you don’t know what the end game looks like, how will you ever know what to do today? The Random Hope strategy of business (and life) is not a strategy. Continuously connecting your daily activity and your Lifetime Goals is the key to clarity and to knowing if each day is counting.

The true dental professionals and prac-

tice owners can go on vacation and their business continues to make money when they are not there. They have figured out how to make more money in less time, get off the treadmill and get back to the passion that brought them into business in the first place. And they use their mature business to support their Lifetime Goals.

Survival, subsistence, stability and even Success are no longer their focus. They now have time to focus on living a life of significance and giving themselves to the things they were made to do best.

Most people spend more time planning a two-week vacation than they do figuring out what will make their life significant and describing their Lifetime Goals.

As Henry David Thoreau said, “Most men lead lives of quiet desperation.”

Don’t be most men. Know what you’re doing and get a reason to really build your practice.

Dare to ask, “Why?” It’s the most important question a practice owner will ever ask himself/herself.

Don’t be a mosquito in a nudist colony.

Know what to do, where to begin and what to do next. Connect your daily activity to your Lifetime Goals and watch the fireworks begin.

Chuck Blakeman is a successful entrepreneur, best-­selling business author and world-­r enowned business advisor who built ten businesses in seven industries on four continents, and now uses his experience to advise others. His company, Crankset Group, provides outcome-­based mentoring and peer advisory for business leaders worldwide.

Mr. Blakeman is a results leader with decades of experience leading companies in marketing, import/export, fulfillment, call centers, website processing.

Dental Entrepreneur Spring 2016 33

Power to Succeed

The Dental House of Cards David Rice, DDS

I

f you’re a fan of the show … there’s not much I need to say.

You’ve already grasped the hand I’m going to deal. If you haven’t had your Netflix marathon like me and my better half, allow me to summarize one very important lesson. The winner in any election, in life, and in dentistry, is the candidate who crafts the best story. What I want you to focus on today are the answers to the two questions below and what you can do differently to make sure you’re building a structurally sound dental House of Cards.

No. 1: What is the Grammatical Foundation of Every Story?

Surely as I type and you read, I’m going to play Captain Obvious and call out the answer … words. Words have power.

Words have the ability to strengthen or weaken a person and their position. And if the pen is mightier than the sword, imagine the power in our spoken words.

Take for example the real life version of today’s House of Cards. One of today’s front runners – Hairdo … I mean Donald Trump. Have you followed his two signature catch phrases?

“It’s going to be great,” and, “Believe me.”

Simple words, yes? So simple that many people laugh. I mean, what is he really saying? That said, with “Believe me,” there is a massive team of experts who sit in a room every day studying analytics on what plays well and what flops. They very cautiously and carefully select words because, for whatever reason, they are resonating with Trump supporters.

No. 2: How Does This Apply to You and Your Patients?

It doesn’t matter who you’re voting for. We could unplug Trump and insert Hillary … they both have wordsmiths on the clock. More importantly, if you understand the power in the above, and words truly are what keeps our dental House of Cards standing, how do we apply this lesson in our world?

Here’s the deal. Dental school is great. We need it, and we wouldn’t have a House of Cards at all without it. However, in dental school we learn an entire vocabulary. We learn lots of words that fundamentally don’t resonate with our patient supporters.

34 Spring 2016 Dental Entrepreneur

Why? It’s not their gig. Think of it this way. It’s Monday morning. Your alarm goes off. You jump in the shower, and the water is frigid. If you’re anything like me, you jump out in total shock.

Maybe you get lucky. You call your landlord. Luckily, they send a plumber. Plumber checks out the scene, pulls you aside and gives you the 101 and 201 and 301 of why your water is freezing.

“It’s the old copper pipes … It’s the rusted fittings … I’m going to use PVC.”” All the while, what’s the only thing that matters to you?

A hot shower.

Replace plumber in that story with dental student or dentist.

Replace the rusted pipes with fractures and decay. Replace the copper with amalgam and PVC with composite.

Words …

If you want a dental House of Cards that stands the test of time, choose yours wisely. If you want to learn how, feel free to connect with yours truly. I am happy to help. Until next time…

Together We Rise!

Dr. David Rice graduated cum laude in 1994 from The State University of New York at Buffalo’s School of Dental Medicine. In 1995, he completed his general practice residency from the Allegheny General Hospital in Pittsburgh Pennsylvania. With a strong belief in continuing education and mentorship, Dr. Rice went on to complete continuums at the Pankey Institute, The Dawson Center and The Spear Center all while building the Restorative Practice of his dreams and maintaining an associate clinical professorship at the SUNYab School of Dental Medicine.

Dr. Rice combined his passions for teaching, mentoring and making a difference and igniteDDS was born. Today he continues to maintain his private practice and travels the country inspiring dentistry’s future to live their dream, have great success and to make that same difference that has brought him so much joy.

DentalEntrepreneur.com

GLOBAL

NUMBER

RESTORATIONS ORTHODONTICS IMPLANTOLOGY

DOING MORE FOR YOUR PATIENTS MEANS DOING MORE FOR YOUR PRACTICE.

CEREC single-visit chairside restorations eliminate inconvenient impressions, messy materials, time-wasting temporaries, and unnecessary reduction of healthy tooth structure. CEREC offers patients the esthetics they want, while offering you the control you appreciate. And because CEREC eliminates the need for a second appointment, you can treat more patients in the same amount of time.

• Inlays, onlays, crowns, veneers, bridges and custom abutments • Largest selection of material choices to satisfy virtually any clinical indication • Industry-leading service, support, education, and community

To realize all the benefits of doing more restorations with CEREC, contact your Patterson Representative directly or call 800.873.7683.

Dental Trade Shows CDA Presents The Art and Science of Dentistry May 12-14, 2016 California Dental Association Anaheim, California AGD Academy of General Dentistry July 14-17, 2016 Boston, MA www.agd2016.org ADA Annual Session 2016 October 20-25, 2016 Denver, CO http://ada.org Greater New York Dental Meeting November 25 - 20, 2016 New York, NY www.gnydm.com

The ASDA National Leadership Conference is being held on Nov. 4-6, 2016 at the Chicago Hilton Hotel.

The National Leadership Conference provides leadership training to dental students across all years and predentals. Attendees can create customized schedules based on their personal knowledge, experience and interests, in order to benefit them as dental students and future practitioners, as well as leaders in organized dentistry. Last year, almost 600 student leaders came together to: • Build relationships with leading dental organizations • Develop leadership skills that they’ll use throughout their dental careers • Increase understanding of key issues in dentistry and dental education • Connect with vendors during breakout sessions, on the tradeshow floor of the dental expo, and during various networking breakouts throughout the program • Attend sessions on chapter management, public speaking, personal finance, practice negotiations and more

Index of Advertisers ADS Dental Transitions South……………………………………………………………............................. 5 ADS Dental Transitions…………………………………………………………….................................... 21 Aspen......................................................................................................................................... 31 Bank of America……………………………………………………………............................................. 11 Cerec......................................................................................................................................... 35 Comfort Dental Dentist Advantage................................................................................................. 25 Dentist Advantage........................................................................................................................ 17 Heartland Dental......................................................................................................................... 23 Henry Schein PPT ......................................................................................................................... 7 Henry Schein Nationwide ............................................................................................................. 37 IgniteDDS................................................................................................................................... 19 MacPractice................................................................................................................................ 29 Paragon...................................................................................................................................... 13 Patterson Dental.......................................................................Inside front cover/page 1, and page 27 Wells Fargo................................................................................................................................. 38 36 Spring 2016 Dental Entrepreneur

DentalEntrepreneur.com

We have a high rate of success placing all types of Dental Associates.

No kidding!

Henry Schein Nationwide Dental Opportunities has a great track record of matching Associates with the right position.

Our experienced staff achieves win-win situations every day.

There's no fee to the Associate and all information is strictly confidential. So, give us a call today.

1-866-409-3001

www.dentalopportunities.com

Henry Schein may receive a marketing fee from the vendor for products/services purchased. Š 2016 Henry Schein, Inc. No copying without permission. Not responsible for typographical errors.

Wells Fargo Practice Finance

Thinking about practice ownership?

Let’s talk about your options.

When you’re ready to purchase or start a practice, count on Wells Fargo Practice Finance to help you achieve your goals: · Up to 100% financing to help you acquire an existing practice or start one from scratch · Competitive fixed-rate loans with preferred pricing for ADA® members · Complimentary business planning tools, educational resources, and practice management consulting to help you successfully manage your transition to ownership

Get the facts with a free Practice Starter Kit, including our latest issue of Strategies for Success, a New Dentist Planner, and an easy-to-use business plan template.

To get started, call 1-888-937-2321 or visit wellsfargo.com/demagazine to request your free Practice Starter Kit. Wells Fargo Practice Finance is the only practice lender selected especially for ADA® members and endorsed by ADA Business ResourcesSM.

All financing is subject to credit approval.

ADA® is a registered trademark of the American Dental Association. ADA Business ResourcesSM is a service mark of the American Dental Association. ADA Business Resources is a program brought to you by ADA Business Enterprises, Inc., a wholly owned subsidiary of the American Dental Association. © 2016 Wells Fargo Bank, N.A. All rights reserved. Wells Fargo Practice Finance is a division of Wells Fargo Bank, N.A. 2846-0116 WFPF-Ad-Dental-Entrepreneur-Winter-16