Incremental Revenue – A Series – Part 1

Introduction   

Incorporating Incremental Revenue (“IR)” into a dental practice significantly increases cash flow and practice value.  This series of articles will be explaining how IR works, identifying the components of IR and uncovering the areas in a dental practice where IR exists.  Our initial focus will be looking at what IR is, why you want it and how you can find it.  We will also talk about the necessary components for taking full advantage…

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Associate Contracts and Why You Need Them

The Importance of Associate Contracts

 

Do you have an Associate?

If the answer is yes, then the next question is do you have an Associate Agreement?  In most cases, the answer to that question will be Yes, however far too often the answer will be No. Some will make the argument that you and your Associate have a “Verbal Contract” and in some eyes, you may. If you think you have a verbal contract, then have both parties independently tell…

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Money in your Practice

What is the Lifetime Value of a Patient to Your Dental Practice?

A dentist without patients does not have a great future. In addition to being “customers”, patients are also the “raw material” of a dental office. Like any business, no raw material equals no revenue.

There are two key economic factors to consider with respect to having adequate raw materials or patients. 

  1. How much does it cost to acquire them?
  2. How much does it cost to maintain and keep them?

So where should you focus?  Should…

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Stop Worrying and Start Tracking these Five Essential Metrics

 

If there was ever a reason to kick start the engines it surely is now.  It’s a new year, we have new vaccines – it’s a new beginning!  What are you waiting for?!

Let us start by exploring what we call the “Magic Metrics” of successful practice growth and operation – metrics that we have been teaching for years.  Hill Kindy is in the brokerage business but in the past, we also provided clients all…

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How Many DPCs do you need?

How Many DPCs are Enough?

 

How many dentistry professional corporations (DPCs) does one dentist need?

The answer is: One for each practice that you own. For sure someone is going to tell you that it would be much cheaper if you just put all your practices into one DPC, however, that advice is awfully short-sighted.

It is undoubtedly cheaper to just set up one DPC versus multiple, and it is cheaper to maintain on an annual basis; so why do you…

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cost sharing partnerships for dentists

Cost Sharing Partnerships

 

Practicing in a dental partnership can be a great experience or it can be a nightmare. As a brokerage, we deal with Equity Partnerships and Cost Sharing Partnerships all the time and I would say that, on average, dentists who have been in Cost-Sharing Partnerships would be split 50/50 into the positive and negative aspects of the arrangement. Interestingly enough there are actually some systemic reasons why Cost Sharing Partnerships have such a bad…

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Associates – Hiring Do’s and Don’ts

 

There comes a time with almost all successful dentists when you will need to consider incorporating an Associate into your practice.  A common reaction from many dentists is that associates are too much trouble and there is no way they would have one in their office.  It is true, associates can be a lot of trouble especially if they are not correctly screened and integrated into the office however not having one is likely…

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Why You Should Use a Broker – Particularly Now

 

It has been suggested that the majority of dental practices sold in Ontario and likely in Canada are sold privately or by accountants or lawyers.  It is arguable that these practices could have been sold for more if they had been sold by a broker.  For the last decade, we have been in a very strong sellers’ market which has convinced a lot of sellers that they could avoid a commission and sell their…

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Strategies for Buying Your First Practice

 

Sometimes it’s better if you color outside of the lines.

If you are looking to buy a practice that will be your home, not an investment practice but the practice that you work at growing and building yourself, get ready to do things a little differently than you expect.

A properly appraised dental office is a function of real profitability, sometimes called EBITDA and Return on Investment.  If you take real (normalized) profitability (EBITDA) and divide…

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Starting Your Network – Part 2 of 2

 

Make sure you’ve read – “Starting Your Network – Part 1” before continuing with the rest of this important article. You can check it out here.

What is your next step after you have figured out your “Why”?  Understanding your why at the beginning is crucial to the end result but there is one other piece that is also important if you are to be successful.

Initially, we will be honest, this one may not…

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