Failing to plan in 2025 can crush associates, new owners, and selling dentists
If you’re anything like me, you’ve lived the phrase, “We don’t plan to fail … we fail to plan.” Practice life is busy, home life is busy, and it’s easy to wake up in June and wonder where half the year went.
I learned my lesson years ago. Here I’ll share how to plan for success in 2025 from three perspectives: the associate dentist, the new-owner dentist, and the selling dentist. You know who you are, so read about yourself here, and reach out if you have questions about next steps. I’m here to help!
Planning for associate dentists
I’ve worked with more than 100 associate dentists a year for the last 14 years. Here’s what we’ve learned together that helps every associate I work with today. The best time to set yourself up for success as an associate and a future practice owner is right now.
Financially speaking, it’s vital to understand how to generate income and control your personal costs. Living your success (a self-determined future) relies on it. Statistically, at some point you’ll want to own a practice. What lenders need is 10% of the cost of whatever practice you buy, or whatever your startup costs are. Translation: save $60,000 to $75,000 in any liquid account.
Systematically speaking, associates and owners should think about becoming efficient with their most valuable commodity—their time. Work on systems that help you make that happen with patients, with your team, and at home.
Clinically speaking, mastering your diagnostic skills is key. There are a lot of shiny pennies out there to chase. Some are worth it, some are not. Foundationally however, all pennies enter your pocket via your ability to recognize the dentistry your patients need and getting them to say yes.
In the video below, Dr. Rice and Chase Howard, JD, discuss how to legally and financially to successfully establish your position as an associate.
Planning for new-owner dentists
Do you plan to build your practice? Although there are common traits in startups and acquisitions, you might be in one camp and want to focus on only that. But planning not to fail if you want to build your practice typically takes more time and more team.
Think about who you need on your team: lender, real estate broker, general contractor, attorney, CPA, equipment specialist, marketer, and expert coach. The kisses of death in the start-up space are delayed opening and little patient flow.
Trust these experts to give you the best advice. If you don’t trust the experts and feel the need to micromanage, they may be the wrong people for your job, or you might need to start trusting more. You need that trust to win big as an owner.
Think one to two years into the future. Based on your geography and your state laws, planning for the future will help you open successfully and become busy.
Do not be the DIY dentist trying to save a dollar, only to pick up pennies. There’s a lot of bad advice out there. Circle back to who gives the best advice, invest in them and yourself, and win.
Do you plan to buy your practice? The common traits with those who build are a lender, attorney, CPA, buyer representative (the seller has one), equipment specialist, real estate broker (who can negotiate your lease or property purchase), marketer, and coach.
Goodwill is the only thing you’re really buying and that involves team retention, patient retention, patient insurances, and more.
Planning for selling dentists
Sellers, this is your last bite of the apple. Selling the right way means you maximize your dollars and exit on your terms. Your potential audience depends on a few factors:
- Your philosophy: You want to carry the private practice torch or you’re open to selling to any potential buyer, whether private, existing regional DSO, or existing elite DSO.
- Your numbers: Extraordinarily well-run practices have plenty of options and total transparency, and practices that are not run well do not have as many options.
- Your geography: Rural practices struggle to sell.
If you’d like to have a conversation about your options, I recommend a few things. If you’re looking for a 30-minute landscape view of our profession, reach out. I’m happy to give you the time. Many dentists I speak with experience selling number disappointment. It’s my pleasure to help you avoid that shock before you write a check.
If you’re looking for a true assessment, connect with the right broker. Some brokers are excellent in traditional practice transitions, while others are excellent in large practice sales.
Once you know your selling number, it’s decision time. Is that number enough in the money and control departments? If it is, you’re ready to sell. If it isn’t, you’re like most. You need to choose to accept where you are and get out, or you need to invest time and money so you can grow your numbers and take control of the process. This takes one to two years depending on how much growth and control you want.
It’s 2025, and with the new year comes your opportunity to stop failing to plan and start planning to succeed! Build that self-determined future you deserve.