Dental Economics exclusive -- How to survive ... no ... make that THRIVE in a down economy

I recently received a call from a dentist I've known for over 10 years. When we first met, we put together a plan that dramatically increased the value and sale price of his first practice. His next practice was thriving, or so I thought until his distress call came.

Admittedly, he was practicing in one of the most economically depressed areas in the country. With a heavy dependence on the auto industry, the community was riddled with uncertainty as the entire industry was going through a massive transition. Corporate restructuring and job layoffs were in the daily news. The unemployment rate soared. People were running scared. As a result, or so it appeared, the practice was suffering. New patient flow slowed to a crawl. Production was at the lowest point in years. Cash flow was getting tight, and the dentist was panicked.

What transpired next is a lesson for any dental practice facing a "down" economy. No matter where a practice is, the actions that need to be taken are similar. But beware! This field guide to operating in a down economy is not for the weak hearted or "follow the crowd" dentist. Keep in mind, if you want to get different results than everyone else, you must be willing to do things that others are not willing to do! So read carefully, take notes, and get ready to take action TODAY.

THE ECONOMY
Having spent nearly 20 years working with dentists, we have ridden out some economic ups and downs: the Gulf War, the dot COM boom and bust, 9/11, and now the mortgage market debacle coupled with record oil prices. Through all of these tough times, those who weather the economic storms and thrive instead of just survived, follow a few basic rules that foster their success in any economy. Here are five such rules for your thoughtful consideration and immediate action.

1. QUIT WATCHING THE NEWS! It's amazing how the economic news of the day, day after day, can work on your psyche. Any mind fed on a steady diet of economic doom and gloom can't help but start to believe that it really is a down economy. This is because the moment the mind adopts a belief it acts accordingly. Any dentist and team that believes that the economy is slowing, that money is tight, and that people are tightening the purse strings will naturally start shrinking when it comes to diagnosis, treatment planning and financial arrangements. "They can't afford it right now, money is tight, and it is just not a good time right now," are all common refrains that creep into the repertoire of "slow economy" self-talk. So it naturally becomes a self-fulfilling prophecy. If I believe that the economy is down and that everyone is affected by it, then I will naturally start treating everyone as if they have little economic means to do anything discretionary. So I quit using my comprehensive treatment planning and case presentation methods. Financial arrangements are presented with reluctance and patients respond accordingly. Practice production begins to suffer and things slow to a crawl. All of the sudden, the team looks around, and lo and behold the belief is confirmed: "It's the economy." WRONG! It's your belief in the economy that has led you to the results you're getting. It all starts with belief.

2. STOP TALKING TO OTHER DENTISTS! A recent query on a dental message board was very telling: "Looking for feedback if anyone is experiencing a bit of a slow down right now. We have a little bit and we are trying to get a sense of how dentistry is doing regionally and nationally with the economic realities of today." Translation: "Our practice is down and I would really like someone else out there to tell me that their practice is down as well so we can just blame the entire thing on the economy and not have to do anything about it!"

Misery loves company! So do dentists. Think about it. Human nature is quick to find explanations for poor results by pointing to things that are too big and too complicated to do anything about, thus relieving us of having to do anything about it. After all, who can tackle anything as big and unmanageable as the economy? Who even understands the economy? So if it's too big, too unmanageable, and too complicated to understand, then let's just throw up our arms in bewilderment and frustration and wallow in our woes until things get better someday.

Dentists as a group love to commiserate. If you're like most dentists, you have done it at least once: It's a slow day. You call your dentist buddy across town. "Hey. How ya doin'? Things going kind of slow for you? Yeah, me too." You somehow feel better because someone else is suffering just like you. So you go back to doing--nothing! Commiserating is exactly that: from the Latin, com (with) plus miserari (lament). Simply put: to cry together or be miserable together!

So quit talking to other dentists to validate your poor performance. If you're looking for excuses, they're easy to find right down the street or right next door. You don't need a crying buddy. You need an action-oriented energizer. That's when you:

3. REDOUBLE YOUR EFFORTS! Extraordinary times require extraordinary efforts. When things are going the worst is when we need to do things that work the best. Roll up your sleeves and refresh your verbal skills and case presentation methods. If it's been awhile since you took a good practice management course, now is the time to do it. Even the most experienced, well-versed practice management genius is not doing everything that he or she can to maximize the performance of the practice. In many cases, it's not what you don't know that is your biggest obstacle, but what you do know that you're not doing or not doing consistently.

When there are signs that there may be tough economic times on the horizon, it's time to strengthen your economic, management, and people skills. The economy within your practice does not have to reflect the economy outside your practice. Not everyone in every economy is losing. There are winners and losers in every economy. Which side you're on in dentistry is a matter of choice. Go back to the basics that work inside your practice--good patient service skills, good telephone skills, good verbal skills, good case presentation skills, good financial arrangement skills, good scheduling skills, and good patient retention and activation skills. There is a lot to do, so do it right. Redouble your efforts to execute with excellence the basics every day, with every patient, at every appointment and you will be amazed at the results--no matter the economy!

Remember: When one starts buying into bad economic news, one quits doing the things that work. It is an unconscious thing. So redouble your efforts and consciously revisit all of the systems and protocols in your office and focus on executing at a higher level.

4. BE PROACTIVE! What are you doing to actively generate new patients? Do you track the source of each new patient? If so, take a look at your results over the last 12 to 24 months. What has worked the best? Can you do more of it? If you haven't done much in the area of marketing, what can you do to generate interest in your practice? Are you asking your existing patients to refer their family and friends? What systems do you have to create more qualified, less resistant patients on a consistent basis? Now is the time to do more of the things that work best. While the other dentists in town are singing the economic "blues," get "jazzed" and make something happen. You have to fight human nature on this one. When things look like they're tightening up, we're tempted to go into our shell and run for cover. The reality is that we need to do exactly the opposite. For the best indication of what you should be doing, look at what all the other dentists are doing and do the exact opposite! If they're scared, be bold! If they're reducing, expand! If they're pulling in, push out. The market has a way of responding to those who are bold, brave, and persistent.

It has been said that, "A terrible thing happens when you don't advertise--nothing!" And so your results will be. If you quit proactively promoting your practice internally and/or externally, your market will quickly forget about you. So be proactive. Promote your practice like you expect people to respond and an amazing thing will happen. They'll respond!

5. MEET IT HEAD ON. Hold a team meeting immediately and have an open and frank talk about the economy and the power of belief. Talk about the four steps above, write out your team action plan to make it happen, and then communicate your resolve to have a booming economy within your practice regardless of what is going on outside the practice. Set up rules for attitude, belief and team talk as it relates to the economy. It may be gloom and doom on CNN, CNBC, MSNBC, ABC, CBS, NBC, and BBC and every other letter of the alphabet, but your team determines the economic forecast and atmosphere for your practice. That decision is made either by default or by design. It all depends on the action you take. Make the decision as a team, stick with it, and support each other every day to stay on track with your positive, proactive, booming economy mentality. If nothing else, it will make your days a lot more fun!

Here is the simple five-step "Thrive in a 'Down' Economy" prescription:
1. Quit watching the news.
2. Stop talking to other dentists!
3. Redouble your efforts.
4. Be proactive.
5. Meet it head one.

That brings us back to the dentist who was in a panic at the beginning of the article. What did he do? He took steps one through five to get started. To be specific, after turning off the T.V., throwing away the newspaper, tossing his local dental society phone directory, meeting with his team, and making some fundamental attitude and belief decisions, his team went back to their marketing results. They had been running a very successful direct mail marketing campaign. The results were predictable and consistent. So, what did they do? They did more of what was already working. They increased marketing and combined it with good verbal skills and case acceptance methods that produced predictably positive results. Within 45 days, the practice was back to producing at or above goal, all because they followed the rules for thriving in a "down" economy.

Remember, everyone is not broke despite what you hear on the news. It may take a little more effort to get the same results today than it did a year or so ago, but that is what separates the winners from the "also rans." The beauty of dentistry is that it is a proactive business. Unlike our friends in retail, we can much more easily break out of the confines of the four walls of the practice, get out there, and make something happen by doing better hygiene recare calls, calling on unscheduled treatment, doing same day treatment, and improving internal and external marketing efforts. The path is clear. You just have to be willing to take it.

So get busy! Put your plan together with your team whether you're feeling a slow down or not. After all, the best time to prepare for the worst is when things are going the best. After all, the best thing about dentistry is that you can thrive in any economy. It's a choice, not a circumstance. Make it happen!

Steven J. Anderson is the founder of several influential dental organizations, including the Total Patient Service Institute (www.TotalPatientService.com), Crown Council (www.CrownCouncil.com), and Smiles for Life Foundation (www.SmilesforLife.org). His seminars are widely known in the dental world as a premier team case acceptance resource. For more information and his FREE weekly "ToPS Tips" to build your practice, click here or e-mail Answers.