We’ve recently been seeing a trend of sorts in dentistry when doctors decide it’s time to open practice #2. There seems to be some magical thinking going on regarding how the second practice will become as profitable as the first. Let’s review some of the areas you need to look at before you open the second, third and fourth offices.
Location: How long did it take you to decide on a location for your first practice? If it’s doing well enough for you to consider a second practice, you probably put a great deal of time and research into the initial location. Did you put that same amount of dilligence into choosing the second location….or did you just assume if # 1 did well, so will # 2?
Time: So let’s say you did indeed choose the second location as carefully as the first….did you think about how much time you spent on marketing the first location? Did you allocate as much time to location # 2? Do you even have enough time after working in your first practice to do any face to face marketing?
Staffing: Do you have a reliable second doctor who will be helping to see patients? Or are you going to try to see patients in both practices by yourself…..even though you’re already working 4 days per week at your first practice.? That leaves one to two days per week ( if you’re willing to see patients on Saturday) for your second practice. Did you start practice number one with that little time for patients? And if you did, when did you add days to your first office? Even if you worked elsewhere part time as your practice grew, I’m betting you added days into your first practice just as soon as they could be filled. I’m also betting, if you didn’t consider this, patients have started complaining about lack of availablity in your second practice.
Reliable doctors: I mentioned in the previous point the need for a reliable doctor. Be sure you have someone contracted for at least a year, then start the renewal for year two at least three months before the contract ends. Don’t let him/ her procrastinate till the last minute. If they do, they’re probably considering leaving you in a bad place for the second practice. Remeber how long it took to find an associate you liked? Well, it’s going to take that long this time too.
Reliable staff: Have you absolutely nailed it down with staff members that they’re ready and willing to travel to practice # 2? Much like your associate, if they’re not commiting to the idea, they’ll probably inform you when the office opens they really don’t feel good about the commute. At this point you can either pay them more to travel, fire them ( not my first choice) or pretend they never said anything, scold them for not traveling and wait till they quit…..also not a great outcome.
To sum up, when you start an additional practice, be sure you’ve REALLY thought through the whole process. Don’t treat practice # 2 as a second class practice, then wonder why it’s not profitable. A thriving second practice needs the same attention you lavished on practice #1…..if you can’t put in the time, don’t waste the money trying to expand.
