In my role as a management consultant and advisor to the dental profession,  one of my core principles is that if at all possible, a doctor should own the dental practice location and not rent. Over the years, I have probably helped more than 75 doctors acquire a building or a condo space, and I cannot remember even one situation where the results were not beneficial. In this current low interest rate environment, owning makes even more sense. Commercial real estate prices are still depressed, construction per square foot is as low as I have ever seen, in most situations there is rarely more than a 10% down payment required, and fixed mortgage programs for 15 to 20 years are amazingly attractive.

The major reason to own is the opportunity to build equity. The monthly payment goes to you–not the landlord. At the end of 20 years, you own your condo or your building free and clear. When you rent, that money has bought you nothing. Even if there was no appreciation in value over the length of the mortgage–highly unlikely–you now own an asset that you can sell or rent. Investing in real estate that you occupy is a major advantage because renovation costs for a dental practice are expensive, and are special-purpose for that business only. If you own the building, then all that investment remains with you the owner rather than being forfeited at the end of a leasing relationship.

The clinical path that I observe for the large majority of dentists is an associateship leading to an eventual outright purchase of that practice or another dental practice. For financial considerations of debt, the dental office space is often not included in the purchase. Usually a lease is secured with an option to buy in the future if in fact the selling dentist is the owner of the facility. It is at this critical juncture – when the lease is expiring – that a decision must be made to buy – or to extend the lease – or perhaps to move.

I realize, that as with most things in life, timing is everything. If you decide to purchase your office space, it will be one of the major investment decisions of your career. In my experience, the biggest obstacle to continued growth of a dental practice is the lack of an adequate facility. So perhaps it is time for a serious gut check on your future. These current low interest rates won’t last forever. Money currently is so cheap that the cost of acquiring property is not much more than renting. If you currently rent–and you are getting close to renewal time under the terms of your lease–I encourage you to reassess your opportunities.

Every year during the month of November, I set aside time to meet with my clients to help them formulate a budget for the following calendar year. We actually create two budgets. The first is what I call a “break-even” budget. This assumes that revenue–in the worst-case scenario–will be equal to the previous year. Our challenge for budgeting purposes is to identify and control anticipated expenses so that the doctor in this scenario at least “breaks even” and draws the same W-2 wages as the previous year.

The second budget is the “growth” budget, euphemistically called the dream sheet. This is what we hope will happen if the sun and the moon and the stars are all in perfect alignment. But hope is not a strategy. For growth to actually happen, a great deal of hard work and teamwork must take place. Here are my four suggestions that are paramount for any growth plan to succeed.

1. Share the vision–In my experience, many dentists are poor communicators. Yet good communication with your staff is one of the most important ingredients for success. The doctor cannot exist in a vacuum, and your staff are not mind readers. So meet with your team and go over in exquisite detail what you expect to accomplish–and how they will be involved. I definitely believe that incentives get results, so show staff how your growth plan will be good for them.

2. Attracting new patients is an essential component to growth – Re-visit your internal marketing plan where you hopefully are now rewarding  your existing patient base for referrals – and see how that plan can be improved.

3. Maximize your online presence– it is definitely a brave new world out there! Word of “mouse” has become just as important as word of mouth. You need to take advantage of every opportunity to not only participate but to shine in the Internet arena.

4. Commit to improve customer service–I don’t care how good you are–you can get better. Make a full-blown, no holds barred commitment to creating an unbelievable customer service experience.  This experience must be consistent and not schizophrenic. Friendliness and respect for your patient should become the DNA of your practice. This demands an unwavering commitment by the doctor and every staff member at every interaction and at every level. The goal is to make each patient feel so special that they feel compelled to share their experience with others.

I know this is possible. I hope you will give it a try.