A dentist with a thriving practice told a team member recently that he didn't want to open a second practice as he didn't want to 'lose the magic' of his first site. So, how do you go about making sure that you retain the magic if your aim is to expand into an additional site? Here are some things to bear in mind.
Buying your second practice is a different experience from when you acquired your first one. You will need to take into consideration the needs of two businesses, two teams of staff and two lists of patients, among many other things. All these elements add complexity to the process.
Over the years our team of Regional Support Managers has come across many practice owners who have gone through the pain of expanding into a second practice. I asked three of my longest serving colleagues for their top three pieces of advice for an owner buying a second practice. Hopefully, bearing in mind the following considerations will help you navigate the process more smoothly.
Fliss McCalmont has worked for Practice Plan for 24 years and feels that setting and understanding expectations are crucial to the success of integrating a second practice. Her advice is:
Ensure you know what external organisations expect of you.
This includes the CQC and the local Health Board or ICB, especially if you're taking over an NHS contract as well. The BDA can offer advice on how to go about things, or you can approach your LDC contacts for advice.
Employment rights and the team.
Employment legislation changes at such a rapid rate that it can be tough to keep on top of things. If you are purchasing an existing practice rather than setting up a squat, then you'll need to consider the team's current terms and conditions and how they align with those of your team at your existing practice. If you're at all unsure, it may be worthwhile approaching a specialist firm of solicitors to help you with this. After all, the purchase process is stressful enough without adding the risk of an employment tribunal into the mix!
Be prepared for the fact that some of the existing team may decide not to remain with you. Some people dislike change and may choose to move on rather than adapt to a new way of working. Although it can be difficult not to take this personally, this is usually a reflection on them and their ability to deal with change rather than you.
Seek advice from people you trust.
There are firms of specialist accountants, solicitors and estate agents who can help guide you through the process, so make the most of their expertise. If you have a membership plan with Practice Plan, then our field team has more than 300 years' worth of experience in dentistry, so we've seen some of the pitfalls other clients have experienced when purchasing a second practice. Any of them will be more than happy to share their knowledge over a cuppa.
Find a culture match.
In Josie Hutchings' 24 Years with Practice Plan, she's noticed the importance of matching the culture of both practices to ensure success.
As the American writer and business guru, Peter Drucker, said 'Culture eats strategy for breakfast', so having the right culture is key to the success of any business. While finding the right location for a second practice is important, making sure the two cultures match carries equal weight. Finding a practice with a culture that aligns with that of your existing practice will help make the transition much smoother for both the staff and the patients.
Communicate clearly with the new team.
As with a conversion from NHS to private dentistry, things work best when the whole team is on board and understands what's happening. This can only be achieved by communicating clearly and honestly with everyone as early in the process as possible.
It's important to remember that some of the team members at the second practice may be feeling unsettled by the change, so it's essential to allow them to express their concerns and address them as soon as possible. Your aim should be to help them feel they are a part of the change and that it is not something being done to them.
As Fliss says, some people may choose not to remain with you but, as long as you have communicated openly and clearly with them and given them an opportunity to air their concerns, you can do no more. If they choose to leave, then that's just the way things are sometimes. So, try not to take things to heart.
Understand their existing patient base.
By acquiring a practice as well as an existing team, you're taking on a base of regular patients as well. Your goal is to retain as many current patients as well as encouraging new ones, so it's important to find out more about them.
What are their expectations? What is their dental history? Getting to know them is important to be able to build rapport and (hopefully) gain their loyalty.
Dentistry is a personal service and so patients often remain loyal to a dentist rather than a practice. The private dentistry market is still very competitive, so patients have the freedom to move to another practice if they don't like the cut of your jib.
Get to know as much as you can about your existing patients so that you start building a new relationship with them as soon as possible.
Before joining the Practice Plan Group 25 years ago, Ian Eslick started his working life working on the financial and administration side of dental practice, so his advice focuses on this aspect of purchasing a second practice.
Fail to plan or plan to fail?
It's unlikely that your second business will be a carbon copy of your first so, consider how they will affect or complement each other. Do they offer different services? Does this mean you can refer patients between the two? If your initial practice is bursting at the seams, can you transfer some patients to the new site? These issues will take some consideration which is why planning is key. Create short, medium and long-term business plans with cash flow forecasts to ensure both practices thrive.
Managing your time and your staff.
In the early days you will probably need to split your time between the two sites. Do you have a stable management structure that will facilitate this? Is the new site associate-led or does it have a practice manager? The answers to these questions will inform how you proceed.
Also, can you share staff between the two sites? If the two sites are close enough, then this can be a great way to integrate the two teams and possibly offer a change of scene and some variety to your team members that they may really appreciate.
Your costs and investment opportunities.
Although I'm mentioning this last, it's by no means the least of your considerations! The extent of your costs and investment will depend on what you want to do with the new practice. Do you want to refurbish or is it good to go? Do you need to recruit new staff members, such as a practice manager? Will you need to rebrand? These are just a few things that will require some level of investment from you.
Don't forget to investigate all the funding options available to you. There are some specialist dental financial providers who will allow you to leverage the equity you have built up in your current practice to access finance to help with cash flow when purchasing your second business. Seek advice from trusted sources on what help is available to you.
Hopefully, these few hints will prove useful during the purchase process of your second practice.
This year, Practice Plan celebrates 30 years of welcoming practices into the family, helping them to grow profitable businesses through the introduction of practice-branded membership plans. So, if you're looking to switch provider or are considering a full or partial move away from the NHS and would like a provider who will hold your hand through the process whilst moving at a pace that's right for you, why not start the conversation with Practice Plan, on 01691 684165, or for more information visit the Practice Plan website: https://www.practiceplan.co.uk
About Katrina
Katrina is an Area Manager who joined the dental sector in 2018 after 25 years working in sales and people management roles.
About Fliss
Fliss McCalmont has been a Regional Support Manager at Practice Plan for 24 years and before that was a Practice Manager for 10 years.
About Josie
Josie Hutchings has been a Regional Support Manager at Practice Plan for 24 years and has more than 30 years' experience in the dental industry.
About Ian
Ian Eslick is a Regional Support Manager at Practice Plan and has around 30 years' experience in the dental industry, including 5 in practice.