When a practice becomes busy, practice owners can be tempted to assume it’s time to make changes, including adding another location. But before taking any action, owners should first determine whether they’re truly at capacity or simply experiencing inefficiencies that can be optimized within their existing operation.
In this episode, Brian is joined by Dentist Advisors Practice Strategist Christine Uhen to walk through how an owner can evaluate whether expansion is the right next step for their business. Christine provides valuable insights and data for owners to leverage when looking at their financial performance and operational systems.
“Capacity is measured by how effectively your systems run and how well you utilize the chair time available to you. When both are optimized, you’re ready to duplicate.” – Christine Uhen, Practice Strategist at Dentist Advisors
Key Takeaways for Healthcare Business Owners:
- Understand your why and look at the data. While you evaluate if an expansion is the right next move, measure if you are 100% operationally effective at your current location.
- 80% of the value of your business is the people and systems. Adding more people to an inefficient system only adds to the inefficiency.
- More locations don’t necessarily mean a higher valuation. Expansion without proper planning can create operational challenges that make the practice less attractive to a future buyer.
Why This Matters for Healthcare Business Owners:
This episode of The Advisor’s Table gives healthcare practice and business owners practical metrics to review while evaluating if expanding their practice is the right next move.