September 20th, 2022
Episode 36 – Requested Replay: What is an Investment Grade Practice?
“Being a dental practice owner is one of the most courageous acts of independence to be found in the business world today.” – Dr. Victoria Peterson
You deserve a dental practice that gives you a life you love today, and builds value to support your future. But, wait, you say. It’s not that easy. I agree, it’s not easy to build a valuable dental practice but I can tell you one thing: business shouldn’t be this hard.
I believe every independent dental practice owner deserves an Investment Grade Practice that gives you a life you love today, while building value for your future. Which is why I’m re-running my first episode where I explain what an Investment Grade Practice is and how it can give you the life you want and deserve.
Crafting an Investment Grade Practice is a conscious choice that you make so you control your business and craft the life and future you want, instead of letting circumstances pull you off course. The good news is you already have the tools you need to build your own Investment Grade Practice!
In this episode, I give you a summary of what I’ve learned as a dental practice owner so you are prepared with the vocabulary, knowledge, and certainty to courageously and confidently make the decisions you need to secure your future.
In this episode, I dive into:
- The importance of your business philosophy and how it drives your decisions
- How to know if your business is actually working for you
- The results you can expect from your Investment Grade Practice
Want to know if you have an Investment Grade Practice? Click here to use the completely free Investment Grade Practice calculator: What’s my IgP Freedom Number?
Hello, everyone, I’m Victoria Peterson, your host for Investment Grade Practices Podcast. I am so pleased to have you join me. If you find yourself on this podcast then you’re probably an independent dental practice owner or small group looking for advice and information to help you make smarter, easier decisions for your business. Good news, you’re in the right place. On this podcast. I’m going to give you everything I know about running an Investment Grade Practice. So you’re equipped with the knowledge you need to lead your practice with confidence and build a business that will secure your future. Investment great practice is a business philosophy. It allows you the freedom of living your life on today’s terms while making decisions that protect your tomorrow. You know, there are other business philosophies and dentistry is often unconsciously chosen.
There’s the golden rule, He who has gold rules, these doctors rely on the bank balance rather than solid financial data to let them know how the business is going. Is there money in the bank? Hey, I’m keen, I shall buy that new piece of equipment and rule. If there’s no money in the bank, then often they think I’m a popper. I’ll always be a popper and these emotional swings can be quite devastating to your future planning.
Another business philosophy is the someday, Isles. These are the dreamers who ignore today’s reality. I’m not there yet, but someday I’ll be there. Someday, I’ll bring in sleep apnea and implants and 3d printing and unlike the Golden Rule kings who purchase without caution, someday I’ll doctors can become complacent and settle for yesterday’s technology, denying themselves the opportunities of today, Investment Grade Practices different. It provides a framework for understanding how to spend when and where, how to save, and how to leverage working lines of capital to invest in your business, propelling it beyond the competition and securing your future.
In essence Investment Grade Practices of a business philosophy that allow you the freedom of living life on your terms today, while making decisions that build your tomorrow. I’m your host of Investment Grade Practices Victoria Peterson, a serial entrepreneur and co-founder of productive dentist Academy along with my business partner, Dr. Bruce Baird. Since 2004, we’ve been recognized on the Inc 5000 Fastest Growing Private Companies four times. I’ve also owned a small network of dental practices and was recognized with silver Stevie, female entrepreneur of the year. So like many of you, entrepreneurship is in my blood, combining 15 years of clinical experience with a business major and doctorate and spirituality.
I really do hope to bring practice owners some hope and some encouragement. I think that being a dental practice owner is one of the most courageous acts of independence to be found in the business world today. It’s true, just think for a moment and ask yourself, Where did I take a stand for quality today? Where did I feel supported? And more importantly, did I feel confused? Or ill-prepared to make decisions? I know as an entrepreneur, every day, I face questions that are bigger than me. Every day. I wonder if I turn left? Where will that take me if I turn right flow will be down that road and it takes a lot of courage to be in the lead and to make those decisions playing off the themes of living today and building tomorrow.
Each podcast guest is going to bring expertise to help you strategically think about life choices to bring support to help you make those tough decisions and together we’re going to explore the four Ps of successful practice ownership. We’re going to look at the people, profits, passion, and your purpose. leaning into my experience of owning and managing a small group of five dental practices in the Midwest. We’ll also explore the landmines in growth, as well as the emotional rewards of making great decisions and taking a few risks.
I’ve pored through my rolodex of connections in our field to bring you the best and the brightest. Oftentimes, my guests are not going to be related to dentistry at all and I think that we could all use a fresh perspective. If you’re like me, I’ve looked around at my dental colleagues and there are two times when dentists seriously consider the value of their business when they’re purchasing one and when they sell it and it says if the activities happen in a bubble, you only need a few months to consider it right. I’m gonna consider it for a couple of months I’ll buy one I’ll consider it for a few months, maybe a year and then I’ll sell it. Now here’s the bigger picture. The average dentist will see 25 to $30 million pass through their bank accounts. during their career, I’m not talking about a big DSO. Here, I’m talking about the average solo practitioner doing about a million dollars a year. For many of you, this number is going to be higher. So you have $30 million in, how much will you leverage along the way? At what point?
Do you stop working for money, and allow money to work for you? I’ll say that again. When will you stop the hustle and the grind of working for money, and allow money to work for you? Imagine for a moment that your practice could meet its overhead obligations without you working. I know it sounds magical and it is, and you know what, we’re here to help you get there. You’ll be prepared for the next downturn in the economy, I promise, and I promise it will come along. So let’s get prepared.
The times that we face call for new leadership, new direction, and new care and I think it asked us to ask those compelling, bold questions. Isn’t there more to life than work? And how do I outpace my overhead and reinvest in my future? See, I think these compelling questions actually point to an even bigger picture. How do I organize my business in a way that takes massive care of my patients that contributes to my community, and to the health of my community? Because the way we practice dentistry today actually increases patients’ immune system functionality, it increases their overall state of health and that’s what I hope for you to play the game of business well, you need to know the rules.
The truth is there aren’t many, but if you miss them, you will swirl chaos your entire career, always working hard to play catch up. Welcome to building an Investment Grade Practice, preparing you with the vocabulary, the knowledge, and the certainty to courageously lead your team. Together, we will explore the four P’s of successful practice ownership, people’s profit passions, and purpose. Thank you for joining me today. I look forward to hearing from you and seeing you on our next episode.
Thank you for tuning in to this episode of the Investment Grade Practices Podcast. If you find value in this episode, help us spread the word by passing it along to a dental friend, subscribe and give us a Like on iTunes or Spotify. Learn more about building your Investment Grade Practice at productivedentist.com today