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.

But business shouldn’t be this hard. That’s why my goal with this podcast is to get you thinking about your dental practice as an Investment Grade Business.

Investment Grade Practices are designed to be well-functioning dental practices that allow the owner to enjoy a rich lifestyle today, while building assets and value for tomorrow. 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 podcast, I will give you everything I’ve learned as a dental practice owner and I’ll bring you interviews with business thought leaders so you are prepared with the vocabulary, knowledge, and certainty to courageously and confidently lead your team and craft your Investment Grade Practice.

In this short first episode, I dive into:

• Your business philosophy: what is it?
• Is your business working for you or are you working for it?
• What your Investment Grade Practice should do for you.

EPISODE TRANSCRIPT

Hello everyone! I’m Victoria Peterson, your host for the Investment Grade Practices podcast. I am so pleased to have you joining me. If you find yourself on this podcast then you’re probably an independent dental practice owner 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 are equipped with the knowledge you need to lead your practice with confidence, and build a business that will secure your future.

Investment Grade 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, 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? 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 pauper. I’ll always be a pauper. And these emotional swings can be quite devastating to your future planning. 

Another business philosophy is the “Someday I’ll”. These are the dreamers who ignore today’s reality. I’m not there yet, but Someday, I’ll be there. Someday, I’ll bring 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. 

An Investment Grade Practice is different. It provides a framework of understanding of 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 is a business philosophy that allows 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 the 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 in 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, where 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, what 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 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 and growth as well as the emotional rewards of making great decisions. 

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. I’m going to consider for a couple months before I buy one, and I’ll consider 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 DSOs 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 you 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, and I promise it will come along. So let’s get prepared. 

The times that we face call for a new leadership, new direction, and new care. And I think it asks us to ask those compelling, bold questions. Isn’t there more to life than work? 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, to the health of my community? Because the way we practice Dentistry today actually increases patient’s 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 in 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, profit, passions, and purpose. Thank you for joining me. I look forward to hearing from you and seeing you on our next episode.