Not Everyone Needs New Patients Do You? By Dr. Tom “The Gems Guy” Orent
maximizing utilization of your facility in order to grow the profitability of your practice and build wealth for yourself and your family. Let’s say you operate for the maximum possible number of hours, and there’s not a free chair in your office. You’re open six or seven days a week from 7 a.m. to 9 p.m., and your facility is maxed out. You have maximized your time. The next way to boost revenue is to look at your utilization of space. Underutilized Real Estate Is the layout of your facility maxed out to capacity? It’s not unusual for offices to have one room initially plumbed as an operatory but currently not yet used as one. Many doctors are hung up on presenting cases in a “consult” room. I was one of them. But your ability to sell patients on what you believe in your heart is best for their health is determined more by what you say than where you happen to say it. Remake that “consult” room into a treatment room, and you may add six figures of revenue per year. Or, like Dr. Gordon Shlom, you can get even more creative. How Dr. Shlom Saved His Practice and His Financial Future My love for volleyball took me to Detroit in 2013 for the USAV nationals, where my team and I were competing. We played all our games at the convention center by day, and by night we watched the USA national team play in an international competition next door at Joe Louis Arena. Gordon Shlom had been a GG12 member since 2009. He and his family were kind enough to come and watch my team compete. Afterward, we caught up a bit, and then he took me to see his office. Even all those years later, Detroit was still decimated by the recession. Many windows were still boarded up, buildings abandoned, and the entire city looked like the “recovery”
Not every dental practice would benefit from new patients.
But 99 percent would.
There are two types of practices that wouldn’t benefit from new patients:
1. The practice of a doctor who is completely satisfied with its size and profitability as well as his or her financial standing
2. A practice that is already at capacity and maxed out in every possible way
If you look at the two examples below, you’ll find the two key areas that define capacity: time and space.
Hours Practices truly at capacity have every minute scheduled out for several months . Every chair is full. If you look at their schedule, there’s not even a half-hour opening to squeeze in an emergency. For hygienists and doctors alike, there’s simply no open time. You may think there’s no way to expand your hours of operation, but many dental practices are only open 40 hours a week. Dental offices that are crushing it are open 7 a.m. to 9 p.m. at least six days per week, sometimes seven. Many of these practices generate $4,000,000– $5,000,000 in a single location. The doctors/owners of these practices realize they must be open 60–70 hours a week to maximize new patient flow … and to maximize utilization of facility and equipment. Now, I’m not suggesting that you need to start working 80-hour weeks. You can bring in hired gun specialists, expand with associates or partners, or implement other “Gems” we detail in our GG12 program. The key, again, is
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... continued f rom cover had overlooked it. As Gordon explained, “It’s one thing when there’s a downturn in the economy; it’s another thing when people leave and they don’t come back.” Back in 2009, before joining GG12, he had no retirement, his practice was drowning, and the city was struggling. Gordon asked me, “Will GG12 work for me?” and my honest response was, “I have no idea.” He told me if his practice didn’t improve, he was going to have to close the doors — not sell the practice, but board it up with the others. This wasn’t an option for him; he had no retirement and was already in his late 60s at the time. He joined our GG12 family and hasn’t looked back since. In the first 10 months, his revenue increased $400,000. During his next 10 months in our GG12 Alumni program, his revenue rose by another $400,000. During his next 10 months in our GG12 Alumni program, his profit increased by another $400,000. He added a board-certified Oral Surgeon, two general dentists, and a Periodontist. When he maxed out all possible time, he decided to add another 1,750 square feet, including three more treatment rooms. Today, he’s in his mid-70s. He eliminated $1 million in debt, bought a second home in Florida, and paid cash for his dream car — a BMW M3. In Gordon’s words, “I would not have reached this point in my life without Dr. Orent’s keen eye for meeting
his clients where they are at and helping to guide us toward achieving, even exceeding, our goals.”
Where Do We Go From Here? There’s a good chance that you are nowhere near capacity. Assuming you’re not, then a simple, proven-effective way to generate a potentially massive increase in revenue is to focus on boosting your new patient flow. Even a small increase in new patient flow can add a quarter of a million dollars a year to your practice, and it’s not nearly as difficult as you may think. Could you add just one new patient a week? Let’s look at the math of what that would do for your practice. One new patient a week makes 50 for the year, including two weeks off for good behavior. The average lifetime value of a new patient in a general practice is $4,800 over six years, so one new patient a week adds up to $240,000 in revenue per six-year sales cycle. And that’s just on new patient flow alone, not any other revenue potential. So how do you increase your new patient flow? Stay tuned for next month’s “New Frontiers of Dental Practice Success” where we dive into “9 Keys to Rapidly and Consistently Increasing New Patient Flow and Adding at Least $150,000.”
things happen. But when he was away, Cherri went off like Mount Vesuvius. She explained how Dr. George was a great doctor (clinically), but he was suffering from what I call “shiny-squirrel syndrome.” Every new thing he heard, read, or dreamed up was the “magic bullet” to solve everything that was going on in the practice. Morale was dying; the team wasn’t sure if they just wanted to quit or show up with pitchforks and torches. Sure, the numbers made everything look good, but it seems that when Dr. George wasn’t setting fires in the office, he was spending a lot of time making the practice look like it was successful. He was erecting a Potemkin village, nothing more than a beautiful facade to cover up the decay and chaos in the background of his practice. I shared that the only known cure for shiny-squirrel syndrome is a difficult conversation — the kind of honest interaction that makes the question, “Do these pants make me look fat?” look like child’s play.
By Tom Rich, MBA, GG12 Senior Practice Analyst The Weakest Link
(Names have been changed to protect the innocent … and guilty.)
Last week, I was speaking with Dr. George and his office manager, Cherri. We were discussing his team, how each member has specific strengths and weaknesses, and how we could better harness their talents and abilities to help him finally achieve the practice of his dreams. He agreed … in fact, he even brought up the adage, “A chain is only as strong as its weakest link.” Prior to that specific topic, Cherri had been excited and engaged in our conversation, but when we were covering “the weakest link,” she was dead quiet. A few minutes later, when Dr. George needed to step out of the room, it became obvious why. Cherri didn’t waste a second.
She asked, “What do you do when the dentist is the weakest link?”
It’s a hard conversation, but it’s hugely valuable.
Dr. George seemed like he knew what was happening in his office, how to motivate and support his team, and how to make
Here are a two questions to help you get started with that conversation:
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How to Get $100,000 of Publicity — Free!
publishers. Not just one editor for each publisher, but three: the health editor, business editor, and editor-in-chief. Send emails and faxes once a week to your chosen 100 contacts until you hook one. Part 2: Create a Bio Media outlets want to know who you are. It doesn’t need to be a long explanation. A one-page or half-page bio about you and your background will do just fine. Important note: Don’t send the bio with the press releases. Your bio is something to follow up with once editors raise their hands and express interest. Part 3: Q&A Once you’re asked to do an interview, it’s time to provide some of your own questions. Paul describes this as the Q&A section, but the answers are what you offer in the interview. Basically, you offer guided questions so both you and the interviewer are set up for success, creating the best and most informative interview possible. What blew me away about the Q&A was that the media folks loved them and used my questions for just about every interview! So, how do you write a killer headline? What content should you be using? How do you find 100 outlets to contact? Where can you find the press releases I wrote that landed me major television coverage (my press releases you can swipe)? Well, all the answers and more can be found in episode 57 of the GG12 Monthly Team Training Toolkit.
Public relations (PR) is not a substitute for marketing. A solid practice depends on effective marketing. But that doesn’t mean you should neglect your PR strategy. PR can be a game- changing weapon for your practice. I learned this back when I was a practicing dentist, and it positively affected my business and my standing in the community. I learned how to use PR from my dear old friend Paul Hartunian. He developed a three-part strategy that I applied directly to my practice. Before I met Paul, I wasted $20,000 on a Boston PR agency that got me just about nothing. Once I began using Paul’s system, I landed four major evening news broadcast interviews (ABC, NBC, and CBS Boston affiliate stations) and tons of radio and newspaper coverage. FREE. You can (and should) do it yourself. Here’s a quick synopsis of Paul’s methodology: Part 1: Draft Press Releases The first step of Paul’s process is coming up with unique content that would make for a great news story. Perhaps your topic is something fresh, like using transillumination for differential diagnosis of deep dentin cracks, or a dependable standard, like teeth whitening. Regardless, you want to draft an engaging press release with a headline that packs a punch.
Once you have fantastic content, use every single form of media to relay that press release to editors of at least 100 different media
GG12 and Insiders’ Circle™ Members’ Spring and Fall Retreats: Experience our famous retreats for yourself, and form a lifelong bond with other GG12 and GIC family members. Register now!
For the latest information about what’s happening on Planet Gems, go to InsidersCircle.com and click the “Calendar” button. 90-Minute GG12 Team Training Webinars: GG12 Team Training Toolkit Dental Practice Transformation members, please block out this monthly program. These occur just once each month, but they could easily be the most important 90 minutes you and your entire team will invest. GG12 Office Hours: Twice each month, my office door is open for your visits. This is an optional opportunity for GG12 doctors and team to reach me directly with questions about dental practice management. Gems Insiders’ Circle™ Quarterly Webinars: Four times each year, I host a special guest guru on a wide range of topics.
GG12 Office Hours: June 5; 11:30 a.m. to 12:30 p.m.
Gems Insiders’ Circle™ Webinar With Greg Rahall: June 6; 8:30–10:00 p.m.
GG12 90-Minute Monthly Team Training Webinar: June 20; 11:00 a.m. to 12:30 p.m.
GG12 Office Hours: June 22; 10:30 a.m.–11:30 a.m.
TOP SECRET: REGISTRATION FOR THE FALL RETREAT IS NOW OPEN! Click on the website banner to learn more!
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Disney sets a precedent by detailing their priorities immediately, even to people they may or may not hire. Meanwhile, dental offices all around the country don’t know their priority hierarchy. In my practice, potential new patients contact us over the phone, so I expect all team members to share the responsibility of answering calls attentively. This method is established and has a profound effect on our business. Many dental practices don’t implement this expectation. I saw a survey in a magazine the other day where dental employees were polled regarding their office priorities. At the top of every employee’s list was interacting with the patient, and answering the phone was toward the bottom. Those polled viewed the office phone as a hindrance, and when they did answer it, these employees were irritated that the call interrupted their work. But answering the phone really isn’t that complicated when you break it down. Potential patients call for only two reasons: They have a problem they don’t want, or they want a result they don’t have. When you answer the phone, you are acting as a problem solver. If you’re merely answering questions, that’s not enough. You want to let them know they’ve called the right place, and that goes deeper than just listening. Use your “best-friend voice” and ask questions to get to the core of the issue. Most importantly, smile. It may sound odd, but people can tell through the phone if you’re smiling. This will open up meaningful dialog and play a role in your conversion rate. Answering the phone is one thing, but converting the caller to a customer is another. A web marketing specialist called me one day asking to learn how our call-conversion rate was at 90 percent for the month. I explained to him the in-depth model behind our tactics, and you can learn the same. To increase your new patient flow by “fixing the phone,” schedule a call with your GG12 Coach today, then have your entire team watch GG12 Monthly Team Training Toolkit episode 38.
How a ‘Little’ Thing Could Cost You a Half-Million Dollars
Pick Up the Phone!
By Jeff Anzalone, DDS, Board-Certified Periodontist, Certified GG12 Coach
True success is built from doing little things in big ways. If you think you’re above answering the phone, you are not. Most practices only dedicate one or two people to answer the phones, not realizing the opportunity they’re letting slip through their fingers. Research shows that the average dental practice misses out on gaining a new patient anywhere between 2–4 times a day by simply not picking up the phone. Let’s do the math. Two patients a day for four days every week adds up to about 96 patients a year. In the cover, Tom discusses the average lifetime value (ALV) of a new patient, which is $4,800. So if you’re comfortable missing out on over $450,000 a year by not answering the phone, you can stop reading. So, who should answer the phones? The solution is simple. Everyone should have the ability to handle a new-patient call. There was a moment about five years ago that made this lesson evident to me. A friend of mine encouraged me to go through the interview process at Disney (just for the eye-opening experience … I’m not giving up my day job!). I was going to Orlando for a meeting, so I looked into it, went through the process, and was able to secure an interview. Before I even spoke with someone directly, the people at Disney had me take a 40-question personality test. From there, I sat down with an employee, and the first question he asked was, “What do you think the No. 1 priority would be working here?” Since Disney is “The Happiest Place on Earth,” I thought logically and responded, “It’s making sure the guests have a good time.” The gentleman answered, “Yep, that’s certainly an important part, but that’s not the No. 1 priority. The No. 1 priority of someone who works here is guest safety. That trumps everything.”
No matter how amazing your team, you’re still losing new patients when they call at times you simply can’t pick up. Nights, weekends, holidays, early morning before work, and even during the day when you’re slammed and nobody can grab one more ringing phone. That’s where Dr. Orent’s Ultimate Phone Concierge comes in.
UPC not only answers your phones when you can’t, but they SCHEDULE NEW PATIENTS for you — new patients who call when you can’t answer. Learn more at UltimatePhoneConcierge.com.
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In order to survive in the intensely competitive contemporary marketplace, businesses need to be more nimble and collaborative than ever. There’s no time to play telephone around the office or constantly update members of the team about every little detail of a project. What’s more, as companies expand and workers begin working remotely, it becomes increasingly difficult to keep everyone on the same page. Luckily, there’s Slack, a streamlined messaging app that brings every communication across your entire company under a single platform. As many businesses are surely aware by now, Slack is perhaps the most hyped, lauded collaborative tool on the market, and for good reason. understands that not everyone is needed for every conversation and not every discussion should necessarily be accessible to the same employees. You can set up open conversations in both one-on-one and subgroup settings while restricting access to keep out unwanted or unneeded parties. If your group has a question for a particular member of your team who isn’t in the chat, it’s easy to tag any user across the network with a simple @ mention. Then, they can simply join, talk it out, and leave when their task is complete. Sync Up Your Teams With Slack Let’s start with its primary feature: instant chat and messaging. The application connects users in real time, but it also Are you in an exercise slump? No matter how much you love fitness, working out at the gym can get boring. If you’re sick of the same old routine day in and day out, it’s time to try immersion fitness! More than just a physical workout, immersion fitness pushes you physically and mentally by engaging all five senses, creating a workout that makes you forget you’re at the gym. When you’re immersed in the same routine for a long time, it can leave you mentally drained. Your body might be active in your workout, but your mind isn’t. The all-encompassing experience of immersion fitness creates a routine that keeps you captivated every step of the way. Imagine a spin class in a room with 30 other people — but instead of staring at a boring wall, you’re faced with a large screen that displays a digital track that twists, turns, and loops. The bike you’re on shifts and moves with the angle of the The Perfect Cure for Your Exercise Slump Immersion Fitness Classes
So far, these features may seem fairly basic. Aside from the robust and crystal-clear implementation, which makes navigating the program a breeze, online chat has been around for years. But when you account for Slack’s wide array of additional tweaks and features to the common chat formula, it really shines. For instance, everything within Slack is automatically indexed and archived. Whether you’re a team member catching up on a project after a day off or a manager reviewing productivity among your marketing team, with a simple search, you can track down old communications. These archives also index any file that’s uploaded within the system, allowing users to search for keywords not only in the chat, but in any shared Word or PDF documents throughout the network. It’s just one feature of many that makes life easier. And that’s exactly what Slack does: It simplifies your life. With an attractive and easy-to-use interface, the program gets out of the way, allowing you and your team to interact clearly and rapidly with no obstructions. There’s simply no better way to build a space of transparency and synchronicity throughout teams, whether large or small. track. Not only are you focused on what’s ahead of you, you’re also surrounded by music, and the trainer encourages you throughout. This is just one of the many experiences immersion fitness can offer you. Immersion fitness takes advantage of all five senses — touch, sight, smell, hearing, and even taste. Classes might involve being blindfolded or grasping the hands of other class members. Some even incorporate juice bars to add some flavor. These tactics get you completely absorbed in the workout so both your body and mind are active participants every step of the way. Perhaps most importantly, immersion fitness allows you to focus on yourself, bringing your mind away from your daily worries as you engage with the experience. For 60 minutes, you can think entirely of yourself, your goals, and how good you’ll feel afterward. Eager to try? Visit lesmills.com to find a class near you.
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Start Tracking These Key Performance Indicators in Your Business Today!
By Shaun Buck, CEO of The Newsletter Pro
your sales numbers do. You should have a full understanding of your business’ churn number and churn points.
Have you ever wondered, “What should I really be tracking in my business? What numbers actually have actionable value, compared to numbers that are simply good to know?” Below is a short list of KPIs (key performance indicators) that I track daily, weekly, or monthly, and you likely should be tracking them as well. Note: Numbers are only good if they are valid and real. You need to double-check your math. For example, if you have a 10 percent patient-churn number, and you don’t actively do anything to reduce churn, there is a good chance your math is off. Also, sometimes too good of a number isn’t great. For example, I did have someone boast to me about their 10 percent churn number, but after asking a few questions, I found out that they had 24-month contracts and had been in business for 22 months. To add insult to injury, they had 28 total customers. The number alone appeared great, but with a little digging, it was easily discovered that the churn number didn’t tell the whole story.
Pipeline Revenue: This is used for anyone who gives a quote and closes business in the future. Pipeline revenue is the total sales volume you’d have if you won each and every piece of business you quoted over a given period of time — or in the case of a dental practice, if every case presentation resulted in treatment scheduled. I look to the pipeline revenue number as a leading indicator of future sales. For example, if we need to produce $100K in new pipeline revenue to close $30K in sales the following month, and 20 days into the month we’re at $54K in new pipeline revenue when we should be at $67K, we better change something fast or we will not hit our goal this month and likely not in the coming month, either. Average Annual Revenue Per Employee: This is a great number to track. If I know your sales number and number of employees, I can do some simple math to get revenue per employee and know how healthy your company is or is not. Most companies with over a million dollars in revenue will have a minimum of $100K in revenue per employee. It is not uncommon to see small businesses with $125K, $150K, or $200K-plus, depending on the industry. In the dental professions, you may be slightly above this figure as well. Most Fortune 500 companies have a minimum of $500K in revenue per employee. The more revenue per employee, the more effective your business is at maximizing its greatest resource — the people who work there. Here’s an example specific to your profession of dentistry. You own a one-doctor/one-hygienist general practice. You employ two full-time staff members in the front office, one full-time dental assistant, and a dental hygienist. That’s four full-time staff. Dr. Tom would tell you that this team should be generating at least $1,000,000 in revenue per year. Thus, your average annual revenue per employee is $250,000. Personally, I track churn and pipeline revenue weekly and average annual revenue per employee monthly. Armed with these numbers, you will be in a much better spot to be proactive in your business, as you can solve minor problems before they ruin your month, quarter, or year. –Shaun Buck
Remember, these are your numbers, and the only person you hurt by not being real and honest about these numbers is yourself. Churn: I talk about this one all the time. But you need to know how many patients leave your practice in any given month. This sets the minimum number of new patients you need to get in the following month just to break even. By tracking this number weekly and monthly, you’ll start to see patterns of when patients leave, and then you can take proactive steps to reduce your churn. You can also more easily find holes in your systems and processes when you know this number. Your churn number tells you if your practice is growing or dying far better than
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3 Keys to Making Core Values Count Establish the Guiding Heart of Your Business
powerful ideas. Ensure that each of the members of your think tank embodies the qualities you want to see throughout your organization. Next, get everyone in a room to start brainstorming. Set a date for a meeting and encourage everyone to come prepared with a list of values they feel are the most important for your business. Ask your think tank which values are central to them as individuals and expand that to include values that are vital to your entire company. After you’ve got a healthy list of good ideas, combine and define them. Look for commonalities. It’s likely that many of them will orbit just a few key principles. After a bit of pruning and rewording, these principles become your core values. Once you’ve got your set of 5–10 main ideas, outline exactly what each of them means in a few sentences or a paragraph. You may want a skilled writer on board during this step to nail down a set of clear and compelling definitions. The process may be difficult, but once you’re done, you and your team will have a set of powerful, unifying core values. These will state your company’s purpose and drive your team to excellence. Core values may seem like a small consideration in the midst of day-to-day operations, but they can make an enormous difference.
A cohesive vision for the future is central to any thriving company; it’s the road map by which you and your team steer the business to success. But a set of lofty goals isn’t quite enough to motivate and unify an organization. It’s important to have an overarching aim for the coming years, but you also need to provide some guidance on how your business should conduct itself today. You need core values that encourage a certain spirit for your team and hold them to a high standard of excellence. To build a set of core values that’s unique and valuable to your business, you must first decide whose input you want during the process. This should be a panel of the key players in your business and employees skilled at providing new and
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1. “What really matters?” In other words, of all the things we could do or need to do, what are the top two or three things ( at most ) you want or need us to do with your practice and patients?
2. We all know the dentist can’t do this alone. “How do you want the team to make decisions so they can help take some of this off your shoulders?”
There are a few ways dentists will react to this conversation. The smart dentists recognize the intention behind the conversation and see it as an opportunity to improve. Others try to sweep it under the rug. There are still others who are offended. (Frankly, they’re likely the ones who need this type of conversation most.) Regardless of the reaction, it’s a great conversation to have and a way to help solidify the weakest link — especially if it’s you!
P.S. If you’re the dentist and you think your team would never initiate this type of conversation, start it for them!
P.P.S. You may recently have heard Dr. Orent mention TOBI. No, TOBI isn’t a person … TOBI stands for “The One Big Idea!” Stay tuned for much more about how to stay focused on your TOBI and enjoy higher levels of success than you’ve ever dreamed possible.
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Gems Inside
1. Not Everyone Needs New Patients 2. The Weakest Link 3. One PR Strategy You Aren’t Using, But Should 4. Add $500,000 to Your Bottom Line
5. Sync Up Your Teams With Slack Spice Up Your Workout With Immersion Fitness 6. Track These Key Performance Indicators 7. Core Values Are Vital — But How Do You Create Them?
By Monica Cappelli, Office Manager of Rifle Dental Care
program, I doubt we would’ve seen this gentleman. After every veteran’s specific dental needs were met, each
To say that GG12 has changed our practice would be a total understatement. When my husband and I started this journey, we had a lot going for us and a ton of potential to do great things. We had the technical knowledge to do our specific jobs but never focused on our practice as a business. This had us circling the drain within a short amount of time of being fully operational.
one received a $250 gift card for future dental services in our practice. At least 18 veterans have already returned for additional care, and we expect that number to continue to grow. Somewhere along the line, this story caught traction, and the local paper came out to do a write-up. Well, that article was
picked up by The Associated Press, and before long, our story was hitting papers nationwide. This amplified the effect our Veterans Day deal had on the community. My husband proudly served our country in the U.S. Army, and the health of veterans means a great deal to both of us. A lot of business ventures focus on return on investment (ROI). Well, when we look at the ROI for this outreach event, we view it as an extreme success. But let me make one thing clear: What made it a real triumph was the impact it had on our community. We were able to hear so many powerful stories and make deep
Since becoming a member of Tom’s GG12, almost every area of our practice has seen improvement. It has made a massive difference in our internal systems, the way we approach policies, and the models we employ to build our business. We went from using our time accidentally to using it intentionally . Now we’re on a forward-moving track that has us primed to accomplish new and exciting feats.
We went from using our time accidentally to using it intentionally.
Our success isn’t just in the growth of our practice — it’s also in what we’ve
connections. The real ROI of this venture has been our ability to serve the community, and we intend to continue serving our community for a long time to come. We are also seeing nonveteran referrals from this effort as well. With the GG12 Toolkit, you receive all the Gems you need to build your practice, plus a coach who walks you step by step through the process, tailoring them to your practice. Before we implemented the veterans outreach and other GG12 strategies, we felt like we were in business for charity. Now, we’re on pace to double our bottom line this year! -Monica Cappelli
done for our community. During one of our meetings, our team was discussing how we could give back more to the people in our local area, specifically our veterans. Shortly after, we had a “lightbulb moment” at a GG12 Retreat during a Team Member breakout session. Tom Rich did a Veterans Day presentation, and we sat down with a GG12 Coach, Lisa Weber, to talk about implementing a plan. The best part about GG12 is that you can pick, choose, and tweak the tools you want to fit your practice. That’s precisely what we did with Tom’s Veterans Day idea. We offered veterans a Complimentary New Patient Exam, a Routine Cleaning, and X-rays for free. Within the first month, we saw over 40 new patients through this program! The Grand- Prize winner of our Veteran’s Outreach Contest needed (and we delivered) a full-mouth reconstruction. Without our new
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