Hey there, future dental moguls! So, let’s talk about how to start a Dental Service Organization (DSO) and become the ultimate dental entrepreneur? Good. You’re in the right place. Starting and scaling a DSO isn’t for the faint-hearted, but if you’ve got the guts (and the game plan), it can be one of the most exciting and profitable adventures you’ll ever embark on.
Today, we’re diving into the nitty-gritty of how to start a DSO that doesn’t just survive but thrives. We’ll be dropping knowledge from industry heavyweights like Mark Costes, Justin Coke of 7 to 7 Dental, and Hendrik Lai, as well as sprinkling in a bit of wisdom about scaling a patient membership plan. Oh, and don’t worry—BoomCloud™ is here to make your life a whole lot easier.
Grab your coffee (or energy drink, if you’re feeling wild), and let’s do this!
Step 1: Nail Down Your Vision (and Make It Crystal Clear)
Before you start buying up dental practices left and right, you need a clear vision of what you want your DSO to become. Are you aiming for regional dominance or national growth? Are you specializing in ortho, pedo, or general dentistry? Your vision will dictate your strategy, so get it dialed in.
Pro Tip from Dr. Mark Costes – How to Start a Dental Service Organization
Mark Costes of the Dental Success Institute emphasizes the need for scalable systems from day one. If your processes are a mess, you’re just multiplying problems as you grow.
“Systemize everything,” Costes says. “From patient flow to financial management, repeatable processes are what make a DSO work.”
Translation: Create a playbook for success, not a circus of chaos. Purchase Mark’s Book – Pillars of Dental Success + other books and resources!
Step 2: Build Your A-Team – How to Start a Dental Service Organization
You can’t build an empire alone. Surround yourself with people who are smarter than you in key areas—operations, finance, clinical care, and marketing. Your team is your secret weapon.
Justin Coke’s Wisdom from 7 to 7 Dental
Justin Coke of 7 to 7 Dental knows the importance of empowering dentists. His approach focuses on giving partner dentists autonomy while providing them with a strong administrative backbone.
“Dentists want to practice dentistry, not worry about payroll and HR,” Coke says. “Handle the admin so they can focus on patient care.”
Bottom Line: Support your clinicians and let them shine.
Step 3: Get Smart About Financing – How to Start a Dental Service Organization
Money, money, money. Starting and scaling a DSO requires serious financial planning. You need a strategy for acquiring practices, managing debt, and keeping cash flow steady.
Insights from Hendrik Lai
Hendrik Lai, a seasoned healthcare business consultant, preaches the importance of sustainable growth. He’s not a fan of reckless expansion that leaves you over-leveraged.
“Grow strategically and have a financial cushion,” Lai advises. “It’s tempting to expand fast, but you need to think long-term.”
Pro Tip: Understand your financial runway. Be prepared for slow months and unexpected expenses.
Step 4: Implement a Patient Membership Plan – How to Start a Dental Service Organization
Want to know one of the best-kept secrets for financial stability in your DSO? A patient membership plan. Seriously, it’s a game-changer. Patients who join a membership plan are more loyal, say “yes” to treatment plans more often, and spend way more money over time.
Why Membership Patients Rock:
- Higher Case Acceptance: Membership patients have a 40%+ case acceptance rate. Compare that to cash patients at 24% and PPO patients at 38% (and remember, PPO reimbursements suck).
- Recurring Revenue: Membership fees generate Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) that give your DSO financial stability.
- Loyalty: Membership patients are committed and more likely to refer friends and family.
BoomCloud™ to the Rescue: BoomCloud™ makes managing membership plans a breeze. It automates billing, tracks renewals, and provides real-time analytics. No headaches, just results.
Step 5: Scale Your Membership Plan Across Your DSO
Once you’ve got a successful membership plan in place, roll it out across all your practices. Make it a core part of your business model.
Marketing Tips for Scaling:
- Email Blasts: Send newsletters explaining the membership plan benefits.
- In-Office Promotions: Train your staff to talk about the plan during every patient interaction.
- Social Media Campaigns: Use platforms like Instagram and Facebook to target local patients with ads highlighting the savings and perks of your plan.
BoomCloud™ Makes It Easy: The software helps you market your membership plan, manage payments, and keep everything organized. You’ll wonder how you ever survived without it.
Step 6: Use Data to Drive Decisions
Numbers don’t lie, and you should be obsessed with them. Track everything from case acceptance rates to revenue per patient and use this data to refine your strategy.
Case Study: How BoomCloud™ Transformed a DSO
Dr. Growth Dental, a DSO with 12 practices, used BoomCloud™ to scale their membership plan. Here’s what happened:
- Members Signed Up: 4,500 patients at $35/month
- Monthly Recurring Revenue (MRR): $157,500
- Annual Recurring Revenue (ARR): $1,890,000
- Patient Spend: Membership patients spent 3.5X more on treatments compared to PPO patients.
The result? Dr. Growth Dental became less dependent on insurance, had a steady cash flow, and built a loyal patient base that kept the practices thriving.
Learn More About BoomCloud™: BoomCloud™ – Membership Plan Software
Final Thoughts: Ready to Build Your Dental Empire?
Starting a DSO isn’t just about buying up practices; it’s about creating a well-oiled machine that delivers consistent, high-quality care while making serious bank. Learn from the best—Mark Costes, Justin Coke, Hendrik Lai—and use BoomCloud™ to streamline your operations. Focus on sustainable growth, build a killer team, and don’t underestimate the power of a patient membership plan.
Ready to dominate the dental world? Get started with BoomCloud™ today and make your DSO the stuff of legends.
Sign Up for BoomCloud™ Here: BoomCloud™ – Membership Plan Software
Now go out there, scale your DSO, and become the dental boss you were born to be!
