Congratulations, you ambitious dental entrepreneur! If you’re thinking about purchasing a dental practice, you’re probably dreaming of those sweet profits, loyal patients, and maybe even your face on a billboard (or at least the office coffee mug). But here’s the deal: buying a practice isn’t like picking up a used car. You need to know how to separate the shiny gems from the duds.
Let’s break it down into digestible chunks. We’re talking data, strategy, and some BoomCloud™ magic that could help you transform your practice into a recurring revenue beast.
Step 1: Use Data to Find the Right Practice: Purchasing a Dental Practice
Let’s start with some cold, hard facts. When shopping for a dental practice, data is your BFF. You’re not just buying a building with some dental chairs and a weird painting of teeth on the wall—you’re investing in a business.
Here’s what to look for:
- Patient Demographics: Does the patient base match your ideal client profile (ICP)? You know, the patients who value oral health and don’t freak out over small price increases.
- Revenue Breakdown: Where’s the money coming from? PPOs? Cash patients? Membership plans? Spoiler alert: a practice with a growing membership base is a gem.
- Case Acceptance Rates: Are patients saying “yes” to treatment? Or is the practice filled with PPO bargain hunters who ghost after a cleaning?
- Marketing Presence: Does the practice have a functional marketing system, or is it relying on word of mouth from the hygienist’s mom?
- Operational Metrics: Review ARPP (average revenue per patient) and MRR (monthly recurring revenue). If these numbers are solid, the practice has a solid foundation.
Step 2: Optimize for Growth Post-Purchase
So, you bought the practice. Now what? Time to optimize like a boss. Here’s the playbook:
1. Maximize ARPP
Your average revenue per patient isn’t just a number—it’s the backbone of your profitability. Boost it by offering services that patients love (teeth whitening, aligners) and building loyalty through smart strategies like membership plans.
2. Membership Plans: Your Golden Ticket
Membership patients are the GOAT of dental revenue. They spend 2X to 5X more than PPO patients, are loyal, and don’t fight you over treatment costs. Need proof? Check out this case study:
Case Study: Membership Plan Explosion with BoomCloud™
One practice used BoomCloud™ to scale their membership plan to 3,500 active members in 28 months.
- Monthly Recurring Revenue (MRR): $157,500
- Annual Recurring Revenue (ARR): $1.89 million
- ARPP Boost: Membership patients spent 3.8X more than PPO patients.
- Case Acceptance Rate: Jumped from 40% (PPO patients) to 70% (membership patients).
How did they do it?
- Automated membership management with BoomCloud™ (no spreadsheets, no stress).
- Marketing campaigns targeted at cash patients and PPO patients tired of their insurance drama.
- Regular communication and perks to keep members loyal and engaged.
3. Renegotiate or Drop PPO Plans
Here’s the tea: PPO plans are like that toxic ex you keep going back to—they promise the world but drain your energy (and your wallet). Renegotiate your contracts to reduce discounts, or better yet, start phasing out the worst offenders.
Pro tip: A strong membership program gives you the confidence to drop bad PPOs because you’ll already have a predictable revenue stream.
4. Get Your Marketing Function in Gear
You’re not going to grow if no one knows you exist. Invest in a marketing system that covers:
- SEO for local search domination.
- PPC ads to capture patients actively searching for services.
- Social media to showcase your expertise and build trust.
- Email campaigns to convert leads into loyal patients.
Make sure your marketing aligns with your ICP—target high-value patients who appreciate quality care and are willing to pay for it.
Why BoomCloud™ is a No-Brainer for Dental Practice Growth
BoomCloud™ is the secret weapon you didn’t know you needed. It automates membership plan management, tracks revenue, and gives you data-driven insights to maximize patient value.
Here’s what it brings to the table:
- Streamlined Membership Management: Forget manual processes—BoomCloud™ automates payments, renewals, and member tracking.
- Predictable Revenue: Build a base of loyal patients paying monthly or yearly, creating consistent cash flow.
- ARPP Insights: See how much your membership patients spend versus PPO patients (spoiler: it’s way more).
Final Thoughts: Purchasing a Dental Practice
Purchasing a dental practice is just the beginning. The real magic happens when you optimize for growth using smart strategies like maximizing ARPP, building a robust membership plan, and ditching low-value PPOs.
With tools like BoomCloud™, you can transform a good practice into a revenue-generating machine with loyal patients who love your care.
Ready to grow? It’s time to make your dental empire a reality.
