This is part two of Sully’s chat with Dr. Tarun “T-Bone” Agarwal. In the last episode, we talked about how to take your practice further faster. Today, we kick things off with the difference between a dental practice and a dental business. T-Bone stresses the importance of having a business that allows you to do the procedures you want and work the hours you want.
He also talks about bringing in associates and how to sell your practice for 4X instead of 1X. We discuss how a partnership is like a marriage and how true leadership comes from having skin in the game. We also discuss the possibility of unlimited earning potential and how the dental business mindset is about sustainability and creating a great lifestyle for yourself and everyone else around you.
You can find T-Bone here:
[02:16] The difference between running your practice and running your practice as a business or the difference between a dental practice and a dental business.
[03:49] With a dental practice you are the clinician and the dental practice leader. T-bone wants to see people move towards owning a dental business.
[05:25] It’s better to own one practice as opposed to two.
[09:25] Growing from 1 million to 2 million has an overhead of about 45%.
[12:17] There is no point in growing a business if it loses the culture of you.
[12:42] A dental business gives the owner the ability to take almost unlimited vacations and can operate without you. It’s all about flexibility.
[14:04] By bringing in someone else, you create a passive income stream.
[14:51] You can also sell 25% four times.
[18:47] A dental practice will have an earning ceiling, but a dental business has unlimited earning potential.
[20:13] Owners can afford to take time off. They need another practitioner to keep the rest of the team working.
[21:46] We go through seasons of life. The dental business mindset is about sustainability and creating a great lifestyle for yourself and everyone else around you.
[28:19] T-Bone is convinced that we will see nurse practitioners and PAs in the dental office during his lifetime.
[29:54] You need a dental business so that if there’s a family emergency you will be able to go deal with it without closing down your practice or business.
[31:22] Flexibility gives us choices to do what we want to do.
[32:39] What are the steps for young dentists to take to get over that first hump having a business mindset. Have financial flexibility and control your spending.
[35:12] Early on, it’s more of a spending problem than an earning problem.
[35:57] Don’t get into the mindset of if you earn more you need to spend more.
[36:20] You need to live underneath your means and create financial margin.
[37:00] Treat your business like a business by paying yourself as an associate.
[37:33] Associate pay is usually 30%. Pay yourself 30% of what you collect. This will allow you to create the mentality of what your business actually does.
[40:14] Once you have a mortgage you’re tied to it. Renting can allow you to save money and have flexibility.
[41:55] When you treat your pay mentally like a business, you can then start making good decisions.
[43:19] The T-Bone Speaks podcast is going to have a 3 part series on associates.
[43:45] The time to get serious about bringing in an associate is when you’re earning around a million.
[44:20] A good business prepares for their future. You have to start getting ready for adding an associate before you do so.
[49:11] Don’t waste your time scrimping and saving, learn new procedures and ways to earn more money.
[49:56] You want your team to focus on growth.
[51:00] If you’re only doing a few of something, you are way better outsourcing it.
[52:59] Don’t take certain procedures in house until you have reached critical mass with them.
[53:29] Your energy and focus should be on building a practice that can sustain two doctors.
[54:43] Focus on creating an environment and culture that can do more procedures.
[57:19] Everyone should have an associate, and it would change their lives.
As always thanks so much for listening! If you like the show we would love for you to review the show on iTunes as well as spread the word! If you have any questions or want to get in touch, shoot me an email at email@example.com.
Links and Resources:
T-Bone in the Office (Part 1)