Why Re-Investment Should Always Be a Priority

Forty years ago, few people outside of IBM had any first-hand interaction with computers. Today, the average teenager has more computing power in their phone than was used in the Apollo moon missions. We’ve come a long way in a generation.

We’re seeing that “digital divide” between generations in dentistry, too. New dentists today are trained in a high-tech world and are used to taking a digital approach to diagnosis and clinical delivery. Meanwhile, practitioners who came of age before the digital revolution have adapted to varying degrees: some have embraced the new technologies wholeheartedly, some have been content to perform the “classic” dentistry they were originally trained for, and most fall somewhere in between, embracing some technologies, rejecting others.

This generational divide can become especially evident when an older dentist is looking to sell their practice. Most buyers today have high expectations for what they want in a facility in terms of being adequately outfitted for today’s dentistry. Not surprisingly, it’s the practices in top condition that attract the top buyers, and sell at the right price, because a leading-edge practice that demonstrates proven profitability creates instant value for the person coming in, whether that person becomes a partner or sole owner.

It’s natural for owner doctors who are looking toward retirement to want to scale back re-investment in the practice, but the fact is if your facility doesn’t make a good first impression—if a prospective buyer is mentally calculating how much it will cost beyond the purchase price to upgrade—the value of the practice will be significantly suppressed. It’s not just technology, either. If you have operatory chairs or reception area décor that hasn’t been upgraded since the disco era, you’re not exactly positioning your practice as a desirable frontrunner in the marketplace.

On the other hand, however, it is remarkable how much a few key upgrades can enhance a practice’s value. And don’t forget that it is called re-investment for a reason—strategically planned facility improvements should stimulate additional growth in the practice, giving you the opportunity to improve productivity at same time as you improve the practice’s tangible assets. And let’s not forget the value you get out of working in a great environment, either. You’re not just make the improvements for the next owner—the sooner you make the necessary re-investments, the more time you have to enjoy the facility you’ve created.

Ultimately, the wisest course of action—for today and for the long-term future—is to just never let your practice fall below market standards. Make continual re-investment an ongoing priority, and enjoy your practice to the highest level at every stage of your career.