Blueprints, Templates & Frameworks to Build Your Own Group Practice

Are you ready to build a group practice?

Many get lost in the beginning stages of establishing their very own group practice. It can be confusing, and you may not know which way to turn.

It’s natural for those in the initial stages to search for a quicker, bona fide path toward success. And, if you’re here, you’re probably wondering: is there a shortcut to building a successful group practice?

We get this question all the time. People want a shortcut. A framework, a paint by numbers approach if you will.

The truth? There’s no one-size-fits-all blueprint for success.

Although there’s no shortcut, per se, there are ways we can help you navigate the world of group practices! We at Polaris can take you through a lot of the questions you need to ask yourself before you start down this journey.

So, why isn’t there a shortcut? That’s because everyone’s version of success is different!

Think about it this way: If we were having this conversation 3-5 years from now, what does success look like for you, both personally and professionally?

Here are some of the ways success is measured: 

• Wealth
• Retirement
• Working clinically
• Leading as CEO
• Mentoring
• More time with family
• Learning a new skill or craft
• Traveling

Now that you’ve identified your main reason for building your group practice, or core goal, let’s look a little bit further into some other questions you might ask yourself at this stage, like:

• Are you motivated more by an outcome or by the journey?
• How important is control? Could you let someone else run the business for you in the future?
• What is your realistic timeframe (5, 10, 20 years)?
• Are you interested in living debt-free?
• More interested in income or assets?

Let’s take that first question into consideration:

Are you motivated more by an outcome, like a sale of the business, or are you motivated more by the journey?

Here’s what I mean by that - some people who are highly entrepreneurial absolutely love building businesses. The journey is what excites them! The heavy lifting, overcoming obstacles, creating successes. Some are absolutely addicted to that journey, and they might be less concerned with the exit number in mind. For this type of person, once the exit is in view, they’re probably going to want to do it all over again.

For others, the journey may just be a means to an end. It's something that checks the boxes along the way, but what you're most interested in is creating generational wealth and a favorable outcome for you and your family.

Out of these two, there’s nothing wrong with either one of those but they're decidedly different for each individual!

Now, the reason why we ask ourselves the question “what does success look like for me, both personally and professionally,” is because these two aspects are absolutely intertwined. You really can't separate the personal from the professional. Why is that? Let me let you in on a little secret - it's going to take a lot of time and effort to build a successful business, and that's going to detract from time spent with your family or by yourself or any other endeavors you may have.

The same thing can be said on a debt service level - you're probably going to take on a lot of bank debt that you will have to personally guarantee. At the end of the day, it is your responsibility to take on the brunt of your practice’s burden.

However, that doesn’t mean you have to do it alone!

Bringing in business partners is another thing you’ll have to consider before you start building your group practice. This begs the question - how important is control for you as a leader?

It’s very likely that you start your business as a solo dentist in a solo practice. In this scenario, you will have outright control over everything, even day-to-day workflows. But, once you grow and move to multiple locations, control could be a little bit more problematic because you can't be in every location at the same time.

At this point, you might also bring in additional equity partners and decision-makers who can vote on day-to-day control. Majority vs. supermajority vs. unanimous decisions can be intense and problematic, and for those of us who enjoy complete control, bringing others "in" can be an outright challenge. So, make sure to think about how much control you want to maintain in the organization, especially in the first 3-5 years.

What’s your realistic timeline?

Speaking of 3-5 years, let’s get into what a realistic timeline might look like for you. It's important to think through the next 3-5 years at first because you stand a better chance of controlling the business during that time.

10 to 20 years down the road could be a little bit more of a challenge to forecast. But, if you are building a business for exit and you're not wanting to do it in three to five years, you may think about having your partners buy you out, or you may elect to sell the business.

 Now, if you want to sell a business for a large sum of money, be prepared to lower your standard of living along the way, because you're going to have to reinvest money in the business to help facilitate that growth - you can't do it on debt alone. Think about if you’re willing to sacrifice some things in your personal lifestyle to make this dream come true.

There’s so much to learn when it comes to starting, building, and leading a group practice. All of this is just the beginning! We have years of guidance and advice coming your way. Don’t hesitate to reach out to us with any more questions you might have. We are here to help you succeed!