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Growing a dental practice is a dream for many dentists. Expanding to multiple locations, increasing revenue, and creating a thriving business that serves more patients sounds like an ideal path. However, growth for the sake of growth can lead to financial and operational pitfalls. In this post, we’ll break down key insights from industry expert Eric Morin on how to scale your dental practice strategically, avoid common pitfalls, and build a strong, profitable business.

The Biggest Operational Mistake In Scaling

One of the biggest mistakes dentists make when scaling is promoting someone to a position of incompetence. This happens when an office manager or other internal team member is promoted to a director of operations role without the necessary experience or skills.

Actionable Takeaway:

  • Before scaling, ensure you have a capable leader who has experience in growing organizations.
  • If you’re promoting from within, make sure they have the skills or provide them with the necessary training.
  • Ask yourself: Does this person know how to take my business where I want it to go?

Talent First, Then Process

Your ability to scale isn’t just about systems and processes—it’s about having the right people to implement them. A strong leader will take your practice further than the best playbook.

Actionable Takeaway:

  • Assess your leadership team and ask if they can handle double the growth.
  • Hire a director of operations who has experience with multi-location growth.
  • If you already have a leadership team, invest in leadership training to develop their capabilities.

Should You Open More Locations?

Many dentists expand to multiple locations before maximizing the profitability of their first location. This is a mistake. If your current location is operating at 50% efficiency, adding a second location doesn’t solve the problem—it multiplies it.

Actionable Takeaway:

  • Maximize profit per fixed cost before expanding. Your existing location should be running at 80–85% efficiency before adding another one.
  • If your current location isn’t fully optimized, focus on increasing patient flow, improving efficiency, and enhancing patient experience before expanding.

The Premature Scalability Trap

Growing too fast without the right infrastructure leads to premature scalability. This means your practice grows beyond what your team and systems can handle, leading to chaos, stress, and financial strain.

Actionable Takeaway:

  • Evaluate your operations before expanding. Can your team handle an additional location without breaking the current structure?
  • Build scalable systems in your first location that can easily be replicated.
  • Ensure your leadership team has the capability to oversee multiple locations.

The Financial Reality of Selling to a DSO or OSO

Selling to a DSO or OSO is becoming increasingly popular, but many dentists don’t fully understand the financial implications. While a big check may look attractive, it doesn’t always make financial sense in the long run.

Key Considerations:

  • If your practice generates $1 million in profit annually, you’d need $20 million in an investment account at 5% to replace that income.
  • Selling 100% of your practice may provide a lump sum now, but you lose long-term passive income.
  • Instead, consider a joint venture (JV) deal where you sell a percentage of the practice but retain some ownership and control.

Actionable Takeaway:

  • Consult with a financial expert to understand the long-term impact of selling.
  • If considering a sale, negotiate terms that allow you to maintain some control and benefit from future growth.
  • Don’t rush into a sale based on a “once-in-a-lifetime” deal—there will always be opportunities.

Debt vs. Equity: How to Fund Growth

Debt is often seen as risky, but it can be a powerful tool for growth when used strategically. Equity, on the other hand, can be more expensive because it involves giving up ownership.

Key Principles:

  • Debt is cheaper but comes with higher risk.
  • Equity is more expensive but can bring strategic partners who add value beyond money.
  • The best reason to sell equity is for either capital (funding growth) or capabilities (bringing in expertise).

Actionable Takeaway:

  • If taking on debt, ensure you have a clear plan for ROI.
  • If selling equity, make sure your partners bring more than just money—such as operational expertise or growth strategies.
  • Work with financial advisors who understand dental practice growth rather than just general CPAs or brokers.

Building a Practice People Want to Work At

Attracting and retaining top talent is key to sustainable growth. Many DSOs and OSOs fail because they don’t create a culture where people want to stay.

Actionable Takeaway:

  • Develop a strong company culture that emphasizes leadership, growth, and employee well-being.
  • Offer mentorship and career development opportunities for your team.
  • If you’re struggling with retention, ask your team what they need to feel valued and fulfilled.

The Future of Dentistry: A Leadership Opportunity

Despite the challenges in the dental industry, there has never been a better time to be a dentist. Practices that invest in strong leadership and culture will thrive, while those focused only on short-term gains will struggle.

Actionable Takeaway:

  • Focus on leadership—build a team that believes in your vision.
  • Invest in growth and development for yourself and your staff.
  • Remember that profitability matters more than top-line revenue—focus on growing EBITDA, not just location count.

Final Thoughts

Growing a dental practice isn’t just about opening more locations or chasing the next big deal. It’s about building a profitable, sustainable business with the right people, strong systems, and clear financial strategies. Whether you’re considering adding locations, hiring leaders, or selling to a DSO, take the time to evaluate your options carefully.

By focusing on smart growth, maximizing profitability, and developing leadership, you can build a thriving dental practice that provides long-term financial security and professional fulfillment. The key to success isn’t just growth—it’s strategic, well-executed growth.

If you found this guide valuable and want to dive deeper into financial strategy for dental practice growth, check out Financial Evolution by Eric

Growing a dental practice is a dream for many dentists. Expanding to multiple locations, increasing revenue, and creating a thriving business that serves more patients sounds like an ideal path. However, growth for the sake of growth can lead to financial and operational pitfalls. In this post, we’ll break down key insights from industry expert Eric Morin on how to scale your dental practice strategically, avoid common pitfalls, and build a strong, profitable business.

The Biggest Operational Mistake In Scaling

One of the biggest mistakes dentists make when scaling is promoting someone to a position of incompetence. This happens when an office manager or other internal team member is promoted to a director of operations role without the necessary experience or skills.

Actionable Takeaway:

  • Before scaling, ensure you have a capable leader who has experience in growing organizations.
  • If you’re promoting from within, make sure they have the skills or provide them with the necessary training.
  • Ask yourself: Does this person know how to take my business where I want it to go?

Talent First, Then Process

Your ability to scale isn’t just about systems and processes—it’s about having the right people to implement them. A strong leader will take your practice further than the best playbook.

Actionable Takeaway:

  • Assess your leadership team and ask if they can handle double the growth.
  • Hire a director of operations who has experience with multi-location growth.
  • If you already have a leadership team, invest in leadership training to develop their capabilities.

Should You Open More Locations?

Many dentists expand to multiple locations before maximizing the profitability of their first location. This is a mistake. If your current location is operating at 50% efficiency, adding a second location doesn’t solve the problem—it multiplies it.

Actionable Takeaway:

  • Maximize profit per fixed cost before expanding. Your existing location should be running at 80–85% efficiency before adding another one.
  • If your current location isn’t fully optimized, focus on increasing patient flow, improving efficiency, and enhancing patient experience before expanding.

The Premature Scalability Trap

Growing too fast without the right infrastructure leads to premature scalability. This means your practice grows beyond what your team and systems can handle, leading to chaos, stress, and financial strain.

Actionable Takeaway:

  • Evaluate your operations before expanding. Can your team handle an additional location without breaking the current structure?
  • Build scalable systems in your first location that can easily be replicated.
  • Ensure your leadership team has the capability to oversee multiple locations.

The Financial Reality of Selling to a DSO or OSO

Selling to a DSO or OSO is becoming increasingly popular, but many dentists don’t fully understand the financial implications. While a big check may look attractive, it doesn’t always make financial sense in the long run.

Key Considerations:

  • If your practice generates $1 million in profit annually, you’d need $20 million in an investment account at 5% to replace that income.
  • Selling 100% of your practice may provide a lump sum now, but you lose long-term passive income.
  • Instead, consider a joint venture (JV) deal where you sell a percentage of the practice but retain some ownership and control.

Actionable Takeaway:

  • Consult with a financial expert to understand the long-term impact of selling.
  • If considering a sale, negotiate terms that allow you to maintain some control and benefit from future growth.
  • Don’t rush into a sale based on a “once-in-a-lifetime” deal—there will always be opportunities.

Debt vs. Equity: How to Fund Growth

Debt is often seen as risky, but it can be a powerful tool for growth when used strategically. Equity, on the other hand, can be more expensive because it involves giving up ownership.

Key Principles:

  • Debt is cheaper but comes with higher risk.
  • Equity is more expensive but can bring strategic partners who add value beyond money.
  • The best reason to sell equity is for either capital (funding growth) or capabilities (bringing in expertise).

Actionable Takeaway:

  • If taking on debt, ensure you have a clear plan for ROI.
  • If selling equity, make sure your partners bring more than just money—such as operational expertise or growth strategies.
  • Work with financial advisors who understand dental practice growth rather than just general CPAs or brokers.

Building a Practice People Want to Work At

Attracting and retaining top talent is key to sustainable growth. Many DSOs and OSOs fail because they don’t create a culture where people want to stay.

Actionable Takeaway:

  • Develop a strong company culture that emphasizes leadership, growth, and employee well-being.
  • Offer mentorship and career development opportunities for your team.
  • If you’re struggling with retention, ask your team what they need to feel valued and fulfilled.

The Future of Dentistry: A Leadership Opportunity

Despite the challenges in the dental industry, there has never been a better time to be a dentist. Practices that invest in strong leadership and culture will thrive, while those focused only on short-term gains will struggle.

Actionable Takeaway:

  • Focus on leadership—build a team that believes in your vision.
  • Invest in growth and development for yourself and your staff.
  • Remember that profitability matters more than top-line revenue—focus on growing EBITDA, not just location count.

Final Thoughts

Growing a dental practice isn’t just about opening more locations or chasing the next big deal. It’s about building a profitable, sustainable business with the right people, strong systems, and clear financial strategies. Whether you’re considering adding locations, hiring leaders, or selling to a DSO, take the time to evaluate your options carefully.

By focusing on smart growth, maximizing profitability, and developing leadership, you can build a thriving dental practice that provides long-term financial security and professional fulfillment. The key to success isn’t just growth—it’s strategic, well-executed growth.

If you found this guide valuable and want to dive deeper into financial strategy for dental practice growth, check out Financial Evolution by Eric Morin on Amazon. If you want to go a step further check out Tower Leadership and what they can do for your dental practice.