{"id":14172,"date":"2025-03-01T07:46:32","date_gmt":"2025-03-01T15:46:32","guid":{"rendered":"https:\/\/www.planetdds.com\/?p=14172"},"modified":"2025-03-05T00:13:28","modified_gmt":"2025-03-05T08:13:28","slug":"top-tips-for-growing-a-private-dental-group","status":"publish","type":"post","link":"https:\/\/www.planetdds.com\/blog\/top-tips-for-growing-a-private-dental-group\/","title":{"rendered":"Top Tips for Growing a Private Dental Group Without External Investors"},"content":{"rendered":"\n<p>It can be daunting to determine the right way to fund your dental practice growth. At the Yankee Dental Multi-Site Summit in January, a panel of experts\u2014including private dental group founders, dental support organization (<a href=\"https:\/\/www.planetdds.com\/dsos-dental-groups\/\" data-type=\"page\" data-id=\"11739\">DSO<\/a>) executives, and a bank lender\u2014shared their insights on scaling a private dental group without outside investors. The summit, presented in partnership with the Association of Dental Support Organizations (<a href=\"https:\/\/www.theadso.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">ADSO<\/a>) and <a href=\"https:\/\/www.groupdentistrynow.com\/\" target=\"_blank\" rel=\"noopener\">Group Dentistry Now<\/a>, provided a rare opportunity for dental leaders to learn from those who have successfully built and expanded their organizations while maintaining full ownership.<\/p>\n\n\n\n<p>While external investors can provide quick capital, many dental entrepreneurs prefer to chart their own course, keeping control over their vision, culture, and financial future. The strategies shared during the session offered a roadmap for private <a href=\"https:\/\/www.planetdds.com\/blog\/emerging-dental-groups-yankee-dental-2025\/\" target=\"_blank\" rel=\"noreferrer noopener\">dental groups<\/a> looking to scale independently while building a sustainable and profitable business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4 Tips for Scaling Your Private Dental Group<\/h2>\n\n\n\n<p>Expanding without external investors requires a combination of financial discipline, <a href=\"https:\/\/www.planetdds.com\/blog\/dso-discussions-consolidation-operational-efficiency-and-the-future-of-dentistry\/\" data-type=\"post\" data-id=\"10904\" target=\"_blank\" rel=\"noreferrer noopener\">operational efficiency<\/a>, and a long-term growth mindset. Here are expert-backed strategies for successfully scaling a private dental group while maintaining full ownership:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Define your growth vision. <\/h3>\n\n\n\n<p>Before determining how to fund expansion, dental <a href=\"https:\/\/www.planetdds.com\/blog\/engineering-to-entrepreneurship-pivoting-to-career-success\/\" data-type=\"post\" data-id=\"14116\" target=\"_blank\" rel=\"noreferrer noopener\">entrepreneurs<\/a> need a clear understanding of their mission and long-term objectives. Tarek Aly, BDS, partner at Modern Smiles Dental Group and <a href=\"https:\/\/www.communitydentalpartners.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Community Dental Partners<\/a>, emphasized that financial strategy should align with overall business goals.<\/p>\n\n\n\n<p>\u201cWhen a dentist or dental entrepreneur is evaluating whether to privately fund or bring in external investors, I always suggest they start with defining their mission, vision, objective, goals, and strategy,\u201d advised Aly.<\/p>\n\n\n\n<p>He noted that the decision to bring in outside funding or remain self-funded directly impacts how the business is structured. Groups seeking rapid expansion and immediate profit distributions may find private equity partnerships beneficial, while those focused on long-term control and gradual growth may prefer private funding. <\/p>\n\n\n\n<p>\u201cIf the dream is to retain majority control and build more slowly, then the dentist-owner may decide to privately fund,\u201d Aly explained. \u201cTypically, they\u2019ll have more flexibility with their capitalization table because they\u2019ll have more shares to offer minority equity partners.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Build a strong financial foundation.<strong><strong> <\/strong><\/strong><\/h3>\n\n\n\n<p>For groups looking to grow without outside investors, securing bank financing requires a well-structured financial beginning. Evan Barker, senior healthcare relationship manager at <a href=\"https:\/\/www.oldnational.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Old National Bank<\/a>, outlined four key areas banks evaluate when determining loan eligibility:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Character:<\/strong> \u201cCharacter is the first thing we assess,\u201d Barker said. \u201cDo the owners reinvest in their business, or are they prioritizing a lavish lifestyle? Do they have a clear vision and a structured plan for transitioning from chairside dentistry to full-time business management?\u201d<\/li>\n\n\n\n<li><strong>Support team:<\/strong> The strength of a dental group\u2019s leadership and non-clinical operations plays a major role in financing decisions. Barker advised: &#8220;Are they surrounding themselves with the right people and the right experience? Is there an organizational chart that defines roles and functions in the nonclinical operations, including financing, credentialing, marketing, revenue cycle management, and human resources?\u201d <\/li>\n\n\n\n<li><strong>Legal structure:<\/strong> Lenders need a clear distinction between clinical and non-clinical assets for loan structuring. \u201cIs the company set up correctly? Is there a structure that the bank can lend into that clearly defines the clinical and non-clinical assets and the collateral?\u201d Barker said.<\/li>\n\n\n\n<li><strong>Accounting practices:<\/strong> Barker recommends that dental groups transition from cash-based accounting to accrual-based accounting once they reach five practices and consolidate financial statements. He noted: \u201cDSO lenders will want to see trailing twelve-month of consolidated income statements and balance sheets.\u201d <\/li>\n<\/ul>\n\n\n\n<p>According to Barker, practice owners who can clearly articulate their vision, financial strategy, and operational structure have a much greater chance of securing bank funding. \u201cWhen an owner can explain their vision, <a href=\"https:\/\/www.planetdds.com\/resources\/joshua-gwinn-unlocking-growth-through-culture-and-vision\/\" data-type=\"resources\" data-id=\"13962\" target=\"_blank\" rel=\"noreferrer noopener\">culture<\/a>, organizational chart, financial statements, <a href=\"https:\/\/www.planetdds.com\/blog\/7-expert-tips-on-growing-your-dental-practice\/\" data-type=\"post\" data-id=\"12909\" target=\"_blank\" rel=\"noreferrer noopener\">growth strategy<\/a>, and exit strategy, it makes it easier for the credit team to approve the loan,\u201d said Barker.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3. Establish a defined career to attract talent.<\/h2>\n\n\n\n<p>Privately owned dental groups must compete with investor-backed DSOs that offer structured career paths and financial incentives. To remain competitive, private dental groups need to create their own well-defined career progression plans.<\/p>\n\n\n\n<p>\u201cA DSO backed by private equity may have a well-defined career plan for dentists,\u201d said Josh Gwinn, Co-Founder and CEO of <a href=\"https:\/\/www.optimizeps.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Optimize Practice Alliance<\/a>. \u201cNew hires may spend two years as an associate, then two years as a lead dentist, then spend another year mentoring other doctors, and at year five, have the opportunity to buy into the DSO.\u201d<\/p>\n\n\n\n<p>Without external funding, private dental groups must differentiate themselves in other ways, such as offering clear ownership tracks, mentorship programs, and transparent compensation structures. \u201cWhen you are the majority owner, you call the shots,\u201d said Gwinn. \u201cIt\u2019s imperative to think through your processes so you can compete against other groups that have access to more capital and may have more sophisticated systems in place.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Optimize operational efficiency for scalable growth.<\/h3>\n\n\n\n<p>Running a multi-location dental group without outside investors requires strong <a href=\"https:\/\/www.planetdds.com\/resources\/emily-vanney-on-blending-patient-care-and-organizational-leadership\/\" target=\"_blank\" data-type=\"resources\" data-id=\"11486\" rel=\"noreferrer noopener\">leadership<\/a> and operational efficiency. Hisham Barakat, DDS, Partner and Chief Clinical Officer at <a href=\"https:\/\/www.guardiandentistry.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Guardian Dentistry Partners<\/a>, stressed the importance of knowing your strengths and delegating tasks strategically.<\/p>\n\n\n\n<p>\u201cFirst, know your genius. Understand what you\u2019re good at and delegate the tasks that you don\u2019t enjoy doing,\u201d said Barakat.<\/p>\n\n\n\n<p>He also emphasized financial awareness, noting that practice owners must have a firm grasp of their top-line revenue, expenses, profit margins, and EBITDA (earnings before interest, taxes, depreciation, and amortization). \u201cThere are many ways to improve your financials so your group is attractive to banks and future investors,\u201d he explained.<\/p>\n\n\n\n<p>One strategy Barakat recommended is hiring fractional executives rather than full-time employees to help manage the business side of the practice. Additionally, training doctors in advanced procedures like sedation, implants, and endodontics can reduce patient referrals, keeping more <a href=\"https:\/\/www.planetdds.com\/blog\/creative-ways-dsos-are-solving-the-revenue-cycle-management-rcm-challenge\/\" target=\"_blank\" data-type=\"post\" data-id=\"10851\" rel=\"noreferrer noopener\">revenue<\/a> within the practice. \u201cBy optimizing efficiencies, knowing your metrics, and leading with integrity, it\u2019s possible to scale your group without external investors,\u201d Barakat explained.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Drive Growth for Your Dental Group<\/h2>\n\n\n\n<p>Expanding a dental group without outside investors takes strategic decision-making, financial discipline, and a strong leadership pipeline. At the Yankee Dental Multi-Site Summit, experts emphasized that success goes beyond rapid expansion, requiring a unified model that can scale without compromising a long-term vision.<\/p>\n\n\n\n<p>For privately owned groups, growth means taking control\u2014structuring the business to attract top talent, secure financing, and drive profitability. With the right strategy and operational focus, dental entrepreneurs can scale while maintaining full control of their organization.<\/p>\n\n\n\n<p>Planet DDS provides cloud-based practice management solutions that simplify operations and strengthen financial performance, making it easier for your dental group to expand efficiently. Contact us today to learn more.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.planetdds.com\/book-a-demo\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn More<\/a><\/div>\n<\/div>\n\n\n","protected":false},"excerpt":{"rendered":"<p>It can be daunting to determine the right way to fund your dental practice growth. At the Yankee Dental Multi-Site Summit in January, a panel of experts\u2014including private dental group&#8230;<\/p>\n","protected":false},"author":12,"featured_media":14212,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1416,80,1427,128,88],"tags":[1479,13,43,1460,169,1522,57,491],"class_list":["post-14172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-growth","category-dental-industry","category-dental-service-organization","category-dso","category-planet-dds","tag-dental-group","tag-dentistry","tag-dso","tag-finance","tag-growth","tag-investors","tag-planet-dds","tag-scaling"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/posts\/14172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/comments?post=14172"}],"version-history":[{"count":0,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/posts\/14172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/media\/14212"}],"wp:attachment":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/media?parent=14172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/categories?post=14172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/tags?post=14172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}