As the dental industry comes out of a tough couple of years for the economy, executives are looking for ways to protect their financial stability in case of a potential downturn.
Dental Care Team Group President Ibrahim Jarjoura, DDS, and Catrise Austin, DDS, owner of VIP Smiles Cosmetic Dentistry, recently joined the Becker's Dental + DSO Virtual Event to discuss the best strategies for DSOs to persevere during tough economic times.
Editor's note: Responses were lightly edited for length and clarity.
Question: What is your outlook for the economy in the near future?
Dr. Ibrahim Jarjoura: Now that we have a more solid foundation economically, we can start building on top of that. So marketing, bringing in new patients, adding new services and so on. All of that is being worked on because you can't just work on the bottom line ... You have to start working on the top line because you have to bring in that income [and] you have to bring the patients into the organization. So, the outlook is good. I'm not an economist by any stretch of the imagination, but it feels okay like the worst is behind us.
Last month, we brought in about 98 new patients, and that's just marketing on social media. It's costing us like $9 a month. So I'm not talking about an organized marketing campaign. Just doing the minimum for putting the word out and providing good service is starting to bear fruits. The patients are starting to seek us out and inquire about dental treatment again. So it seems like the worst is behind us. Now, provide as much service as you can, and you'll see that top line start to grow.
Dr. Catrise Austin: I am hopeful for the economy. It looks like inflation is starting to go down. We never know, these things fluctuate, but the name of the game is to decrease those operational costs and find ways to remain profitable. You may want to condense your days. If you're operating five days a week, but you're not busy all five of those days, maybe you change your hours. Maybe you work longer days, but less days. Those will be things that can be helpful, you can cut on staff, and maybe look at teledentistry as an option, so some people can work virtually and not have to come into the office [and] work for a lower rate, just making sure that you streamline those workflows and processes. Turn to the digital solutions that can help you do that, and I think we will be fine.
Q: What can dental companies do to prepare for the next potential economic downturn, or other financial challenges that we may see down the line?
IJ: Make sure that your bottom line is solid. Make sure that your operation is as efficient as possible. That's number one. Number two, make sure that you're able to pivot. That's incredibly important ... If you're able to change and pivot quickly to make sure you're providing the service that your market is demanding and wants, then you're good, then you'll survive. The most important thing is perseverance. That's the secret, just stick with it. Put one foot in front of the other, keep moving forward, and you'll make it.
CA: One of the biggest mistakes we tend to make when things get tough is we don't pay attention to the marketing. We're like, "Oh, I don't have money to market." Well, there's a lot of marketing and branding you could do that is absolutely free. In order to prepare for the next economic downturn, invest in strong branding. If you're in a big city, like I am in New York City, there's a lot of competition, and you have to find a way to stand out. I'm on social media now. A lot of doctors and DSO owners don't like to be on social media, but that is where our patients are. So if you don't want to do it, you have a hygienist or an assistant — somebody in your office is on their cell phones. Make them your social media person, and you send out those Instagram posts, go live, and give them a behind-the-scenes and let them know what your practice is all about.
I personally have podcasts, so I'm out there solving their problems and telling them about the solutions they have for their problems in the form of podcasting. I'm writing books, I'm doing blogs, all these things are really economical to produce and to disseminate and distribute throughout the universe. When you are out there and you look like the rock star in your field, you're going to see that influx of patients. Your patients are out there. They just need to know about you. Some dentists don't even have websites. It's crazy. So make sure you're investing in branding, and you will start to attract those patients.