Dos and don'ts for practice finance: Deciding on a satellite office

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Many dentists have more than one office. This is especially true of dentists early in their careers who are looking to expand their patient base as quickly as possible. The question is -- should you have more than one office?

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Perform an analysis before making a decision. Many dentists make decisions about a satellite office without performing a comprehensive business analysis. Relying on a gut instinct alone can be a significant mistake because the costs of a second location are substantial.

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Don't open a satellite office on "autopilot." When given a low level of attention, a satellite office often fails to grow. The dentist's attitude is almost, "If it grows, I will pay attention, but I will not pay attention to it unless it grows." This attitude will lead to a self-fulfilling prophecy. Never venture into a business arena if you are not fully committed to doing what it takes to succeed.

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