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The Importance of Goals and Metrics

Starting and running a business usually involves juggling more hats than a haberdasher. Reid Hoffman, the founder of LinkedIn, famously explained entrepreneurship in a more dramatic manner: “You jump off a cliff and you assemble an airplane on the way down.” Founders and early team members have more jobs than they can possibly accomplish, and all too often lose their bearings under the sheer number of tasks. One of the most important ways a startup can mitigate this risk is to set goals, and measure progress toward that goal.

In the four years since I graduated from the University of Pennsylvania Dental School, Dental Service Organizations (DSOs) have grown substantially. Analysts estimate that DSOs make up anywhere from 10 to 20% of the dental market, and continue to grow faster than private practices. So what do new dentists think of DSOs? I recently posted a thread on DentalTown to ask the active student Townies just that.

Three trends jumped out based on the responses:

1. Dental students generally view DSOs as a necessary stepping stone to private practice.

2. DSOs are not associated with quality dentistry, even among dental students.

3. DSOs reach out to dental students, unlike private practices.

This past weekend, Scott and I had the opportunity to visit Boston and attend the American Academy of Periodontics’ annual meeting in the Boston Convention Center. For Scott, a periodontist by training, it was a chance to reunite with old friends, mentors, and colleagues. For me, having spent four years as an undergrad in Boston, it was a chance to sleep on my friends’ couches and remind them why starting a company is so much more fun than law school.

Dentists are [finally] saving by buying online

Consumers around the world buy products online, and dentists are no exception. More and more, dental supplies can be found and purchased online, often for a fraction of the cost that traditional distributors charge.

In fact, many dentists are now waking up to the fact that the biggest dental supply distributors have been overcharging for years. (There is an ongoing class action lawsuit against Henry Schein, Patterson, and Benco for price-fixing and collusion.)

Simply put, it just doesn’t make sense to keep paying an extra 30% for the ‘luxury’ of purchasing through a sales representative. For the average dental practice, this amounts to about $20,000 per year in potential savings.  And today, offices don’t necessarily need a sales representative to learn what’s new in the dental world. Honestly, we all read about it on the Internet first anyway.

by Dr. Scott Drucker, DMD

I’ve spent much of the past three years building Supply Clinic from inception forward. In the same time period, I’ve finished periodontics residency and now practice part-time at a general dental practice in Chicagoland. My experiences give me a unique perspective into both worlds, and there’s so much more crossover than initially meets the eye. Both involve using multiple skillsets to lead a group of people, build a functional company, and make people happy.

Below are 5 lessons I’ve learned from starting a company, that are equally important to learn in order to run an effective dental practice: