Business advice

[Toto]

Could I have some feedback on this idea - joining with a good, established ,busy dentist who is keen to help me start a lab . He pays for 50% of the equipment and I pay 50% . I will get work also from other dentists.
What do I do ? Charge him as per normal and at end of the year he gets profit share? If the dentist is a partner he will be happy to see the lab grow and would recommend other doctors to me. Of course would be better to set up alone but I,m unable financially.

 

[TECHARTISAN]

I would.....

1. Have a finance agreement drawn up in which you are purchasing the equipment from him with 50% down with the balance amortized across a set term...a secured loan.

2. Have contract stipulation that allows you to defer all or part of the monthly payment in BILLED services.....such that he will still receive a bill but it will be marked "paid by contract" up to the monthly due.

3. Have contract stipulation that allows him to use the equipment finance balance as a line of credit against BILLED services in excess of the monthly required payments shortening the "buy out term"

4. Negotiate with him any expected "share" of the lab company.

The situation as you have described DEMANDS formal contracts....otherwise your good dentist buddy could end up with ALL your equipment, clients, and a nice chunk of your money should he decide to terminate your arrangement. Then all he needs is a new tech.

50/50 on equipment is not an equal partnership....you will be bringing your skillset, labor, and assumably many hours of marketing, promotion, and contact building to make this more than an inhouse lab....make sure you are getting security in that arrangement or your just paying for a job.

I am not a lawyer, my advice should not be construed as qualified legal advice....just some random dude on the internet babbling.....I am not liable for your application of my advice.

 

[Affinity]

First thought is, never partner with a dentist.. You will always 'owe' him.. It sounds like a good option, but when the equipment is paid off, you will still be giving him a good price on labwork.. If you have the option of picking more work up it could be a good starting point, and a way to work in-house, which is always a great learning experience
Go for it but have a sound plan.. And backup plan

 

[CatamountRob]

Take the 50% you have and start shopping for used equipment, then go into business for yourself if you wish.

 

[thetoothfarie]

Avoid a partner of any kind if you possibly can. There is always the excption but for most owners of small or start up labs, those that started with or have a partner generally don't fare well. I know of more horror stories than happily ever afters.

I don't in any way want to discourage you in starting your own lab. If you decide to go foward my advice is this:

Take bussiness classes at your local J.C if possible. Bookkeeping, marketing, and accounting to name a few

Seek legal advice. Even though it is said that contracts are made to be broken, get one!

Seek tax and accounting advice. Is this going to be a partnership? Corporation? LLC?

If you can't afford a lawer, at least get every thing in writing and noterized.

Work and hope for the best while you make sure you are prepared for the worst.
What will you do if you have a falling out?

I give you this advice based on my personal experences and what I have observed in this industry. I am sure there are others that can share more advice. I am looking forward to responces and advice as I also am starting my own bussiness again (I had a partner).

Best of luck to you,

 

[CYNOSURER]

Kim and techartisan are on the right path.

Partnerships are like marriage. When they work they are great. I don't know of many that broke up where both parties were satisfied and happy with how the split was handled.

 

[Toto]

Appreciate your replies - thanks

 

[Affinity]

You could always do a year or two agreement, with an 'exit strategy' .. so that you can buy back the equipment from the Dr, and rent the space from him.. the end goal being two seperate businesses. doesnt mean he cant still get a good price after for helping you get started..

I look at it like this: You only get so many chances in life.. if a dr is willing to bring you on, give you work, finance equip. .... it may be the only opportunity you have to start your own lab.. if it doesnt work, then youre back to where you were.. but partnerships very rarely work out.. so dont think of it as a partnership, but a means to and end... make sure everyone is on the same page as to what that 'end' is.. in writing!

again.. partnerships=BAD

 

[AJEL]

I have seen a few partnerships work 2 out of I have no idea how many since 67. They are both husband wife teams, in one she does ceramic, wax up, billing, material ordering, he does model, casting, metal finish & deliveries. in the other she does set-up, wax up, shaping, billing & deliveries, he does articulation, tooth & supplies order, processing, polishing, TMJ appliances, & some deliveries. Notice they are away fro ea other during deliveries strangely that is when one or the other calls and chats with me. There is another husband wife team that are still married but they closed the lab and He went into sales, she went into teaching grade-school.
I talked with a DDS this morning as he had done what you are suggesting it lasted for 2 years before problems, and around 3 years (when he started talking with outside labs) then he kicked the partner/employee out they were both men. I remember a DDS who set up a female technician but that wound up in a divorce, practice broken, DDS working for other DDS & technician without work, also divorced & I haven't heard from her in 15 years. I like the idea of having everything on paper, I've never had a partner and employees only for a few years, maybe I'm as Tim said "to dam picky". The advice from affinity would work for me, I don't like deceiving someone by concealing or misrepresenting the truth to get what I want. Put it up front and have an exit strategy that both can see, and know that a falling out is common. The money person gets to do the loudest talking while whispering. I tend to associate with small labs, a large lab could be a great situation for a partnership, corp, ltd situation, I have worked for some but know not much beyond my experience with the IDLA or the MAC convention in the 80's. bobcdt.

 

[BobCDT]

Very difficult business model.
The dentist puts up a few bucks and you do all the work. I don't like it.
By the way, I have had a partner in a 50+ person lab for over 20 years and it's been great. But, we both have worked hard.
B

 

[Toto]

I hear you - will drop the partner with the Doc idea and go it alone - not alone tho as the one who rides the white horse whose name is faithful and true is with me - he who has an ear will understand -shaka!

 

[AJEL]

I hear U but please remember even though some DDS appear wicked, it is still against the law to get caught slaying them. Great fortune on your great adventure, you shall now have many bosses instead of the one. Practice smiling each time you answer the phone, try to understand it is the job of the front office & assistants to keep you away from their DDS. I have found the zippy letter openers with your business card glued inside to be a fine promotional, pens leave with patients calendars if not their decor find the circular file not the wall, led flashlights go to the DDS kids, mugs might work if the DDS isn't handing his own out to the pt. I have in the early days gotten one quadrant cleaned at 4 different offices making for 8 advertising write-offs & 8 contacts in one year, (I still have 2 of those DDS from 1979, although they unlike myself are planning to retire.) No matter how frustrating things may appear self medication only makes the situation worse. At first working one day at a time, working out that days challenges and moving on, remembering the challenges but not dwelling on them, will serve you, and not make you a statistic. Great fortune AJ Luckow:brushteeth::clap2:

 

[Toto]

Whats the difference between God and a Doctor ?
God doesn't think he's a doctor

 

[technician_dental]

My experience was we start the business.While working in different lab we start our own lab and let my friend do the base,set-up and I do the rest.We did 5 cases.And that's how the problem started.He no longer told me that the doctor is sending cases.I thought that the doctor doesn't like our work only to find out that he's hiding it from me.I saw the doctors prescription all addressed to me and he's not telling me.He told me the doctor didn't pay.I want to confirm with the doctor but doesn't want to talk to me.So now I don't know who is telling the truth.So be careful with having a partner in the business."Its better with no one than having the wrong one".

 

[smile4me]

Don't mean to be the negative bee here but owning a lab is one of the hardest things ever. I have owned a few different businesses in the past and nothing compares to owning your own lab, long long hours, very tedious and intense labor, very hard to compete with the larger labs. Labs in our area are either closing down by the week or going around in desperation undercutting everyone offering prices that don't even make sense to me! I "was" happily married for the last 6 years up until I took over managing my husbands lab 3 months ago. I'm a numbers person and these numbers don't make sense what so ever! The only thing that is saving our asses are my scanners which are not the best scanners out there and my mill, this forum has helped tremendously also! learning so much on here!
and the Best of Luck to you!

 

[Toto]

What I like most about this website is the insight into some of the successful guys lives . Dont know them but it seems to me that Al, Lab guy, John Wilson,Bobby Orr to name a few seem to be successful and make a living out of this proffession. Al seems to have a small set up but lives on a small farm - looks out his window while waxing up some veneers and sees some wild turkeys in his yard -being a hunter he goes out and gets some thanksgiving dinner - has a look around at his beans or whatever small scale farming operation he has going and goes back to work. Of course hes good at what he does - but its great to see that it can be done.

 

[Tom Moore]

Most of the time working in a dental office with them as a partner is a permanent solution to a temporary problem.

Let him buy the equipment and pay you by the unit for your labor. Look at this as a advanced course in lab technology that pays you to take it.

Save your money so if you want to make the jump to lab owner you do it with enough capital to do it your way.

It took me 2 1/2 years in an office to do this and I got paid very well. I left with knowledge I would have had a hard time getting any other way and enough money to start my lab and live until it started making me a living. That was in 1972 and I'm still working in this industry.

Don't get in a big hurry. Let this progress in a way that sets you up for a great career in the lab industry.

The key to this is having money in the bank to keep your boat afloat while you patch any leak. That takes time and effort but it will cause you to carry yourself in a way that others can read. Your customers can smell your financial weakness like blood in the water to a shark and many will take advantage of you.

 

[Kurt Goodfellow]

Lots of good advice in this thread, I hope your business works out!

When you are ready to get software to help you manage your lab consider using Evident. We don’t have an upfront cost for our software, so it’s accessible to new, small, or financially strapped labs. It doesn’t require any special hardware, just any modern computer and an internet connection.

We can provide some really powerful tools to help you communicate with your partner doctor, or any other doctors you work with. They can submit and check the status of cases, reprint invoices and statements, as well as many other helpful communication tools.

So many more features, but I don’t want a wall of text as my first post, so check out our website if you are interested! Happy to chat on the phone if you have any questions as well.

Dental Lab Software: Evident