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Three Key Lessons for Wiser Investments in Your Space and Equipment by Jay Geier

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The physical space of your practice is your vehicle to growth and it has certain capabilities and certain limitations. The appearance of your office, the number of operatories, your location, equipment and technology are all part of your space and equipment. When a part of your business (new patients, production, retention) is stagnant or declining, there’s a very good chance the capabilities of your current space and equipment are part of what’s holding you back and stunting your growth.

While every business has space and equipment, the bigger question is, are you proud of yours. Does it represent you and the quality of your work accurately? If not, then you need to invest in getting it to where it needs to be.

Space and equipment updates can seem overwhelming, but they don’t have to be! It’s much harder to change your people or their behaviors than it is to change your wall color. And, in fact, you can completely delegate your renovation or office update to another person.

When you make an investment in your space and equipment, what you are buying are new capacities and new opportunities. For example, if you double the number of operatories you have, you’ll double your opportunities to see more patients and will therefore double your practice’s production! Space and equipment investments will always require capital upfront, but that initial investment will have a huge return for your practice; and you will be investing in the opportunity to produce more money, get more referrals and ultimately grow your practice.

So ask yourself: What are you currently doing, and what do you want to do? Do you want to double your new patients? You’ll likely need more operatories. Do you want higher-end, more compliant patients? You’ll need the higher-end office to match. Investing in your space and equipment will allow you to make those other changes come to life.

Whether you’re just starting out or you’ve been in practice for several decades, there are three lessons you need to know to start making smarter decisions with your space and equipment. First, think like an investor, then make smart decisions about renting versus owning, and finally realize that you are not Starbucks!

1. Think Like an Investor

Your role as the practice owner is to ensure your financial house is in order. To apply that concept to your space and equipment, you really want to be in a position to buy a building. You have so many smart investments available because other businesses are downsizing or foreclosing. You will need to invest some money to fix up the building, but these are the types of opportunities you need to look for because your return on investment will supersede the initial investment—and it will continue to pay off for a very long time!

Think bigger. People often think in terms of “next week” or “next month,” but what you need to start doing is thinking in terms of years and the overall future. When you look at making space and equipment investments, you need to think about the long term, the “big picture,” so you can obtain your end goals. Start thinking of the number of producers you want to ultimately have and don’t think of what you currently have. Most commonly, if the business owners do not consider the long-term vision when adjusting space and equipment, then they quickly outgrow the adjusted space and are right back to square one with the same issue.

Understand the power of the “Change Formula.” The “Change Formula” simply establishes that if you don’t dictate the changes in your business, then the changes will dictate you. That lack of power and control will negatively impact your business because you can’t make smart decisions or investments if you’re not in control of your practice.

Take control; get it done. Most often, people wait around for someone else to do the work. This is a huge mistake. You need to get it done and drive the change yourself. This is your vision; therefore, you need to be the pilot of that vision, take ownership and make it a reality.

2. Own, Don’t Rent

My clients always ask, “Should I own or rent my office space?” This is a no-brainer! It always makes more sense to own your space. Your business will pay off your building, allowing you to wake up each day and have a greater net worth. Even if it’s a stretch to own the space, every month when you pay the principal it will be going toward increasing your own personal net worth.

A good example of this is if you make a $10,000 rent payment and that rent payment is made for 20 years; then you have placed nothing into your net worth and you are giving more than two million dollars away! However, if you buy a building and make your $10,000 payment for 20 years, then you’ve invested that $2.4 million into your own pocket by increasing your net worth! And that building will increase in value overtime, even after it’s paid off. Your net worth will constantly be rising. See the difference?

Anyone who has ever purchased a home knows the three biggest factors in selecting prime real estate: location, location and location! There are two general categories most often looked at when searching for practice locations: retail space and condominiums. The office condominium is often located off the street and typically lacks large signage. The advantage for the condominium is the affordability, however there is a considerable disadvantage— they lack visibility! You should always invest the most you possibly can in your signage; it’s the single biggest return on investment you’ll make. Opting for a condominium instantly stunts the visibility and success of your signage, cutting your investment off at the knees.

3. Don't Get Distracted...

Oftentimes, business owners want to buy multiple locations rather than re-assessing their current location. Instead of going out and buying multiple mini-locations, ask yourself this: “What is the most production I can do at my current location?” Remember, you are not Starbucks! You don’t need a location on every corner. What you do need is a profitable location. So start thinking about expansions rather than multiple locations in order to reach your production goals.

Once you’ve made the investment in the facility, you want to maximize that investment by thinking of ways to efficiently make it work all under one roof. That being said, you don’t have to make all of the expansions and changes to your space all at one time. But you should keep your long-term goals in mind because those goals will keep you in check. Bottom line: Think about the growth strategy, think about the traffic, think about the signage and think about the running space. Don’t just think in incremental, small steps to growth—think like an investor.

Whether you realize it, you are an investor! So thinking big picture and long term are just facts of life for a business owner like yourself. But ultimately there’s just one key concept that you need to understand when you think about your space and equipment: It’s like an archery match—you can’t let your arrow go if you don’t have a target to aim at.

So start your space and equipment investment today by simply setting a goal, and you can work on making everything else fall into place once you know what your target is.

Jay Geier is a speaker, consultant and the President and Founder of the Scheduling Institute. More than 850 doctors currently participate in Jay’s Townie Choice Award-Winning Platinum & 5X Coaching Programs, where space and equipment are one of the five areas maximized in order to transform your practice. To get a copy of Jay’s latest CD on How to Invest in Your Space and Equipment please visit www.SpaceAndEquipment.com, write “Space and Equipment” on your letterhead and fax it to 866-651-6445, or call 844-242-1992.
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September 2025
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