Embrace Progress: AAO Reflections by Daniel Grob, DDS, MS, Editorial Director



What a difference a year makes!

While attending the AAO Annual Session this year, I couldn't help but notice the change in attitude, attendance and tone as opposed to previous years.

Maybe it was the venue, maybe the time of year, or maybe—dare I say—things are looking up.

This is a perfect time to mention the time of year. While scouring the Orthotown.com message boards lately, I couldn't help but notice a reference to cancelled appointments and a generally messed up schedules due to the timing of past confrences.

Wait a moment. The AAO meeting is not scheduled during May because it's the busiest time for orthodontists. If those in power got one thing right years ago, it was that the AAO meeting should be in late spring, when schools are closing down for the year, kids are attending parties and testing is taking place. This gives the appointment book a chance to fill up while doctors and their staffs are in attendance at the meeting. It should be fairly straightforward to plan your absence accordingly. Given the opportunities afforded by the AAO's carefully selected locations, it's an event you don't want to miss.

For example, New Orleans, with its diverse history, had much to offer when it played host to the 2014 Annual Session. It's a great place for foodies (beignets! jambalaya!) and for enjoying some pretty lovely weather. The community, which was as outgoing and welcoming as its reputation boasts, is still recovering from the devastation of Hurricane Katrina, and the population is still in the process of retooling from the serious effects of the economic jolt. New restaurants are opening, the population is in transition, and generally, residents are still reacting to it all. It felt like a work in progress.

San Francisco, site of this year's Annual Session, is known for progression and technology, and youthful enthusiasm was evident on the streets. The energy level was palpable and it infused the event.

The family cottage
Those of you who are new to the profession may not know it, but those of us who have been around for a few years understand that orthodontics is a cottage industry.

Look up the word "industry" and you'll find it's defined as "a collection of companies or businesses named for the principal product." These businesses start with the provider who is supported by the trade—they combine to enhance the patient's oral health and smile.

Billions of dollars in revenue does not change the fact that orthodontics is, and will always be, a small, closely held group of companies and individuals. So when you go to an industry event like the AAO's Annual Session, it seems like you bump into the same people and representatives, sometimes wearing different hats. It's always good to see who is working with what company and which of your favorite reps will be making the pitch on a new product that is apparently 10 times better than the one they were selling last year. It's also good to be approached by someone who is now the vice president of sales of a truly revolutionary product.

This wonderful supporting cast depends on us, the providers, to guide them through new advancements in clinical outcomes and procedures to make life easier for our patients, and ultimately, us.

Products
This year's products were evolutionary, but not revolutionary. Unlike past years, when the buzzwords were "digital," "clear," "laser," or "TAD," this year took many familiar products and moved them forward, a little bit improved and for a little bit less money. (Gosh, I remember paying $2,500 for my first digital camera that, my staff agrees, could not take photos with sufficient resolution to print. Nor could it be held in one hand without disabling the photographer.)

Go big or don't go
This year's event was distinguished by a distinctly upbeat attitude, not only from those in the know on the product side but from other practitioners, as well.

The most interesting comments I received were from practice-transition experts who agreed with my observation that the trend in the practice world is to "go big or don't go." Thanks to the combination of large student debt and an overachieving bunch of debtors in the present and on the horizon, the way out (or forward, depending on your perspective) is to purchase existing practices and grow them.

Not exactly my successful business model over the past 25 years but hey, things change.

Can a small practice with a few employees be sold for a fair price and allow for paying the doctor a fair wage, with money left over for debt service? The answer is, in my opinion, no. Not unless the seller is willing to lose on the transaction or unless he or she hires the purchaser as an overpaid dental assistant during the trial period.

A business is really not a business unless it can operate without the owner being present. A business is not just the prior owner's good name or reputation for doing good work, but an entity capable of moving forward and growing, with systems in place to allow for that growth.

Many times, the seller does not understand—and the buyer cannot justify—paying a price for a business that cannot support both streams of cash. The sale of a business should only take place when an owner can purchase the business, pay him or herself a decent living expense, and have free cash flow to pay the debt of the business. Otherwise, why not just work for someone or wind down the business? In order to do this, the infrastructure, organization and people must be in place to allow for continuity. So what's a person to do?

It's time to work on the business and not just in it! It's essential that the three M's of orthodontic business—marketing, mechanics and management—be addressed for success. Numerous methods exist to do this, including consultants, books and continuing education opportunities.

To learn how to market a growing business, I suggest the book, "It All Starts with Marketing," by Dr. Ann Marie Gorczyca. In it, Dr. Gorczyca lists 201 ways to market your practice. Neither simple nor a long and boring list, the book is organized into the methods of growing a practice based on internal, external and social media marketing.

An extensive compendium of tried-and-true systems and techniques, this book is a great resource for the beginning or seasoned practitioner looking to maintain those critical connections with the community, referring doctors and professionals, as well as patients.

Dr. Gorczyca has recently been selected to bring her insight and practical experience to the Orthotown Magazine editorial board. Look for her in the magazine to provide case presentations and methods to help establish your business, transition or sell that business, or grow it indefinitely.

Of course, for essential business tools and a view into the keys of business success, I also encourage you to read Dr. Howard Farran's book, "Uncomplicate Business: All it Takes is People, Time and, Money." Please see my review on page 42.

And for the final "m" of orthodontic business—mechanics—we come back to our supporting cast at the AAO Annual Session, where you can find the tools you need to do your work well. Make those connections. Next year, we'll go to Orlando, Florida and do it all over again, and find out what new products, ideas and innovations lie on the horizon to make our cases better, easier and more effective. We'll see once again what a difference a year can make.
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