As a dental practice owner or aspiring owner, one of your most crucial decisions is assembling the right team of advisors to guide your practice’s growth and success. Communication with some advisors (e.g. CPA or financial planner) should be regular and frequent. Communication with other advisors may only be as needed but generally involves a significant matter. In today’s interconnected business environment, it’s essential to understand how these relationships work and ensure they truly serve your best interests.
The Foundation of Strong Advisory Relationships
When building your advisory team, the foundation should be built on trust, expertise, and independence. Each advisor should bring specific knowledge and experience in the dental industry while maintaining professional objectivity. This independence allows them to provide unbiased guidance focused solely on your practice’s success.
Key Considerations When Selecting Advisors
- Industry Experience: Look for advisors with demonstrated experience in the dental industry. They should understand the unique challenges and opportunities facing dental practices, from equipment financing to practice valuations.
- Professional Independence: Your advisors should maintain professional independence, allowing them to recommend solutions based on your specific needs rather than external influences. This independence ensures you receive advice aligned with your practice’s best interests.
- Transparent Communication: Open dialogue about how your advisors work, their fee structures, and their relationships with other professionals is crucial. This transparency helps build trust and ensures all parties are aligned with your goals.
The Hidden Costs of Professional Referrals
In the professional services world, referral networks are common and can be valuable when based on merit and proven expertise. However, a concerning trend has emerged: some professionals are accepting referral fees for directing clients to specific service providers, regardless of whether those providers are the best fit for the client’s needs. As a practice owner, you should be aware that these arrangements could influence the recommendations you receive and potentially impact the quality of services your practice obtains.
Understanding Professional Referral Relationships
Before engaging with any advisor, it’s crucial to understand how they handle referrals and recommendations. While many professionals maintain ethical referral networks based on expertise and proven track records, others may be motivated by financial arrangements that could compromise their objectivity. Some essential questions to ask potential advisors:
- Do you accept referral fees or compensation from other professionals you recommend?
- What specific criteria do you use when recommending other professionals to your clients?
- Can you explain any financial relationships or arrangements you have with other professionals you might recommend?
- How do you ensure your recommendations are based solely on my practice’s needs?
- Are you willing to provide this information in writing?
Building a Team That Puts You First
When assembling your advisory team, prioritize professionals who:
- Demonstrate a clear understanding of your goals and challenges
- Provide references from other dental practices
- Maintain transparent fee structures
- Show willingness to collaborate with other advisors while maintaining professional independence
- Have a track record of long-term client relationships
The Value of Truly Independent Advice
At Rea, we believe that professional recommendations should be based solely on merit and client needs – never on financial arrangements between advisors. We maintain a strict policy against accepting referral fees or kickbacks, ensuring our dental industry advisors remain truly independent. When we recommend another professional, it’s because we believe they’re the best fit for your specific situation, not because of any financial benefit to us. This commitment to independence allows us to focus exclusively on what matters most: your practice’s success.
Looking Ahead
Building and maintaining the right advisory team is a crucial investment in your practice’s future. As your practice grows, the strength and integrity of these relationships become increasingly important. Regular evaluation through annual reviews ensures your advisors continue to serve your evolving needs while remaining aligned with your goals. By prioritizing independence, expertise, and transparency in these relationships, you create a foundation for sustainable growth and success. Remember, the right advisors aren’t just service providers – they’re trusted partners in your practice’s journey.
