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The Second Location Trap: What Dentists Should Know Before Expanding

by Wes Read, CPA, CFP® | May 8, 2025

For many dentists, owning and operating a thriving single-location practice is a major professional milestone. After years of hard work building a loyal patient base, a great team, and a profitable operation, it’s natural to think, “Why not do this again?” The idea of expanding to a second location is tempting—and on paper, it often seems like a smart next step. But in reality, the transition from one successful office to two is one of the most difficult moves a dentist can make.

Here’s why: A dentist can only be in one place at one time. And in most practices, the success of the business is directly tied to the presence and leadership of the owner-dentist. When that presence is split, the ripple effects are immediate. The original location, once the hub of daily energy and attention, can start to suffer—declining collections, reduced staff morale, and patient attrition are common symptoms. Meanwhile, the new location rarely launches at full speed. It takes time to ramp up patient volume, recruit and retain a capable team, and iron out operational kinks.

Adding to the challenge is the cost structure. Dental practices carry substantial fixed overhead—rent, payroll, insurance, and equipment leases—that don’t go away just because the doctor is off-site. Opening a second location can nearly double the fixed expenses, while the practice owner can still only produce at one location at a time. Most associate dentists, while skilled clinicians, rarely have the same ownership mindset. It’s difficult—if not unrealistic—to expect them to drive a new business with the same passion, accountability, and hustle as the founder.

What’s more, managing multiple practices requires an entirely different skillset than running one. It’s not just about dentistry anymore—it’s about systems, delegation, leadership development, and financial management across a more complex structure. These business muscles take time to build, and missteps are costly.

That’s why so many dentists who pursue multi-location ownership eventually feel overwhelmed and undercompensated. One of the most common outcomes is that the first location ends up subsidizing the losses of the second. And if a third office is attempted before the business model is truly scalable, the problems compound.

This isn’t to say that multi-location success is impossible. Some dentists do pull it off—but only after years of preparation, a strong team, excellent systems, and a high tolerance for risk. Even then, many who’ve succeeded will admit: it was far harder than they imagined.

For most, the best path to increased profit and satisfaction is not opening more doors, but growing within your existing four walls. Maximizing operational efficiency, expanding patient services, and investing in marketing and training can often yield better returns with far less risk.

Expansion may still be the right move—but go into it with eyes wide open. The business side of dentistry is a discipline all its own, and mastery takes time, intentionality, and humility.

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Disclaimer: The marketing materials presented on this website include testimonials that serve as reviews of PracticeCFO Investments’s products and services. PracticeCFO Investments does not compensate clients for reviews or testimonials, and PracticeCFO Investments does not provide anything of value in exchange for these reviews. PracticeCFO Investments has determined that there are no material conflicts of interest between the firm and the participant, and PracticeCFO Investments has not influenced the statement made by the client(s) appearing on this website.
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