Steve Bilt on The Secrets Behind Building a Thriving Business in the Billion-Dollar Dental Industry

Dentistry is seeing some tough days - but is it worth sticking around and riding the wave of a $200 billion industry? In this episode of The Dental Economist Show, host Mike Huffaker sits down with Steve Bilt, CEO of Smile Brands, to explore the current state of the dental industry, strategies for sustainable growth, and the future of AI in dentistry. Tune in for practical and game-changing insights on navigating market turbulence while building a dental business that stands the test of time. From “why building a business ‘you'll never sell’ creates the strongest foundation”, to “leveraging market challenges as opportunities”, and “why the DSO model continues to bridge crucial gaps in dental care accessibility”, he talks about it all. Tune in for a pragmatic reminder of the potential of dentistry - today and in the future.

What You’ll Learn:

Customer retention and service excellence as strategies for navigating economic turbulence in dentistry

Why building a dental business for long-term sustainability trumps short-term exit strategies

The critical importance of maintaining strong cash flow to preserve strategic options in challenging markets

How DSO models can help bridge the care gap for the 50% of Americans not receiving regular dental care

Why simplifying your business agenda and focusing on 2-3 core priorities leads to better execution

How to leverage AI strategically in dental practices, from patient communications to revenue cycle management

Why understanding your balance sheet is crucial in today's market environment

The importance of building strong relationships with providers and investing in talent acquisition during uncertain times

As dental professionals and DSOs brace for turbulence, this episode offers a hopeful reminder of the potential of dentistry - today and in the future.

Episode Highlights:

01:37 - 04:07 Less Is More: Simple Agendas, Maximum Impact

Steve emphasizes that during challenging times, the key to success is identifying core strengths and doubling down on them. While dentistry offers numerous opportunities, trying to pursue too many initiatives simultaneously can dilute effectiveness and resources. He recommends taking your existing list of initiatives and cutting it in half, then cutting it in half again to focus on just 2-3 key priorities that can truly make a difference. This disciplined approach provides a clear framework for strategic decision-making.

06:22 - 10:30 Build for Longevity, Not Quick Exits

Steve shares a crucial insight about building sustainable dental businesses by focusing on long-term value creation rather than quick exits. He explains that trying to time the market for a sale is dangerous and likens it to gambling, where you need to be right about both direction and timing. The key is to build a business with strong fundamentals that you theoretically would never need to sell, which paradoxically creates the best opportunities for favorable exits when the timing is right.

10:39 - 12:16 The Untapped Potential in Dental Care Access

Steve highlights a critical market opportunity in dentistry, noting that 50% of Americans still lack regular dental care access, representing a business opportunity as well as a significant healthcare challenge that DSO models are uniquely positioned to address through increased efficiency and accessibility. He emphasizes that this isn't about disrupting successful private practices but rather about expanding the market to serve previously unreached populations.

12:18 - 14:49 Using AI Strategically, Not For the Sake Of It

Steve offers a pragmatic perspective on AI adoption in dentistry, comparing it to the early internet boom where direction was right but timing and hype were misaligned, highlighting specific high-impact areas for AI implementation, including voice agents for patient communication and revenue cycle management automation. He suggests that the focus should be on finding measurable impact points that make teams more efficient and improve patient experience rather than adopting AI for its own sake.