Financial Adviser: 5 Business Lessons Everyone Can Learn from ‘Dentist to the Stars’ Dr Steve Mark Gan, Founder and CEO of GAOC Dental Center
Dr. Steve Mark Gan stands as a testament to the power of following one's passion and embracing an entrepreneurial spirit. By forging his own path and revolutionizing the field of dentistry, he has made an enduring impact on the industry, inspiring others to think outside the box and make a difference in their chosen fields.
Born into a family of doctors, Gan seemed predestined for a career in medicine. Despite his parents' hopes for him to follow in their footsteps, Gan had different aspirations. He was drawn to business from a young age and envisioned himself as an entrepreneur rather than a doctor.
Instead of enrolling in medical school like his parents had hoped, Mark pursued a degree in business at the University of Santo Tomas (UST). However, faced with pressure from his father to consider a career in healthcare, Gan eventually relented and decided to study dentistry. This compromise allowed him to pursue his interests while still fulfilling his parents' wishes.
After finishing his dental studies, Gan began a journey that would combine his expertise in dentistry with his business acumen. While studying dental surgery in the United States, Gan gained valuable experience by working with esteemed professionals in the field.
It was during this time that he saw a chance to transform dental care in the Philippines. He recognized the need to introduce advanced techniques and services, with a special emphasis on dental implants.
With a vision to innovate and elevate dental care, Gan pursued his dream of opening his own clinic. Although he faced financial difficulties and had to borrow money from different sources, Gan persevered and successfully founded the Gan Advanced Osseointegration Center or GAOC n 2001.
Today, GAOC has evolved into a reputable chain of dental clinics renowned for its world-class services and state-of-the-art facilities, boasting a network of 10 clinics. GAOC is the only dental conglomerate in the country that has transformed dental care to the highest standard, on par with or even surpassing that of first-world countries.
Over the years, Gan expanded his ventures to provide accessible dental care through another brand, Novodental, comprising a chain of affordable clinics with 20 outlets. This move aims to democratize quality dental services, catering to a broader market segment.
In addition to his dental clinics, Gan also diversified his business portfolio to create an ecosystem that supports his core business. This expansion encompasses a range of ventures, from a denture manufacturing company to dental equipment trading and a dental training academy.
How did Gan effectively manage the competitive dental industry landscape to position GAOC as a leading brand known for its top-tier dental services? What insights and lessons can entrepreneurs glean from Gan's journey with GAOC?
Here are the five business lessons every entrepreneur can learn from Dr Steve Mark Gan, founder and CEO of GAOC:
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1| Know how to leverage your entrepreneurial skills to succeed in your chosen field
Entrepreneurship offers individuals the freedom and independence to pursue their goals, whether driven by a desire to innovate, make a difference in their field, or achieve something meaningful.
By embracing an entrepreneurial mindset, you gain the ability to chart your own course and discover opportunities that align with your passions and values.
Gan used his entrepreneurial skills to advance his career in dentistry by demonstrating his adaptability, resourcefulness, and a keen business acumen. While managing his T-shirt business, Gan concurrently opened a dental clinic, showcasing his ability to multitask and diversify his ventures.
Recognizing the opportunity for higher earnings in dentistry, Gan made the transition from the garment business to focus more on dental work. His choice to advance his education in dentistry highlights his strategic mindset and readiness to adjust to changing situations to achieve his career goals.
Gan's ability to identify untapped opportunities and take decisive action to capitalize on them was also evident. Recognizing the limitations of the traditional dental clinic model in the Philippines, he saw an opportunity to introduce innovation and modernization to the industry. By introducing innovative ideas and practices, he envisioned to elevate the standards of dental care and make a lasting impact on the profession.
Despite initial challenges and financial constraints, Gan persevered, taking on various roles, including working as a brand manager for a candy company, to support his clinic's growth.
“I was just an ordinary kid,” he says. “I was born in Canada; my parents migrated there. However, they had to return to the Philippines because my grandfather was sick. I grew up in the streets of Binondo at Reina Regente. My grandfather was a medical doctor, who was a very famous doctor in his time.
“My father had to return to the Philippines to take over his practice while my mother was an anesthesiologist, so at times, I would visit her at the hospital and as a kid, they would encourage us, me and my younger brother, to be in the medical field, but I always had this entrepreneurial spirit.
“My parents always encouraged me to go to medicine but I wanted to do business. When I took up commerce in UST, I was so lost. It wasn’t like an entrepreneur school. I was taking Philosophy, Filipino subjects in my first year and I said this was all over high school again, so when my dad asked me while driving me home one day, sabi nya, ‘You want to go to dentistry?’ I immediately said ‘okay’, because I just wanted to ask for a change.
“But as soon as I graduated from dentistry, I went into business, which was manufacturing of T-shirts, because I never thought that I would be practicing dentistry. The culture of dentistry in the Philippines then was not dynamic. You go to a dental clinic and it's all about fixing teeth. You see everything was set up in a certain way and it felt uninspiring. I looked at movies and saw some dental clinics there, but they were so different from what we have here.
“Dito sa Philippines, the clinic is in the bahay, condominium. Some are mixed with parlor and kalahati dental clinic. You see the clinics sa tabi-tabi. Dentist here, dentist there. There were some modern clinics at that time but they were mostly located in condominiums. They were nice, very modern, but I felt like there was so much more that could be done. So the moment I graduated, I knew I wanted to change things.
“I went into business right away, and my friends at that time, my high school barkada, were into garments, so I jumped on the bandwagon. We made our own T-shirt brand and started selling. This was in 1993 to 1994. Then we grew so fast, and the next thing you know, we already had a T-shirt printing company.
“When we opened the company, I really didn't even know how to do photo emulsion then. So I hired a guy, and he would show me how to do it. Ako mismo nagpi-print. I was the one finding the customers. I would get the clients, I would close the deals, and I was the operations manager from start to finish. I was also in charge of collections. My partner was handling the finances.
“While doing T-shirt business, I also opened up a clinic and every now and then, I would also do some dental work and I would notice I make more money immediately than I have to sell thousands and thousands of T-shirts, so, at that time I was at a crossroads. I was in a dilemma.
“So one day, I was having dinner with my father and he said, ‘Go to PGH for your surgery training’, which I did. I was doing T-shirts at the same time while I was in my surgery training. I noticed that I have a natural gift for surgery. I perform surgery differently than others. Anyway, to make a long story short, I befriended people at the University of the Philippines, particularly my mentor Dr. Lucia Valderama, who paved the way for me to go to the States, to the University of Southern California, for residency.
“My father told me to go to the States and go for the training. My mom said, 'Go, go, go. Just do something,' because they didn't approve of what I was doing. You know, medical doctors don't really like business. I had to give up the business. Our T-shirt manufacturing had around 70 people at that time.
“So I went to the US, and one thing led to another; from USC, I moved to UCLA. My journey ended up with Dr. Peter K. Moy, who is a world-renowned oral and maxillofacial surgeon from UCLA. He's like, number one. I mean, he was a maverick at that time when I met him; he was 46 years old. He was a professor at UCLA. He lectures around the world and is one of the smartest people in the world of dentistry.
“So he took me in, and I became a fellow in his clinic. He taught me everything I needed to know about surgery, oral surgery, dental implants, and about life. He taught me many principles in life and prepared me for my journey back to the Philippines.
“When I came back, I wanted to change dentistry. That was my goal, to become the number one dentist and oral surgeon in the country, but to be very honest, I had no money then. Of course, I didn't want to burden my parents. They had savings, but I always believed it was for them.
“I was rushing to make money, so I had to work. I worked for a construction company selling doors. I was an ahente. I had to lower myself down. I was a surgeon na ha, but I had no money. Later on, I also worked as a brand manager for a breath freshener candy company, handling business development, something like that, while starting my clinic in Binondo.”
2| Know how to capitalize on partnership opportunities and overcome challenges
Collaboration in business empowers entrepreneurs by allowing them to tap into complementary skills and knowledge that they may lack individually. This collaboration leads to increased innovation and problem-solving abilities.
By forming partnerships, entrepreneurs can access new markets, expanding their customer base and reaching a wider audience. Furthermore, business collaborations enable entrepreneurs to share risks and costs among partners, making it easier to undertake larger-scale projects that would be challenging to tackle alone.
Gan seized partnership opportunities by connecting with experienced and well-known dentists like Dr. Ricardo Gutierrez and Dr. Paul Achacoso, who were seeking to establish a group practice in the market.
Recognizing the potential benefits of collaboration, Gan joined forces with them, leveraging their expertise and reputation in the industry. This partnership allowed Gan to actively promote dental implants through innovative marketing strategies, thereby establishing him as a respected figure in the industry.
After the partnership dissolved, the experience provided Gan with a strong client following, inspiring him to pursue his goal of opening his dream practice in Makati by securing a clinic in Medical Plaza.
“During my journey in America, I met a very kind-hearted and talented dentist named Dr. Ricardo Gutierrez, who was a prominent Filipino dentist in California. We became friends, and he told me that he wanted to open a practice in the Philippines to give back to his roots. He needed a partner for this venture, and his clinic was located in St Luke's in Quezon City.
“I grabbed the opportunity immediately and another famous dentist, Dr. Paul Achacoso from the respected Achacoso clan, also joined us. So at that time, I was still learning. I was a young hotshot surgeon fresh back from the states.
“We had an experienced mentor, si Dr. Gutierrez, who was in his 50s at that time, my age now. A few years junior, in his 40s, was Dr. Achacoso, who is a very famous dentist until today. So naki-ride ako sa fame nila, di ba? I mean, we came up with a group practice, and everybody was asking, ‘Who's this guy? Who's this young guy?’
“I was very aggressive in information marketing, in promoting what dental implants are because the dental implants industry was almost dead and it started back in the ‘80s, in 1983. But it had its struggles because of the technology developing. When I went to the states in 1995, implants were already a household name, with new technology perfected in America. So, swerte din I came home at the right time and I kind of reintroduced dental implants in the Philippines.
“I was making waves. I was being a maverick in the industry. I wasn't breaking rules; I was exploring beyond them. At that time, because of the age of the Internet, I wanted to tell people who we are. In America, everybody was doing it; they had websites, and I wanted to have websites too. I wanted to showcase. Celebrities were coming to me, and I was telling them, ‘Let's use the celebrities. Let's ask them for a favor to promote us.’ In the olden days, the best promotion was word of mouth.
“We made money, but dentists are individualists. It's very hard for dentists to get along with different kinds of people because all our lives we are trained to do our craft and work by ourselves, so to interact is a special skill. It's a special talent.
“So, in a span of one year, because everybody had different personalities, we decided to call it quits. I came home with a new set of knowledge skills and I had good friends who helped jumpstart me. I had a practice in Binondo, serving Chinese clients, and I had one in Quezon City, at St. Luke's, but moving forward, I always wanted to open up a grand practice in Makati.
“My mom would always say, ‘Where would you get the money? It costs millions and millions at that time.’ I would have arguments with my parents, and she wouldn't support me. So I finally made my way and found a 60-square-meter clinic in Medical Plaza Makati. At that time, the building behind Makati Med, that was the clinic to be.”
3| Know how to prosper through financial hardships and achieve success
Financial challenges are a common reality for entrepreneurs, presenting significant hurdles on the path to success. How entrepreneurs overcome these obstacles often determines the destiny of their ventures.
Understanding how to thrive in the midst of financial struggles empowers entrepreneurs to maintain momentum and stay focused on their long-term goals. Rather than being discouraged by setbacks, they adapt and persevere, keeping their businesses moving forward even during challenging times.
Despite encountering financial obstacles, Gan demonstrated extraordinary resilience and resourcefulness by refusing to yield to adversity. He turned to unconventional methods, including borrowing from acquaintances and approaching loan sharks.
In the face of ridicule and rejection from some quarters, Gan persisted and relentlessly pursued his goal. His belief in his vision, coupled with his ability to mobilize support from his network, ultimately led to the realization of his dream clinic.
“As I was learning about myself as a dentist, I also had to learn the hard way about finance,” Gan says. “I was building a P6.5 million clinic, and at that time, building clinics typically cost only around P200,000 to P300,000—just enough for a small, modest, very inexpensive clinic. My clinic, I would say, was the most expensive at that time. So, the next thing I knew, my balance sheet wasn't adding up. I was going around borrowing money from all the associations I had joined, like Manila Jaycees, which were my new friends since I was just trying to make connections. I was everywhere, promoting myself and borrowing from certain people.
“I would turn to loan sharks, even pawn my car, and approach finance leasing companies; I was willing to do anything. There was one time I visited a loan shark on Araneta Avenue and had to issue a check. There was a specific check for P250,000 that I had to fund, so I was trying to borrow money from left and right with people, you know, so-called friends ganon. They wouldn’t lend me money eh.
“Finally, my cousin, who is now a very successful entrepreneur, and my best friend from the T-shirt company went with me to this loan shark. We arrived at five o'clock to borrow money. We waited for so long. This is as clear as day in my memory. By seven o'clock, my cousin, feeling embarrassed, called the loan shark and said, ‘Oy naghihintay yung pinsan ko. He's an oral surgeon from the States.’ Alam mo what the guy said? ‘Ah bahala sya sa buhay nya. Maghintay sya wala akong pakialam na oral surgeon sya. Kailangan nya pera ko, maghintay sya!’ They were drinking beer. Inuman lang sila.
“I had to tell my best friend, who was so hungry, ‘Well, let's go out. There's a McDonald's in SM Sta.Mesa near Araneta. Punta tayo,’ I said, So we went to McDonald's. I told my best friend, ‘Oh kain tayo mabilis. We have to go back because baka umalis sya.’
“When we went back, he was still there. We waited until 11 o'clock and the loan shark did not lend us. Finally, my best friend said, ‘Uwi na tayo, pagod na ako. I can't wait anymore.’ I said, ‘I can't leave. I need the money.’ He said, ‘I'll lend you the money’. I said, ‘Talaga? Talaga? And he said ‘Ako na bahala, ako na bahala.’ I said ‘You have the money ba? Because I know my best friend did not have the money too. You know what he did? He borrowed from his father.
“When I was building my clinic in 2001, I was ridiculed by people, especially those I was trying to borrow money from, like associations. They would avoid me like the plague. They would call each other and say, 'Oy kung tatawag si Mark huwag mo isagot ha kasi uutang lang yan.’ I would share with them the story that what I went through with the loan shark, who made me wait for six hours and they would tell me, ‘Ako bahala sa ‘yo. Basta I will take care of you. Kung kailangan mo ako just call me lang.’ And what would happen was, when I would call them na, ‘Oh I need na P50,000? They would say ‘I'll call you back’ and then avoid me. I would keep on calling these people and finally, they would say, ‘Sige five percent interest monthly.’ Ako naman I do my math, I know I can. I just need it like for one month lang. ‘Sige na, okay.’ Then, they won't answer the phone na. Many people did this to me.
“I was so famous at the BPI bank in Binondo. Every time I needed to fix something, the bank would call me. They were all my friends, and I owed them so much. There was this girl named Janet who would say, ‘Kulang ka dito ng P3,000. Three thousand? Okay, I'll fix it.’ I always cut it close; you know you have to deposit by 12 o'clock. I would literally run before 12 o'clock to make the deposit.
“I would call my friend, ‘Pa-utang muna P15,000. I am on my way to Ongpin’. It was really stressful. Sometimes the bank would call me at 1 o'clock, ‘Puputok na tseke mo’ ‘Hindi, I'll be there, punta na ako dyan Nagpo-polishing lang ako ng ngipin.’
“For some reason, doing business doesn't always go your way. Sometimes you overspend, you overbuild, and at that time, I thought I was such an idealist. I thought that because I always helped people and my parents taught me everything about doing what is right and what is good. At that time, I borrowed money left and right. Eventually, nobody would lend me.
“Do you know who came through for me in the end? My best friends, all my high school and elementary classmates came through for me. I have a best friend who was only an employee in the bank. You know what he did? His bank account only had P10,000, but he lent it to me because we grew up together. I mean, they're the only people I trust because we came from a time when it was not about money. It was only about games, suntukan, it was about growing up.
“So, when I finished the clinic on November 18, 2001, I paid off all my debts by 2003. It took me one year and one quarter to pay off all my debts. Everyone was paid by 2003, so in 15 months, I cleared all my debts. From 2003 to 2005, I was cash positive and I saved money. By 2005, I had some savings, and in 2006, I built a bigger clinic, a 200-square-meter extension in the same building, which was a showcase office similar to those in the States, and I paid for it in cash.”
4| Know how to take risks and create value
Taking calculated risks is essential for entrepreneurs as it allows them to capitalize on opportunities that may lead to growth and success. These risks involve carefully assessing potential outcomes and making informed decisions based on thorough analysis and strategic planning.
When entrepreneurs embrace risk-taking, they can seize opportunities that others may overlook, enabling them to enter new markets, introduce innovative products or services, and pioneer disruptive technologies. By doing so, they position themselves ahead of competitors and establish a strong foothold in the industry.
Despite the high costs, Gan invested in cutting-edge technology in his clinic to enhance the quality of service and patient experience, demonstrating a willingness to take risks for the sake of providing top-notch dental care.
Gan also invested in promoting dental implants, despite uncertainties about their future impact. This exemplifies his visionary risk-taking. By anticipating industry trends and speculating on the potential of dental implants, Gan demonstrated forward-thinking and entrepreneurial spirit.
By prioritizing transparency, honesty, and patient satisfaction, Gan built a reputation for integrity and quality, attracting patients and earning their trust.
“I equipped my clinic with the most expensive technology available at that time, including operating lights,” he says. “In the past, clinics were not like this. I implemented sterilization protocols and tried to fit in everything necessary. Then I would inform people that we're open.
“Dentistry is very expensive, especially in the ‘80s and early ‘90s, when there was no China-made equipment. We would typically buy second-hand or third-hand dental chairs from Japan or America. That was the trend. If you had a brand new American or Japanese chair, ‘Wow, big time ka!’
“My first chair was a third-hand dental chair, reconditioned for P98,000. Uso yan dati. Every time we attended conventions, it was about finding the best deals. If you see something, you have to buy it because it's secondhand. When you have to test it, you know, it's first-come-first-serve eh, di ba? Alam mo yun? Parang second-hand cars.
“I always thought that I was a regular guy but I guess I was different. When I was building my clinic in Makati, that's where I learned about the hard facts of finance, balancing sheets, and prioritizing. Of course, I also overexpanded at that time; I was ordering things that I didn't have the money to pay for. I ordered all this equipment. I was taking a risk, and working hard for it.
“My wife always tells me that because I had the vision of these things happening, I took a gamble. I knew dental implants would change the Philippine industry, but I didn't know when it would happen. So I was always speculating. It happened now, but at that time, it was my first failure that I found out it happened a little bit later, with the implants in 2004.
“I had the teachings of my parents, which were always to do good and never fool anybody. If a patient is not happy, I always believed the referrals would come. When I opened the clinic in 2001, the patients were flowing in. My name was already out in the market.
“I always remember the people from ADB. There was one person from ADB who came and said, ‘I heard that this is the right place to get the right answers to what I'm going to ask.’ You know, when that person mentioned to me she's Indian, I came here because I want to know. It just meant, ‘Hey, I'm doing something right.’
“And my godfather, Peter Moy, taught me to practice what you preach. Always practice what you preach. Don't make up false stories about what you can and cannot do. Always present the right treatment plan, and if you can't do it, just tell the patients. Be black and white. Marami kasing tao parang salesmen. Never be a salesman in front of your patients. He would always say that. Just tell them what they need to hear, not what they want to hear; what they need to hear. So whether it's good news or bad news, we have to be transparent. And I've always been a transparent person. So it's a combination of everything, you know?
“Dentists are not really designed to make money, not like doctors and other professionals. There's a code that emphasizes healthcare and service to humanity. But of course, some people always want a better life. And as you grow, you also have to empower and enrich your team. You have to give them a better life too. When people ask, ‘How do you make money?’ I always say it's not about making money. Providing service is the priority; making money is just a bonus. But apparently, I know how to make money.”
5| Know how to embody childhood values in business
Childhood values such as honesty, integrity, hard work, resilience, and empathy serve as a moral compass for entrepreneurs, guiding them through complex business situations.
By integrating these values into their business practices, entrepreneurs can cultivate trust among customers, employees, and stakeholders, nurturing positive relationships and a culture of integrity and accountability within their organizations.
Moreover, drawing upon childhood values empowers entrepreneurs to remain steadfast in their personal beliefs and principles, even when confronted with challenges.
Additionally, Gan's persistence and patience during his fellowship interview exemplify the resilience instilled by his parents. His childhood experiences of trading comics for jeans highlight his resourcefulness and entrepreneurial traits that he later leveraged in his business ventures.
Witnessing his parents' sacrifices further underscored the value of hard work and sacrifice for Gan, motivating him to pursue success while prioritizing the welfare of his patients and employees.
“In fairness to my parents, they always asked me, "What do you need? What do you want?" They're good people, very good. I am very thankful to them for being strict from day one. My dad is more forgiving. Matapang lang yan sa labas. My mom is like the enforcer—strict. They taught me many principles in life, like not looking down on others, and all those deep Chinese teachings.
“If you want to borrow money, make sure you can pay it back. I learned a lot from them. They're just very strict people, I guess it's a defense mechanism. They paid for my education, and I know my dad and mom love good things. Of course, they have friends, but they always sacrificed everything for us.
“Growing up, my parents, though strict, instilled discipline in us. My dad commands a lot of authority, while my mother was very workaholic. We were not rich. We were not poor. We were average. I mean maybe a little bit below average, but my parents chose not to spoil us, me and my younger brother.
“When I was in elementary, I never got the latest toy. My parents always instilled in us the value of hard work and taught us that if we don't need something, we shouldn't buy it. I mean, if you don't need it, don't waste money. But of course, as kids, we wanted nicer things like toys and all.
“As we grew up, we always had a fascination with comics. My brother and I sold comics, then we moved on to trading them. We traded comics for jeans, then sold the jeans, and with the earnings, we were able to buy the things we liked. You know, a little bit on the things that my parents said not to spend money on.
“When I was accepted as a fellow in the US, I think it was the teachings of my parents that he noticed about me. When I came in, I know there were lots of people who applied for the fellowship. When I came in, I recall my appointment was at 1:00 p.m. I waited and waited for the interview for four and a half hours.
“I had to keep on excusing myself to go down because I had a car, an old car. I had to put the coins in the parking meter. I had to put many coins because at that time my allowance was $1 per lunch and $1 for a burger. And I recall very well, you put a quarter, that's 30 minutes. So, I thought, if I put two quarters, that's $0.50 already. That's one hour.
“So I was going there going up and down. I thought I would do my interview. I just had to put enough coins just to wait enough until I had the interview. I think it was persistence that won that day. Persistence and patience.
“In business, whatever comes in, I never turn down a customer, and the same way my mom taught me. Never turn down a patient and always make our patients feel like number one. I always tell my doctors treat every patient as if it's your last, make them happy. They cannot leave the office until they're satisfied.”
Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice hong@financialadviser.ph or follow him on Twitter @henryong888
