What does it take for the average dental practice to be profitable? What steps can you take as you start your practice to ensure your practice turns a profit sooner rather than later? If you already have a practice, this information is good for you, too. Even if you've been in business for years, finding new ways to be profitable is always a good idea!
Start with a plan
If you have a new business, you need a business plan. This document isn't optional if you're getting bank financing, and it shouldn't be optional if you have private funds, either. You need to lay out how your practice will work, what your expenses will be, how you'll get clients, and more. Not only is this essential for banks to see, it's priceless for you to work through all the pieces. You are not just starting a dental practice, you're starting a business.
Your business plan will help you break down costs of labor, operating, insurance, and more. It will also help you understand what kind of revenue you need to bring in to cover costs and PROFIT. Ignorance is not bliss here, you'll never be profitable if you don't know what that takes.
Now that you have your plan, you want to set goals and benchmarks about where you want to be. You can't leave it up to fate—you have to set some milestones. This can range from income to the number of new patients per month. It can include waiting room time and cases accepted. You can even set a benchmark of making sure you get your lunch hour every day!
All of these metrics are ways to measure your success. The ones that are your bottom line, and the ones that matter to you and the kind of practice you want to build.
Invest in the right resources
The right resources include your team, both inside and outside your office. You want to have great office staff and reliable people helping you with accounting, law, and more. People are a going to be one of your biggest expenses, but they'll be worth it. The folks who have your back are key to your success. Don't skimp!
Additionally, you'll want to make sure you have the right location for your office, the right build out, and equipment that's dependable. There are places to be economical as you build your practice, but you need to invest as well. Think long-term, plan ahead, and find the resources you need for your every day.
The flip side of the previous point is to also be careful with your money. The less you have to borrow means the less you'll pay in interest, and the sooner you'll be making a profit instead of loan payments. There are ways to save money as you get going—being frugal where you can. You don't need state of the art entertainment centers in every operatory, for example. You don't need the most expensive paper towel holders in your bathroom. Just because something costs more, doesn't mean it's the best, either. One of the best ways to be profitable is to start with low costs and overhead. And tab32 can help!
At tab32, we know you need the right tools for the job, and at the right price. That's why our cloud-based practice management system is not only comprehensive, it saves you a lot of money. You don't need any hardware in your office (dedicated desktop, servers), there are no expensive start-up or training fees. In fact, there aren't any additional fees. You just pay your monthly subscription and have everything at your fingertips to get started.
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