For a practice to succeed in the competitive dentistry environment, dentists and practice owners need to understand the key numbers. This will enable them to set key performance measures which they can turn into objectives for staff and business processes.
This will allow the dentist the best chance of successfully achieving the personal, professional and business goals. Dentists understand that their practice must achieve certain levels of success in order to enable them to achieve their personal goals. This includes lifestyle objectives and work life balance goals. Dentists do not want to be working for 6 or 7 days a week in order to make ends meet.
Therefore the right metrics need to be identified, set and measured. This includes understanding and managing fixed and variable costs. Fixed costs include equipment, rent, rates, and staff and variable costs can include running costs, marketing and advertising and additional staff including training. Dentists are conscious that running a practice without a full appointment schedule for a dental office the size of dentist Fort Wayne, costs would be incurred which will reduce the business bottom line due to extra costs such as dental team staff salaries.
Fixed costs can be one time or ongoing costs, so must be categorised accordingly in order to ensure efficient management. The practice should have a business plan and this will determine the ideal patient demographic, break even point and profit opportunities. Additional profit can be achieved through offering private dentistry treatments which are higher value and monthly dental plans to patients, families and businesses. Recurring income and high ticket treatments can be the key to profitability and expansion.
Recurring income through the offer of regular appointments or treatment plans will deliver monthly recurring income which can cover monthly costs and outgoings. This will increase profitability and provide much needed stability and pave the way for new opportunities. Additionally, the more profitable a practice is the more choices the management team and dentists will have.
This would also provide a significant nest egg for the dentist in future when planning to retire as the practice would be attractive to for another dentist or practice to acquire the business.
The key metrics to measure fall into income and expenditure categories. The numbers must be measured, monitored and continually improved in order to deliver for the business bottom line. This will also ensure the practice is in a position to deliver the best possible care to patients on an ongoing basis.
When reviewing income opportunities, the dental team will need to look at demand for different private treatments in their area. For example large cities have a lot of demand for Invisalign and tooth whitening treatments, and smaller locations may attract patients for other treatments. It largely depends on the demographics, trends and demand in the area. Getting the treatment proposition right is vital to success as it can boost profitability and increase the patient base for the practice.