Practice profitability

Dentists, as independent small-business people, tend to regard whatever is left in the bank at the end of the month as 'profit'. This is after paying the rent, the staff wages, the lab bills, the associates and so on... there's often not much left in the pot.

However, making small changes to your practice and the way in which you set your fees and view your worth can have a huge impact on your business; ensuring your practice is successful and actually increasing profitability in the long run. The following information includes some practice-proven methods, designed to give you some ideas on how to do just that.

Wages

In my opinion, the fact that most practice owners simply view whatever is left at the end of each month as their profit is potentially risky. It means that during difficult financial times or even on a 'slow month' there isn't actually anything there to pay themselves, and the overdraft grows. Many business owners may simply conclude that 'such is life' in business and they must take the rough with the smooth. However, this is not the way most larger businesses operate and, by making very small changes, principals can ensure they make profits and get paid.