The Key to Success is Unleashing the Financial Strength of your Dental Practice

*Master First Impressions*

Have you ever wondered what it sounds like when a prospective patient calls your office?

You should!

It matters greatly and directly affects how many new patients you acquire.

If your phone is not answered properly,

you could be losing patients every day.

Here is an exercise.

Walk in your front door and see what the office looks like.

Are your patients greeted with an experience so positive that they will tell their friends about it?

I recently went to a dermatologist who had a beautiful new building.

There were no patients in the lobby except for me at 8am.

Once I was greeted, I knew why.

Even though the facility was sensational, to greet me, the receptionist continued her phone conversation and shoved a clipboard in my face.

The rest of the visit went about the same way. The first thing I did after I left was call my wife.

She asked if she should book her appointment with this dermatologist, and gave her a resounding,

“No.”

Interestingly, that morning the doctor was at a Chamber of Commerce meeting, trying to market the practice. He didn’t understand the real problem.

Approximately 65% of your new patients should come from referrals, and the first people patients refer are usually family.

To sum up, make sure your patients have a “wow” experience.

*Focus on Top Line*

Many accountants and consultants make a living helping businesses cut costs to improve profitability,

but the key to success is to focus on the right area. 

Consider the example below.

Would you rather have Practice A at a 30% percent profit, or practice B with a 25% profit margin?

As a dental practice owner and the main producer, you have limited time to focus on the business.

I would encourage you to put that energy, first and foremost, into growth.

Example:

Practice A:

800,000 x 30% profit margin = $240,000

Practice B:

1,500,000 x 25% profit margin = $375,000

*Recommit to Marketing*

Has anyone ever told you that marketing is an expense?

After working with hundreds of doctors all over the country, I can tell you that that this could not be further from the truth.

Marketing is an investment, because it has a return.

There is a direct correlation between marketing dollars and practice growth.

Here is a good exercise for you as you prepare for the new year.

Find out how much money you spent on marketing in the past year.

This formula will give you the ratio of collections spent on marketing.

Next, track your growth.

If your marketing percentage is below 3%, I can almost guarantee you that too little marketing is one of your main problems.

Marketing Expense / Total Collections = Marketing Ratio

*Set Key Performance Indicators*

As the CEO of your corporation, you need indicators that show how each month is going.

Financial statements look backwards and focus on what has already happened.

It’s important to know how you did, but it’s more important to know how you’re doing.

Indicators that show how you are you doing will allow you to quickly right the ship, when necessary.

Once a month is over, it will be too late to make changes that will affect that month’s revenue.

Create strong daily and weekly key performance indicators (KPI’s) to keep you and your team on track for meeting goals.

*Review your Hours*

Were your hours designed for you or for your patients?

Your hours should make appointments convenient for your target patients.

Expanding hours is also one of the quickest ways to drive up revenues.

I was recently rushing to get to my bank before 5pm, when they close.

My intention was to open a new account and deposit a check.

When I arrived at 4:58, they were already closed for the day.

Their hours are designed to be convenient for them.

When do business owners have time to get to the bank?

Shouldn’t the bank’s hours be convenient for account holders?

Your practice is no different.

If your office is not open when your patients are available, someone else’s office will accommodate them.

*Consider Real Estate*

Real estate is one of the best assets you can own.

Though your dental practice cannot own real estate, your family can.

This makes real estate an asset that can pay you income for the remainder of your life, and can be passed on in your will, as well.

Perhaps best of all, you know the tenant!

Because you can depreciate the asset, there are also significant tax advantages.

If you study the investments of wealthy individuals, you will find that a vast majority own real estate.

If you want financial freedom, owning a dental office is certainly an excellent start.

However, you must surround yourself with experienced business advisors who will provide sage advice, because trying to manage the business while also seeing patients will spread you too thin.

Begin to pave your path toward financial freedom by executing the tips provided here, and call on a seasoned financial consultant to help keep you on track.

If you remain focused and informed, your financial future can be set in stone.