How can a Dentist Manage Money and Boost Up Dental Practice Revenues?
How can a dentist manage money and Boost Up Dental Practice revenue? This post will give 10 Amazing tricks to manage money and earn more from a dental practice.
We are discussing 10 ways for a dentist to manage their money and maintain an effective dental practice management.
4. Watch out for Debts, Salaries &
Investments related to your dental Practice
Running a dental practice has many overhead costs. Some of the costs are:
- Paying for the debts that you have taken while establishing your dental practice.
- Paying for the loan interests that you might have taken during your dental education.
- Paying for the installments of your dental equipment like RVG or laser unit.
- Paying regular salaries to the people working in your dental practice.
- Keeping a track of the investments or partnership finance of your dental practice, if it is based partnerships.
- Paying a close watch on the fees that you charge for the dental treatments.
So, when managing the monthly finance of your dental clinic, never lose track of these financial investments. If you keep overlooking these points and one day you when you finally assess, you will find yourself struggling with a lot of financial overdue.
Also, make it a habit of clearing the debts, monthly loan interests, monthly payments to your dental material supply guy etc. before spending on any personal enjoyment. One of the topmost and richest businessmen in the world, Warren Buffett has said it perfectly.
If you get into the habit of spending your hard earned money in an unplanned manner on unnecessary things then you will soon run out of money to buy the things that are necessary, even for your dental practice.
Read here to know the Top Business and Financial Tips for Dentists.
How much to charge for your dental treatments?
As mentioned in the previous point, be very wise in deciding the prices of the dental procedures.
Keep a note of the following points while deciding on the prices.
- It must be a scientific and socially based decision.
- The prices must relate with the locality where you are practicing.
(for example, if you are practicing in a metro then the prices will be higher than a dentist who is working in rural areas)
- Never make a sudden increase in the price. It should always be a gradual process.
- Never give the impression to your patients that you are only after money. Yes, the dental practice needs money but you will fare much better if you work with dedication. Money will then become just a byproduct of your dedication. If you just worry about making money, you will get more stressed and the quality of your work will also reduce. Patients can feel when a doctor is dedicated and then they are more responsive to the price increase.
- Never get into the practice of lowering your prices below the market price in the hopes that it will get you more patients.
Dr. Varun Bajaj has written a very informative article on these price war among dentists: 3 Practices to uplift dentistry & The Price Wars
How to keep a track on the salaries?
If your dental practice has multiple people (technicians & other dentists) working in it, then you need to manage the money that you pay as salaries. Keep a watch on these points while paying the salaries in your dental practice.
- Do not be overtly miser in paying salaries. If you are too stringy then you cannot expect your dental practice team to give their 100 %.
- Also, pay the salary depending on the living cost of the area where your practice is located.
- Keep a record of all the salaries that have been paid. Also, before hiring anyone, get a complete legal document of salaries that has been agreed upon.
