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.
7. Control The Overhead Costs of Your Dental Clinic
Running a dental practice includes managing many overhead expenditures.
What are the overhead costs in a dental practice?
- The prices of your dental supplies.
- The prices and maintenance of your dental equipment.
- The electricity prices & internet prices.
- The cost of furnishing your dental practice and renovating it periodically.
- The salaries to your staffs and increment depending on requirements/festivals.
- Rent/Mortgage of the land if you are running your practice at a rented place.
All these costs sometimes merge with the regular monthly expenditure to run a dental practice and this is the mistake most of the dentists commit.
For a dentist who is just starting with his practice (already having raised a loan for the initial investment), all the above-mentioned costs add up to the financial burden.
So, most of the new dentists are opting to have a Lean Practice in the initial years and then scale it up slowly depending on the revenue being generated.
Many dentists who have been practicing for some years now, tend to get too busy and forget to keep a track/control of these overhead costs and suddenly one day finds themselves under the weight of a financial backlog.
The takeaway points: Keep a track of the overhead costs. Do not neglect them. Try to minimize the overhead costs & clear the dues regularly. This habit will help you in saving a lot of money and stress later on.
8. Plan for your retirement
Irrespective of whether you are a beginner or an experienced dentist, you need to have a vision towards your retirement. It’s true that you are not going to retire from your dental career tomorrow. But, having a feasible retirement plan will motivate you to work sensibly to realize your goals.
The career of a dentist goes through 5 stages.
Each stage comes with its own opportunities and problems.
So, you need to plan your dental career and retirement as per the following stages:
An average life of your practice is 25-30 years.
It undergoes five different stages which are
Introduction: Your entry to professional dentistry (Practice age: 0 to 3 years)
Growth: Your practice shows growth (Practice age: 2 to 12 years)
Maturity: You start enjoying the premium and success of your practice (Practice age: 10 to 20 years)
Saturation: Saturation in your practice with increasing expenses. (Practice age: 20 to 25 years)
Decline: It is the decline in your physical & mental status. You take up the role of a mentor handing over your clinic to your kids and a good young dentist. The practice moves on to the next generation and a reminder of your hard work and legacy.
You can read the complete article on the 5 stages in the professional career of a dentist below:
5 Stages in the Professional Life cycle of a Dentist
Learn about 5 stages in the professional life cycle of a dentist. We are taught dentistry but no one teaches us the business cycle of Dental Practice. This lack of knowledge regarding the business aspect is hurting the dentists in the long run.
Now, as you know about all the stages of a dental career, you can very easily understand the importance of having a proper retirement plan. You cannot forever work hard for long hours at your dental practice.
There will come a time when you will get older and reach a saturation level – physically, mentally and emotionally.
By the time you reach this saturation phase, you would have completed your responsibilities as a family man. Your kids will be grown up with their own family and career to take care.
So, how well you adjust with your this retirement phase is related to the financial plannings you make now.
- Save money every month (depending on how much you money you take home from your dental practice) a little as a retirement saving.
- As you start making more revenues from your dental practice, do not let the money stay idle. Invest your money in safe investment options. Mark the word “Safe”. Do not ever invest in unknown schemes or with unknown people.
- In this phase, you can perform your role better as a mentor. You still own your dental clinic. As you are now free from other obligations you can act as the mentor and guide your kids (if they are dentists) or other young dentists to keep your dental practice successfully running.
- Do not forget to enjoy many things that you might have missed out before. All these years you were so caught up in the rat race of the dental practice to fulfill your responsibilities. But now you can make time for many other things like the guitar you loved playing so much.
