Economy as money flows in practice across the country, fees, many dentists have to make difficult decisions about cost control. A worthy goal to reduce the cost to maintain the practice of the profit should go to a huge thought process. Many of the practice of fixed costs in nature, such as rent, telephone, software and utilities. Dental office supply and price cuts will provide some savings, but the biggest variable cost of personnel and marketing. It would also be helpful to review their debt structure.
Staff Cuts: This may be the road-jerk reaction to simply eliminate the position and consolidate its position among the remaining dental personnel. The main focus of such a step before a customer service and employee morale. You have to ask yourself the question: “Are we able to provide the same level of service, comfort and convenience of our valuable patient base?” Another component is the possible reduction of morality. Or dropping since the new workers’ stress and burden on remaining staff? These are critical questions because, although it may seem to you to save $ 30K $ 50K per year per employee, the damage may be much greater than the savings.
Marketing: Some may question the wisdom and continue to spend money, attract new customers during a recession. There is a big mistake, many dentists do your marketing program through the removal of tough economic times. If you simply stop marketing, how will your potential customers? How do you plan to propel your practice, when the economy turns around? Rather than slash marketing costs by focusing on what works and what does not. Yellow Page advertising effectiveness decreases rapidly as more people are looking on the internet. Maybe you need to maintain a smaller, phone book and use and reputation of the SEO (Search Engine Optimization) expert services to help you place a Google search at the top. Make sure that you get happy customers to write online reviews, which are very important. The point is not to abolish the marketing budgets, but instead of market efficiency.
Restructure debt: Many dental practices remain profitable, but cash flow is constrained on the number of payments each month, the debt service. A specialist should determine whether the debt consolidation loan could provide some relief and free much-needed working capital.
Whatever you decide to do, be sure to think about the possible negative effects of cost-cutting maneuvers.
Kent Harlan has been the CPA since 1984 and is the owner of Ozarks Capital Funding, the company that offers alternative financial solutions, business and health care providers. Services include practice acquisition loans, equipment leasing (leasing), tenant improvement financing, and debt consolidation.