For decades, the overhead expenses in Grants Pass Dentist & Dental Care have been on the rise, which turns out to be a troublesome trend, affecting the majority of dentist over here. No doubt, dental job boards prove to be a significant part of a dentist’s overheads.
Whether they are still in the commencement stages of their practice or midway through their dental career like Allen Creek Dental, it may lead to severe cash flow issues that can have a negative impact on their financial lifestyle and situation.
How High Overheads Have an Effect On Retirement Plans
Maybe the dentistry practice cannot afford to adequately fund their retirement, or take enough vacation time, set up savings or prepare for their children’s educational expenses.
As an older dental practitioner who is ready to retire, you may discover you do not have sufficient savings to accommodate a comfortable retirement or find out there is no market for your particular practice as the income you generate from it is not sufficient to support the needs of a new buyer.
Will Your Practice Be Hard to Sell?
Dentist with a level of income that fail to support the financial needs of a new buyer seem to be a common situation. This is the case as the income requirements of the retiring practitioner is less than that of a prospective younger buyer. Reason being is that the dentist about to retire got rid of his educational debt, finished raising his kids, and funded his retirement already.
Younger dental professionals will still have to face the majority of these expenses. Also, they would have made debt to acquire the new practice, possibly resulting in low profits to accommodate their cash flow needs.
How Can the Cost of Staffing One’s Dental Practice Spiral Out of Control?
As part of your full dental practice valuation, you need to perform an actual cash analysis to see if one of the most prominent contributing factors to reduced profits would be due to high dental staffing costs.
During the 80s, there were close to 1.3 dental assistants per dentist in the U.S. alone. In 2010, the number skyrocketed to more than three assistants per dental practitioner.
How Can One Control Staffing Costs for Your Practice?
Do you think that having more staff would result in improved levels of patient service and care? Not necessarily. Are there ways where you can bring staff costs under control, without undermining the expected level of patient care.
There are three ways to make this happen:
Train right and hire right – Even though you need to pay highly qualified staff more than inadequately qualified individuals, they will more than make up for it in what they can do. Hiring them will prevent the need for overstaffing. Even if it means higher wages, they are often able to accomplish the same than two less competent workers.
Invest in staff education and training – When you spend sufficient amounts of time and money on training, cross training as well as educating your staff, every staff member should be able to maximize their duties to full capacity. Qualified individuals can perform at higher competency levels, and are often more passionate about overcoming challenges.
Invest in yourself regarding leadership training – You will be able to create a more exceptional work environment and atmosphere for your personnel when you are an effective leader. Professional staff members value adequate monetary compensation and an outstanding work environment.
Why the Time is Always Right to Build a Stronger Dental Practice
Regardless of the stage, your dental practice is in currently, you need to establish your actual cash flow. Make it a point to regularly update your Practice Valuation as it will provide you with enough information like an accurate cash flow analysis to assist you in evaluating where expenses are out of line and any changes you need to make to enhance the cash flow for your dental practice, its profitability, and marketability.
Contact Dentist Grants Pass
for All Your Personnel Needs
Patients may have trouble with various dental issues and do not always know whom to turn to for advice. Luckily, they do not have to look too far as Allen Creek Dental is ready to assist and offer surefire solutions that can alleviate dental health problems of any kind.