Dentistry Expert Takes The Bite Out Of Recession Woes

Dr Bhavna Doshi is an international lecturer, who has worked extensively with the National Media including Extreme Makeover UK.  She is the CEO of Dental WEALTH Builder, which primarily focuses on Creating Practice Profits, Cost-Effective Marketing and Growth Strategies in Dentistry.

With a recession drawing ever closer, along with the inevitable tightening of the purse strings comes what every dental practice owner fears the most- an increasing trend for clients neglecting their mouths or even worse, an influx in those shopping around for compromised dental solutions.

It comes as no surprise then that the victim in amidst any approaching recession is not the larger corporate dental practice, but the smaller business struggling to keep afloat in a ‘survival of the fittest’ style battle with negative revenues. There is light at the end of the tunnel though if you box clever with management strategies. Dr Bhavna Doshi, CEO of Dental Wealth Builder explains, “There are certain criteria or ‘back-up’ plans a dentist should have in place in case of unforeseeable slow-downs in the economy or even any predictable ‘quiet times’.

Dr Doshi added: “Such strategies should be a core focus of any dental practice management strategy and those who do anticipate such ‘quiet times’ are inevitably the winners in the long run”

Having a cash-flow strategy is an aspect of business not easily understood but very easily abused. In any business, cash is king. This means that any dental practice should endeavour not to grow at a rate which is higher than the cash resources available. This could result in a devastatingly short-lived period of success.

Dr Doshi added: “I see this many times when a dental practice management team attempt to change the practice philosophy with environmental changes and end up spending a great deal of money on interior design. The practice usually ends up looking beautiful and very innovative. However, these changes are expensive and eat into the cash-flow of a business; especially when there are no strategies in place to secure higher revenues to meet the new expenses.”

Managing your cash-flow in a strategic manner is an essential part of any practice management undertaking and can be the ultimate difference between success and failure. If you’re managing a cosmetic dentist practice or responsible for business development, marketing or finance for cosmetic dentistry, Dr Doshi has identified five very common blunders to watch out for:

• Type of expense
• Vacant spots in the appointment diary
• Reserve Account
• Profit Forecasts
• Cost-Effective Marketing

Type of Expense

Your dental practice must have a structured, good cash-flow strategy. Understanding “Good Expense” over “Bad Expense” can prove vital in beating the recession blues.  Both these elements have an effect on cash-flow but one allows for a better return on your investments so that it eventually enhances the bottom line.

Bad expense is when you spend on things in your practice, which are not directly involved in bringing about greater revenues. This could include the installation of a brilliant sound system, which will have minimal (if any) bearing on your revenues; hence, it becomes a “Bad Expense”. A Good Expense is when you invest on things in your practice, which directly lead to an increase in revenues; this is when you are investing as opposed to spending. This could be an investment in a particular member of staff who is forward thinking and a great asset to your cosmetic dental practice.  It is this investment in salary that will create a return on investment and positively affect cash flow.

Management of the Appointment Diary

An influx in patient “No-Shows” and cancellations can have a hugely negative impact on both patients and the dental practice itself. The dentist is affected in cash flow and hence finds it difficult to meet the burdens of operative expenses and the wastage of time, effort and money in diagnosing but not treating; but the patients also suffers because they are delaying diagnosed treatment. This is an all round compromising situation and measures need to be taken to ensure these scenarios are kept to the absolute minimum.

Nurturing A Reserve Account

Another element of cash-flow protection in difficult times is a Reserve Account. This is the same as having money in your own personal accounts for a rainy day, except it acts as a reserve for business finance in strained and difficult times.

Profit-Forecasts

Monitoring your practice expenses and income is a very vital element to be considered by any dental practice management system in place. Making sure you are not over-financing your business and you need to make sure you are balancing up against those commitments with profits. Therefore, you need to monitor daily, monthly and yearly forecasts for your business very closely. It will allow you to make better decisions for the business.

Cost-Effective Marketing

This is the master key to all. It makes sense that if you do not keep the patients you have (so they continue to be a source of income for you) or if you fail to continuously attract more new patients of the right calibre to your practice, then your business will decline.

As Dr Doshi explains, “This is important in ‘normal’ economic climates but should take an even higher priority in times of recession. There is an ever increasing trend for the smarter entrepreneur to plan their marketing strategies to create continuous cash-flow well in advance of any calamity.”

This can be done using a method whereby you are consistently getting the most suitable patients for you and your practice walking through the door. Many dentists fall prey to “spray” marketing. This type of marketing does not target the most suitable patients and hence dilutes the effects of your investments.

Dr Doshi added, “These strategies should be put to effect before such stories create a reactive population. In order to ensure the profitable longevity of your business these strategies should be implemented at all times.  It is only then that your dental practice will become the productive and profitable business you have always hoped for.”

As a special Dental WEALTH Builder launch gift, I have packaged together a “7 Gift” compilation, all to do with Wealth Building Strategies and Profit Making Solutions in Dentistry. To obtain your FREE gifts please go to www.dentalwealthbuilder.com  and sign in for these Gifts. Alternatively, you can e mail me on bhavna@dentalwealthbuilder.com

About Dental WEALTH Builder

Dental WEALTH Builder primarily focuses on creating practice profits, cost-effective marketing and growth strategies in dentistry.

Editor’s Note: Dental WEALTH Builder is represented by search engine optimisation agency, Top Position. Please direct all press queries to Tina Clough. Email: tina@topposition.co.uk or call: 0800 094 9001.