In all businesses -- including dental practices -- operating costs tend to creep up gradually if not monitored carefully. If you haven't reviewed your spending lately, line item by line item, your overhead probably exceeds the healthy 59% level. Fortunately, you have a number of cost-cutting experts at your disposal: all the members of your practice team.
Incentivize your team to find ways to save. Involved in the nuts and bolts of all practice activities, your staff members are perfectly positioned to observe waste and think about alternative, less costly ways to run your office. To make the most of this built-in resource, initiate a cost-containment program that features cash rewards for smart suggestions, e.g. 10% of first-year savings. This will be highly motivating.
Don't backslide -- work with a budget. Once you trim the fat from your overhead, keep it lean by creating and sticking to a detailed budget. As the practice owner, you need to exercise self-control in this area. If you're smitten by some nifty new clinical technology, who (with the possible exception of your spouse) is going to tell you no? Replace impulse spending with fiscal discipline.
Roger P. Levin, DDS, is the founder and CEO of Levin Group, the leading dental practice consulting firm in North America. For the complete list of dates and locations where you can attend his latest seminar, visit www.levingroup.com/gpseminars.
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