The only statistic that really matters regarding the health of a dental practice is cash. At Levin Group, for example, we focus on increasing practice production. But the real question is why? Because production is a derivative of how much cash a practice will have. If a practice has cash, it will be successful -- end of story.
Know how much cash you have on hand each day. Most dentists don't know how much available cash they have. Each morning, practice leaders should check the amount of available cash that the practice has. Within a few weeks it will tell a story and cycles will emerge.
Don't forget to establish a line of credit. You want a line of credit that you can access in case of a crisis or emergency. I have always described an entrepreneur as a person who starts a company and is then in a foot race to see if they can sell their products and services faster than they use their cash. If they do, they will survive and grow. If they don't, they will go under.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.
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