Dentistry Expert Takes The Bite Out Of Recession Woes

Nov. 11, 2008 - PRLog -- 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.

So how can the dental practice owner be smarter than the average business owner and beat the recession by protecting and safeguarding against the effects of a recession?, as 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 and this therefore 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 ensure and secure higher revenues to meet the new expenses.”

Managing your cash-flow in a focused method (with strategy) can be the ultimate difference between success and failure as Dr Doshi outlines, there are five blunders to watch out for in the running of any business:
•   Type of expense
•   Vacant spots in the appointment diary
•   Reserve Account
•   Profit Forecasts
•   Cost-Effective Marketing

Type of Expense
building into your dental practice a structured good cash-flow strategy involving understanding “Good Expense” over “Bad Expense” can prove vital in beating those 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 cash-flow.

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 what I call a “Bad Expense”. A Good Expense is when you invest on things in your practice, which directly leads 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 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 also result in a hugely negative impact on both patients and 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 are eliminated. Patient is missing or not turning up for appointments is an area of a practice, which negatively hurts revenue generation and cash flow in a business. This is something, which can be controlled and in times of recession can become a problem if not dealt with beforehand.

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  


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.