Welcome back to Coaches Corner! We are happy to share our years of experience working with dental offices all across North America. Here is today’s question about how to lower my overhead.
My practice is doing pretty well, but I always sweat it out when payroll comes around, or there is a large bill of some type. How can I cut my overhead and get a little breathing room?
How can I lower my overhead?
First of all, is that your first name or your last name?? We are not sure what to call you here.
Lowering your overhead is a great goal, but without knowing more about your practice it is difficult to give you truly effective pointers. When we do this for our coaching clients we have a fairly intense interview process and get really specific. But….. here are ten things that you can do, many of them starting tomorrow, that will surely help!
- Get on your collections! Make a list of everyone that owes you money for one reason or another and call them!! If you need to leave a voicemail, be somewhat vague. (In other words, instead of saying “I’m calling about the money you owe, you damn deadbeat!” say “We have a quick question for you that is very important…”) Get a credit card number from them right on the telephone! For those who don’t pay, send them a # 207 form!
- Raise your fees! Do it now!! Don’t overthink it – just do it. And get paid more from your PPOs too! If you haven’t negotiated your PPO fee schedule, get in touch with Apex Reimbursement immediately!
- Offer fluoride to all adults. It’s not a huge money maker but it sure helps with cash flow.
- Offer sealants to all adults and kids. Both of these (fluoride and sealants) will bring in a little cash AND improve the health of your patients.
- Renegotiate your credit card fees. Establish a great relationship with your bank and let them know that you want to pay less for credit card processing. You may just be amazed!
- Renegotiate your lease. Even if your lease is not up, with commercial real estate still down a bit, you can totally re-do your terms if you sign on for a few more years. This can immediately put cash in your pocket.
- Pay less for your lab bill!! Are you using our favorite lab, Maverick Dental Laboratories? They have extremely reasonable pricing and high quality. Plus – they will give you three free crowns – BruxZir, emax, or PFM – just for trying them out! At the very least you’ll save a few hundred bucks, and probably more!
- Always get paid up front – don’t be a bank!! Never do in-house payment plans; you will get burned. That’s what Care Credit is for. Get the money in the bank and don’t look back.
- One bad apple DOES spoil the whole bunch!! A team members who saps everyone’s energy and positivity is costing you a TON! If you are in this situation, you know what we are talking about.
- Have a long talk with your accountant about the upcoming year. Now is the time! Are there deductions you should be taking? Things you can legally charge to the business that you aren’t? A good CPA can help immensely!
So there you have it – ten quick and easy ways to shave your overhead. While none of these are “home runs,” do five or more and we promise results!
Meet the Madow Brothers
Dr. David Madow
Influencer, Speaker, Author & Coach at The David Madow Lifestyle Show + Co-founder of The Madow Center for Dental Practice Success.
Dr. Richard Madow
International Keynote Speaker, Author, Award Winning Musician & Composer, Coach and Co-founder of The Madow Center for Dental Practice Success.