As we welcome in a new year, it is a perfect time to take a look at the current financial state of your dental practice. Where are you hitting home runs and what needs improvement? Are you maximizing your profit margins?

As we look at ways to improve your profit margins. Here are a few tips!

1) Increase capacity

There are simply two ways to increase profit margins — increase revenues or decrease expenses. We often look to the expense side, but how might we increase revenues? One way is by increasing capacity. Consider hiring more staff, a hygienist, or perhaps even another general dentist. Consider expanding by looking into ways to increase sq. footage in your office or better use the space you have to service more patients. 

2) Invest in your staff

Your staff is your biggest asset. Every employer wants to increase employee retention. Doing so prevents employee turnover costs and improves team cohesiveness. This is vitally important when it comes to building a welcoming atmosphere and creating the type of patient experience you are shooting for.

So how do you increase employee retention?

It starts with transparency. Did you know that strong management transparency leads to 30 percent better employee retention? When an employee feels like they can trust management they are more likely to stay.

Spot bonuses, staff outings, and finding ways to show appreciation are all ways to invest in your staff.

3) Focus on marketing

How are your firms marketing efforts? One of the best things to do as a sole proprietor is to become known in your community. Spending your marketing dollars on things to increase your exposure in the community are always smart. Some examples of this might be sponsoring local events, hosting gift drives or charity volunteer events. Your community also likely has a neighborhood Facebook page where you could strategically get your name out there.

In addition to being active in your community, be sure your dental office is active online. Online presence is key in today’s marketing environment. A visit to the dentist causes a lot of anxiety for people so know that potential patients are likely going to Google your name before they see you to see what they can learn about you. You can control what they see. Your Facebook, LinkedIn and company website should be the first few results. Use this as an opportunity to put their minds at ease. Being active and engaging online often translates to a positive and engaging patient experience in person. People will feel more comfortable coming to a place they know is responsive, professional and dedicated to an excellent overall experience.

These are a few ideas for you as you look to improve your profit margins for 2018. Please reach out if you have any questions, we are just a phone call away and are happy to speak with you further about how you might experience greater financial success in 2018. Happy New Year!