Question: As a result of the economy, I put my retirement plans on hold and now have heard practice values are falling. Is there anything I can do to increase the value of my practice?
Two ways to increase the value of your dental practice are to increase revenue and increase profitability. Increasing revenue may seem like a daunting task in this economy, and yes, you must forth the effort to do so. There are several ways to approach it — make sure you have effective internal and external marketing, set production goals and offer incentives to your staff, reward patient referrals, accept new insurance plans, and more.
Profitability is very important. Be sure to regularly review your practice expenses. Talk to your lab about a discount if you give the lab several cases. Talk with other dental suppliers to see if you are overpaying the company you are using. The bottom line is that net income is a major factor in the value of a dental practice.
This article was originally published on April 2011 at DentalEconomics.com. Click here to read the complete article.