DE's Business Lab video, Part 3: Are you earning what you could be?
Dr. Chris Salierno wants his peers to earn the most they can from their dental practices. But if expenses are eating away at their net income, dentists need to take a closer look at how much they're spending in each are.
The topic of overhead does not need to be overwhelming for dentists. This informative series of videos will help dentists take on overhead in bite size pieces and manage it effectively.
Dr. Chris Salierno takes a more in depth look at what the costs should be to operate your dental practice. How much do you spend on staff, lab, supplies, rent, and more? There are several experts who agree what percentages each of these areas should be taking out of your revenue stream. Dr. Salierno shares a simplified formula to help you determine your overhead percentages. He said when you pay everyone what you owe them, ideally you will be bringing home about 40% in income.
If this isn’t the case and one of your major costs in this analysis is double or more what it should be, this could be an indication that your practice may not be generating enough revenue overall. How do you reduce these costs without sacrificing quality or efficiently or anything else of importance?
Watch the third in this series of overhead cost videos from Dr. Chris Salierno below.