Do's and don'ts for keeping control of overhead

2016 11 18 14 42 01 206 Practice Success2 400

Keeping control of overhead is as important as increasing production. By focusing on overhead and keeping it within or below an acceptable range, practices will almost immediately have an understanding of their current state and know what to do to improve performance.


Set limits and stick to them. Sit down with your consultant or accountant and set limits for every category, which collectively should be limited to a certain percentage of the practice revenue. We recommend, for example, that general practices have no more than 59% overhead. When you've used that up, you're done.


Don't believe that buying everything guarantees success. It can start with something as simple as a new piece of equipment. Then there's a new technology you just must have. Or, you may see a great new office space downtown. While investing back into your practice is an important step in building your business, you should never fall into the trap of thinking that you have to buy everything to have a successful practice.

Roger P. Levin, DDS, is the CEO of Levin Group, a leading dental management consulting firm, and one of the most sought-after speakers in dentistry. Dr. Levin has authored 65 books and more than 4,000 articles on dental practice management and marketing. You can sign up for the Levin Group Tip of the Day.

The comments and observations expressed herein do not necessarily reflect the opinions of, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.

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