Levin Group estimates that most practices lose approximately $20 million in revenue over a 36-year career due to operational inefficiencies and major missteps. Avoiding common pitfalls is essential to building a practice that is both profitable and enjoyable.
Track the right numbers at the right time. A frequent mistake that practices make is failing to monitor key practice metrics. Important numbers -- year-to-date production, average production for the current month, average production per day, average production per patient, average production for new patients, production by provider, and production as a ratio of overhead -- should be tracked daily, weekly, monthly, and annually. Knowing whether production is above or below the goals allows you to improve performance. Without this information, the practice is essentially operating in the dark.
Don’t forget to set goals. Goal-setting is one of the most powerful tools a practice can use to reach its full potential. Why? Because more than anything, it opens your mind to possibilities. When you set goals, you may not initially know how you will achieve them, but the process motivates you to seek the education, expertise, and guidance needed to make progress.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
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