We discussed last time how in order to produce more, you can either work more days, or increase your production per day. Improving your production per day is our preferred option, and one of the ways you can get started is by asking this question: “Are my chairs full?”
When setting goals, many dentists say, “I want to produce more.” But few want that increase to mean working longer hours or more days. The better question is: How can you grow production without sacrificing your time and energy?
We’ve talked about various leading and lagging indicators over the past few weeks, including the ultimate lagging indicator and my least favorite KPI: Gross Production. You produce a number, but there’s more to the story than that number. Everyone’s story is different, and yours will tell you how you got to
We have reviewed the importance of Gross Profit Percentage in our previous Data Snapshot, but there’s a further step in understanding your practice’s finances: True Profit. Your true profit is the money you have left over after you’ve covered overhead,
Your gross profit percentage is the revenue you have remaining after all your direct costs are paid, and in this sense, it’s essentially the opposite of overhead. This metric plays a huge role in indicating the health of your practice, because profit is the oxygen your practice needs to function. Without it, your practice
Overhead — it’s one of those sneaky things that quietly chips away at your profitability if you’re not paying attention. The higher your overhead percentage, the harder it is to actually keep what you earn. But the good news? You have more control over it than you might think.
Most dentists I talk to are no strangers to hard work. You put in long days, pour your energy into your team and your patients — but at the end of the month, the numbers just don’t add up the way they should. You feel the effort, but you don’t always see the reward. A key to gaining control of profitability in your
As we previously learned, your Net Production is the maximum amount you can collect, and determining how much of that you’re actually collecting will give you your Net Collections percentage. This metric is immensely important to your practice, because it’s the money owed to you. Every dollar of it
We’ve recently dealt with both Gross and Net Production, but in between both of those KPIs lies another, incredibly important one: your Write-Off Percentage. Your Net Production is your collectable potential, but your write-offs are one of the factors that impact that potential. They help determine the size of your
We learned last time why Gross Production is the most useless KPI, but that doesn’t mean that all production isn’t important. Net Production is your Gross production, but minus all the adjustments, write-offs, and discounts. In essence, it’s your maximum collectible amount, and that’s a KPI you must pay
