October 2, 2023
5 Ways to Maximize Cash Flow at Your Dental Practice
Interest rates are at an all-time high with no signs of slowing down. Dental entrepreneurs are feeling the pressure to maximize cash on hand while continuing to invest in equipment, services and staff when these resources are already strained. Here are ways to successfully run and grow your business during these trying times.
Examine your fees
Smaller fees attached to vendors may be draining your income a little at a time. The first step is to update your fee schedule annually and renegotiate insurance contracts to reflect increasing and changing overhead costs. Any misalignment could be missed opportunities to negotiate higher fees and insurance reimbursements. Ask questions about your expenses to help optimize your finances and improve your bottom line.
Decide how and when to collect payments
Collecting patient payments at the time of service is one of the easiest ways to increase your cash flow. Put a plan in place for those who need financing options, allowing patients to receive the dental care they need while covering costs more quickly and effectively. Make sure to communicate any procedures to staff members so everyone is on the same page.
Use credit card rewards
One of the best ways to reinvest in your business is to use a customized credit card built specifically for dental entrepreneurs. Put the reward system to use by making additional purchases of what you most often buy for your dental practice. Cash back can feel like free money in your pocket when you plan on making those purchases.
It may seem counterintuitive to take out a loan during these high interest rates, but it will help you access the capital needed to expand your business, purchase new equipment or upgrade your technology. Just be sure to shop around for a bank that can provide a higher return on your investment to help offset the debt accumulated on your dental practice.
Consult a professional
There’s no disadvantage to surrounding yourself with a team of proper professional advisors. This includes a dental practice broker, certified public accountant, insurance agent and lender as the economy continues to shift and your needs evolve. Whether you’re in the throws of starting a dental practice from scratch or starting to think about retirement, maintaining and maximizing your cash flow should always be a priority.
The best place to start is to team up with a dental practice broker who can help you assess the value of your business. Contact the experts at Professional Transition Strategies to get the process started.