Running a successful dental clinic goes beyond just providing a top-notch service and booking as many patients as possible in a single day. In fact, the profitability of your clinic could very well come down to the ability to manage and control your operational costs.
In this article, we will go through the top 6 ways to stay profitable by managing those necessary cost needed to keep your dental clinic operational.
Unless you are an established brand or located in a busy and affluent location, marketing will be an on-going expense that can’t be avoided.
Smart dental clinics understand that the world (as well as their customers) are going digital and traditional forms of advertising that include print magazines and the newspapers may no longer function as well anymore. Avenues that include social media advertising and building an online presence that ranks well in search engines is key in reaching your customers.
Your clinic should also seek to push more towards high-ticket services including full teeth whitening and dental implants, allowing you to earn more revenue for the same time investment.
Like many medical practices, running a dental clinic will involve a substantial amount of supplies that will be needed, some for daily use and other for the occasional use during complex procedures.
Forgo the temptation of buying all of your inventory supplies in bulk even though there is a discount. Many items have a use-by-date which could be rather tricky especially if you are running a relatively new clinic without historical knowledge of the type of patients you would get in a typical month.
Opt for smaller purchases at a time, yes you might be paying a little more per item, but you will also prevent useless purchases while encourage your staff to be less wasteful.
Insurance is a big expense when it comes towards running any medical practice. From health insurance to yourself and your staff to patient accident indemnity, ensuring you are signed up with the best plan is key to maximising your coverage needs while minimizing the necessary premium costs.
Common insurance costs includes:
- Staff Insurance
- Patient accident indemnity
- Professional liability insurance
- Property Insurance
- Business Interruption insurance
And all these are exclusive of your own health care and insurance needed as a professional yourself!
Is each member of your team living up to their full potential? Are there any areas of your clinic that could be automated or made more efficient?
These are some of the questions to ask yourself to cut down the expenses of unnecessary hiring. Salaries will undoubtedly be one of the highest expense of your practice that will have to be managed and it goes beyond just the cash portion paid out to your employees.
New hires will require valuable time to be on-boarded as well as other job perks and health insurance will have to be added on. Smart investments such as a pre-registration software can be utilised to not only improve the workflow in your clinic but also reduce any unnecessary expenses.
Perhaps the most important contract you will ever sign in your business, your dental office lease agreement will determine how fast (or if ever) you will make a profit in your business. A good negotiation on your lease will provide you with protection, flexibility at a competitive cost that will allow you to safeguard your livelihood while giving you a good opportunity to turn a healthy profit.
You should always determine:
- If you are getting fair market value for the size and location of the premises.
- If there is location protection to prevent your landlord from uprooting your clinic during the lease term, ensuring you have no business downtime.
- If you protected from your landlord bringing other competing dental clinics into the building or shopping centre.
- If there is a ‘death & disability’ protection in the event you cannot work, helping to prevent saddling your family or estate from an unexpected financial burden.
Choosing The Ideal Electricity Plan
No two dental clinics are the same and their electricity supply plan shouldn’t be either! From big clinics in megamalls to smaller heartland practices, choosing the right plan is key to helping save on your monthly electric bill.
But before you decide and switch away from SP services to a retailer, there are 2 main electricity price plans you need to know first.
The Fixed Price Plan
Image credit to EMA
This plan allows your dental clinic to secure electricity pricing at a fixed rate for the duration of the contract. This means no matter how high the price of electricity rises in the future, you will still be paying the same rate that you locked in at the start of the contract.
Choosing this plan is ideal if you want absolute price certainty that allows your clinic for strict budgeting.
The Discount Over Tariff Plan (DOT)
Image credit to EMA
The DOT plan allows your dental clinic to secure its electricity supply with guaranteed savings off the SP Tariff. The difference between this plan and the fixed pricing is the variability of your electricity bill.
While you definitely will be locking in savings compared to what you are paying now to Singapore Power, your bill could rise and fall based on the prevailing tariff. Choosing the DOT plan makes sense if you would like to have a hassle-free type of plan without the need to monitor the oil markets.
At iSwitch Energy, we partner closely with clinics and businesses to secure the best plan suitable for their business operations. So get in touch with us at email@example.com or check out our electricity price plans here.
Keep in touch and join our mailing list to receive our monthly newsletter!