Owning and running your very own dental office can be a massive undertaking. It’s often one that involves a significant amount of debt as well. That doesn’t mean, however, that there aren’t a number of great ways that dental practices can successfully minimize their debts.
Learn the ins and outs of debt. If you want your practice to be as free of debt as possible, make sure you’re well-versed in common debt causes. These include lines of credit, mortgages, equipment and tool leasing and business credit cards, for example. The better you understand typical debt causes, the easier it will be for you to avoid them in the future. If your office has racked up a lot of debt, bad financial management practices may be responsible for a lot of it.
Evaluate your office’s cash flow carefully. Make sure you’re 100 percent well-versed in your practice’s current financial state. You can accomplish that by performing a cash-flow evaluation. This involves quite a few different things. It involves assessing typical monthly costs for taxes, dental supplies and employee salaries, for example. It involves analyzing collection and net production figures. It involves paying close attention to lease monthly payments as well. Performing a thorough cash-flow evaluation also requires consideration of all of the random expenses your practice may have that can sometimes get out of hand pretty quickly. After you complete this evaluation, your grasp of your practice’s expenses should be crystal clear at last.
Recruit the assistance of a seasoned and reputable financial professional. If you want to say goodbye to your practice’s debt (or at least to most of it), it can do wonders to seek help from a knowledgeable professional who truly understands the concept of business debt. A professional will be able to present you with realistic options that can help you take charge of your office’s debt. He or she will be able to talk to you about solutions that may be able to minimize your debt in a big way. Loan consolidation, for example, could be a solution a professional may suggest to you. Debt refinancing is not at all an uncommon scenario in the dental practice world. Buying your practice’s space instead of just leasing it could be a solution a professional discusses with you as well.
System upgrades and updates can also often work well for dental practices that want to lessen their debts. If you have unreliable business practices and systems, don’t be surprised if your debt starts increasing and your overhead costs start getting harder and harder to manage. System upgrades can often work like a charm for dental practices that are suffering from financial woes. These updates can make dental practice owners feel significantly happier and more at ease. They can make dental office employees feel a lot better as well. The advantages of in-depth system upgrades are worthwhile and plentiful. If you want to ease your dental practice’s debt burden, these handy tips can really go a long way for you.
This article published courtesy of Kelly Schwartz of Schwartz Consulting Group.