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If you’re not sure what tomorrow holds for your business, or if you’ve begun to worry about financial stability and success in light of the economy, listen to the experts. Apply their advice. See what happens.

Brandon Parkhurst, CPA, CFP, tells us in this month’s Dental Products Report that “What Goes Down, Must Come Up.” Based on a survey by DPR, half of general dentists will not make an investment in new products for the office this year as a direct result of the lagging economy. But should they? That’s just one piece of the puzzle, actually. Many factors contribute to a dental office’s success. Parkhurst and other experts recommend these tips:

Manage costs – Parkhurst
Don’t pay down debt too quickly. Keep your cash fluid for emergencies and the future. Consolidate credit card debt. Save your staff time, but keep recall reminders up to date, by using a patient reminder service like Smile Reminder.

Keep track– Parkhurst
Supplies should cost 8% or less of your gross revenue, with exceptions. Review your personal investments and try to offset gains with long-term capital losses. Make sure you don’t have all of your eggs in one basket – diversify your investments. Keep an eye on employee overtime and the cost of lab work to thin down expenses.

Increase revenue – Parkhurst
Audit charts to find where and why unaccepted treatment cases exist. Improve presentation skills to increase case acceptance. Focus on patient financing, and make sure your employees understand the basics of Flex Spending Accounts, CareCredit, and insurance so that they can inform your patients of financial options. Also, make sure you’re advertising your services to your patients. Do all of them know of the non-essential services you offer, like whitening, sleep apnea therapy, and Invisalign?

According to TNT Dental, your dental website and a blog with GhostPosts can be a great way to communicate with patients. These are customers you already have; just inform them of your services!

Be smart – Parkhurst
Invest in programs that will generate revenue. Keep in mind, spending less doesn’t necessarily equal earning more. When a product, technology, or service will generate more income that the cost of acquiring it, it is a solid investment. Be sure to save! Save small, and over time, you’ll have a nest egg.

Parkhurst says, “You don’t need to just ‘survive’ in a downturn; you can actually do quite well.”

Focus on customer service – Levin
An article published in JADA by Roger P. Levin, DDS tells us that a slower economy will result in lower case acceptance, more accounts receivable, more no-shows or cancellations, and more patients following their insurance – going to network dentists. Like Parkhurst, Levin recommends tightening up, improving case presentation skills, and he also suggests focusing on customer service.

In his article, Levin writes, “Customer service, when handled properly, increases patients’ perception of the value of dental treatment. To prevent patients from switching to offices that participate in their specific insurance plan, customer service needs to be paramount.” He says customer service must be developed through training.

Keep an eye on your numbers – Morgan
Amy Morgan, CEO of the Pride Institute, in her Dental Economics article, “Surviving and succeeding through economic uncertainty,” tells dentists to concentrate on “five to survive.” She relates success to numbers:

• Number of new patients
• Value of those patients
• Percentage of case acceptance
• Hourly production
• Collections
• Monitoring exits (clients who leave)

Morgan’s article is an interesting read. It covers “secrets” to success that should be on the forefront for every dentist in private practice, as well as franchise directors. She warns, “Don’t hit the panic button, rearrange proactively, and respond to outside influences.”

Woodrow T. Wilson said, “I not only use all the brains I have, but all I can borrow.” (This quote is mentioned in Dr. Nate Booth’s book about Tiger Woods’ habits of success, Tiger Traits.) It’s a simple statement, but absolutely true for the professional seeking success. By listening to the experts and applying their wisdom, you can improve and advance your business, your team, and yourself, regardless of the economy.

Related articles:
http://www.speareducation.com/tag/dentistry-economy/
http://www.dentalblogs.com/archives/administrator/lagging-economy-affects-dentistry/
http://www.dentistry.com/articles/Business_Skills_in_Dentistry.aspx