June 29, 2020 — Revenue may be the single most important factor in business recovery. As the old saying goes, “You need money to make money.” As your practice reopens, it must hit the ground running with revenue-generating strategies. Your recovery depends on it.
Take steps to generate as much revenue as quickly as possible. This could include offering expanded office hours, decreasing staff vacation time, scheduling the most productive cases as early as possible, and focusing on a higher volume of smaller cases. Specialists should include a strong focus on referrals to generate a stream of patients for increased revenue. The faster revenue increases, the sooner the practice can accumulate cash.
Don’t forget to analyze revenue weekly. Analyze revenue and identify the breakeven point where all expenses have been paid. If the practice can generate sufficient revenue to pay expenses, it has, by definition, survived. If the revenue exceeds the expenses, it now has profit. This may seem very obvious and simplistic, but it is also the key element underlying a business turnaround or practice recovery.
Roger P. Levin, DDS, is the CEO of Levin Group, a leading dental management consulting firm, and one of the most sought-after speakers in dentistry. Dr. Levin has authored 65 books and more than 4,000 articles on dental practice management and marketing. You can sign up for the Levin Group Tip of the Day.
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