Be financially prepared
Featured Products Promotional FeaturesPosted by: Dental Design 8th July 2020
Following an unprecedented few months and with more challenges yet to overcome, financial planning has never been so important for businesses. As a dental practice, how you manage the recent interruption to services and the arrangements you make for the immediate and long-term future, will have a major influence on your business sustainability. Your financial situation could also affect the services you are able to offer patients in the weeks, months and even years to come, as well as your staff and your own earnings. Get planning now to secure a positive future for all involved.
Know where you’re starting from
Whatever your financial circumstances at the beginning of 2020, it’s important to take stock and reassess where you are now. For the dental practice, this means calculating the potential financial deficit, including loss of earnings, continued overheads and any unexpected costs (like charges for the pausing or termination of any contracts). Get updated financial statements and evaluate the hard numbers. You need to know how much you have in reserve bank accounts and if there are any outstanding invoices that you still need to pay – such as lab bills for work completed or begun prior to lockdown.
In order to move forwards productively, you’ll need to determine – with as much accuracy as possible – what your outgoings and revenue will look like throughout the first few months of re-opening. Everything from the number of patients you see each day to the type of procedures provided and the number of staff you have could have changed, so estimating the resulting monetary changes to the business will give you a good idea of where you stand. Revisit your business plan as well – this may need updating and adapting to the new situation in order to give you clearer direction in the months ahead.
Maximise efficiencies
Nobody likes wasting money at any time or in any part of their lives. Cutting out or at least cutting down on any financial inefficiencies in the dental practice is crucial right now. That means optimising stock orders to reduce waste (another reason why it’s crucial to understand what treatments you might be focusing on in the near future). Before you re-open, it would be advantageous to contact your regular suppliers to discuss potential renegotiations of contracts or new arrangements if these would help get the practice on its feet quicker. Most companies will be accommodating during this time given the magnitude of disruption experienced worldwide, just be careful not to enter any new or revised contracts that could jeopardise your profitability in the future.
Re-opening the practice in a logical way is just as crucial and should be planned carefully. You will likely be taking a staged approach, which initially could mean a limited professional team with fewer surgeries operational. Think about the order in which equipment needs to be turned on, which technologies are most important and whether the cost of running them will be covered by the services you can provide.
It is also hugely beneficial to increase the number of aspects you operate electronically. If you are not already, cloud-based banking and accounting could save you money both now and in the future. Many of these programmes also generate financial reports which can further assist you in making intelligent financial decisions for your business. The better you understand your practice’s current situation, the more you recognise trends and the quicker you react to them, the more efficiently you’ll be able to budget for your business in the short- and long-term.
Closer to home
While it is essential to streamline finances in the practice, it can be just as beneficial to consider your personal situation too. Check any monthly subscriptions you currently pay, whether they are professional magazine subscriptions or phone contracts. Do you still use them all and are they good value for money? Do some research to see if there are any more cost-effective alternatives available. Also, make sure you are utilising all tax benefits with appropriate work expenses. If you are still paying fees like gym memberships, contact the company to see if you can temporarily pause payments until it re-opens or you are in a stronger financial position.
Get the right support
Spending your money wisely – both for the business and personally – is vital at this time. For any dental practices that are struggling financially, there are several potential avenues of support to make the most of. For example, the Bounce Back Loan Scheme (BBLS) offers a loan of up to £50,000 (or 25% of the business’ average turnover), at no interest for the first 12 months and 2.5% interest per annum after this for the following six years.
For more information on this and the many other options available to help you streamline and optimise your finances at this difficult time, contact experts like the experienced team of IFAs at money4dentists. Their combined knowledge of the dental market and the economic situation in the UK will help you best financially prepare your business for both the short- and long-term.
For more information please call 0845 345 5060 or 0754DENTIST.
Email info@money4dentists.com or visit www.money4dentists.com
Richard T Lishman
Managing Director of the 4dentists Group of companies
