Thursday, January 16, 2014

What's It Like Being The Owner of a Typical Dental Practice?

The average dentist will graduate dental school without knowing how to run a dental practice, he will need additional hands-on experience and have about $200,000 worth of debt. Gone are the days where one could open up a practice, place a sign on the window, and have a successful practice. Inflation, insurance companies, and the cost of dental supplies make it hard for an owner to keep his/her head above water. As much as we try to prepare ourselves for what lies ahead, diving in head first is the only way to truly understand what it means to own a dental practice.

A dental practice will have an overhead break-even cost of 65-95%. This means that for every $.65-$.95 of money collected, the owner will profit $.35-$.05. The young, entrepreneurial dentist most likely will be profiting closer to the $.05 for every $1.00 collected because he must repay the bank, pay the rent, pay the staff, pay for supplies, pay the IRS, etc. It's no wonder why most dentists don't even take a vacation throughout the year.

Please don't take this blog entry as a "woe is me" complaint. I try to be as open and honest with my staff and with my patients regarding what's it like to own a small business. I understand dental treatment can be expensive, but please don't think all the money we collect goes straight into my pocket. As I mentioned above, the costs associated with running a dental office can be staggering.

At Roselle Park Dental, we do our best to create a win-win situation for our patients and the staff. We have established a culture in the office that allows us to offer our patients the best care possible by incorporating the latest technologies, while ensuring that our employees maximize their potential to reach their individual goals.

I will leave you with a great quote from Colin Powell: "There are no secrets to success. It is the result of preparation, hard work, and learning from failure."

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