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Quotes & Notes:
First, download Jonathan’s gift for our podcast listeners: DentistMetrics KPI Guide
If you are not leveraging your time with your CPA, in order to get the most out of them, then you are going to have to find that time elsewhere.- No one’s ever going to have the absolute pinnacle business.
- We focus on the business in order have that have the maximum amount of returns for the owner because in the end it is going to be what funds everything else.
- There are multiple different approaches you can take with marketing; you can do a shotgun approach, you can do a sniper-rifle approach, you can do a machine gun approach, you can do a lot of different approaches. A lot of this is testing to see what is working.
- In a dental practice, if you are not at absolute capacity, then it makes absolute sense to fill to your capacity.
- Try and set your schedule up like the day that was most productive.
KPI – a key performance indicator. KPIs can be financial, they can be non financial, they can be actions, they can be a lot of different things.
- The main number that we look at is two fold. Number one we look at net productions, number two we look at the total of those wages and salaries plus benefits plus payroll taxes. Then we compare that to the revenues. We do not include family of the owner, we do not include the owner’s salary, and we also don’t include associates in this.
- Startups for the first few months will not really be in these numbers. These numbers really start kicking into gear when you get into around $650,000-800,000 dollars in revenue.
- There are a few universal truths in the world. One of them is that they think they are busy. Strangely enough, everyone also thinks that they are efficient.
- The practice as a whole has to really start heading towards a specific path. They have to be set on some type of system, some type of game-plan to be able to get them to that number. Typically when we talk about that it is going to be a production type goal.
- If you are in a not competitive market then you are probably not in a very good market.
- We have a general rule on five percent on supplies. There are some practices that aren’t going to be able to reach that.
- It is very difficult to trade convenience for money. There are a lot of places that you can buy supplies, and they can frame it in a way that you feel like you are saving money but in the end, if you are paying $26 for a barrier, and you can get it someplace else for $19, then you are paying seven dollars more.
- If you are thinking about saving 20% on your supply costs each year, and your supply costs are $10,000 then you are better off going out and finding three new patients to replace that $2,000 dollars.
Five percent (for supplies) is the number that we always strive for, and for some practices this is not attainable, but you would be surprised at what you can obtain by trying.
- For the hygiene rule of three, the first level we have is that hygiene typically contribute about a third of the production of the practice. The second three is that the hygiene department should typically be compensated at about a third of net productions or collections in some fashion. The third one is that you like to have less than three hours a week of unscheduled hygiene per hygienist.
- If you would like to learn more from Jonathan Van Horn, email him at [email protected], visit his website, dentistmetrics.com, or even find him on Facebook or Linked-in.
Again, you’ll find Jonathan’s FREE KPI Guide here: http://dentistmetrics.com/relentlesskpi
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