All over the country, dentists are running their numbers and not liking what they see.
In addition to the lost revenue due to state-mandated shutdowns, they’re contemplating an additional $50 thousand to $100 thousand outlay for sterilization and safety measures for their practices. (If you’re not planning on implementing those measures, just think of what a single lawsuit could cost you.)
So, the numbers aren’t looking good even if “business as usual” somehow returns. The odds are that it won’t, though – not until next year at the earliest. More likely, we’re looking at a series of shutdowns as hot spots of Covid-19 cases pop up. It’s unlikely that we’ll see another nationwide lockdown unless something goes horribly wrong, but it’s almost certain that your state will at some point implement another shutdown order.
So, you’ve probably tossed your original revenue projections out the window. See if you can find them; realizing that goal is easier than you think.
It’s An Incremental Thing
There are five key drivers of profitability for dentists – the 5 A’s.Those are Answer, Appoint, Attend, Accept, and Average. It works like this: answering more new patient calls gives you the opportunity to appoint more new patients. Taking measures to ensure they attend those appointments provides more opportunity to get them to accept treatment. And that process will inevitably drive your average case value.
In fact, SmartBox has found that incremental gains in each of the 5 A’s – as little as 10 percent – can more than double a practice’s revenue. Consider this example:
The numbers don’t lie, and the good thing is that you and your team don’t have to do anything different than you do now. You just have to do it better.
That’s the premise behind SmartBox’s Success Academy, our online, on-demand, video-drive curriculum that allows you to develop a team-driven practice with everyone performing at a higher level.
To help you and your team get started, we are offering up free resources from our Success Academy course that your team can start to leverage immediately.
Our data show that it will take a 15-20% increase in the 5 A’s over 16-20 weeks to compensate for a 3-week shutdown. Your situation and numbers will almost certainly vary from our model, so it might take less of an increase and less time, or it might take more.
But in our model, a $1-$1.5 million practice can close the gap on profit (SAME) for this year if they have the right strategy.
Going back to the idea of future shutdowns, you can see why getting every possible revenue dollar while you’re open is so critical to your success. Use this time and the free resources we offer to start training your team to hit the ground running when you reopen.
Clearly, time is money right now, so don’t delay. Download your free copy of the Success Academy Workbook, set up a videoconference with your team, and use this time to prepare to have the kind of year you hoped for in January.
SmartBox employs the best minds in dentistry to help you grow your practice. Our Practice Growth System™ is proven to help dentists in every market area across the country achieve predictable year-over-year growth.