My Overhead is 29%... Here's How I Do It
Episode description
As the two year anniversary of opening my practice approaches, I thought it would be a fun exercise to go over my profit-and-loss statement from the last 12 months and breakdown my expenses. The average overhead in pediatric dentistry is around 50%, but I think we can do better.
I've been able to run a very low overhead, lean office by keeping my expenses in check and doing many services myself. In this episode, I review some of the following that allow me to keep a sub-30% overhead:
- How to calculate a true overhead (what do I include and what do I take out).
- How being rural keeps my rent, staff salaries, and advertising budgets low
- Bringing in more revenue is an easy way to lower overhead that doesn't involve cutting costs
- Save money by doing your own bookkeeping, website, marketing, payroll, etc.
- Where to shop for dental supplies, and why the big suppliers can eat into your profits.
I hope you enjoy this deep dive into practice numbers. Cheers!