How much profit should a dental office make a year. And what kind of expenses d!
Question:
How much profit should a dental office make a year. And what kind of expenses does a dental office have.?
im looking for a percentage breakdown of what should be spent, and on what, in a dental office in order for it to be considered profitable.
Answers:
Each office profit is different. You have to figure out your monthly overhead (rent, electricity, water, supplies, employee salaries) then project how much you intend to make from there. I agree with the first answer, opening an office is hard to do. A lot of dentists who are fresh out of school like to join on to an open office as an associate, then try from there.
The problem with that is if the majority owner decides to sell, it is usually during a "down time" in the profit area. Location is also key: a free-standing practice has a higher rent, whereas a strip mall office can lose potential clients due to its location or general environment. (I have worked in both types of offices.)
The materials vary greatly as each doctor has certain materials that they prefer to work with versus the less expensive options. Patterson Dental Supplies offers good rates on quality products, for example.
The accounts that each doctor/office have are due at the end of each month, in general, and theat's when you really see how much money you have made, or lost.
You also have to figure in office supplies, computers, and cleaning. A lot of offices have a cleaning person/staff come in once every two weeks or so, it depends on the office. And then there's all the things you have to have to remain OSHA compliant, and that includes biohazard boxes, proper sterilization products, PPE. (personal protection equipment) There's lab coats, masks, and you have to decide if you want to provide scrubs for your staff, which allows you to make all employees dress alike appealing to a professional atmosphere.
Dentistry is an expensive field in which to get involved, though rewarding; think long and hard about your decision!
The best option would be to sign up with Mercer. It is a company that finds compatible dentists to work together and allows for successful "take-overs," or transfer of offices.