As anyone charged with running a dental practice will know, running your business is not getting any cheaper.
With the new year now underway, those costs are not likely to drop anytime soon – with a multitude of payments – annual, monthly and quarterly – all due by the end of January. This strain on cashflow certainly makes investing in your firm to allow it to grow an increasingly difficult aspiration to achieve. However, while it may seem challenging, it certainly isn’t impossible.
Before we look at how to go forward with that, let’s first take stock of your outgoings.
Of course, staffing will take up a large slice of the pie when it comes to considering what you’re paying out on a monthly basis. On top of this, all dental professionals are required to keep their skills and knowledge up to date with regular training – also known as continuing personal development (CPD).
This is essential as without it, both yourself and your workforce will be unable to maintain their registration with the General Dental Council.
Another cost that you’ll find yourself battling with is that of insurance. Again, another absolute necessity – and this is one that has risen steadily over the last few years.
In fact, you may find that all of your regular payments are for things you can’t really do without. Your rent or mortgage is another that is a no-brainer, although that doesn’t mean that it’s any less of a burden when it comes to working out your monthly outgoings.
In terms of going forward, the phrase ‘you have to spend money to make money’ certainly still rings true. When it comes to investing in your dental practice, there are plenty of things you can do to try and make an impact in the volume of business you are receiving.
For example, putting some money into new technology could be seen as a wise move. With more people seemingly doing everything these days via their smartphone, it could pay to get a mobile appointment booking service developed for your firm – making it easier for existing and new clients to come and see you.
Updating your equipment is also a smart move, allowing you to offer new and/or improved treatments and thus attracting a larger client base once you have the edge over your competitors.
Finally, spare a thought for marketing. After all, what good is having all of these new additions to your company if nobody knows about them?
Making it work
One of the things that makes January such a challenging time when it comes to your outgoings is those extra bills you’re about to face. Take your VAT liability for example – this quarterly payment can take a real chunk out of your cash reserves if you’re not ready for it, meaning that the possibility of growing your business is postponed even further.
However, one solution is to take out VAT funding. Professions Practice Finance offers this form of alternative finance, effectively allowing you to borrow the amount that you need to pay and spread that cost over three months, instead of paying in one lump sum.
In turn, this then frees up your capital to invest elsewhere in your practice, giving you the perfect springboard to make sure you get everything you want out of 2014.