Understanding the value of time! We are going to begin by explaining what factors need to be included when determining doing the cost of business and the revenue needed to be generated to ensure that our practice remains profitable.
When we look expenses, breakeven, and chair costs, it is important for us to understand that just because we made $1 million dollars in receipts, does not mean that our practice profited this amount.
We must also take into consideration the dollars that our practice has spent on expenses like rent, electricity, utilities, staff, internet, and practice management software. We also have to take into consideration the cost of goods or the money it costs us to produce the goods that we are selling to our patients.
Once these expenses have been taken care of, then we have to take into consideration paying for any loans on instruments, interest on loans, student loans, and even before paying any doctors or the owner a salary.
This explanation and understanding is important for everyone on your team, when it comes to capitalizing on your profit.