Start a Successful New Dental Practice with Us
For more than 14 years, LLI Advisory Group has been helping new dental practices achieve success. We understand that starting a dental practice from scratch can seem like a daunting endeavor. Having gone through this complicated process many times with our clients, we’ve developed the experience and skill set to help you avoid common pitfalls. With our help, starting a dental practice can be a smooth process for you.
Starting a new dental practice involves many tasks. And, without proper accounting and financial management, even a well-marketed dental practice in a carefully selected location will struggle to be profitable.
To help you get off to the best start in your new dental practice, we offer the following practice management services:
Entity Selection Assistance
The way you choose to organize your new dental practice as a business will have both legal and tax consequences. Therefore, choosing the right entity type for your practice is critical. Entity type selection will be based on factors such as the structure of your particular dental practice and the laws of the state in which it is located. We will use our years of expertise in dental accounting to help you choose the entity type that’s best for your practice.
Accounting Systems Setup
Accurate tracking of financial transactions and an understanding of the underlying revenue and cost drivers will provide a foundation for making sound business decisions for your dental practice. A well-organized and efficient accounting system is essential to this objective. We will help you establish systems and procedures to gather the financial data you need to understand and effectively manage your practice. We will also analyze factors affecting your profitability and help you make proactive decisions as needed.
Dental-Specific Financial Statement and Metric Development
Understanding your practice’s financial statements is a crucial factor in your ability to make effective business decisions. That’s why we will meet with you on a quarterly basis to help you interpret your financial statements and discuss your practice’s profitability. We will analyze the factors affecting your profitability to assist you with proactive decision-making, including how your practice’s profit has been allocated, whether there are additional funds available to distribute, or if you have been over-distributing your profits.
Cost Analysis against Industry Benchmarks
Understanding how your practice’s financial health compares to that of other dental practices in your area is key to setting business goals, tracking results, and modifying strategies. Our training and experience allow us to help you take the guesswork out of industry benchmarking to help you set specific and measurable targets for your practice. Some of the benchmarks we will review with you on a quarterly basis include:
- Dental Supplies
- Lab Fees
- Ortho/Implant Supplies
- Staff Costs
- Associate Costs
- Discretionary Expenses
- Cash Reserves
- Debt Service Analysis
Compensation Model Development
Compensation is one of the most controllable expenses for a dental practice, and an effective compensation model is essential in retaining a talented team who will drive profitability through patient satisfaction. However, building an effective and affordable compensation plan can seem like a daunting task. We will help you set up a solid dental practice compensation model through careful review of both your financial position and market and industry standards.
Employee Benefit and Personnel Review
Hiring staff and choosing which employee benefits to offer them can be complicated decisions. How many people should you hire? Which benefits are required by law and which are discretionary? How much will all of this cost? Your employee benefits package needs to be both affordable for you and motivating for your team. We will help you determine the ideal number of employees to hire and design employee benefits that are competitive in the marketplace and financially sustainable for your practice.
It is essential to present potential lenders with a sound business plan and solid financial projections when seeking financing to start or expand your dental practice. We will help you determine what type of financing would be best for you, and make sure you are presenting your business in the most complete way. Before you accept any financial assistance, we can determine whether it is a financially sound decision for your dental practice.
Before you open your new dental practice, it is important to become familiar with the various types of insurance that can help protect you and your financial investment and choose an insurance plan that meets your needs. We have the experience necessary to guide you through this process and help you determine the level of insurance you should purchase.
Retirement Plan Evaluations
When starting a new dental practice, planning for your retirement might be the last thing on your mind. However, retirement planning should start at the beginning of your career to maximize your retirement savings. Oftentimes, dentists sacrifice retirement savings to pay back student loans at an accelerated pace, or they depend on the sale of their practice as their retirement fund. We will explain why it’s important to avoid these common mistakes, help you design a retirement savings plan, and monitor your retirement plan over time and recommend adjustments as needed.