I’ve been playing around with “units of dental business” and have started to construct a simple spreadsheet to show the effect of days worked and average daily production.
I’m assuming that, up to £1m in sales, you can maintain a 30% net profit margin but that after that, profits decline as a percentage as “people costs” increase.
My conclusion is that, for a private GDP doing high-value work, its better to focus on improving productivity in a 3-surgery practice than it is to add surgeries.
I’d love to hear your comments.
Visit my blog to download the spreadsheet and play.