WHERE IS MY NET PROFIT?

At Silkin Management Group, we don’t try to just increase the production of your office, we just as importantly want to see a nice increase in net profit for you. Why work on increasing production if you don’t make more money? That would be totally foolish.

You have worked hard all week, the office atmosphere has been snap, crackle, pop; the staff have been getting along with each other; and you are proud of the team spirit they have each shown. In fact, your staff have almost read your mind and anticipated your every need. The patients have all arrived on time for their appointments, and the majority of them have even listened to you and accepted your treatment plans!

Now it’s Friday afternoon, the staff have their paychecks, which include production bonuses because the office has done so well this week. But you look at your bank balance, and you are surprised and seriously disappointed at the lack of funds left over for you.

Where did your net go?

Did you work hard all week to earn less money? The bank balance should be going up, not down!

You wonder if it's worth it. You worked hard all week - only to earn less money. All of that increased production may just have landed you into a higher “office-overhead/higher tax-bracket” situation. It's that frustrating income vortex - the place where despite producing and collecting more, you take home the same or less. And after a few of these "successful" weeks you shake your head and realize that if you have much more of this kind of success, you'll go broke.

A Silkin Management Group consultant would take a look at what might have happened:

• Do your staff work overtime? Do you have systems in place to prevent this without being notified?


• Do you have redundancy in your staff scheduling? Are you scheduling for efficiency? Do you have 5 staff members on duty when 4 staff will do during the slower times of the day?


• Can you consolidate your equipment loans into one loan, thus saving you interest and lowering your payments?


• Can you reduce the amount of inventory the practice holds?


• Are you collecting all you bills? Are your collections at 98% at least?


• Are any staff functions overlapping?


• Do you have an efficient office communication system whereby staff are not interrupting other staff when they are doing their jobs, thus reducing efficiency?


• Do you have any monitoring system to know, factually and statistically who is productive and who isn’t?


• Is there any gossiping going on in the office?


• Are there any problem staff members who aren’t being handled?

These are just some of the areas that Silkin would look into to help you with the management of your practice and figure out any problems with your net income. Your net should be between 35%-55%, depending on your profession, and area. If it’s not, there’s something wrong with the management of your office.

If you would like help with this area of your practice, feel free to contact us at: info@silkinmanagementgroup.com or call 800-695-0257. You can also visit our website: silkinmanagementgroup.com

All the best,
Lyn Ribisi
Appointment Setter, Silkin Management Group

Please visit our other blog at: silkinmanagementgroup.blogspot.com