Page 111 - The Dental Entrepreneur
P. 111
The Dental Entrepreneur
Manage By Percentage, Not Dollars
What I mean by management by percentages is that the actual dollar amount that is spent in
each of your tracked overhead categories is not as important as to how they fit proportionately
with your total collections.
Current Recommended Overhead Target Percentages
Category Percentage
Salaries/Benefits 26-30%
Dental Supplies 6-8%
Lab Fees 5-7%
Marketing 3%
Rent 6%
Administration 6%
Equipment 3-5
Misc 10%
Total 65-76%
I use the word target to illustrate the fact that overhead is fluid and constantly fluctuating.
These are goals that are strived for but are occasionally not met for a variety of reasons.
These percentages are the financial pulse of your practice. As you can see, the overall goal is
to hit around the 70% range to call yourself average. I would consider this a minimum. 60 is a
target and I know doctors that are significantly lower.
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