Ever since the coronavirus was deemed a worldwide pandemic, businesses everywhere have been on edge. Small business owners, even dentists, are expecting the worse. From an empty patient schedule to reevaluating financials, smart dental practices are choosing to focus on evolving through these challenges, while making decisions based on roadblocks that they anticipate down the road. Knowing how to deal with upcoming challenges requires a significant amount of planning. Bryant Consultants, a top-rated dental practice consulting agency, wants to share some tips on how to recession-proof your dental practice so that you come out stronger on the other side.
What occurs during a recession?
You probably already know what happens during a recession, and how a deep slump in the economy affects businesses of different sizes. Business slows, many people become unemployed, and it becomes difficult to borrow money. But, along with those downsides, there are some advantages – competition dwindles, prices of goods go down, and better job applicants surface. A recession doesn’t have to mean that your practice tanks. The key to thriving before, during, and after a recession is to prepare.
-
You are out of money
As patients drop off your schedule, cash flow tightens. You should evaluate your spending, cut what isn’t necessary right now, and considering pulling from your cash resources (savings, 401K). You are more likely to run low on money during a recession, but don’t wait until you are out of money to ask for help. Keep an eye on your cash flow, and communicate with your bank every 4-6 months if you need a credit line increase.
-
The bank calls your loan
Under certain types of loans, banks have the authority to demand full payment at any time. This decision is based on specific criteria and would be outlined in your terms. If you do not have a callable provision in your loan terms, then you do not have to worry about it. Callable loan or not, it’s important to develop a great relationship with your lender, and remain in communication if you’re experiencing financial hardship.
-
You made hasty decisions
Making tough decisions requires thought and consideration, as well as time. But, when you’re feeling anxious or stressed, you’re more likely to make poor decisions. To prepare for making difficult decisions, design a plan now. For instance, you might have a specific move in mind if your revenue drops to X amount. Make these type of decisions now, and stick to them when things go sour. It’s much easier to make a confident, well-thought-out decision rather than making hasty decisions under pressure.
-
You pulled the plug on marketing
When cash flow gets tight, many businesses consider cutting their marketing budget first. But that actually is the worst decision you could make. Improving business and attracting new patients means that you have to keep your brand or name on the forefront of their minds. If your patients forget about you, they will just go to another practice in town. There is a saying that when times are good, you should sell and market; and that when times are bad, you must sell and market. Now isn’t the time to slash your marketing budget. Your patients will be looking for a practice to come back to once the recession is over, and you want them returning to your practice!
Dental Practice Management
Recession proofing your business means having a plan, now, not waiting until you’re out of cash and in a bind. If you aren’t sure how to get your practice through the coronavirus pandemic, Bryant Consultants can help. We also have developed a coronavirus dental practice survival kit, which is available as a free download. If you would like more information, please call Bryant Consultants at (877) 768-4799 or connect with us directly. We provide consultation, training, and coaching and will continue to post relevant updates regarding the coronavirus pandemic. To ensure that you receive the latest updates, please follow us on Facebook and Instagram.
