As inflation soars to the highest level in 40 years and interest rates rise, it's natural that owners worry about the effect that a recession might  have on their practice.

Fortunately, there is still time to take action whether you plan to ride out the recession and keep the practice or sell it now so you won't have to worry about it at all.

First, look carefully at each area of the practice and analyze the profit contribution to the practice. The key is to look at EVERY aspect of the practice, even those you know are a straight expense. Understand that it does not matter if the area you're looking at is essential to the operation of the practice like the front desk. Evaluate everything.

Next, take each area and evaluate if there is room for improvement either by increasing revenue or decreasing costs. One practice was forced to keep a bookkeeper on full-time even though they only needed them 20 hours per week. The solution was to approach other businesses in the same strip mall and sell the bookkeeper's excess time to other businesses. This not only reduced the expense but also provided an increase (albeit small) in the practice's revenue.

Last, look for velocity improvements. Velocity improvements can include reductions in paperwork at the front desk, keeping supplies closer to each operatory, and reducing the down time between appointments. The key here is to be objective and look at everything through a new lens.

The recession will affect your practice. Some patients will lose their jobs or change jobs and lose their benefits. Your costs for supplies and labor will increase. If your facility lease comes due in the next 24 months, take action now and negotiate aggressively and start looking for alternatives. You give away considerable negotiating power if you start with only one or two months remaining on your lease. By giving yourself 2 years, you indirectly announce to your landlord that you are willing to relocate (even if that is not your intention).

By taking action now, you put yourself in the best possible position to ride out the economic storm that is on the horizon. It might get rough, but you'll make it through to the other side.

But maybe you don't want to take your practice through yet another economic storm? We can help. Call us today and let's chat about finding you the right buyer for your practice. Demand is still solid and today is still a great time to consider selling for retirement or to take on some new challenge. Call us at 703.298.1690 or Click Here and schedule a a complimentary 15-minute call to discuss your situation.