Plan ahead for bumps in the road

In this extract from the October issue of The Probe, Thomas Dickson discusses what dentists can learn from the pandemic.

There’s little doubt that the last 18 months has been the most challenging period in many dentists’ careers. Loss of earnings as a result of treating fewer patients; staffing issues, the “ping-demic”; the financial impact of upgrading practices to become Covid secure environments; and the ongoing costs of maintaining high standards of infection control, have all contributed to some dentists succumbing to an overwhelming work-load and feelings of insecurity.

In May 2021, the BDA published a survey showing that 78% of dentists cited financial uncertainty as having a high impact on their morale, and their ability to provide pre-Covid levels of care. It is therefore more important than ever, that dentists take a long hard look at their business in the whole, to ensure they are able to weather any further storm.

Business acumen

It’s been the case for many years that the measure of success of being a good dentist is the ability to combine excellent clinical skills with the ability to manage and run a successful business.

Many of our clients are principal dentists and what became clear early on in the crisis, was that dentists who were focused on their business and personal finances; had structured their loans appropriately; and had reasonably significant access to cash savings or investments, were able to cope with all the other Covid related issues far more easily.

Diversification

The pandemic was particularly tough on dentists who only have private patients. Fortunately, in the last few months, we’ve witnessed a sharp uptake in private dentistry with many dentists reporting record numbers of new patients, resulting in turnover returning to pre-Covid levels.

On the face of it, this is an extremely positive turn of events, however, there is of course no guarantee that this influx of private patients will continue. And there’s much to be said for the above approach of diversifying your practice as well as your investments.

Financial Security

The pandemic certainly highlighted the need to have a buffer for expenditure, not just for personal use but for your business as well.

Although part of being prepared is to have savings, savings alone aren’t enough. Having a focused business plan, including contingency measures, is key.

Personal finances

As Financial Planners, we’ve seen an increase in the number of enquiries from prospective clients who want a clear understanding of where they stand financially, and are keen to measure the financial impact of Covid on them and their businesses.

For many dentists, the pandemic has encouraged them to re-think their lifestyles, goals and objectives, and given them the impetus to plan for a secure and stable financial future. We are privileged to be in a position to provide clients with the confidence, security, and peace of mind that they are heading in the right direction, despite the bumps in the road - and Covid-19 has undoubtedly been a huge bump.

Read the full article in the October issue of The Probe