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Developing Leadership Skills

Overhead Key Categories

A start-up general dentist practice during the first three years will have a different mix of key overhead categories than more established practices. Review the categories and descriptions below and see if your budgeted percentage of collections aligns within the targeted range.

 

Category & Description

Targeted Range

(As a Percentage of Collections)


Personnel

Wages, payroll taxes, health insurance, misc. benefits (should not include retirement benefits, Doctor or Associate costs)

 

20-25%


Clinical Supplies

Dental supplies (should not include service or equipment)

 

7-9%


Lab

Includes milling supplies

 

7-10%


Facility

Rent, depreciation and interest on equipment, equipment lease, personal property and real estate tax, amortization of practice, repairs/maintenance, utilities

 

10-20%


Rent

5-9%


Business
Bank charges, legal fees, some CE, dues, liability insurance, office supplies, laundry, phone service, accounting, computers, postage, license/permits, etc.

 

9-11%

 

Office Supplies
Professional Fees

2%
1-2%


Marketing
Includes website management, internal and external marketing

 

5-8%


Discretionary/Misc.
Business portion of auto, charitable contributions, gifts, life and disability insurance, travel and entertainment, some dues, subscriptions, CE

 

4-6%


Owner’s Compensation & Profit
Owners compensation, Associate compensation, owner retirement plan, profit

 

30-38%

 


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