If there’s one metric to measure your overall productivity and effectiveness, it’s got to be your Effective Hourly Rate.
Your Effective Hourly Rate (or EHR for short) is a crucial data point to know if you’re in the process of growing and scaling your practice.
Many practice owners find themselves doing their clinical work by day, then trying to run the business on nights and weekends – only to end up working 50 or more hours a week.
Needless to say, this is a fast-track to tiredness, burnout, stress, and it’s unsustainable.
So, as you make the move to a true business ownership model, you want to reduce your hours whilst increasing your effectiveness.
This is where it’s important to know your EHR. By tracking your EHR, you can determine if you’re moving closer to your goal of earning more and working less, or if you’re off-track.
The formula for calculating your EHR is simple; EHR= Profit/Time.
This measures your ability to generate revenue, manage expenses, and the leverage you can create in your practice.
We recommend calculating your EHR on a monthly basis so you can tell which direction you’re trending in.
This number represents your move away from self-employment and into true business ownership, so it’s important to sit down and look at the numbers on a regular basis.
So, as you conduct your planning and preparation for the new year, be sure to check your EHR while you’re at it!
P.S Want to scale your dental practice and take your profits to 7 figure success?
Me and my team can work with you directly to get you there! Simply book in your FREE 1:1
strategy session, and we can get started on a game plan for you and your practice.
