Section 4: Understanding Your Overheads / Indirect Costs

In order to run your clinic you will have overheads associated with the business. These costs are often unavoidable or contractual and are needed to allow your business to operate.

Examples include:

• Rent
• Rates
• Cleaning
• Admin salaries

These costs are usually fixed and have no impact on driving revenues. These costs are usually set by a supplier contract for a fixed period of time and therefore it is not always a quick fix to cut costs should you have a change in circumstances.

It is important that you fully utilise these overheads and ensure your business is run efficiently. This can be measured in a variety of ways which will be covered in other modules.