Today, I want to talk to you about money behaviors. We all have certain behaviors and emotions about money. When you own a business, those behaviors and emotions can be even more heightened. Some entrepreneurs LOVE the money/business side of operations…and some definitively do not. In fact, many will put it off until they are finally forced to deal with it. Conversely, there are many who simply sit in the middle and are indifferent.
There is one fairly consistent behavior that tends to stretch across all dealings of money. When you want to make a purchase or pay the bills…what do you do? Most business owners will open their online banking to check their balance and see how much money they have. If there’s money in the account, they will pay the bills or make the purchase and if it’s low, they begin strategizing how to get more money in there. There might even be a freakout involved when seeing this low number!
At any rate, there’s...
Today, we’re going to talk about organizing your money. First, I want you to think about how you organize things in your home or office. If you’re anything like me, you like all the little drawers and compartments to be perfectly organized with everything in its place. Personally, I like to put my dress clothes in one area of the closet, my workout clothes in another, etc., etc. My kitchen is also very organized. When I want to use a certain utensil or cooking pot, I know exactly where to find it. It’s gotten to the point where I don’t even have to think about it; I know where everything’s at!
Similar to my bedroom and kitchen, I also organize the money within my business and I do that using Profit First. I know how much is in each bank account and the purpose of that money. You can do the same for your dental practice finances by using the Profit First principles. It’s all about getting your money organized and having simple...
Today I’m going to share something very important for you, your business, and your patients. Your patients need you to be profitable. To be profitable means to be successful, cost-effective, and fruitful. If you are profitable, you can relax and not have to worry about your money. You can focus your energy on taking care of your patients, which is the primary goal of your business. You still need to pay attention to your money but it is different when you’re not carrying that stress or worry. Your patients will be able to tell if you’re stressed or not by how you behave. When you’re stress-free, you can perform your best.
Are you looking for a stress-free business lifestyle? That’s where Profit First can help; it gives you the plan to ensure there is profit with every deposit. Profit First helps you to manage your money in just a few minutes. It was designed to help dentists like you manage your company financially so that you can be at your...
I’m here today to show you how to pay down your debt faster. First, you have to take stock of the debt you do have and categorize it into categories called “good debt” and “bad debt.” Bad debt is high-interest debt like credit card loans, lines of credit, and student loans. Good debt is real estate loans or private practice loans. These loans are for a longer time period and have better interest rates.
Now, you have to decide which bad debt you’re going to eradicate first!
Also, make sure you have a profit savings account and that you’re allocating a percentage to each week. I have a video on YouTube that can help you if you’re unsure of how to do this! The best way to handle this is to stretch yourself as much as you can handle. It would help to financially plan out each month so that you’re able to take care of yourself while tackling that debt. Bad debt is what you want to go after first because of the bad...
When you want to tell a patient about the state of their oral health, what do you do? Most dentists use a disclosing tool to tell patients the truth about their oral health because these disclosing tools are designed to help the patient understand what exactly is going on and then take control of their dental health.
It’s pretty common sense to most of us that patients really do want to know how their oral health is–even if it is poor–because they want to be able to find solutions and get healthy again. However, many dentists are afraid to go through the work of assessing their practice’s financial health, because they don’t really want to see the truth. They would prefer to keep their heads in the sand, even though they long for more profitable outcomes. This is where the profit first for dentists model comes into play.
I know that it can be nerve-wracking to turn on the lightbulb and see what’s really going on financially...
For this week’s blog, I wanted to share my interview with Dan Romance who has worked with the TSP Family Office for 14 years. The TSP Family Office coaches dentists on how to make the best financial choices for themselves throughout their dentistry careers. TSP’s bottom line is that they want to help dentists reduce their taxes – not just for this year’s tax season, but for the rest of their lives.
Watch our interview to hear more about how TSP helps their clients and the ways in which putting profit first can help both you and your clients.
You can learn more about my website here: https://www.profitfirstdentist.com/
And Dan’s: https://tspfamilyoffice.com/
I look forward to seeing where your career takes you.
Did you love this blog? You can check out more of my past blogs: https://www.profitfirstdentist.com/blog
How would you answer the question, “Why isn’t my dental practice profitable enough?”
Many people would say the reason they aren’t profitable enough is that they aren’t growing enough. This is a natural assumption, but I would argue that equating profits with growth is an old formula. To truly grow your profits you have to know your profitability. When you have no idea what your profitability is, however, or what services or benefit plans you provide that are profitable–that’s a problem.
The solution? Take your profit first.
You need to operate under a new formula of Sales - Profits = Expenses, instead of Sales - Expenses = Profits. This new way of doing business will challenge you because you have to totally rethink how you’re doing business, but the challenge will be worth it in the end. You’ll need to be resourceful, honest with yourself, and ready to stop doing things that aren’t helping your profitability. But when you...
Every dentist I speak with who owns their practice has high hopes of paying off their debts someday and then selling the practice. Paying off debt not only releases a tremendous amount of stress off their shoulders but there is also another reason for wanting to sell their practice. The sale of a practice is a boost to the retirement fund and most owner dentists depend on that money to see them through in their later years, allowing them to enjoy retirement with little to no stress!
Unfortunately, the ADA reports that the value of dental practices has been decreasing. Coupling that with the fact that the dentist retirement age is increasing means that dentists are working into their later years. Working later in life many times also means working at a bit of a slower pace. Now, this is not an ideal situation for most who want to work hard to later enjoy their retirement.
When the income and profits decrease, the value of the practice also decreases....
I have the privilege of providing business coaching for dentists from all over the country. Over time, I’ve been able to identify some common misconceptions about running a dentistry practice that may seem intuitive, but in fact lead to counterproductive practices.
When you’re running a busy practice, time is your most valuable asset. But many dentists feel that in order to sustain and grow their business, they need to spend their time continually producing more and more dentistry while neglecting business management. Sometimes, dentists become so overwhelmed by the numbers that they simply abdicate the financial responsibilities to someone else. It may seem counterintuitive, but taking time to understand the core elements of your business is essential to sustainable growth.
Think about it. If you don’t have a grasp of what’s happening financially at the most basic levels of your practice, you won’t be able to make critical decisions that affect your...
Hey everyone! Thank you for sticking around with me for the last video of this series!
Are you a small business and/or a dentist that is in need of keeping your profit? Are you struggling a bit financially? It can be hard to navigate finances as a dentist with the way taxes are. Well, today’s topic is to help you find the resources you need to profit first.
Today we are going to be talking all about GAAP: Generally Accepted Accounting Principles. GAAP was created for accountants to follow when reporting their business client’s income to the government. An equation that accountants still use today is: sales - expenses = profits. Therefore, the business has sales that collect the money that is needed to pay all of the bills. Afterward, the business owners get to keep what is left. Unfortunately, small business owners and dentists do not always get to keep the profit that they wish to have or deserve. This is where Profit First for Dentists is available to help you and your...