When to Adjust Your Profit Percentages

Your Practice Will Evolve — So Should Your Percentages

Profit First for Dentists isn’t static — it’s dynamic, just like your practice.
As you gain control, reduce debt, or grow revenue, your allocations should evolve.

“Your percentages tell your story.”

“And as your story changes, so should your numbers.”

Knowing when to adjust is part of mastering the system.

When to Make Changes

1. After Consistency:
   Once you’ve been allocating weekly for at least a full quarter, you’ll start seeing clear trends. That’s the right time to review.
2. After Major Shifts:
   If you add an associate, expand your space, or purchase new technology, revisit your percentages.
3. After Reaching Stability:
   When your cash flow feels steady, it’s safe to increase Profit or Owner’s Pay gradually — usually by 1–2% per quarter.

Small Steps Create Lasting Change

Avoid large jumps. Incremental progress prevents stress and ensures sustainability.

“One percent adjustments lead to 100 percent confidence.”  

“It’s not about speed — it’s about staying the course.”

For example, if your Operating Expenses are at 70% and your goal is 65%, reduce by just 1% per quarter.
Over a year, you’ll make major progress without feeling the pinch.

Revisit Your CAPs Quarterly

Each quarter, calculate your Current Allocation Percentages (CAPs) and compare them to your Target Allocation Percentages (TAPs).
Celebrate the areas that improved and adjust those that didn’t.

This keeps your system relevant and responsive.

Final Thought

Adjusting your percentages is a sign of growth — not imperfection.
It shows you’re engaged and intentional with your money.

“Financial health isn’t about perfection.”  

“It’s about awareness and adaptation.”

Make small changes, stay consistent, and let your percentages evolve alongside your practice.

You can find adjustment guidelines and examples in Profit First for Dentists or through my coaching programs at ProfitFirstDentist.com.