Business of Owning a Practice - Business Models
Mar 06, 2022
This week we are talking about the production vs. profitability model of business, and why more production does not always equal more money in your own pocket. Check out my latest video here.
The dentists I speak with normally have a set number for annual goals of production that they hope will measure their overall business growth. While I fully support setting production goals, I wouldn’t choose production goals as the metric for growth and increased profitability. This is because I’ve worked with too many dentists who increased production but found that it did not result in more profit because as production increased, so did expenses.
That’s why you need to get clear on what “business growth” means to you. Is it a certain production number? Or is it a certain level of profit?
If you are hoping for greater profitability in your practice, I’ve found that using a Profit-First Model is the simplest and most effective model to boost profitability. My book, “Profit First for Dentists,” is all about implementing a profitability model for growth. It does take time to set this model up, but so does any new thing. Once it is fully set up and implemented, though, you’ll only have to spend 10 minutes a week and 1 hour a month to fully know your numbers and true profitability. Check it out on my website, where you can download the first 2 chapters for FREE. I am passionate about this because you deserve to be paid for the work you do as a dentist, business owner, manager, and leader, and using this model is sure to help you achieve the profit you hope for and deserve.
If you have questions, you are always welcome to reach out to me by scheduling a call at call.barbstackhouse.com
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