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Cash is King: Creating a Debt Reduction Plan

business of dentistry Sep 09, 2024
Business of Dentistry

After assessing your debt situation, it's time to develop a Debt Reduction Plan. To pay down your loans faster, you need additional cash flow (profit) in your business.

The Profit First model is perfect for this because you’re already setting aside money in the Profit Account. Once you get a handle on your overhead, it becomes easier to allocate more funds to this account.

The Profit Account is used for quarterly distributions to the owner doctor. This distribution is your reward for practicing dentistry. Additionally, the Profit Account can be used to make extra principal payments on business loans or credit card balances.

If you decide to use part of the distribution for debt reduction, you will take less for personal use. For instance, instead of the typical 50% distribution from the Profit Account, you might take 20% for personal use and apply the remaining 30% towards loan repayment.

By operating this way within the Profit First model, you’re leveraging your available cash to your advantage.

Remember, cash is king!

I help dentists in achieving this freedom through the Profit First system. If you’re curious to learn more about balancing profit and growth, visit www.profitfirstdentist.com and tap the 'Free Resources' tab to download the first two chapters of my book for FREE! 

 

 

USA:

-Barb Stackhouse, RDH, M.ED.

Mastery Profit First Professional

"I’m Barb Stackhouse, author of Profit First for Dentists. You might recognize me as the professional behind the Profit First approach for dental practices. I’m passionate about helping dentists implement this effective cash flow system, which is why I wrote the book. My goal is for more dentists to read it and integrate this system into their practices because it genuinely works." 

Canada:

-April Stroink, BComm, RHU, EPC, PFP

Advanced Profit First Professional

With over 25 years of financial expertise, April Stroink helps in transforming the financial health of dental practices across Canada. As an experienced Profit First coach, April is committed to helping you increase your profits, optimize your cash flow, and achieve financial peace. She believes that your business should enrich your life—enabling you to create the life and business of your dreams without compromise.

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