Finding Your Target Allocation Percentages (TAPs)

From Reality to Vision

Once you’ve identified your Current Allocation Percentages (CAPs), the next step is setting your Target Allocation Percentages (TAPs) — your ideal financial picture.

Think of TAPs as your destination. They represent what “healthy” looks like for your dental practice.

“CAPs tell the truth of today.” 

“TAPs create the hope for tomorrow.”

What Are TAPs?

Your TAPs define how you want to distribute revenue in a financially healthy practice.
For example, a well-balanced solo practice might aim for:

• Profit: 5%

• Owner’s Pay: 25%

• Taxes: 10%

• Operating Expenses: 60%

These are benchmarks, not absolutes. Your TAPs should fit your practice size, debt level, and goals.

How to Move from CAPs to TAPs

Once you know the gap between where you are and where you want to be, you can begin gradual adjustments.

If your CAPs show 70% operating expenses and your TAP goal is 60%, reduce by just 1–2% each quarter. Slow, consistent progress creates lasting change.

“You don’t crash-diet your practice.”  

“You give it a healthier diet over time.”

This method keeps your cash flow stable while you shift habits and systems behind the scenes.

Set Realistic Targets

Don’t aim for perfection — aim for improvement.
It’s far better to hit a small, steady goal than to set an unrealistic one that discourages you.

Dentistry has variables like insurance participation, team size, and local economics. Your TAPs should reflect your real-world context, not someone else’s ideal.

The Emotional Benefit of TAPs

TAPs don’t just change your numbers — they change your mindset.
You start thinking like the CEO of your practice, not just the clinician.

“Profit isn’t what’s left over.”  

“It’s what you choose first.”

When you see your money aligning with your values, confidence replaces stress — and you finally feel in control of your business again.

Final Thought

Finding your TAPs is the moment where clarity meets strategy.
It’s when you stop hoping for better results and start designing them intentionally.

If you’d like to walk through your own CAP-to-TAP transition with expert guidance, that’s exactly what I teach inside my Profit First for Dentists Group Coaching program.

Learn more at ProfitFirstDentist.com .