Do You Know Your Profit Margins? Learn How Profit First Works

Being self-employed comes with its own set of highs and lows. There are days when the workload feels endless, and you might question whether the freedom you sought in starting your own business is attainable. The key to achieving that freedom is structuring your business to work for you, not the other way around. 

This begins with understanding your finances through a straightforward system. It's crucial to know your profit margins and make decisions based on profitability rather than just production.

So, how can you achieve this? Let’s dive into the Core Principles of Profit First for Dentists.

Understanding the Core Principles

If you're unfamiliar with these principles, I encourage you to explore my previous blog posts where each principle is discussed in detail. Alternatively, you can find comprehensive insights on these topics in my book.

Here’s a brief overview: All the money flows into the Income Account each week. At the end of the week, the collected funds are allocated by percentage to four core accounts: Profit, Owner’s Compensation, Tax, and Operating Expenses. If you opt for No-Temptation Accounts, you will also have separate Profit and Tax accounts at a different bank.

Allocation Percentages

A common question is, "What percentage should I allocate to each account?" Additionally, ensuring you have enough in the Operating Account to cover expenses without falling short is crucial. If your current financial situation seems misaligned with your goals, don't worry – these are common concerns.

Over the next few weeks, my blog posts will guide you through a self-assessment process, enabling you to reap the benefits of the Profit First system customized for dentists.  Remember, I'm always here to help with any questions you might have!

You can also find more information in my book, Profit First for Dentists, available on Amazon, Kindle, and Audible.

Ready to take control of your practice finances? Visit www.profitfirstdentist.com and tap the 'Free Resources' tab to download the first two chapters of my book for FREE! These resources are designed to support you in managing your finances effectively. 

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.