I have the privilege of providing business coaching for dentists from all over the country. Over time, I’ve been able to identify some common misconceptions about running a dentistry practice that may seem intuitive, but in fact lead to counterproductive practices.
When you’re running a busy practice, time is your most valuable asset. But many dentists feel that in order to sustain and grow their business, they need to spend their time continually producing more and more dentistry while neglecting business management. Sometimes, dentists become so overwhelmed by the numbers that they simply abdicate the financial responsibilities to someone else. It may seem counterintuitive, but taking time to understand the core elements of your business is essential to sustainable growth.
Think about it. If you don’t have a grasp of what’s happening financially at the most basic levels of your practice, you won’t be able to make critical decisions that affect your...
This is my new series about the business side of owning a dental practice. Each week I will be posting a new video on specific topics of business and how It relates to dentistry. I will also be sharing the challenges that I see dentists facing. After reading this week's blog, don't forget to check out my video on this topic as well.
Now, if you are like many of the dentists that I speak with, things are a bit hectic and you are never able to get everything done. There is always a lot going on in a practice. I always say that dentistry has a lot of moving parts. It makes the day fly by and at times it seems to just slip away. It may seem that you never have that extra time to manage all the administrative tasks of your practice.
My goal is to simplify the money management process in a dental practice. I do this by using the Profit First system. I help dentists to fully know where they stand in regards to their finances. I teach them how to pay themselves first, how to pay their...
One of the most important tips for business owners is to avoid temptation accounts. Now what exactly do we mean by that? Well, in this case, I'm talking about the temptation to borrow money from one account to fund another, or robbing Peter to pay Paul, as they say. While this may seem like a perfectly reasonable action, in reality, it means stealing for yourself to pay a bill or make a purchase for your business.
So what can we do to avoid this?
When an account is used for more than one purpose, it becomes too easy to pull additional funds from one purpose to cover for the other. To avoid this, the profit first model utilizes multiple bank accounts, each to hold money for one specific purpose. Another way to reduce the temptation to steal from the profit or tax account is to have different accounts set up at various banks across town so that it is harder to transfer money from Point A to Point B.
This temptation most often occurs when the operating expense account runs low...