If you think about your dental practice, I’m sure you’ll find you have a daily rhythm to things. Most of us would say we have personal daily rhythms as well.
We tend to rise and start our day very much the same from day to day. The rhythms of our life provide an unwritten structure that actually then perpetuates the rhythm to continue.
The same is true of your business, your dental practice. When implementing a pattern of behavior in a rhythmic cycle, we are much more likely to continue to take action. Taking action is where the magic happens with Profit First.
A weekly rhythm of allocations and transfers seems to work best for a dental practice. Income flows into the practice daily and then once a week, it’s time to allocate by percentage and transfer money to the additional bank accounts set up for a specific purpose. Those accounts are for Profit, Owner’s Compensation, Taxes, and Operating Expenses.
As money flows into each account, it is...
Today, we’re going to talk about organizing your money. First, I want you to think about how you organize things in your home or office. If you’re anything like me, you like all the little drawers and compartments to be perfectly organized with everything in its place. Personally, I like to put my dress clothes in one area of the closet, my workout clothes in another, etc., etc. My kitchen is also very organized. When I want to use a certain utensil or cooking pot, I know exactly where to find it. It’s gotten to the point where I don’t even have to think about it; I know where everything’s at!
Similar to my bedroom and kitchen, I also organize the money within my business and I do that using Profit First. I know how much is in each bank account and the purpose of that money. You can do the same for your dental practice finances by using the Profit First principles. It’s all about getting your money organized and having simple...