3 Ways to Train Your Dental Team to Collect Payments Well

How to Increase Your Income Quickly

Financial Planning for Dentists with Reese Harper

On this podcast episode I am joined by the CEO of Dentist Advisors, Reese Harper. We talk about financial planning and how to create more wealth as dentists. Also, we explore why it’s so important for dentists to prepare and educate themselves when it comes to using a CFP. And, how CFPs help grow dentists' net worth and retire on time.

Reese is committed to building a team of expert advisors who help dentists fulfill their wealth-building potential. He began his career in 2003 and is a CERTIFIED FINANCIAL PLANNER™. He also holds CLU® and CHFC® designations from the American College of Financial Services.

Reese’s investment in leading edge technology. And, his decision to focus solely on dentists has led to a powerful service platform where advice is given with greater precision at faster speeds. He is the host of the Dentist Money™ Show. In addition, Reese is also a popular speaker at dental conventions, and a regular contributor to dental publications.

 

Financial Planning for Dentists with Reese Harper

In this episode, we discuss:

  • How Reese got into financial planning for dentists
  • Why dentists are often reluctant to attend financial events and build their wealth
  • What to look for when choosing a financial advisor
  • The steps you need to take to start financial planning
  • How to make smart financial decisions
  • Financial planning tips for dentists in debt

 

Financial Planning for Dentists with Reese Harper

 

If you want to find out more about how Dentist Advisors can help you with your financial planning, you can book a free consultation here.

To listen to The Dentist Money Show, where you can find more tips and advice on making smarter financial decisions, click here.

You can also access Dental Advisors’ amazing Financial Education Library for Dentists. Here you’ll discover lots of resources and insights on investing, retirement planning, personal finance, debt management, profitability, and many more topics.

To watch a short trailer of the podcast where Reese explains how financial planning can help you build wealth, hit play on the video below:

Two Types of Expenses You Need to Take Control of When Building Your Practice

 

When maximizing profits, a lot of attention is paid to increasing revenue. While that is important, we can’t lose sight of our expenses while doing so. Getting expenses under control is a great way to increase profitability instantaneously and without needing to attract any additional patients to your practice.

If your expenses are getting out of control and you can’t make the take-home income you want no matter how productive your practice is, it’s time to hone in on two types of expenses. To help practices get their expenses out of control, we invited Glenn Vo, of Nifty Thrifty Dentists to be our office overhead coach to the practice leaders and team members who have invested in the Delivering WOW Platinum Coaching Program.

Glenn works with practices to control—and cut—overhead without sacrificing patient care and quality. In doing so, he helps practice leaders create calm from all the chaos, understand the two types of expenses every practice has, and how to control each of them to simplify operations and increase profits.

Fixed Expenses

 

Two Types of Expenses You Need to Take Control of When Building Your Practice

 

Fixed expenses are expenses that are a set amount each month. It doesn’t matter how productive you are, fixed expenses don’t change. Typically, these are expenses you’ve negotiated and can’t change quickly, such as rent, mortgage payments, and practice loans.

Sometimes, however, fixed expenses can be reduced or eliminated, especially with monthly recurring software costs. For example, you could change phone providers to find a better, lower-priced option.

Other times, fixed expenses eventually disappear, such as practice loans. If you have significant time left on long-term commitments, you could attempt to refinance or extend contracts to get better terms. You could refinance a loan to lower an interest rate or free up cash flow. You do have options.

Often, the fixed expense you have the least control over is rent. Generally, only in rare cases can you negotiate rent decreases. Generally speaking, you’re stuck with rent rates until the end of the term. It’s very important to have help from qualified people to help you negotiate terms on fixed expenses, especially things like rent that are difficult or expensive to reduce once set.

Variable Expenses

 

Two Types of Expenses You Need to Take Control of When Building Your Practice

 

Variable expenses are often seen as good expenses because they increase when production increases. Variable expenses include things like supplies and staff wages.

But rising variable expenses are not always positive. If you see variable expenses rising without production rising, it’s possible your supplier increased prices or scheduling is inefficient.

Variable expenses are often much easier to reduce than fixed expenses. If supply costs rise, you could shop around for new suppliers, find less expensive alternatives, or participate in group buying programs to take advantage of favorable rates. If staff costs are rising and inefficient, you could cut back on staffing to better fit the anticipated production needs.

Either way, within a matter of weeks, you could see a noticeable reduction in variable expenses.

Are You in Control of These Two Expenses?

 

Two Types of Expenses You Need to Take Control of When Building Your Practice

 

While some expenses are difficult to control, we have options with the vast majority of expenses. In Glenn’s experience, every practice has some inefficiencies. They are not always the same for each practice. But every practice has some fixed or variable expenses that can be reduced.

Are your fixed expenses high? Look at your real estate costs, practice loans, and other monthly expenses that do not vary.

Do you have a long-t Once you understand your expenses, When it comes to fixed expenses, by finding a company that will help you negotiate your lease to a cost that isn’t out of control for you. Be careful about taking out loans, too. When it comes to variable expenses, make sure you aren’t offsetting costs if they are increased.

If you want to learn more about controlling these two expenses, sign up for our Delivering WOW Platinum Coaching Program where our financial mastermind, Glenn Vo, can help you take control of these two expenses.

The Most Important Productivity Factor Most Dental Practices Ignore

The Most Important Productivity Factor Most Dental Practices Ignore

When dental practices want to increase productivity, the natural instinct is to increase their marketing efforts. After all, new patients are the obvious way to increase productivity. And since we can use Facebook to attract new patients on autopilot, increasing marketing efforts is an easy choice.

But most dental practices ignore a factor that is even more impactful on productivity than new patients and even easier to improve. I am talking about production per visit.

Productivity is not just about how many people you are seeing each month. It is also about what you are doing with those people. If you have been focusing only about the number of patients and visits, do not worry. The number of patients and visits is important. But you can exponentially increase profitability by increasing production per visit as well.

How Focusing Only on New Patient Acquisition Limits Production . . . and Profits

 

The Most Important Productivity Factor Most Dental Practices Ignore

 

The real problem with focusing only on number of visits is the trickle effect it has on the rest of your practice.

We see it all the time in dentistry. We get more patients in and fill up our hygiene schedules. When our hygienists get busy, we shorten hygiene appointments and double book our hygienists. That makes it so hygienists do not have time to talk about oral health with patients. They do not have time to assess whether somebody is actually brushing and flossing. They do not educate patients on dental options. They get in, scale people’s teeth, and move on. We’re not educating patients on their overall mouth health.

Yet, no matter how much we shorten hygiene appointments, double book our hygienists, or even give them assistants, we do not see a huge jump in the amount of production coming out of hygiene. We might see some increase but not the type of growth that really moves the needle.

Too many dentists get almost addicted to gaining new patients. Yet new patients take time and some money to acquire. We have to do the Facebook ad or Facebook Lives. We have to give away some dentistry, excite people, give them office tours, sell them on our practice, or even give them gifts. We then have to spend time learning about their health history and diagnosing them. That takes time and costs money.

How Focusing on Production Per Visit Drives Production . . .  and Profits

 

The Most Important Productivity Factor Most Dental Practices Ignore

 

If you have been attracting patients to your practice, you probably have hundreds or thousands of patients. You already know them. You know their issues. You have already done dentistry on them. And they know, like, and trust you. They are the most likely patients to make appointments and move forward with treatment plans. Yet they have fallen through the cracks.

When you shift your mindset from a singular focus on new patients to increasing production per visit, something shifts in your practice. Your mindset shifts. Your team members’ mindsets shift. You all focus on doing things to increase production per visit and get current patients all the care they need as efficiently as possible.

Instead of looking for new marketing methods, you stick with what is working, leaving your Facebook marketing bringing patients in on autopilot. But your time and energy are focused on production per visit. So you talk with your team about scheduling all care for patients in one visit. You schedule more time for hygiene visits to give your team time to educate the patients who already trust you. You start booking more higher-profit procedures that change your patients’ lives for the better. You place dental implants, perform teeth whitening, and other higher-profit procedures. You make more money while giving patients life-changing improvements to their smiles and mouth health.

Production Per Visit and Profits in Action

 

The Most Important Productivity Factor Most Dental Practices Ignore

 

Team WOW member, Josey has five offices in North Carolina. Over Thanksgiving 2017, Josey spent about twenty-five hours digging deep into her productivity data. She pulled reports. She looked at historicals. She did month over month and year over year. She looked at everything she could to determine proper staffing.

What Josey found was she was better off with six hygienists doing 40% chair capacity than three hygienists doing 90% chair capacity. When she was operating with three hygienists at 90% chair capacity, the hygienists were almost forced to just go through the motions and move to the next patient. For example, the six hygienists sold a total of eight sonic air toothbrushes in the prior six months. That was terrible production.

Josie analyzed and made a list of all the relevant products and procedures hygienists with sufficient time and the proper focus could offer to patients. She discussed them with her team and then adjusted scheduling so the hygienists had more time with patients. All of a sudden, everyone on her team was working together to give patients all the time and attention they needed.

She went from below $200 production per visit, to more than $300 per visit for hygiene. Her goal was $225 per visit, and she now regularly sees them doing $300 or $325 production, or more, per visit. One office with six hygienists hit $42,000 in hygiene production in a week. Another with six hygienists hit $39,000.

How much effort have you put into increasing production per visit?

If you focus only on attracting new patients, you might be missing out on the easiest and fastest way to increase production. By setting up your team with the time and training they need to increase production per visit, you create a true triple win. Your patients get more time and attention from your team. They also get the care they need to achieve improved feel, function, and the health of their mouth. Your team members do not have to rush from appointment to appointment all day. And you get increased productivity and improved patient and team member satisfaction.

TAKE ACTION TODAY:

We have helped hundreds of practices to boost profits by implementing simple, repeatable systems for consistent growth in their production month over month. Our Marketing & Practice Growth Challenge helps them do this in just 21 days! Want to learn more? Click here!

How to Control Your AR with Sandy Pardue

How to control your AR

This week on the Delivering Wow podcast I interviewed Sandy Pardue and we talked all about AR (Accounts Receivable).

Sandy Pardue is a Director of Consulting at Classic Practice Resources and has over 35 years of hands-on experience in the dental field. Every year since 2003, Dentistry Today Magazine has recognized her as Leader in Consulting. She is a highly competent lecturer and consultant in the area of dental practice management.

In addition to traveling to private practices to set up workable systems and train teams, Sandy has given countless lectures and workshops at major dental meetings on every aspect of Scheduling, Accounts Receivable and Collections, Office Manager Training and Basic Organization in the dental practice. Hundreds of doctors and dental staff members have attended and connected with her interesting hands on approach

On the podcast we discussed:

  • The journey that has led Sandy to where she is today
  • Why it’s important for dentists to have a system for AR
  • The key things that happen in dental practices that cause challenges with AR
  • Treatment plan presentations that helps patients know what they need to pay, when and how
  • Strategies for handling patient objections to dental treatment plans and educating patients
  • Why every dental practice needs to have financial policies in writing for the team
  • Using systems to handle statements and insurance claims issues
  • Storing patient credit card details and obtaining patient credit ratings
  • Using 3rd party financing like Care Credit and its role in the practice
  • Team responsibility and reducing errors that lead to AR issues
  • Her thoughts on outsourcing and billing
  • Strategies that you can use to control your AR

You can find out more about Sandy, including her seminars, consulting programs and training events, on her website by clicking here.

Here is Sandy’s book recommendation that she mentioned on the podcast:

Moving Your Patient’s To Yes by Theresa Duncan

Below is a short trailer of the podcast episode:

10 Simple Profit-Generation Strategies for Your Dental Practice

Increasing your dental practice’s profitability doesn’t have to be complicated.

Sometimes, asking a simple question of your patients is all you need to do to increase profits by booking more appointments, selling additional services, or attracting new patients.

Other times, a simple adjustment to the way you run your business increases efficiencies, leading to higher revenue or lower costs.

Here are ten simple ways to generate more profits for your dental practice you can implement today.

1. Send a targeted email to patients with unscheduled treatments with an offer and call to action.

Patients rarely take the initiative to schedule treatments if they aren’t in the office. If you have patients who need treatments, email them to schedule an appointment to fill open time. You might also consider enticing them with an offer such as a free additional service, like basic whitening, if they come in within a certain period of time. If you have the technology, include a link to schedule the appointment online to make it easy for them.

2. Ask about family members who are not scheduled.

When a patient comes in, ask about other family members. Mention they’re due for treatment and see if they can get in touch with their family member to get on the schedule.

3. Create a strategic alliance with another business.

You can increase profits while supporting local businesses by forming mutually-beneficial strategic alliances with local businesses who serve the same people you want to serve and create offers to encourage their clientele to come to your practice.

4. Commit to talking to every patient with a missing tooth about the risks of not replacing it and the options to replace it.

Many patients mistakenly believe that having a missing tooth poses no risks. By explaining the risks of not replacing missing teeth and the options to do so, you’ll help your patients make wise decisions about their health while simultaneously increasing revenue for your practice.

5. Ask patients about optional services that could benefit them.

Patients sometimes don’t know what services are available to them or are too shy to ask for some cosmetic services. You can increase your profits by having helpful conversations with your patients, asking questions like “Have you ever considered teeth whitening?”

6. Add services.

Adding services has several benefits. At its core, adding services provides more ways to serve your patients, a natural revenue booster. Consider adding services to increase your revenue and profitability.

7. Add insurance plans.

Many patients find dentists from their insurance plan’s list of preferred providers. If you accept dental insurance, consider adding insurance plans; you could attract a large number of additional patients.

8. Implement block scheduling.

Block scheduling is one of the best things you can do to increase the profitability of your practice while at the same time protecting your personal time. In my practice, we moved to a block-scheduling system that split our days into “time blocks” depending on the services needed by our patients. This makes operations much more efficient. After we implemented block scheduling, we started regularly meeting up to 90% of our daily revenue goals before lunchtime.

9. Offer patients the opportunity to do all services in one day.

Offering patients the option to do all services they need in one day makes treatments easier to schedule and less of a disruption to your patients’ days. Because of that, it’ll be much easier to get patients to accept your treatment plans.

10. Create a featured service of the month.

Creating a featured service of the month gives you an excuse to talk with patients about services they may want or need. Having a featured service to let them know about also gives you reasons to reach out to patients by phone, email, social media, or in person.

What are your best profit-generation strategies?

These are ten of my favorite simple profit-generation strategies for dental practices because they’re simple things anyone can implement!

TAKE ACTION TODAY:

If you want help on implementing some or all of these strategies into your practice, check out the team of expert coaches, training, and resources we offer in our signature Delivering WOW Platinum Mastermind Program.

You can also join our upcoming Marketing & Practice Growth Challenge where in just 21 days, Dr. Anissa Holmes will walk you through developing and launching a successful marketing campaign that will create several connections with other small business owners in your community. You will also create your 12-month marketing plan AND implement systems for simple, yet effective practice growth. Ready to learn more? Click here, and if you want to sign up, use the code CHALLENGE at checkout to save 20% on your challenge registration!

The Top Financial and Tax Issues Dentists Face with J. Haden Werhan, CPA/PFS

Guest Blog Post: J. Haden Werhan, CPA/PFS

Do you ever wake up at night worrying about your patients, wondering:

Are those temporaries OK?

Will the antibiotics calm that abscess?

Did you pull the wrong tooth? (Just kidding.)

After a long day, you wake up at 3:00 a.m., hoping your patients are sleeping soundly, even if you aren’t.

I too, sometimes find myself worrying about clients in the middle of the night or wee hours of the morning. While there are no comparable emergencies in accounting, there are numerous opportunities for dentists to face significant tax and financial dilemmas.

What follows are some of the dentist financial and tax issues I worry about most:

#1)Properly Managing Your Corporate Office

There are many benefits to establishing your practice as a corporation. First and foremost, it helps protect your professional assets from personal liabilities. There is also the convenience of drawing a salary and withholding taxes, which can reduce the burden of making quarterly estimated taxes.

But a properly managed corporation requires a fair amount of compliance and record-keeping. Corporations are separate and distinct entities from the dentist shareholder(s) who own them. You must follow several formal procedures accordingly.

I worry when procedures slip.

I worry that dentists may use their corporations as personal checkbooks, take unreasonably low salaries, or fail to keep corporate minutes.

These are actions that a litigant’s attorney or specious IRS agent may use to pierce your “corporate veil,” exposing your personal assets to attachment and seizure, and crippling effective tax management.

Let’s address each of these in turn.

Your corporate account is not a personal checkbook.

If you need to withdraw money from your corporation, you should write yourself a paycheck, put the money in your personal account and spend it from there. Don’t be tempted to skirt those important steps; don’t pay personal bills directly from the corporate account.

Salaries must be reasonable for the services provided.

You should not use your corporation to avoid paying Social Security and Medicare taxes. And it is the government, not you, who defines “reasonable.” Living on shareholder loans or distributions to keep your taxable income down triggers audits (especially when officer wages drop below certain thresholds).

Cover your basis (equity).

Negative equity can limit losses you or your corporation may use during tax time. This can be a nasty surprise, especially for pass-through S-Corporations. Just when you think you have reduced your tax bill, you get an unpleasant call from your CPA, explaining that you can’t use a deduction due to basis limitations.

“You mean I can’t write off that $50,000 I put into digital radiography after all?!”

I hate those calls. Look at your balance sheet to determine whether your assets are greater than your liabilities. If not, call your CPA, since this is akin to overdrawing your bank account.

Corporate minutes matter (as do state filing requirements).

Corporate minutes are the most important and most often neglected compliance procedure. Simply stated, they are a record of shareholder/officer meetings, held regularly to make and document decisions about officer salaries, equipment purchases, borrowing, lease renewals, pension plan management, etc.

Failure to keep corporate minutes or comply with corporate bylaws exposes you and your practice to avoidable liabilities.

Lastly, many states require you to regularly file a corporate statement of information. In California, this used to be every two years, but it recently became annual. It costs $25 in California if filing on a timely basis; the late-filing penalty is $250!

Next week, I will discuss problem and solutions related to complying with labor laws and the nuts and bolt of a well run retirement plan. Feel free to leave your comments or questions below. I’d be happy to discuss them with you.

#2)The Fiduciary Role in a Well Run Retirement Plan

Another retirement plan issue that can keep your friendly Wealth Advisor/CPA up at night includes your fiduciary obligation as a retirement plan sponsor (trustee).

Bottom line: Have you taken adequate, documented steps to ensure that your retirement plan is being managed in the highest interest of its beneficiaries (your staff)?

Components in a well-managed plan include its costs, provider relationships and investment options.

According to the Prudent Investor Rule, you can (some might argue should) delegate investment option selection to a professional investment advisor who is willing and able to accept that fiduciary role. (Therein lies an article all its own!)

However, note that ensuring reasonable plan costs and appropriate provider relationships are fiduciary obligations that cannot be reassigned. They’re all yours.

In essence, if you offer participants a portfolio of low-cost, diversified mutual funds and you carefully document the processes taken to arrive at your decisions, you should be able to avoid liability from claims that you invested employees’ money inappropriately, with resulting demands to make them whole.

But suffice it to say, with respect to fiduciary cost management, there are a ton of intricacies and gotchas. For example, if a “cost-free” plan sounds too good to be true … guess what? It is.

“Cost-free” simply means the costs are there, but they’re buried in the underlying investments. This means your participants end up paying these otherwise tax-deductible costs with pre-tax dollars. How’s that for insult and injury?

It may be tempting to believe that you can fulfill your duty by leaving everything up to your employees, setting them up with their own segregated accounts. Worse yet, I’ve encountered 401(k) plan sales people telling dentists this is the case.

Quite the contrary, segregated accounts can be fatal move for you and your staff if they are given poor or too many investment choices and they lose money or incur significantly higher costs than you or other plan participants.

#3)Estate Planning and a Well Run Retirement Plan

Before we leave the subject of retirement plans, I further worry with respect to your own retirement plan assets, and whether they are properly designated for your estate planning purposes.

For example, if you have named a trust as your primary beneficiary, you may inadvertently severely limit planning opportunities for your spouse or even non-spouse beneficiaries. It’s also important to ensure your paperwork is properly established and free from discrepancies.

Be aware that a custodian’s documents are expected to prevail over those held by the advisor or pension plan administrator.

#4)Estate Planning in General

One good worry begets another.

As I advise clients on their practice management, I find even dentists with well-run offices have often left their personal estate plans to languish. I have a middle-aged couple – both doctors – with two early twenty-something children, a free and clear home, retirement and personal funds of close to $4M, and, they have no wills and no trust!

Never mind the probate costs and taxes, I don’t think it is fair to put one’s children in the position of having to decide when to “pull the plug” on their parents should they be on life support, nor do I believe they should have unrestricted access to a couple million dollars each at such an early age.

I also worry when I see estate plans in full or partial disarray.

For example, if a dentist has gone through the entire estate planning process and then failed to actually place the personal assets in the established trusts, he or she has just spent a fairly good-sized chunk of change for nothing.

Go ahead and laugh, but I see this happen far more often than you could guess.

When is the last time you’ve reviewed your own plans, to ensure that they are complete and current?

#5)Other Issues to Consider

I have still other worries.

Are my clients sufficiently protected against identity theft?

Are their electronic records properly backed-up and secured?

Is their personal and professional insurance current and appropriate – neither too much nor too little?

But I don’t want to merely transfer my worries to you; I want to alleviate them – for you and for me. If you take one key idea from this, I hope by now I’ve made it clear how vital it is to avoid climbing walls of worry all by yourself. You don’t have to … and you shouldn’t.

Do yourself, your staff, your Wealth Advisor/CPA a favor. Don’t try to keep up with it all in your spare time. Seek out reputable professional alliances, so you can focus on your own interests. In the words of Dr. Burris:

“It is amazing how much more effective I’ve been by focusing on what only I can do in my practice while others do what they do best.”

Maybe I’ll change my own title to Haden Werhan, CPA/PFS, Professional Worrier.

I seem to be pretty good at that.

J. Haden Werhan, CPA/PFS

Contact J. Haden Werhan, CPA/PFS

How to Multiply Practice Performance, Practice Value and Patient Care with Weston Lunsford of Dental Intel

Before working strictly in the dental industry, for the past 11 years, Weston was Co-Founder and Partner in Lunsford Peck, a successful Certified Public Accounting firm that focused on delivering strategic planning and CFO services to the business owner with the objective of improving their quality of life and strengthening the financial position of their business. During this time he worked with hundreds of dental and medical professionals.

Weston developed an innovation technology known as Dental Intel, which successfully increases the profitability and health of a dental practice. He believes the greatest achievement Dental Intel has reached is its ability to improve the quality of life for the doctor and the dental team.

In this episode, Weston and I discuss:

  • the key areas that dental practices should be tracking and how often they should they be watching the trends
  • how tracking key areas improves patient care
  • how practices can use data to improve practice performance and the value of the practice

Weston discusses how knowing what your practice is doing well can help you identify what to focus more on. He also discusses the importance of knowing your practice leaks. “Once you know which leaks you have in your practice, you can put in systems, hire a coach, or put in training to correct them.”

Dental Intel integrates with your practice management software to give you real-time data about what is going on in your practice.

From the innovative dashboard, you can input the date range of your choice to discover hidden opportunities to significantly increase production.

A few of the many key areas which can be tracked are:

  • Restorative/Elective Cases diagnosed and accepted
  • The number and percentage of new patients who were/were not  reappointed for hygiene and presented treatment
  • The percentage of hygiene patients who are reappointed
  • The number and percentage of no-shows and cancellations

What's even better, is that you can click into each metric to get an expanded list of the patients' names, contact information, and future treatment info so that you can implement systems for in-office follow-up.

Want to know the health of your practice? Dental Intel is providing FREE practice snapshot to dentists as a gift for being part of the Delivering WOW Family! ($1000.00 VALUE)

To get your FREE snapshot, go to www.practicesnapshot.com and enter the promo code WOW

And if you're ready to dive deep to learn how to create a super profitable practice which has engaged team members and patients who are raving fans, there are just a few spaces remaining for the upcoming Delivering WOW Business Bootcamp starting October 19th. Click here to learn more!

How to Put Profit First To Create a Wealthy Life with Mike Michalowicz

Mike Michalowicz is the entrepreneur behind three multi-million dollar companies and is the author of Profit First, The Pumpkin Plan, and what BusinessWeek deemed the entrepreneur's cult classic, The Toilet Paper Entrepreneur. Mike is a former small business columnist for The Wall Street Journal and the former business makeover specialist on MSNBC. Today Mike travels the world as an entrepreneurial advocate speaking to groups just like ours. He is globally recognized as the guy who “challenges out dated business beliefs” and teaches us what to do about it.

In today's episode, Mike and I discuss the true definition of success.  He discusses what is a wealthy life, as well as how to discover your passion and your purpose.  We discuss why focusing on the top line, production and collections are not most important.  He discusses his revolutionary concept of taking profit first and running your business, or your life on what's left.  He also discusses the difference between cash in the bank and profits.  Finally, Mike shares what dentists should focus on most to achieve true success.

Download The Free Guide That Accompanies This Episode:


Links in the episode:

Mike Michalowicz

Profit First Professionals

Audible.com: The #1 App that I use to listen to books while in the car or on the go

The Delivering WOW Free Facebook Group

Recommended Reading:

The Importance of Knowing Your Numbers with Jonathan VanHorne

Jonathan VanHorne is an accountant and the founder of Dentist Metrics. DentistMetrics is an exclusive dental accounting and coaching company that is dedicated to helping dentists successfully navigate the competitive dental landscape. The most effective way dentists can start working on their business is by looking at the performance of the practice. Dollar for dollar, getting serious about tracking a practice’s performance will be the most game-changing process you can perform in your business. You will quickly be able to implement new processes, improve holes in your practice’s results, and drastically change the way you look at the business of dentistry.

In this episode of the Delivering WOW Dental Podcast, Jonathan and I discuss why it is important for Dentists to know their numbers as well as specific detailed examples of how dentists can better plan by knowing their numbers. Here we discuss the difference between having cash in the bank and having profits as well as which systems are critical when building a sound financial practice.

 

Make sure to Download the FREE Guide which accompanies this episode:

Links Mentioned in this  Show:

Dentist Metrics

Audible.com – Click Here to Get Your Free Audible Book Download

 

Recommended Reading:

Eat That Frog Brian Tracy

KPI Checklists Bernie Smith

 

Here’s How Testing and Measuring and Using Metrics Will Skyrocket your Success

Many dentists believe that metrics are our accountant's job, or perhaps something that has to be done to fulfill statutory tax obligations.  While the service that we provide is a dental service, we are also running a business. In doing so, we need to ensure that the business is growing, so that we can continue to reinvest in technology and services to better serve our patients, develop our team, purchase new equipment if we choose, give back to the community, and take home an income to provide for our families.  

The reason why we test and measure is that things that get tested improve.  We are also able to make better decisions in terms of which marketing strategies are best, if we can afford a piece of new equipment, or even if the “PPO” strategy to grow our business makes sense.

Key metrics for dentists to track monthly are: 

  • payroll expenses
  • non-payroll expenses
  • dental lab fees 
  • supplies
  • rent
  • overhead and profitability percentage

Here are some key metric percentages:

  • staff salaries (25%-30%)
  • lab fees (6%-8%)
  • facility (5%-7%)
  • dental supplies (5%-8%)
  • marketing (5%-7%)
  • operating expenses (10%-12%)

 You can also track the following non-financial metrics:

  • number of new patients
  • number of calls received for each procedure vs the percentage scheduled
  • number of new patients per referral source- including percentage from existing patients and social media
  • number of procedures completed per service category
  • percentage of treatment plans converted

You can track by internal tracking sheets, excel sheets, quickbooks, and whiteboards.

Different metric sources give measurable information so that you can identify weak points.  Once you know your weak spots you know which areas to focus on and you will receive massive growth!