2018 is just around the corner and now is the time to start planning what you need to do in order to continue to experience dental practice financial growth in the new year. A big piece of that planning should revolve around your dental practice’s financial goals.
I had the opportunity to sit down with Mike White, Managing Partner of MWA CPAs & Business Advisors in North Texas, and discuss the aspects of dental practice financial growth, such as…
- Key financial mistakes multi-location dental practices can avoid
- What dental practices can do to hit their financial goals
- The importance of financial analysis and what that looks like for your dental practice
Click the link below to listen to the complete 20 minute interview with Mike
The Primary Takeaways From My Interview With Mike
No matter the size or type of your dental practice, no doctor should have to struggle alone to succeed. Some of the practices we work with consist of dental teams, where doctors partner with each other.
However, many of the solo practice owners we work with struggle because they feel the weight of responsibility for success on their shoulders instead of being able to share it with a team.
Financial Success Key #1: Build A Trustworthy Team
This doesn’t always mean take on another doctor as a partner. For many dental practices this can mean:
- Partnering with dental-specific business advisors and CPAs you trust
- Consulting with an attorney to help advise you as you seek to grow your practice throughout the year
- Partnering with the right dental marketing company that is as invested as you are in your success.
It’s time to start looking at ways to grow your team by adding professionals who are ready to partner with you and invest in your dental practice’s financial growth.
Financial Success Key #2: Don’t Ignore Your Financial Data
So many dental practices just don’t regularly review their financial data and it is one of the biggest mistakes you can make!
Reviewing your practice’s monthly financial data takes time and often gets de-prioritized due to patient appointments, staff issues, or other details that seem more demanding at the time.
However, failing to consistently review how your practice is performing financially sets you up for failure and continued frustration. Your financials need to be able to tell you a story each month that can drive the decisions you make.
Without accurate financial information, how can you make an informed decision on moving toward your growth goals like:
- Adding a new location
- Purchasing a new piece of state-of-the-art equipment
- Hiring on more associates
- Increasing your marketing budget to attract new patients
- Bringing on more front office staff to handle the workload in the office
- …and so much more!
Financial Success Key #3: Use A Balance Sheet
This is another important financial detail vital to dental practice financial growth that often gets overlooked. As a dentist, you’re not a CPA and shouldn’t have to feel like you need to “do it all”. That’s why you need to have a trusted dental-specific CPA or business advisor on your team.
Keeping an accurate picture of the balance of income vs. expenses is vital to any business’ success and growth. Without a balance sheet you risk costing yourself tax money and valuation.
Definition: A balance sheet is a statement of the assets, liabilities, and capital of a business at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Key Performance Indicators (KPIs) You Need To Track Every Month
- How many days doctors worked that month
- How many new patients you saw
- How many return patients you saw
- Total production vs. total collection
- Cost per acquisition per dental patient
Are you ready to take on 2018 and make it your dental practice’s best year yet? No dental practice should struggle for success alone.
Take a step forward and schedule a 100% FREE practice growth assessment with our team to let us take a look at your practice and help you create your personalize plan to success.