Often we see Dental business plans focused on growth in their production or collections but neither of these numbers–even if growing–is a guarantee to increased profit, which is usually the owner’s desired and expected outcome from growth.
A successful dental business plan focuses on your desired outcome from the activities outlined in the plan. For example; do you want more profit? More time out of the office? More flexibility?
As the owner and leader of your organization, are you avoiding or inadvertently making the three most common missteps of creating a successful dental business plan and running a business? These are:
- Focusing on growth and collections, not on profit.
- Misinterpreting cash flow, collections, and profit .
- Managing your business from a “checkbook balance” mentality.
In more than 20 years of managing $900+ million in practice collections, we have not managed businesses by using the checkbook balance to determine management or owner decisions. Highly performing and profitable businesses cannot be built just by what the bank says is in the bank account. Managing your business using only the checkbook balance is similar to trying to drive your car while looking only at the fuel gauge. As with your car, the bank account balance is just one piece of the total information to be reviewed and considered as you respond to conditions of the road and plan for your desired destination.
The cornerstone of a successful dental business plan and of our coaching has a deep foundation in what we call the “Three Hat” philosophy. Over the years, our consistent observation is that every small business owner has three primary “hats” to wear-the Producer (aka Clinician), the Manager, and the Owner. Each “hat” has a different role and responsibility to fulfill in order for the business to succeed. Therefore, understanding which “hat” to wear when facing different questions or decisions, will help give you, the team, your patients and your family greater clarity and better understanding of the desired outcomes from your decisions.
As with any highly successful professional, a mentor or coach can be the difference between “good” and “great.” Do you know what you or your organization needs to elevate from good to great?
Think of your own golf swing. When you are swinging, can you see if you are developing any bad habits? Most of us cannot and need the trained eye of a professional coach to address and adjust our form, balance, backswing, grip, or follow through. Having an expert to objectively observe and fine-tune subtle distinctions can help take a swing from good to great. In the same way, we take on the role of observing and making suggestions to fine-tune the details of your financial demands and the responsibilities of your business, so you can focus on doing what you were trained to do: dentistry.