Profit First for Dentists

Dentists are innovators, they are constantly looking for more efficient systems and equipment to provide the best service for their patients.  For this reason, Dentist Practices are very expensive to run.

With Profit First for Dentists, Profit First System is a simple cashflow strategy that puts the dentists in control of their finances – imagine, being able to pay yourself (selves) and your team and have enough to purchase new equipment while making a profit and without going into debt!

Benefits of Implementing the Profit First Model for Dentists

A dental practice is often very liquid (the amount of cash coming in is good), but it can also drain that liquidity quickly if the cash going out is not managed well.  A dental practice requires more staff, materials and equipment than a medical practice, these costs can quickly eat into the cash flow making paying for expenses a tiresome juggle. The Profit First Model for dentists keeps  track of exactly how much money they are spending or investing in different areas.

It also encourages long-term planning. By managing their finances more carefully, dentists can plan for future investments and better prepare for unexpected costs.

The Profit-First model gives dentists greater control over their business operations. With a clear view of where their money is going and how much they’re making, this helps ensure that they remain profitable in the long run and have enough capital to grow their practice as needed.

How To Implement the Profit First Model in Your Practice

The Profit First model may be confusing to implement - the first step is to do a detailed assessment of what portion of the income is going to: Profit, Owner’s Compensation, Tax and Operating Expenses.  This assessment is a vital health check up and Profit First Professionals are trained to provide an in-depth analysis and roll out plan implementing Profit First in your practice based on your financial goals and situation.

Once you know what percentage of income needs to be allocated to each category (or the categories you need to grow your practice), the next step is to create bank accounts and allocate the income to these accounts each fortnight as per the “target allocation percentages”.  This is a new habit/behaviour to learn called “The Rhythm” and like any new behaviour may be overwhelming, but your Profit First Professional will guide you through this process to make the implementation as simple and painless as possible.

This structure allows you to easily keep track of your finances, helping you to make decisions about where to invest and how much money to put into different areas of your practice. With this approach, you can control your spending and ensure that you remain profitable for years to come.