Opportunities and Leadership
Working with practice owners every day, I’m impressed by the scale of opportunity that exists for them to thrive, to be profitable, and to enjoy their career as a rewarding experience. And importantly, to use the profitability of their practices to further their personal life goals. So many of our clients are true seekers of financial independence. I applaud them for their efforts. I personally derive great satisfaction in helping them and witnessing them succeed.
I acknowledge the pressures dentists are facing these days. Reducing insurance reimbursements, increasing student loans, and the encroachment of large dental corporations are amplifying those pressures. That said, many dentists continue to earn more than $4000,000 pre-tax take home income. Some much higher still. Why? Because they’ve made it a part of their daily experience to engage in the business of their practice, not just the clinical treatment of their patients. They act deliberately, with a plan, to improve their patient experience, team meetings, and company culture. They inspire their staff. They set specific goals for their team and for themselves individually. They measure their progress against those goals. They review their financial statements regularly and engage their PracticeCFO advisor. They live on the prescribed budget and avoid critical financial mistakes. They don’t act emotionally with their money.
I want to focus for a moment of the importance of you as a leader in your practice. Company culture and company philosophy all start with you. You create the vision of your practice. If you haven’t done that, make 2019 the year of renewed leadership. Develop a mission statement, or set of values, that you and your team adhere to every day. That’s what great leaders do. From that leadership, comes a team that works harder, that focuses on specific targets, and comes into the practice each day with a clear sense of purpose.
I’m personally working on these very things within PracticeCFO. Our team is growing and increasing their depth of experience. We’re thinking every day how to give you, our clients, a great experience working with us, increasing your cash flow, reducing your taxes, and helping you build your net worth. We know that net worth doesn’t equate to self-worth; however, net worth enables you to acquire the most valuable asset you’ll ever have: time. Time to spend with your family. Time to travel. Time for recreation. Time to devote yourself to a cause. Time for those things that would bring deep substance to your life.
Enabling you to THRIVE is our highest aim. We recently painted on the wall in our conference room our purpose and value system:
Let me explain. THRIVE is our acronym that drives our value system internally and goes as follows:
T: Team Oriented – You have a team that supports you here, led by your “CFO Advisors”. For some of you that’s me. For other it’s Greg, Paul, or Drew. Behind them is a dedicated accountant, tax professional, payroll specialist, and 401K specialist. We are working hard to improve the way our team aligns to serve you.
H: Highly innovative – The term “innovate” means to introduce something as new. We’ve set a series of initiatives to introduce new features to our service in 2019. For example, we’ll be adding some features to our monthly reports. These features will give more insight into the seasonality of their practice revenues. We’ve also hired a data engineer to aggregate data across our clients by location to anonymously include in our newsletters for benchmark purposes, such as average pay rate for a front office in San Diego, or average net worth of a dentist in their mid 40s.
R: Responsive – Each team member at PracticeCFO knows the Wes Read rule. A client should never go 24 hours without getting a response from an inquiry (excluding weekends). Maximum. Usually, the response time will be a fraction of that, often within minutes.
I: Industry Experts – As we specialize in practice owning dentists, there are few people on this planet that understand the nuanced financial and tax needs of dentists.
V: Value Surplus – We know that we cost more than a bookkeeper down the street. We’re your CFO. It’s an entirely different model than a bookkeeper or even a CPA model. But with our integrated planning, we’re able to save our clients in expenses or taxes, and strengthen their profits by a lot more than our fee. That excess in value above our fee, is what we call Value Surplus. The most poignant moment this is recognized by our clients is when we show them the dramatic increase in their net worth year over year.
E: Extreme Ownership: we believe all team members must feel a sense of ownership of their responsibilities. With ownership comes a sense of pride in accomplishing a given project. And accomplishing it with great accuracy. No blaming others, no shirking responsibility. This type of approach to project management leads to a greater outcome for our clients as we work to help them to get ahead financially.
The journey is never ending, as they say. May your stride be lengthened in 2019, and may you inspire your team and your practice to new heights!