In this video we are told how doctors can use each dollar they earn in the most effective manner through what experts from PracticeCFO in San Diego, CA call Traffic Controlling the Dollar. Experts at PracticeCFO assist Dentists, who do not have any formal education on running a business, and help them maximize the returns on their investment. PracticeCFO helps practitioners set revenue and profit goals and formulate and execute plans to achieve those goals. Dentists are trained clinically but they are not taught how to run a practice or how to use their finances effectively and that’s where PracticeCFO steps in to help them, so that practitioners can grow personally as well as professionally.

Practice owners have a lot of people demanding their dollar. They’ve got their overhead, they’ve got their staff, they’ve got a landlord possibly, they’ve got banks, they’ve got the IRS, they have their personal budget with you know family and, and recreation, there’s a lot of things demanding their dollar. One of the most important things that doctors can do to become financially independent, is that they can learn how to direct each dollar in the most effective way possible. I call it traffic controlling their dollar.

A practice owner needs a financial planner and it’s specifically one who’s dedicated to understanding their business needs because they are a completely unique scenario versus your typical you know, 9 to 5 working person. For instance, they start later on in life being able to begin practising, they are generally laden with student debt from the extra school that they had to versus some of their peers and then when they move in to being a business owner they have to take out generally a bank loan to finance that. So with a shortened window, a higher debt umm debt load and frankly little to know formal education on the complexities of business and finances they need someone to assist them, to guide them through that process and ensure that, that they’re maximizing the return on their investment in themselves as well as in their practice.

A practice is a business and businesses don’t succeed without targets and without plans to get to those targets and often times practice owners are clinicians and don’t necessarily have the tools or knowledge or time to sit down and do planning. If you don’t plan you’ll never hit a target. You know just like if you’re going to get a degree in something you need to plan ___ apply for a school, I’m gonna get an excellent test score then I’m gonna do this level of course over the next four years or whatever it may be. The same thing is true in business, is, you have to make goals for your corporation so we’re gonna set out revenue goals, profit goals or even dig down into what your hygienist should do, if that’s one of the people in your office, what the front office should do in terms of these various  matrix or key performance indicators. These are the terms that the business world has always used but a practice owner may not be familiar with.

Dentists are trained clinically, they’re trained to fix teeth if you’re you know if you’re a medical doctor your’re trained to do what you’re taught in dental school or medical school but you’re not often trained to run a practice. Now there’s a lot of financial planners out there and financial planners will usually come and say hey doctor for you to retire at age 60 you need to set aside 5000 dollars a month. That’s the easy part of financial planning. Real financial planning is how do we traffic control that dollar within your practice such that you have the most output to you as an individual to save and to meet your personal financial goals and so at the heart of our planning is really business planning. It’s three part business one part personal coz if we get that business right we’ll get the personal side right and doctors really need somebody to step in and help them do that analysis of how to manage their finances so that they can do what they do best which is, giving patients a great experience and helping grow their practice.

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