online study club advanced business management for dentists online study club continuing abmd...
TRANSCRIPT
ADVANCED BUSINESS MANAGEMENT FOR DENTISTS
Online Study ClubOnline Study Club
CONTINUING ABMD EDUCATION
ONLINE
Online Study Club
This 1st introductory theme is called:
Think Like A CEO, and it is followed by:
2) Evaluating a Vision of Success for Your
Practice
3) Developing an Annual Plan
4) Communicating Your Vision or “Plan” to Your
Staff
5) Implementation of the Skills to Generate Change
6) Management
7) Valuation
WELCOMEto
Dentistry as a BusinessPractice Management Online Study Club
Money, Management, and Technology
“Think Like a CEO”“Think Like a CEO”“Think Like a CEO” “Think Like a CEO” “Think Like a CEO”
• How You See Yourself
• Why Practice Management Is Business Management
• Protecting Your Assets, Protecting Yourself • Your Financial Statements
• One Practice / One Career vs. Many Practices / One Career
• How Much Your Practice is Worth
• How Much Your Future is Worth
28,000,000 People
A CEO understands
this opportunity.
¿What’s your perspective on how you see
yourself as a Dentist?
Are you managing your practice towards
retirement ?
Picture of Barney in 1956
Your focus should be to work both in your practice
and on your practice.
Practice Management is
Business Management
You don’t have to be incorporated to… “Think Like a CEO”
The Corporate Model:
• Operating Activity • Investing Activity • Financing Activity
Protecting Your Assets, Protecting Yourself
If you fail to plan, you plan to fail…
• Practice Interruption Insurance
• Office Overhead Insurance
• Short-term Disability Insurance
• Long-term Disability Insurance
• Fire and Theft Insurance
• Malpractice Insurance
• Life Insurance
Financial Statements
‘To provide dentistry of the highest quality, the dentists themselves have to be financially fit.’ - Dr. L.D. Pankey
The Most Important Financial Statements
• Income Statement
• Balance Sheet
• Cash Flow Statement
Income StatementNet Sales Revenue:
Expenses: (your overhead)
operating expenses taxes, etc. (your “bottom-line”)
Net Income
Historical Income StatementRevenues:Expenses: Fixed Expenses: Rent Insurance, etc.
Variable Expenses: Lab Dental and Office Supplies Repairs and Maintenance Bad Debts
Total Net Income
Breakeven Analysis the most useful of all
financial planning tools
The Balance Sheet is
KING
Return On Equity
ROE, ROE, ROE, ROE, ROE
will also tell you so much more…
Cash Flow Statement
• Operating Activity
• Investing Activity • Financing Activity
Thinking of your practice as an investment and
managing it accordingly, is the “mind-set”
of a CEO.
The Most Important Financial Statements
• Income Statement
• Balance Sheet
• Cash Flow Statement
OneOne Practice, Practice, One CareerOne Career vs. vs. ManyMany Practices, Practices, One CareerOne Career
I Physician N Lawyer C O Dentist M E 25 45 65 A G E
You can only capture the goodwill value of your
practice when you sell.
10 – 15
years
How Much is Your Practice Worth?
• Market Approach• Asset Approach • Income Approach
The Income Approach
Capitalization of Earnings
How Much is Your Future Worth?
$
??Dan Kingsbury, DDS
Advanced Business Management for Dentists
www.ABMDDS.com
Capitalization of Earnings Method
Net IncomeRequired Rate of Return
if $40,000 then 10% Practice value =
$400,000
ROE is an essential tool for the management of
your Practice!
____________________
_________________
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ROE =(EBT) Profit Margin Ratio X Asset Turnover Ratio X Financial Leverage Ratio
Profitability X Efficiency X
Use-of-Debt
ROE =Earnings Before Tax (EBT) X Net Sales Revenue (PROFITABILITY)
Net Sales Revenue X Total Assets (Efficiency) Total Assets Total Equity
(Use of Debt)
Total Equity
= a management tool that is all wrapped up into
one equation!
Title: TCmidFormat: swfDouble-click to edit
How Much is Your Future Worth?Future Planned Online Themes
2) Evaluating a Vision of Success for Your Practice3) Developing an Annual Plan
4) Communicating Your Vision or “Plan” to Your Staff
5) Implementation of the Skills to Generate Change6) Management7) Valuation …please join us… www.adaceonline.org
Would you please take a survey now?
Please find my online CE course “Think Like A CEO”
at www.adaceonline.org
Thank You
I look forward to seeing you down the line, in the online Virtual Study Club environment.
www.adaceonline.org