Online Study Club ADVANCED BUSINESS MANAGEMENT FOR DENTISTS Online Study Club CONTINUING ABMD EDUCATION ONLINE.

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!

____________________

_________________

____________________

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!

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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