2. lack of balance symptoms: no time to yourself to spend on hobbies or with family, constantly working and never getting ahead of your task list 1. lack of new patients symptoms: Less than 20 new patients per month per full-time dentist 4. lack of systems symptoms: uncoordinated approach, ineffective procedures, unstructured working environment for team, poor follow up 6. lack of productivity symptoms: no measurement of fee earner profitability 7. lack of growth symptoms: practice profit lower than last year, profits plateauing, profits not growing faster than inflation, practice not growing into a saleable asset for retirement 5. lack of profitability symptoms: expenses exceeding income, no steady influx of new patients, low uptake of elective treatment plans, working constantly but not seeing any of the money at the end of it CAUSES • New patients seen by inexperienced associates • Poor marketing • Principal too busy for new patients • No systematic approach to patient emotional triggers • conversion rate on telephone enquiries to free assessments with a TCO • conversion rate on free TCO assessments to paid dental consults • conversion rate on paid dental consults to treatment taken up 20 new patient consultations per month per full-time dental surgery 7 pain points The 7 pain points of practice ownership – but you need a coach to guide you through the pain barrier first. You cannot regain your balance without experiencing some pain Get your balance right. Successful business will follow. IT IS NEVER THE OTHER WAY AROUND! Calculate the operating cost per surgery per day. This includes everything except lab costs, material costs or associate, therapist, hygienist fees and your personal drawings. Step 1: Step 2: Step 3: Step 4: Step 5: Calculate the average daily production of each of your fee-earners. Take into account nominal daily UDB value, nominal daily membership scheme value and actual fee per item sales. Run your fee-earner’s production through the numbers, pay them, the lab and materials, apply the percentages - and see what is left. If the answer is lower than your target cash is less than Step 3 you have a problem. Add a percentage profit to that number, representing the cash you need to generate from the room after the fee-earner, lab andmaterials have been paid - but to generate some profit for you. Divide that total annual operating cost by the number of surgery days you are able to offer to the public each year. attend a 45-minute free assessment with a TCO (including dentist pop-in) proceed to a paid dental consult proceed to treatment (in time) This means, for every new patient enquiries by telephone: Lack of New Patients Lack Of New Patients Lack Of Balance Lack Of Balance Lack of Productivity Lack Of Productivity 3. lack of team trust symptoms: team members not motivated to work, hiring the wrong people for the team, unhealthy team dynamic, unequal work distribution among team, poor team performance, poor patient care Average new patient spend of gross revenue per month = £1,500 so that translates to =£42,000 = £1,500 =£42,000 of gross revenue Therefore the AVERAGE VALUE of EVERY CALL is All work and no play makes you a dull dentist. During your life as a practice owner, you may experience up to 7 pain points. A pain point is defined as a particular struggle or obstacle that brings you discomfort. When ignored, pain points don’t naturally resolve themselves. The more pain points you have, the more of an uphill battle practice ownership can become.
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2. lack of balance
symptoms: no time to yourself to spend on hobbies or with family, constantly working and never getting ahead of your task list
1. lack of new patients
symptoms: Less than 20 new patients per month per full-time dentist
4. lack of systems
symptoms: uncoordinated approach, ineffective procedures, unstructured working environment for team, poor follow up
6. lack of productivity
symptoms: no measurement of fee earner profitability
7. lack of growth
symptoms: practice profit lower than last year, profits plateauing, profits not growing faster than inflation, practice not growing into a saleable asset for retirement
5. lack of profitability
symptoms: expenses exceeding income, no steady influx of new patients, low uptake of elective treatment plans, working constantly but not seeing any of the money at the end of it
CAUSES• New patients seen by inexperienced associates • Poor marketing
• Principal too busy for new patients
• No systematic approach to patient emotional triggers • conversion rate on telephone enquiries to free assessmentswith a TCO
• conversion rate on free TCO assessments to paid dental consults
• conversion rate on paid dental consults to treatment taken up20
new patient consultations per month per full-time dental surgery
7 p a i n p o i n t s T h e 7 p a i n p o i n t s o fp r a c t i c e o w n e r s h i p
– but you need a coach to guide you through the pain barrier first.
You cannot regain your balance without experiencing some pain
Get your balance right. Successful business will follow. IT IS NEVER THE OTHER WAY
AROUND!
Calculate the operating cost per surgery per day. This includes everything except lab costs, material costs or associate, therapist, hygienist fees and your personal drawings. Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Calculate the average daily production of each of your fee-earners. Take into account nominal daily UDB value, nominal daily membership scheme value and actual fee per item sales.
Run your fee-earner’s production through the numbers, pay them, the lab and materials, apply the percentages - and see what is left.
If the answer is lower than your target cash is less than Step 3 you have a problem.
Add a percentage profit to that number, representing the cash you need to generate from the room after the fee-earner, lab andmaterials have been paid - but to generate some profit for you.
Divide that total annual operating cost by the number of surgery days you are able to offer to the public each year.
attend a 45-minute free assessment with a TCO (including dentist pop-in)
proceed to a paid dental consult
proceed to treatment (in time)
This means, for every new patient enquiries by telephone:
L a c k o f N e w P a t i e n t sL a c k O f N e w P a t i e n t s
L a c k O f B a l a n c eL a c k O f B a l a n c e
L a c k o f P r o d u c t i v i t yL a c k O f P r o d u c t i v i t y
3. lack of team trust
symptoms: team members not motivated to work, hiring the wrong people for the team, unhealthy team dynamic, unequal work distribution among team, poor team performance, poor patient care
Average new patient spend
of gross revenue per month
= £1,500 so that translates to
=£42,000
= £1,500
=£42,000 of gross revenue
Therefore the AVERAGE VALUE of EVERY CALL is
All work and no play makes you a dull dentist.
During your life as a practice owner, you may experience up to 7 pain points.
A pain point is defined as a particular struggle or obstacle that brings you discomfort. When ignored, pain points don’t
naturally resolve themselves. The more pain points you have, the more of an uphill battle practice ownership can become.
The absence of trust between any of the people in the team can be a serious virus in the machine.
Examples include
The associate who believes that
BDS spells God
The staff room gossip
The practice manager
who will not embrace change
The receptionist who doesn’t
believe in private dentistry
The travelling specialist who
neverfollows your brand standards
You cannot teach trust, run training courses on trust, manage people into trustworthiness.
But you can decide never to tolerate untrustworthiness in the people around you.
A business coach can help you take a look in the mirror and decide whether you need to work on yourself or execute a cull.
Inadequate monitoring of accounts
No future cash flow forecasting and no
monitoring of budget versus actual income and expenses on a month by month basis
Living above your means – financing a lifestyle that you
cannot afford
Working 5 days a week clinically, instead of 4 days
clinical and 1 day of business leadership
Failure to business - manageassociates, therapists
and hygienists
Special offers that haven’t been accurately
thought through
Failure to supervise treatment planning by associates
- who often under-price, discount and deliver treatment free
of charge
Deep discount offers such as Groupon attracts
short-term price shoppers
Failure to be confident with your own treatment planning and pricing
Offering interest-free finance without calculating the cost to
the business and taking appropriate action
Take the number 72
the number of years it takes to double the value
of your money.
Divide by an inflation or growth rate
So at a rate of 12% per annum a business: will double in size every
At 72/12 = 6 years
At 6% every 72/6 = 12 years
At 3% every 72/3 = 24 years
The Solution Aim high
Lead
gen
erat
ion
syst
ems
Lead
con
vers
ion
syst
ems
Patie
nt e
xper
ienc
e sy
stem
s
Ope
ratio
nal
syst
ems
Gove
rnan
ce &
co
mpl
ianc
e Sy
stem
s
Team
sys
tem
s
Leaders lead people.
Managers manage systems.
Business coaching can help you identify BEST
PRACTICE and turn that into systems.
Where do you start?
These systems are then passed onto your team
who RUN with it.
L a c k O f T e a m T r u s tL a c k O f T e a m T r u s t
L a c k O f s y s t e m sL a c k O f s y s t e m s
L a c k o f G r o w t hL a c k O f G r o w t h
contact 7connections on 01647 478145
Email [email protected]
or visit us at www.7connections.com
FOR PAIN-FREE DENTAL BUSINESS
Every successful dental practice requires the following:
The absence of robust systems creates an environment in which mistakes will happen and opportunities will be lost.
Dentist
Ask a business coach to help you answer the 100% growth question. The 100% growth business plan can be formulated in single day.
Why not invest in that day for yourself? Growth is oxygen and it isn't optional.
BUTIf your business stays the same size (profit) then the real value of your business will halve in the same timescale. If you truly want your business to stand still, then it must grow annually at a rate at least equal to inflation.
To grow in real terms, clearly you must outpace inflation.
Tea
m p
ay r
ises
Uti
lit
y bi
lls
You
r o
wn
do
mes
tic
ex
pen
ses
Tea
m p
ay r
ises
Mat
eria
ls p
ric
es
Labo
rato
ry c
ost
s
The way out?
Ignoring key performance indicators and industry benchmarks for lab costs, materials, implant components, staff wages and payments to travel
Failure to manage the appointment book
carefully so that surgery down-time is minimised
Working too many hours! 24-28 hours per week clinical is
recommendedRunning the business by
looking at the bank balance every day
A business coach
to hold you accountable
to insist that you collect, collate
and analyse all the numbers every
month
to encourage you to take action to
bring the profits back on course
to assist you in making the tough
decisions that are sometimes necessary
L A c k o f P R O F I TA B I L I T YL A c k o f P R O F I TA B I L I T Y
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