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ADVANCED BUSINESS MANAGEMENT FOR DENTISTS Online Study Club

ADVANCED BUSINESS MANAGEMENT FOR DENTISTS Online Study Club. CONTINUING ABMD EDUCATION ONLINE. Online Study Club. This 1 st introductory theme is called: Think Like A CEO , and it is followed by: 2) Evaluating a Vision of Success for Your Practice

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ADVANCED BUSINESS MANAGEMENT FOR DENTISTS Online Study Club

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  1. ADVANCED BUSINESS MANAGEMENT FOR DENTISTSOnline Study Club CONTINUING ABMD EDUCATION ONLINE

  2. 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

  3. WELCOMEtoDentistry 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”

  4. How You See Yourself • Why Practice Management Is • Business Management • Protecting Your Assets, • Protecting Yourself • YourFinancial Statements

  5. One Practice / One Career vs. • Many Practices / One Career • How Much Your Practice is • Worth • How Much Your Future is • Worth

  6. 28,000,000 People

  7. A CEO understands this opportunity.

  8. ¿ What’s your perspective on how you see yourself as a Dentist?

  9. Are you managing your practice towards retirement ?

  10. Picture of Barney in 1956

  11. Your focus should be to work both inyour practice and on your practice.

  12. Practice Management is Business Management

  13. You don’t have to be incorporated to… “Think Like a CEO”

  14. The Corporate Model: • Operating Activity • Investing Activity   • Financing Activity

  15. Protecting Your Assets, Protecting Yourself

  16. FIRE

  17. If you fail to plan, you plan to fail…

  18. Practice Interruption Insurance • Office Overhead Insurance • Short-term Disability Insurance • Long-term Disability Insurance • Fire and Theft Insurance • Malpractice Insurance • Life Insurance

  19. Financial Statements

  20. ‘To provide dentistry of the highest quality, the dentists themselves have to be financially fit.’ - Dr. L.D. Pankey

  21. The Most Important Financial Statements • Income Statement • Balance Sheet • Cash Flow Statement

  22. Income Statement Net Sales Revenue: Expenses:(your overhead) operating expenses taxes, etc. (your “bottom-line”) Net Income

  23. Historical Income Statement Revenues: Expenses: Fixed Expenses: Rent Insurance, etc. Variable Expenses: Lab Dental and Office Supplies Repairs and Maintenance Bad Debts Total Net Income

  24. Breakeven Analysis the most useful of all financial planning tools

  25. The Balance Sheet is KING will also tell you so much more… Return On Equity ROE, ROE, ROE, ROE, ROE

  26. Cash Flow Statement • Operating Activity • Investing Activity • Financing Activity

  27. Thinking of your practice as an investment and managing it accordingly, is the “mind-set” of a CEO.

  28. The Most Important Financial Statements • Income Statement • Balance Sheet • Cash Flow Statement

  29. One Practice, One Career vs. Many Practices, One Career

  30. You can only capture the goodwill value of your practice when you sell. I Physician N Lawyer C O Dentist M E 25 45 65 A G E 10 – 15 years

  31. How Much is Your Practice Worth? • Market Approach • Asset Approach • Income Approach

  32. The Income Approach Capitalization of Earnings

  33. How Much is Your Future Worth? ? ? Dan Kingsbury, DDS Advanced Business Management for Dentists www.ABMDDS.com $

  34. Capitalization of Earnings Method Net Income Required Rate of Return if $40,000 then 10% Practice value = $400,000

  35. 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 XEfficiency XUse-of-Debt

  36. 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!

  37. How Much is Your Future Worth? Future Planned Online Themes 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 …please join us… www.adaceonline.org

  38. Would you please take a survey now? Please find my online CE course “Think Like A CEO” at www.adaceonline.org

  39. Thank You I look forward to seeing you down the line, in the online Virtual Study Club environment. www.adaceonline.org

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