Spooky Season

Chris Sands • October 1, 2021

The scariest things about owning a practice (and how to overcome them)

Author's Note: Currently, I am sitting at our booth at Bourbon & Baby Teeth, a pediatric dental CE event in Louisville, Kentucky. As I am talking to these dentists, I am asking them what their biggest fears are as business owners and writing this blog in real time.


The idea of starting your own business is scary in any industry. It's even more daunting when you're starting your own dental practice, being that dental school doesn't teach you even the fundamentals of owning a business. With that in mind, let's take a look at the 4 scariest issues you'll face as a practice owner.


#1: What if I don't make payroll?

Typically this is a fear for younger practices and startups. Your team is your most valuable asset, meaning it's also your most expensive. So what can you do to make sure you always cover your costs? Start by tracking your monthly breakeven point, or BAM (bare-ass minimum.) Your BAM will tell you at what dollar of collections you cover your expenses and begin to generate a profit. Once you know your monthly BAM, break it down to a daily figure that shows you, and more importantly your team, how much you need to produce every day in order to cover costs. By building your daily goals around your BAM and getting your team on board with striving for it, you can more comfortably ensure you are going to cover your costs, which includes payroll.


#2: Staffing

This particular issue was brought up by a 5-location doc out of New Jersey, but I do suspect his concerns are universal: finding and keeping the right team members, from auxiliary staff to associate doctors. The first element of staffing is of course the actual hiring process, to which I would simply advise always be hiring. Don''t wait until you absolutely have to have that new team member to start looking for them. Hire ahead of the curve. The most successful and fastest growing practices we work with have job listings and employment ads running constantly. A steady stream of applicants is never a bad thing.

As for holding on to your team once you have them, that can be complicated. You need to deliberately and actively create a culture that people want to be a part of. Leaving your company culture up to chance is a risk that you can't afford to take if you want to grow unhindered. And in a workplace where you yourself are often judge, jury and executioner, I would advise that you invest in a third party coach to help sculpt your team. We have had numerous dental-specific consultants come in and train our accounting and tax teams in the same way to make sure we understand the inner workings of dental teams. If you'd like an introduction, we'd be happy to help.


#3: CASH

Collections up, cash in the business stagnant. The dentist's plight. Dentistry is debt heavy and cash poor, and it's no mystery why. Most practices don't have any specific cash flow management system in place, leaving them victim to Parkinson's Law.  Enter: Profit First. We harp on Profit First a lot, but only because it works. Rearrange the formula: Collections - Profit = Expenses. Set aside profit first, that way you guarantee that you maintain healthy cash and profit balances.


#4: Finding a Good CPA

Alright, this one is a little self-serving, but given that we are sitting under a giant banner that says "Dental CPA Firm," it's no surprise that someone mentioned the struggle to find a good accountant. Obviously, our solution to this is working with us. We're proactive, we know dentistry just as well as we know the tax code, and our fixed monthly billing makes us a breeze to work with. Easy peasy.

Two men are sitting at a table looking at a tablet.
February 6, 2025
Learn more about tax deductions every dentist should know about with the best dental cpas in Suwanee, GA.
A group of people are sitting around a table looking at a tablet.
February 6, 2025
Learn more about how to prepare your dental practice for an IRS audit with the best dental cpas in Suwanee, GA.
A close up of a dental chair with dental instruments on it
January 20, 2025
Learn about whether or not you should buy or lease equipment for your dental practice with the best dental cpas in Suwanee, GA.
A bunch of rolled up dollar bills on a table
January 20, 2025
Learn more about how to improve cash flow in your dental practice with the best dental cpas i Suwanee, GA.
A woman is sitting at a table using a laptop computer.
December 10, 2024
Learn about how dental cpas can optimize your revenue cycle with the best dental cpa advisors in Suwanee, GA.
A man is sitting at a desk with a laptop and a notebook.
December 10, 2024
Learn about tax planning strategies that every dentist should know about with the best dental cpa advisors in Suwanee, GA.
A guy shaking person hand.
November 30, 2024
Learn more about how to determine your business's worth with the best dental cpas in Suwanee, GA.
A book is open to a page that says ' accounts ' on it
November 30, 2024
Learn more about the true cost of ignoring bookkeeping with the best dental cpas in Suwanee, GA.
A person is signing a piece of paper with a pen
October 31, 2024
Learn about the benefits of outsourcing bookkeeping and payroll for your dental practice with the best dental cpa consulting firm in Suwanee, GA.
A man is sitting at a desk counting money
October 31, 2024
Learn about how dental cpas can help optimize your practices profitability with the best dental cpa consulting firm in Suwanee, GA.
More Posts
Share by: