Dr. David Phelps: Turn Chaos into Capital

Quotes & Notes:Dr. David Phelps: Turn Chaos into Capital

  • I have the privilege, like you do, where I get to speak to a lot of our colleagues around the country every week, and I think the mindset today is that it is harder. It is harder to find that freedom, to find that way out during practice year, and to look forward to what’s after those years.
  • Nobody really likes to change. We would really prefer to live in an environment that is static where everything is predictable in life. But then again we have to realize that that isn’t life. We have to get to the point where we embrace change.
  • Every time there has been a lot of turbulence whatever it is, that’s when often times there is the most opportunity.
  • I don’t think that being an entrepreneur is the life for everybody.

Maximize the practice process, break the chains, and create passive income.

  • I look at the practice as an engine, the engine that is going to drive everything else.
  • I do talk a lot about creating passive income streams out of real estate.
  • Make that practice as much as you can to be self-sustainable.  This frees you up.
  • Create these passive income streams outside of dentistry so that you are more diversified.
  • This widget could be a new piece of technology which integrated into the right practice with the right infrastructure, with the marketing, with the right operations in the practice could be the right widget. But by itself, it is going to fail.
  • There’s really got to be some integral training for us as small business owners that learn the concepts of building a team with a culture that has the right people in the right seats of the bus, for that is what is going to drive everything.
  • It should be 80% you feel that joy, and maybe 20% for those, okay those things will come up.
  • I found that single-family real estate when invested in the correct way, I don’t think there is any better capital asset.
  • The joint venture model in my mind is the fast track to get involved and not have to deal with all the moving parts.

If you want to learn more from Dr. David Phelps you can go read his book, From High Income to High Reward, listen to his podcast, Dentist Freedom Blueprint Podcast, or on his website at www.freedomfounders.com.

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Jonathan VanHorn on working less & making more

First, check out this outstanding financial resource that Jonathan has provided for the RD audience: http://dentistmetrics.com/relentless

Quotes & Notes:

Jonathan VanHorn on working less & making more - RD Podcasts

  • The biggest struggle I see a dentist has is knowing where to start.
  • A business has people, products, and processes.  And a lot of dentists have a lot of problems with those processes.  It really comes down to managing people.
  • They [dentists] have the innate ability to be able to manage the clinical side plus the business side.
  • Nothing is going to run without your staff.
  • Whenever you really start niching down, in the dental industry . . . you can actually see where people are doing things wrong by just looking at the numbers.

The goal is to have 55-60% overhead [for a solo practice].  And that is an average.  I am a believer in the saying averages apply to everyone and no one at the same time.

  • This issue doesn’t work for you because of why? And they will say, well it is because of the contract of the person in this role.  You can say, has any dentist ever bought a practice, had a contract in place, and changed that contract?  It’s really hard for them to say no.
  • Staffing is the biggest thing to get in check if you want to get to that 55-60%.
  • Lab fees and dental supplies both go hand in hand.  That is really the #2 thing we tell people to look at after their staffing.
  • Part of being a business owner is trying to find the best deals.
  • Really make sure that that process [the process of purchasing lab equipment and so] is for convenience but rather for profit.
  • Ask other people in your area what they are paying.
  • Because I am a CPA I should probably say [the next big-ticket item is] taxes, but I’m actually not on that board.
  • If you keep 15% for lab and equipment, and 20% for staffing then really you only have 20% left for everything else, be it rent or anything else.
  • Any practice that is from the start-up level or is just in the running level, anywhere from zero 800,000 dollars in revenue.  Their sole responsibility should be in marketing.
  • If you have a great service or a great product, then you are actually doing disservice to the public if you don’t offer it.
  • The problem with that is if you are doing what everyone else is doing then you are just going to get caught in the crowd.
  • If you have a light to shine, shine it for the world to see.  Don’t hide it.
  • If you have a sneaking suspicion of something, don’t let it just go by the wayside and just accept it as fact.
  • I would definitely go to check out dentalcardservices.com.
  • Take control of supplies.

“What’s measured is improved,” Peter Drucker.  But also “What’s not measured is not improved.”

  • I feel like driving revenue is so much more important in the early stages of running a practice.
  • I use Xero.com for accounting.

Jonathan VanHorn’s website is dentistmetrics.com.

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