10 All Time Best Business and Financial Tips For Dentists
In this post, we will discuss 7 Business Tips by Warren Buffet and how dentists can use these amazing business tips in their dental practice. Dentistry and business are very similar in nature and to be successful a dentist has to manage the business aspect properly.
In this post, we will discuss 7 Tips by Warren Buffet and how dentists can use these amazing business tips in their dental practice.
Running a successful dental practice in many ways is similar to running a business model.
What are the similarities between running a business and a dental practice?
Managing a business venture or a dental practice is balancing act of financial and emotional factors.
In a business, you invest money to start an office with all the necessary infrastructure. Similarly in dentistry, to start a dental practice you need to invest finance for land, office and all the necessary equipment. - Similar to a business, in dentistry also there is a direct correlation between the service provider (the dentist) and the clients (the patients). You need to provide a good service/treatment. You also need to maintain and spread a good will among your target demography which is similar to promotion by a company.
- Similar to running a business, in dentistry also you need to maintain a fine balance between investment and expenditure. Just like in a business, there needs to be a plan to generate adequate revenues & profits so that you can run your dental practice month after month.
- A business venture is a team effort. There have to be sincere inputs from each member and employee for the business to be successful. Dental practice is also a team effort
- In business, there are many difficulties. In managing a dental practice also you will face many financial and emotional difficulties. Many times you will feel let down by others. Many times you will feel as though your efforts are not showing the growth that you were expecting.
In this post, we are going to show you 6 business statements by Warren Buffett which are very applicable to your Dental Practice.
Who is Warren Buffet? Warren Edward Buffett (born August 30, 1930) is an American investor, business magnate, and philanthropist. He is considered by some to be one of the most successful investors in the world, and as of February 2017 is the second wealthiest person in the United States with a total net worth of $76.9 billion.
So, if anyone can advise you on the business aspect of dentistry then he is the perfect one for it.
#1. Business Advice for Dentists
Take Away Point for Dentist:
Dentistry or Dental Practice is your primary income source. You should always strive to excel in it. But it is always advisable to keep an alternative income source for you & your family. You can do so in the following ways:
- Invest your earnings wisely. Avoid unnecessary expenditures.
- Invest in proper finances like life insurances, insurances for your clinic. You can read more about that in the article we have written before on insurances for dentists.
- If possible, keep an alternative earning source. I have met dentists whose better halves are into other professions You can think of a similar solution.
#2. Business Advice For Dentists
Take Away Point for Dentist:
It’s a timeless suggestion that every senior and experienced professional gives to the younger generation. But surprisingly it gets overlooked every time. So, here we are explaining the point again.
Never ever get into the habit of spending more than your need. Yes, once a while some sending for your vanity is fine. You do need to enjoy some of your earnings.
But beware, these spendings should be in control.
If you get into the habit of spending your hard earned money in an unplanned manner on unnecessary things then you will soon run out of money to buy the necessary things, even for your dental practice.
See Next Slide for Points #3 & #4
Business and Financial Tips for Dentists
#3. Business Advice For Dentists
Take Away Points for Dentists:
The above rule is the cardinal truth of finance. It doesn’t matter if you are starting your dental practice or you are an experienced dental practitioner with very good monthly revenues.
Always be alert to save money first.
Think about any additional expenditures, only after saving money as per your requirements. That includes first covering your monthly fixed expenditures for your personal needs and requirements of your practice. And then if you have surplus money left with you, make a habit to save half of it.
Such a habit will have great dividends in the near future.
It is a time-tested formula to control your expenditure, have the optimal spendings that are required and at the same time the best way for saving finance consistently.
#4. Business Advice For Dentists
Take Away Points for Dentists:
Every business venture that also includes investing or opening a dental practice, involves financial risks. Many times you need to take certain decisions related to your dental practice. These decisions have the power make a profound impact on your practice, either positive or negative.
So, always think twice weighing all pros & cons before jumping into any decision.
Never rush into unplanned investments.
Take a pen and paper. List down the pros and cons of your decisions in two columns. If you are feeling the prospects of gaining from the decision is more, then assess what’s the risk involved if you do not succeed.
Yes, it’s true that most successful people have taken risks. They credit their success to that one risk taken at that one crucial point in their career. But at the same time, there will be hundreds of stories where unplanned financial decisions or investments have resulted in bankruptcy.
For example, Let’s say, you have been in dental practice for more than a year and you feel that its time to expand to multiple clinics. For that, you will need finance to get location, office, equipment and pay salary to your team. So, is it the right time to raise a lot of finance from the banks? Will you be able to scale up fast and keep paying the interest to the banks?
So, as Warren Buffett said, never take a decision and jump into it. Keep one foot out of the water so you have the leverage to get back to land for safety in case the depth is more than you can handle.
See Next Slide for Points #5 & #6
Business and Financial Tips for Dentists
#5. Business Advice For Dentists
Take away points for Dentists:
It’s a very simple financial rule but yet overlooked by so many young and old dentists. It takes some time to make a good consistent revenue from your dental practice. And once you start making the revenue it very important that you start utilizing the money.
As said in the rule, never put all your finance into one investment plan. Diversify it. Check out the investment options very carefully. Other than insurances invest in good stocks. The goal is to spread your cash into different legitimate investments so that you are able to generate the maximum revenue out of your earnings.
#6. Business Advice For Dentists
Take away points for Dentists:
Have you ever watched the episodes of National Geographic where they show how a NEW Lion takes over a pride from the RULING Lion? It’s pretty ruthless. The new Lion first has to defeat the ruling Lion in one on one FIGHT. If the new Lion wins then he immediately goes to kill all the cubs of the previous king. No one expects that the new king will show any mercy.
It may sound ruthless & appear cruel but that is the natural order of things.
When you are an entrepreneur or a dentist who has invested a lot of time & money in starting/establishing dental practice you have to Ruthless like a Lion. The first mental thing to do is NEVER expect people will be honest or do a favor to you just like that.
Honesty is a rare virtue.
Honesty is not always a two-way track. You can be honest with all the people related to your dental practice, but you cannot be sure that you will get that honesty in return. It takes some time to see if your honesty is returned by honesty.
So lower your expectation in that regard and always keep your guard up not to get cheated.
And when you do find someone really honest & hard working, willing to work at your dental practice/company then be careful to keep them for as long as you can.
See Next Slide for Points #7 & #8
Business and Financial Tips for Dentists
#7. Business Advice For Dentists
Take away points for dentists:
Every entrepreneur and dentist in their profession make many mistakes. That’s natural.
But the key is to learn from those mistakes.
Make a note of the mistakes and try never to repeat them again.
So, any professional mistake done in the past endeavors should be used as a tool to make successful ventures in the present.
This application of past mistake experiences in the present makes way for a much better future. From a dentist’s point of view, the most common mistakes are usually made in treatment procedures or financial decisions. Here is the list of 10 most common mistakes made by dentists in dental practice.
As mentioned in point number #5, make decisions with a lot of planning. Even if they do go wrong as they can sometimes, then learn from the mistakes and do not repeat them in the future.
#8. Business Advice For Dentists
Take away points for dentists:
The point mentioned above is very applicable to a dentist.
There is always that dilemma for many dentists on how much they should charge for the dental services? What is the correct price that does not go overboard?
What is the correct price that does not go overboard?
Always remember: What the patient pays is just the price of the treatment. But the aim is to get the value out of every patient for the service provided.
That means never underprice your services. If you are providing the patients a top-notch service then you need to value your practice and charge the adequate price. You are the best judge for that.
This is essential to build the value of your practice.
You must value your own dental practice before anyone else can do it.
See Next Slide for Points #9 & #8
Business and Financial Tips for Dentists
#9. Business Advice For Dentists
This is immensely true for every professional including a dentist. Making a good reputation in your chosen field sometimes takes years of consistent efforts. You work hard consistently for many years and one day you have the chance to be regarded as an experienced leader in your profession.
You work hard every single day for many years and one day you have the chance to be regarded as an experienced leader in your profession.
So, in your professional journey always be very careful of your conduct – both professional and personal.
Both in professional and personal life think more than twice before taking any action.
In case you are wrong then you will have the chance not to commit it. Never take any decision based on pure greed, hate or confusion.
Never take any decision based on pure greed, hate or confusion.
#10. Business Advice For Dentists
Take away for dentists:
Never hesitate to mingle and interact with people who are better than you in your profession.
The tricks to interact with people who are better or more experienced than you in your profession:
- Never take your ego when you interact with them.
- Do not try to be loud or show off your points by being loud or interruptive.
- Be calm and LISTEN.
- By listening to the discussion you will know about many points on dentistry that the experienced ones are using.
- Do not hesitate to ask the seniors or successful practitioners (irrespective of age – even if they are younger to you) if you’re in need of any help or suggestion. For that, you need to let go of your ego. Also do not think much about if they will give you advice or help you. Of course, some will not help you. But there will be a few who will give you correct suggestions that will be good for your dental practice.
- People who do respond to you, make a consistent effort to stay in touch with them without being too pushy. Learn from them. How they manage their dental practice and personal life? What are the tools they use to build up their networks? How they are interacting & dealing with their patients? and many more points that are definitely going to help you in your dental practice.
Conclusion: To Wrap up this post:
A career as a professional dentist is very similar to a business person owning & managing a company. A dentist needs to care for so many factors to successfully run a dental practice. Many times providing health services and managing the business of dental practice gets mixed making it difficult for the dentist.
The points mentioned in this article are very practical. They are from the experience of one of the most successful businessmen ever Warren Buffett. You can use the points in your everyday dental practice which will help you manage the business aspect of dental practice more efficiently.
