2. Online Study Club ADVANCED BUSINESS MANAGEMENT FOR DENTISTS Online Study Club CONTINUING ABMD EDUCATION ONLINE

3. 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 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

4. WELCOME to Dentistry as a Business Practice Management Online Study Club Money, Management, and Technology “Think Like a CEO”

5. How You See Yourself Why Practice Management Is Business Management Protecting Your Assets, Protecting Yourself Your Financial Statements

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

7. 28,000,000 People

8. A CEO understands this opportunity.

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

11. Are you managing your practice towards retirement ?

13. Picture of Barney in 1956

14. Your focus should be to work both in your practice and on your practice.

15. Practice Management is Business Management

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

17. The Corporate Model: Operating Activity Investing Activity Financing Activity

18. Protecting Your Assets, Protecting Yourself

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

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

24. Financial Statements

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

26. The Most Important Financial Statements I ncome Statement B alance Sheet C ash Flow Statement

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

28. 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

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

30. The Balance Sheet is KING R eturn O n E quity ROE, ROE, ROE, ROE, ROE will also tell you so much more…

31. Cash Flow Statement Operating Activity Investing Activity Financing Activity

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

33. The Most Important Financial Statements I ncome Statement B alance Sheet C ash Flow Statement

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

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

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

37. The Income Approach Capitalization of Earnings

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

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

40. 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 X Efficiency X Use-of-Debt

41. 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!

43. 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

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

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