November 29, 2018

Dental business mentor provides a different way of looking at the numbers

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Want to double your profits every 3 years and get greater control of your dental practice? Email Spot On Business Planning for details[/caption]Wouldn’t it be great if there was a surefire way of achieving the results you’ve dreamed of? There is, says dental buisness coach Andy McDougall from Spot On Business Planning – it’s called effective business planning.Everything you do in your dental practice comes back to numbers so understanding them is essential – but knowing how to influence them is critical. When working with Spot On Business Planning we cut through the jargon to teach our clients what they should have learned at dental school.The process starts by taking a look at where your business is today and comparing that with where you would like it be at some time in the future. Being able to read a set of accounts and understand what it tells you about the changes you should be making if you are to improve profits is vital. Welcome to the world of business planning.This article gives you a taster of the kind of things clients of SOBP typically experience and learn.

Focus on the important numbers but manage the rest

When analysing your accounts remember the 80/20 rule. Your profit and loss account may contain 20 or 30 different separate lines of income and expenditure until you reach the net profit figure. It can be an onerous task to review every line to determine how you have performed in that instance. Take heart though that not all the numbers will have such a radical effect on profit. The bigger ones: income, dental materials, labs, wages, associate pay – are often the key drivers and getting these numbers under control is therefore vital if you are to influence profit in significant way. In other words, focus on the 20% of lines that influence 80% of your result. Then apply my ‘quarters and halves’ rule for the rest – by saving just a few percent on the remaining lines collectively it could add up to a sizeable saving.

Tips for managing stock

There will be many areas of practice process that you can tighten up to improve profitability, cash flow and overall efficiency. One that is often overlooked is the importance of stock control. Ensuring you don’t have unnecessary money tied up in high levels of stock is a priority. Determining how much you actually need based on usage, ensuring stocks are rotated correctly to avoid stock going past its sell by date, comparing prices to ensure you are buying the items that count as the most competitive prices, identifying areas of overstock so you can take the appropriate action in a timely way: there are so many ways to gain efficiencies in stock control and each and every one will pay dividends in terms of your practice’s overall performance.

Double your profits every three years

There is no magic pill. No gimmicks. No hyperbole. Typically, our dental clients double their net profits every three years. Learn a lot about your own dental business with a free consultation with dental business consultant Andy McDougall. Send us your last 3 years of financial accounts, Andy will analyse them and explain the strengths and weaknesses he reads in your numbers.Our next blog will take a look at costs and why not all costs are equal, why all income is not the same, profit and cash, and how to have complete control of your dental business.

Our upcoming events

Nov 21, 2025

BDA Setting up a dental practice

The BDA Setting up a dental practice in-person workshop is a great opportunity for you to gain invaluable support, advice and insider information from expert speakers, including Andy McDougall and Anne-Marie Houston, on how to set out on your own for the first time.

Jul 10, 2025

Planning your successful exit

Join industry experts & learn how to plan your successful exit at this free live event!

Enjoy an opportunity to join Andy McDougall & Anne-Marie Houston in person at a free event in Surrey in July for dentists keen to maximise their exit value and gain tips for a smoother sale.

Spot On Business Planning is joining Dental Practice Sale and AMG Wealth on Thursday, July 10 for the informative live event to help dentists plan their successful exit.

The three companies will address key areas of concern to practice owners leading up to a sale, the sale process itself and post-sale aspects.

One of our strategic partners, Dental Practice Sale, is a specialist dental broker with an expansive national network of contacts and a team whose pedigree encompasses some of the UK’s most important, prestigious and noteworthy dental business transactions. Collectively the team has decades of experience in valuing, buying and selling dental practices and utilises its vast knowledge to offer the best all-round service.

AMG Wealth is a chartered financial planning practice that delivers high calibre intergenerational financial planning advice. It develops close working relationships with clients to provide investment planning based on your personal priorities, such as keeping a good standard of living in retirement or protecting wealth for future generations.

  • Learn how to maximise your exit value - what are the drivers?
  • Understand the benefits of structuring your business ready for exit
  • Determine the best point to exit
  • Hear a personal account from a DPS client & practice seller
  • Gain insights on the state of the market today
  • Consider where your practice sits with the different buyers in the market
  • Uncover the details in deal structures
  • Be informed about the valuation process & how you can influence it
  • Be aware of options pre sale such as EOT, Pre Sale Trusts, significant share holder exemption
  • Transition into the next phase of life (if retirement, what you will do, having winter hobbies etc)
  • Ensure you run out of life before running out of money (cash forecasting)
  • Protect the estate for now and future generations
  • Complimentary drinks and buffet from 6.30pm

The event at Brooklands Hotel in Weybridge starts at 6.30pm with drinks and includes a buffet.

Click here to reserve your space: https://www.dentalpracticesale.co.uk/events/evant-2?hsLang=en-gb

BDA Business Essentials Course

This two-day workshop is ideal for any dental business owner and their practice manager looking to transform poor performance, prepare for sale, or take their practice to the next level with a vision for expansion. Presented by industry experts Andy McDougall and Anne-Marie Houston, this interactive workshop will equip you with the essential tools and strategies to succeed in today’s competitive market.

Book your 121 Zoom with Andy McDougall

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