When you plan an unfamiliar journey in the car you set your sat nav to the coordinates that will lead you to your destinationm says dental business coach Andy McDougall from Spot On Business Planning.
You know where you are starting from and you know where you plan to finish and throughout the journey your sat nav will report on your progress: how far to go in miles, what time you expect to arrive, and if there are any issues along the way such as traffic jams, it will propose alternative routes.
The same principle applies to your dental business. You undertake your business journey year in, year out, but are you aware of your starting position or where you are aiming to finish?
It is very common that a dental business owner has a vision but is not aware whether the strategy being pursued will make the required level of profit in the years ahead. How dangerous to pursue a strategy that is not proven to be financially viable?
How do you go about generating the correct levels of profits?
How do you go about generating the correct level of profits?
Luck is not a business strategy but that is what you are basing your success on if you have no business plan. The business planning process is widely misunderstood and mistaken for a financial budget. When done properly business planning really means running your business to maximise profit.
Your dental practice will flourish if you apply a structured approach to planning your business success. It’s like a combination lock on a briefcase. Guess the numbers and you stand very little chance of success. Get the right numbers in the wrong order and you still can’t open the case. By following the steps in the right sequence and knowing the numbers you will achieve success and open the case. Likewise, in business planning terms, by following the right process, in the right way, you will unlock the profits hidden in your practice – it works every time!
The business planning process essentially answers four fundamental questions:
- Where are we now?
- Where do we want to be?
- How do we get there?
- How will we know when we have arrived
Double your net profit over three years
For a robust dental business plan and a strategy that not only leans against the right wall but doubles your net profit over three years, contact dental business mentor, Andy McDougall at Spot On Business Planning. Send us your last three years of financial accounts and Andy will analyse them and visit you to explain the strengths and weaknesses he reads in your numbers.
Call 01949 851723 or complete the form to arrange a free analysis.
Our next blog will consider:
Looking at your business from every angle – where is your dental business now?