Dental Marketing Jobs

Ever wonder how the rich and wealthy people achieve their success? In this article, I'm going to talk about the habits of wealthy people and what they do. The primary goal here is to give you an idea on how these people deal with their cash flows, revenues, etc., which can be very helpful and applicable to the growth of your dental practice. This is something we focus specifically at our dental practice growth website! You need to get an idea on how to manage your cash flow very well as you promote your dental practice growth.

Now, I'm going to go over a couple of things first. It is a fact that every wealthiest person I know and people who make money do this: they understand where their cash cow is! (This is very important when you promote the growth of your dental practice!) When I first heard of the term 'cash is king' it scared the heck out of me. The reason is because I didn't know how to make money, so of course if you were in my position you would be scared too, right? But as I learned how to do that and as my business grew I understood that there's a couple components of growing and building a business and why cash flow is such an important element. So there's a couple of things I wanna tell you about cash flow really quick. First, here's one habit of the rich. Cash flow is something that is different than understanding when sales come in. So sales might come in or patients might accept treatment, and you'll get accepted treatments on the books. But by the time you get that money, it might be 3 months, 4 months , 6 months, or even 12 months. Second, what you have to look at is in knowing how valuable a client or a patient is to your business. So you would want to know what is the 3-month and 6-month value of that patient or client. The reason why its really important to understand it is because when I ask my clients : 'How much is that client or patient worth to you?'. And they say:: 'Well, the average client is worth $1,200 in the first year.' So my question now is this: 'When are you getting that $1200? Are you getting it in the first six months, or three months, or first month, or later after 12 months?' I ask this because that would help you determine how much money you can spend to acquire that client. The other rule that rich and wealthy people follow by is the person who can invest the most amount of money to acquire a new client, customer or patient is going to be the one whose going to win the marketing game! So take for instance I have the ability to spend $200 to get a customer, client or patient and you only have the ability to spend $25 because you don't know what a client's or patient's worth to you and how quickly that money's there. The other reason is that say we both have our patient value is $1200 in the first year. But I get my money in the first two months and you get your money on the 12th month. Well the person who gets in the first two months is in a much better cash flow position than the person who gets it after the 12th month! And what happens is that if you are in the second example where it takes you 12 months to get the money back, your net profits and your revenue stream your cash coming in for the first 6 to 10 months might go really, really far down. Now as a great book by Larry Stein called ' How To Sell At Higher Margins And Prices Than Your Competition' he states in there that the primary reason why businesses go out of business is because they put things on sale and they lower prices; they increase volume; and by lowering the prices they lower the margin. So before where say they can make 30 cents on a transaction now they only make 10 cents. But now they just quadruple the amount of transactions in a small space and time and since they don't get all that money right away. They're going negative dramatic amount on the first month, or even many months and if they do that month after month after month, the next thing they know is that they wake up one day, 6 months down the road and they don't have money in their bank account and they blame the marketing company, or they blame their employees or everybody else!(When in reality is they could have a potentially winning model, they just don't understand how to evaluate and look at their cash flow.)

So here's a couple of tips that i want you to look at. First of all you want to know from a casual perspective how much money you have in all your bank accounts almost everyday. For me, I get a report everyday from my bookkeeper that tells me in each bank account how much cash is in it. And she also lets me know what's my credit card balance on any credit cards that we use on our companies. So that allows me to know some of my debt with the credit cards, it allows me to know all my cash flow, and I also want to know when payroll's hitting. And I know what the average is every payroll period so thats okay. And then the other thing I want to know is what are my accounts payable and my accounts receivable. So in my business we don't have much accounts receivable because we get our money upfront or its on a monthly continuity. But in a lot of businesses, if your receivable is too high that's one of the reasons why your cash is so tight. So one way that you can immediately shift that around is to discount payments if you will pay totally in full, force people to pre-pay, and there's a lot of strategies you can do that. The other thing is that I want to know my accounts payable are. And mentally you should have a ratio inside your head. I'm not going to tell you what the perfect ratio is to cash in the bank and payables, but you should know what that is with your business just by monitoring on daily basis where you need to sit on your checkbook and drive revenues, or you can start paying your payables down. The one thing that I will tell you about all your payables though is that if you can go or if you are struggling with cash flow, call your vendors up and ask them if you can extend your payments 15 days. So if your currently doing 30 days ask them if you can do 45 days (in some companies you're going to be able to get 60 days). If there is a company that expects you to pay immediately, ask them if you can get 30 days or 15 days minimally. Probably half of them are going to say yes, and half of them are going to say they don't have those procedures and you can speak to a manager or deal with them directly. The last thing that I want to share with you is that when cash flow is tight, you have to focus on generating revenue! That is how you improve your cash flow. And so you might have to spend money in marketing, or sales, or any kind of revenue-generating activities; or if you don't have money you get to do sweat equity. But you don't sit on those expenses, you drive those things up! And you look at what are the expenses you are currently spending and you start slashing those expenses. The one thing that I want you to take away from is most importantly monitor your cash flow on a daily basis, or weekly basis minimally, know what your bills are, know what's in your bank account, know what's coming up, and make sure that you are paying your taxes orderly (estimate the taxes so that you don't get 'killed' the next year). Now, with all that said the most important thing that you should remember is that wealthy people don't only focus on expense cutting; you should grow your revenues to a point where your basic expenses are taken care of, you can invest in your company, and you have money to take out and pay your self first on a monthly basis. Knowing this stuff can help you promote the growth of your dental practice as well!