Building a great company comes down to three things: planning, execution, and accountability.
1 -Build a Solid Foundation to keep as much income as possible by getting the proper corporate and income structure, tax planning, accounting, payroll, and financial platform. Forward-thinking small business owners understand the importance of reliable reporting based on accurate data. Are you leveraging data to make sound business decisions?
2 – Grow Income & Wealth by cash flow management, following up on the “big picture” and “long-term vision of the practice, tapping on the growth opportunities in new markets, products, and new service lines. What are your cash leaks? Are you creating maximum cash or losing it down the drain? Do you understand the difference between profits and cash? For example, you could make $250K profit a year but when you look at the bank account and it shows only $10K. Where did the rest go?
3 – Create Wealth by ensuring that the risks are spread out through passive income investing, taking advantage of maxing out tax-advantaged retirement saving accounts, and funding 529s. Saving income into a qualified retirement plan starting at the youngest age possible can reward Dentalpreneur with the power of compounding growth over a lifetime. The longer recurring deposits can be invested in a diversified portfolio, particularly when savings are pretax and grow tax-deferred over decades, the greater the likelihood that this will be the most beneficial financial opportunity available. Do you have assets that produce alternative income so that if you stop working the income still comes in? Have you re-evaluated and devised a retirement plan to save by adding a generous match and allowing a profit share component to shelter money from Uncle Sam via tax savings?
Two major hurdles to building wealth are starting late and high debt!
There are THREE types of dental practice owners when it comes to creating wealth. Type 1 are those that are carefree -they sleep and don’t think about creating wealth and financial freedom until it is too late. Type 2 are those that are too busy working to work ON their business… This is where most dentists are. They work long hours generating income but are unable to use that income to grow and create wealth. Type 3 is where we all want to be. We want to go to sleep and when we wake up, we are richer than when we fell asleep the day before!
Jump on complimentary 30 minute consultation. Book your call today, click here