In the world of dentistry, success isn’t just about what you do in the chair. It’s about how you build your practice, how you leverage your time, and, most importantly, how much you believe in the value you provide.
Because if you don’t believe in your value, no one else will.
Every day, you have the chance to redefine how you approach your practice—not just as a dentist but as a business owner. And the key to unlocking greater profit, freedom, and wealth starts with understanding the power of your own worth and building a practice that reflects that belief.
You Must Believe in the Value You Provide
Here’s a fundamental truth: if you don’t truly believe in the value you deliver to your patients, they won’t either. It’s as simple as that. And it’s not just about clinical skills; it’s about the impact you’re making on their health and their lives. There’s nothing more valuable than a person’s health. People can’t get a new mouth when they wear out the one they’ve got.
As a dentist, you are in control of that value. And patients will always pay you what you believe you’re worth—but only if you believe it first. When you set your fees, structure your services, and present your cases, it all starts with your self-worth and the confidence that what you offer is life-changing.
The Power of Smart Math: Know Your Numbers
Profitability in private practice isn’t just about being busy. It’s about having smart math that works for your goals, not just for covering overhead. Your financial success relies on understanding the math behind your practice—breaking down every aspect of income, expenses, and profit so you can make informed, strategic decisions.
There are two streams of income in your practice that too many doctors overlook:
- What you get paid as a doctor for the dentistry you provide.
- The profit you generate as the owner of the business.
Let’s break it down.
Typically, a dentist earns about 30% of production as income for the clinical work performed. But that’s just one stream. Ownership profit is an entirely separate stream that can be just as significant. A properly run practice will generate another 30% of profit from operations.
That means if you’re a solo practitioner, you could be netting 60% in profit—30% from your work as a clinician and another 30% from running the business. Even if you bring in associates and give them a cut of the production, you’re still entitled to the owner’s profit.
Too many doctors get stuck thinking that their earnings end at what they’re paid as dentists, but real wealth comes from owning the business.
Two Streams of Money: Income and Profit
Let’s be crystal clear: you live off your income, but you build wealth from your profit.
Income is what pays for your lifestyle—your home, your cars, your vacations, your everyday expenses. But it’s the profit that creates true freedom. Profit is what allows you to retire comfortably, invest, give back, and achieve everything on your bucket list.
This is why you can’t just think of profit as a percentage or some afterthought. Profit is the fuel for wealth-building, and it’s far more powerful than your income. In fact, when you build your practice the right way, your profit should exceed your income by two to four times. This is how private practice owners can accumulate what would normally take a lifetime in just 10 years—or even less.
The faster you understand this concept, the faster you can accelerate your journey to financial freedom.
Why Your Fees Are Key To Making Every Moment More Valuable
Your fees are not just numbers on a price list. They are directly tied to the value of your time. Every dollar you charge reflects not only the quality of the work you do but also the value of your time as a professional and business owner.
Here’s what you need to understand: collections have nothing to do with production. A strategically run, ownership-based practice isn’t just focused on production—it’s focused on profit. When you reverse engineer your fees based on the income and profit goals you’ve set for yourself, you’re no longer stuck in the mindset of just “getting by.” You’re creating a system where every patient interaction, every treatment, and every procedure is designed to maximize your return on time.
You’re not playing by the rules set by big suppliers or industry averages. You’re setting fees that reflect your goals and the value of your time. This is what separates top-performing practices from those that are stuck in survival mode.
Reverse Engineer Your Goals: Know the Number That Makes Your Life Work
At the core of every successful practice is a simple concept: you need to know the number that makes your life work. This isn’t just a random figure—it’s the total amount you need to earn each year to cover your lifestyle expenses and invest in your future wealth.
We’re talking about the difference between income (which covers your lifestyle) and profit (which builds your future). Too many private practice owners focus only on income, but if you’re serious about financial freedom, you need to prioritize profit. Profit is what accelerates your wealth.
The secret to building a wealth-generating practice lies in reverse engineering. You start with the total amount you want to earn each year, break it down by month, and then further break it down by day. This gives you a clear target for both income and profit.
And here’s the kicker: your profit should far exceed your income. When you get this right, you’ll realize that building wealth and financial freedom isn’t a pipe dream—it’s a reality you can create in a fraction of the time it takes most people.
Profit Multiplies Wealth
Here’s the bottom line: your income covers your life, but your profit builds your wealth. And when you set up your practice the right way, your profit can grow to be two, three, or four times your income. This is what allows private practice owners to achieve in a decade what takes most people a lifetime.
The key is understanding that there are two streams of income: what you earn as a doctor and what you generate as the owner. By maximizing both, you can create true, liberating wealth.
Respectfully,
Scott J. Manning, MBA
