A huge part of our job as business owners, is to identify the assets in our business and then turn them into cash flow.
There are plenty of assets there that most people won’t even think of, but they’ll typically fall under these four categories:
- Physical Assets
- Goodwill Assets
- Intellectual Property
- HR Assets
Your ability to turn assets into cash flow is a measure of your effectiveness as a business owner.
So, whilst we often say “cashflow is oxygen to your business,” your assets are really what generate that oxygen.
You’ll notice a distinct “trickle-down” effect when you haven’t properly developed your assets.
If you are not good at training people and your team members aren’t doing their job well, then you haven’t got the training assets in place.
If you’re not getting enough patient flow, then you don’t have the marketing assets in place.
If your cases aren’t being accepted, then you don’t have the sales assets in place.
If you’re not making enough money, then you don’t have the cash flow generation assets in place.
You get the gist, right?
The process of turning assets into cash flow is like squeezing juice out of a fruit.
You want to work with what you have, and really get every last drop of juice (in this case, juice being cash) out of what you’ve got.
Once you’ve got that free cash flow, then you can choose whether you pay yourself a dividend, reduce debt, or indeed rinse and repeat the cycle and build more assets, and go from there.
Without free cashflow, your practice is really what we call an unviable practice and is more or less on its last legs. If you want to know more about what we consider an unviable practice – check out this explanation of our Savvy Dentist Value Model.
P.S Want to scale your dental practice and take your profits to 7 figure success?
Me and my team can work with you directly to get you there! Simply book in your FREE 1:1
strategy session, and we can get started on a game plan for you and your practice.