Summer is here which means cookouts, pools, and heat. Casey and Jarrod discuss things that dentists can do when the 'heat' is on in their practice. Tune in to find out!
Announcer:
Hello, everyone. Welcome to the Millionaire Dentist podcast brought to you by Four Quadrants Advisory. On this podcast, we break down the world of dentistry finances and business practices, to help you become the millionaire dentist you deserve to be. Please be advised. We do speak with an honest tongue and it may not be safe for work.
Casey Hiers:
Hello and welcome. This is Casey Hiers back at the Millionaire Dentist podcast in studio with co-host, Jarrod Bridgeman.
Jarrod Bridgeman:
Hey. How are you?
Casey Hiers:
Looking sharp, man. That pink tie. Pretty in pink.
Jarrod Bridgeman:
Thank you. I like your gray suit.
Jarrod Bridgeman:
I need one.
Casey Hiers:
My tie reminded our COO of a dreamsicle.
Jarrod Bridgeman:
Oh, yeah.
Casey Hiers:
The orange, the white.
Jarrod Bridgeman:
I do like a dreamsicle, though.
Casey Hiers:
What do you want to talk about today, pal?
Jarrod Bridgeman:
Well, I'm sweating because it's extremely hot outside. We've had, with the heat index, temperatures up to over, what, 110?
Casey Hiers:
Triple-digit heat index-
Jarrod Bridgeman:
In Indiana.
Casey Hiers:
... here in Indiana. We're dealing with Florida-like heat. But not the good Florida weather.
Jarrod Bridgeman:
Yep.
Casey Hiers:
Triple-digit, humid, muggy. You walk out and you feel like you're getting hit in the face.
Jarrod Bridgeman:
It's awful.
Casey Hiers:
I-
Jarrod Bridgeman:
Although the pool warmed up real fast over this week, so I got in yesterday and it wasn't freezing.
Casey Hiers:
I got suckered into volunteering for an outdoor swim meet that my seven-year-old participated in. That equaled two and a half hours of sitting in the sun. No shade. Taking the times. And encouraging the children. They did a really good job.
Jarrod Bridgeman:
Yeah. Even if they didn't.
Casey Hiers:
I'm still not right because of it, man. A lot of coconut water, trying to get hy... I might have to go get an IV.
Jarrod Bridgeman:
Yeah.
Casey Hiers:
It was uncomfortable.
Jarrod Bridgeman:
Yeah.
Casey Hiers:
But I kept the smiling face.
Jarrod Bridgeman:
You were there for your kids. I get it.
Casey Hiers:
Yeah. Speaking of dreamsicles, they've just been crushing all the push pops, all those kinds of fun things.
Jarrod Bridgeman:
Yep. I remember being that same way as a kid.
Casey Hiers:
But yeah, we got through it. It was a hot one.
Jarrod Bridgeman:
Obviously, we are on a podcast where we speak to and speak about, dentists and their practices.
Casey Hiers:
What?
Jarrod Bridgeman:
Yeah. Oh, yeah. News flash. So, when the heat is on inside... Sure, you can go inside and get some a/c. Even then, depending on your place, your unit might struggle. But what do you do when the heat is on in the practice? Not actual literal heat. I'm talking, maybe. I don't know, look at our inflation, currently.
Casey Hiers:
Well, what to do when faced with temperature heat, find shade, drink water, put on sunscreen.
Jarrod Bridgeman:
Right.
Casey Hiers:
It's simple.
Jarrod Bridgeman:
Check on your grandparents.
Casey Hiers:
And limit your exposure to it.
Casey Hiers:
That being said, many people don't do that.
Jarrod Bridgeman:
Mm-hmm.
Casey Hiers:
People get sunburn. Maybe worse, right?
Jarrod Bridgeman:
Sun exhaustion.
Jarrod Bridgeman:
Oh, shoot. Sun... What's that called? Sun poisoning.
Casey Hiers:
Sunstroke?
Jarrod Bridgeman:
Or sunstroke.
Casey Hiers:
It's been hot here. There's a lot that I did to prepare for that heat. And as we were talking about that, we're like, "Okay, let's parallel that with practice owners."
Jarrod Bridgeman:
Right.
Casey Hiers:
What happens when thinking a practice owner's life heat up. What's that mean? Two hygienists quit. Your assistant quits. Equipment goes down. You have a big tax surprise. We can go on and on. But that's what we were talking about is, there's things you do when it's hot outside. It's been darn hot. And most of us have done those things.
Casey Hiers:
When you're a practice owner in when you're faced with the proverbial heat, those who don't do anything, sunburns, heat exhaustion, just all kinds of things.
Jarrod Bridgeman:
Leading to suffering.
Casey Hiers:
Yeah.
Jarrod Bridgeman:
I've had some bad sunburns, and they can last. Now imagine that, for an example, two hygienists quit. That's going to bring you a little bit of pain there for a while.
Casey Hiers:
Oh, it's going to be hard in the practice. It's going to be hard at home. No doubt about it.
Jarrod Bridgeman:
So I brought up the whole thing with inflation. It's a hot topic, right now. Because it's one of the highest, what, inflation rate hikes we've had in a decade?
Casey Hiers:
Well, they're cooking the books, and it's still the highest, in my humble opinion. So, to say it's high is an understatement. But yeah, to your point, inflation, practice owners are going to do the same and they're going to get less.
Jarrod Bridgeman:
Yeah. Exactly. Operate the same way you have been. But because of this one thing, everything else is affecting, basically, the money in your pocket.
Casey Hiers:
So many practice owners tell me, "I had a good year last year. Fingers crossed. Hopefully, it goes again this year." Because so much of it is, not dumb luck, but they're doing great dentistry. But they're not really sure how they'd do it. They just hope that they do it again. But when things like inflation hits, and when the heat happens, if you're not prepared, that's the ones that get caught with their proverbial pants down.
Jarrod Bridgeman:
Right. And what are some things that the inflation will affect in a practice?
Casey Hiers:
Well, let's look at it from a universal standpoint. What are some things practice owners can do to prevent the heat, to prevent sunburn, to prevent heat exhaustion? However, the analogy goes. What are some things they can do to parallel drinking water, being in shade, and putting on sunscreen.
Casey Hiers:
Number One is, know your numbers. It's incredible how many practice owners don't know their numbers? Collection ratios, patients per day, production per day, new patients per month, true overhead numbers. Hell, a lot of practice owners don't even know what their actual income is. They're getting profit from their practice. What they actually take home. Those are two very different things.
Jarrod Bridgeman:
So, let me ask you. When you say true overhead numbers, do you mind going into that a little bit for me?
Casey Hiers:
Wow. We don't even have our technical guys here and you want me to jump into some tech-
Jarrod Bridgeman:
You're in the hot seat [inaudible 00:05:44].
Casey Hiers:
There's multiple ways to calculate overhead. For the most part, true overhead is pulling out the owner's income, and everything else is going to be overhead to the practice owner. There's a couple caveats to that. But for the most part, that's how you're going to get the most true overhead number. And then, people always want to know, "How do I lower my overhead?"
Casey Hiers:
Because, unfortunately, we see a lot of people that, they'll go from 58% to 72% and three years and not know why. Because they don't know their numbers. And then it's too late, almost. You've already been sunburned. And then, they see that 72% overhead. And they're like, "Well, why?"
Casey Hiers:
Knowing your numbers, knowing all of those numbers, and knowing them in a timely manner, that's the biggest one. And most don't have time to know them, figure it out. And they're not getting them served up to them on a platter. And so, there's a real exposure to some heat there if you don't know your numbers.
Jarrod Bridgeman:
And I would say, another way to really look at those would be, any of your expenses, your supplies, marketing, all that stuff, actually categorize them better. Don't just throw everything into one lump category.
Casey Hiers:
A lot of times it's chartered accounts, and it's in alphabetical order, and it doesn't tell you anything.
Jarrod Bridgeman:
So, even something as simple as that can help.
Casey Hiers:
Yes. Well, and conversely, you also want your tax team to know your numbers.
Jarrod Bridgeman:
Right.
Casey Hiers:
And if you've listened to our podcast, you've heard this one or two times.
Jarrod Bridgeman:
At least.
Casey Hiers:
Talk to your accountant and your CPA, and make sure you have complete and correct numbers on a monthly basis, so there's no surprises. If your practice is going to have correct numbers, you also need your tax situation. Again, know your numbers. Be prepared. Don't be caught off guard.
Casey Hiers:
In our four to six-week process to vet out practice owners, quite frankly, to see if we want to help them and if we can help them, so many times, looking at a little bit of data, we tell them more in a four to six week period with a little bit of data than a team they pay has told them over the course of years or decades. And I know I've mentioned that before. But it really comes down to knowing your numbers, making sure your CPA knows your tax situation.
Jarrod Bridgeman:
Even if you don't understand your numbers necessarily, at least having them, so you can, as you said, give them to your CPA or your team.
Casey Hiers:
Well, ultimately, what happens is you look up one day and your insurance adjustments are 25%. Your income is nowhere near representative of your hard work. A piece of equipment goes down, which that's going to happen.
Jarrod Bridgeman:
Yep.
Casey Hiers:
And you get a tax surprise. "Oh, guess what? You owe $40,000." That's the kind of heat that can happen if you don't get out in front of this stuff.
Jarrod Bridgeman:
And if you don't know those numbers, also are you are your fees set right.
Casey Hiers:
Wow.
Jarrod Bridgeman:
Are you charging enough?
Casey Hiers:
That's a great one. Yeah. Part of our vetting process is, we do a fee study. What would it look like to be in the 80th percentile of fees in your zip code? And you look at geography and cost of living and put all those factors in it. But some people are 20%, 30%, 40% low and they don't even know it. Others, maybe it's more like 7% to 10%. But regardless, it's good information.
Jarrod Bridgeman:
Mm-hmm.
Casey Hiers:
But then the dreaded insurance. "Well, it doesn't matter what my fees are because I'm only getting X from insurance." And so, again, that's a whole other topic.
Casey Hiers:
But ultimately, all those things can "bring the heat" and cause a lot of discomfort if practice owners aren't aware of them. But they're busy producing great dentistry and having lives, that you run out of time. But that's the hard part, is when two or three of these things start to crumble down upon you. Then again, it's like when I was a freshman in high school on Panama City Beach and forgot to put my sunblock on my feet while playing football with my friends. And that night, my feet hurt. By the morning, they had swollen up. I was on crutches for 13 days because my feet looked like the Nutty Professor clumps feet, and they were massive, painful. Couldn't walk.
Jarrod Bridgeman:
How many days into the vacation did this happen?
Casey Hiers:
I think it was a Wednesday.
Jarrod Bridgeman:
Okay. So, halfway through.
Casey Hiers:
Funny what you remember. Yeah. And for whatever reason, just didn't put it on my feet that day, and got crushed. And then, guess what? By the time I realized it that night when I took a shower, and I was like, ouch, the damage was done.
Casey Hiers:
It was too late. So many of these topics, they get out of hand quick. And it's not necessarily too late unless you're in your 60s or 70s.
Jarrod Bridgeman:
Right.
Casey Hiers:
But you know, getting out ahead of this, I think, is what is important.
Casey Hiers:
Weather analogy. Know the forecast, have the proper things, be prepared, much better.
Jarrod Bridgeman:
And you know what? Just like a sunburn, it's going to take time to heal. There's no magic [inaudible 00:10:27].
Casey Hiers:
Is that Confucius.
Jarrod Bridgeman:
I think so.
Casey Hiers:
Wow. That's good stuff, man. Deep thoughts by Jarrod, right there.
Casey Hiers:
Maybe the sun's gotten to you.
Casey Hiers:
I'm kidding.
Jarrod Bridgeman:
All that Vitamin D.
Casey Hiers:
Well, speaking of the heat, I was joking, we are having Florida-like temperatures. I'm actually flying down to Orlando this week to present some continuing education at the Florida dental conference.
Jarrod Bridgeman:
That'll be a big one, right?
Casey Hiers:
Yeah. In terms of state meetings, it's very well done. It's large, very well attended. The resort it's at, it's one of those where most all of the dentists and specialists and team and staff, we're all at the same resort. I love that versus the ones where you're spread out all over a city. And so, there's a real good vibe to it. They also have some good smoked old fashions at the lobby bar. I ran into those about four years ago before everybody knew about them.
Casey Hiers:
But, yeah. Going to be in Florida, presenting some, again, underserved, a multimillion-dollar topic, which is the business side of dentistry.
Jarrod Bridgeman:
So, if you're, if you're going to be there, not you, you the listener, if you're going to be there, this be good time to come and chat up Casey.
Casey Hiers:
Yeah. We'll have an exhibit out, as well, but yeah, we're presenting on Saturday afternoon from 2:00 to 4:00, business side of dentistry. It might already be sold out, actually.
Jarrod Bridgeman:
Oh. You're popular?
Casey Hiers:
The subject matter is.
Jarrod Bridgeman:
Oh, okay.
Casey Hiers:
Like you said, I've got a face for radio.
Jarrod Bridgeman:
That's right.
Jarrod Bridgeman:
So, after Florida, coming up in August, we've got a really fun top golf event where you'll be teaching people how to lower their overhead, and hopefully work on their handicap, lower that a bit. That'll be August 5th in Fishers, Indiana. We're sticking to our home plate, here.
Casey Hiers:
I don't even have to hop on a plane. We did one of those out west. And we had a good time, a lot of good attendance out there. We had fun. We hit the golf ball. And then we covered a poor man's version of this topic, honestly, the business side of dentistry. And there were people there that wanted to hit the golf ball and learn about it. It was a lot of fun. I'm not great at golf, but I did beat everybody. I got lucky on three shots in top golf. You don't have to be good to put up a high score.
Jarrod Bridgeman:
Mm-hmm.
Casey Hiers:
But, yeah.
Jarrod Bridgeman:
So, August 12th we'll be doing the same thing in Auburn Hills, Michigan, which is just outside Detroit.
Jarrod Bridgeman:
And I will say, if you're listening to this, and you're interested in talking with Casey and you're interested in the subject, but you're not really into golf. I would say go, if you've never been, I went for the first time last week and had a blast. And it was my first time ever swinging an actual golf club, not just a putt putt. And it was a lot of fun. I would compare it to maybe bowling. You go up and take a couple turns. You come back. Have a beer. Have a water. Have some food. And I'm telling you right now if you're not into golf, it's way more fun than you thought it would be.
Casey Hiers:
Agreed.
Jarrod Bridgeman:
All right. Thanks, Casey.
Announcer:
That's all the time we have, today. Thank you to our guests for their insight and for sharing some really great information. And thank you to you, the listener, for tuning in. The Millionaire Dentist podcast is brought to you by Four Quadrants Advisory. To see if they might be a good fit for you and your practice, go on over to fourquadrantsadvisory.com, and see why, year after year, they retain over 95% of their clients. Thank you again for joining us. And we'll see you next time.
