IN THIS ISSUE

RICH DENTIST

POOR DENTIST:

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Dental Office Design Conf

I will be speaking at the  T.H.E. Design Conference, Austin, TX, September 16-17, 2005.  See www.thedesign.com for details or to register.

We Offer A Full Range Of Financial Consulting Services For Dentists.

We work with dentists who have these 5 different characteristics:

1. They have more than $200,000 in business debt.

5. They want to jump start their retirement plan.

If you have one or more of these characteristics, call us at 317-581-5664 to see if we can help you with your situation.  Or click here for details

How to structure your practice debt to maximize your financial health.

The way you structure your practice debt will make a material difference to your cash flow, your retirement and your ability to enjoy life.

In this article I am going to provide you with a frame work for determining your ideal debt structure. This material is taken directly from The Financial Leadership Solution™ which is the best way I have found for helping doctors through this process.

Free Cash Flow, Compounding and Practice Debt

Let's begin by defining some terms and concepts.

The single most important financial measure of a business is free cash flow. Free Cash Flow is the money generated by a business that is available for the owner of that business after all expenses and capital expenditures have been made. The more free cash flow available, the happier the owner, assuming all other things are held constant. You want to maximize your free cash flow.

Compounding can be defined as returns on your returns. Pretty simple and really powerful. The trick to wealth is to generate free cash flow and invest it in assets that compound. Your debt structure will drive what you have available to invest.

Practice debt is any borrowed funds used for your practice including equipment leases, credit cards, seller notes and bank or building loans.

Your ideal debt structure is defined as the debt that creates the monthly payment that allows you to generate the free cash flow you require to meet your long-term business and personal goals and allows you the flexibility to make changes to your assets when your goals dictate while maintaining your lifestyle.

With these definitions behind us, we can begin to determine how to identify your ideal practice debt structure.

The first step is to define your short and long term goals. Do you want to move your office or residence, re-finance your house, fund your retirement, vacation in Europe, start a college fund, buy a boat. You must know what your ideal future looks like so you can plan accordingly.

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Are You At Risk For The Disease  Afflicting More Dentists Every Day Called "Lackawealthitis"?

Give me 30 minutes with any dentist and I can tell you if they are on track to achieve their goals.

How?  Well for one, statistically speaking, most dentists are great at dentistry but poor at creating wealth.

Two, because dentists aren't taught the fundamentals for creating wealth (not just cash flow) via their practice, they tend to make poor financial decisions early in their careers.  Unfortunately, the results of poor "financial related" decisions can rob the average dentist from millions of dollars of wealth when it comes time to retire.

With just a few simple questions I can usually uncover past poor decisions that are an indicator of future problems.  But the good news is a poor financial past doesn't have to predict your future wealth!

Are you at risk for making poor financial decisions?  Ask yourself these  questions:

1. Do you have more than $200,000 in business debt?

2. Are you about to expand your facility?

3. Are you contemplating moving your practice?

4. Are you are contemplating building an office building?

5. Do you want to jump start your retirement plan?

If you answered "YES" to anyone of the questions, we may be able to help because you're going to have to make some key financial decisions in any of the above situations.  Make any one of dozens of poor decisions and you can permanently stunt your ability to create wealth.

When we help dentists, we start with a Financial Health Assessment^TM.  Through a special set of questions we help you identify what has to happen for you to feel really good about your personal and business progress over several timeframes.

Click here to learn more about the Financial Leadership Solution^TM or call us at 317-581-5664 to see if a Financial Health Assessment could help you start to increase your personal wealth.

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Announcing Our New Website:

www.FinanceGeeks.com

Check out our new website.

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