Profitable Numbers and Efficient Systems with Kristine Berry – 006

Ground Control to Major Numbers! Kristine Berry is in the house!

Talk about systems and numbers – for dental practices!

It’s like pulling teeth to get these dentists profitable. She rocks. Listen in for some nuggets.

Our podcasts are interviews between Justin Krane, Krane Financial Solution’s President, and various professionals, one or more of which are or have been Krane Financial Solutions clients. However, nothing stated within the podcasts should be considered a testimonial or endorsement of Krane Financial Solutions or Justin Krane, and the professionals have not been directly or indirectly compensated for being interviewed.

Kristine started as a dental hygienist and became a practice management consultant and industry leader in business development. She provides business advisory services to dental practices seeking to transform operations and growth while delivering results. Kristine helps strengthen teams by working on interpersonal relationships between leadership and works with offices to boost revenue, streamline operations and lead by key performance indicators.
**SCROLL TO THE BOTTOM FOR THE VIDEO!**

Finding Happiness

Kristine started as a dental hygienist and fell in love with the people she was working with.
She believes dentistry (and business!) should be fun.
She looks for ways to provide systems and functions to practices – people may go home tired, but she does not want them to feel frustrated in their business.
Kristine started learning about positive psychology about 10 years ago.
We are all born with a happiness set point, but we can actually change this set point if we choose to.
It’s tough for dentists working in the environment they work in – hearing how patients do not want to be there, day in and day out, can become taxing to the dentist and hygienist.

The Importance of Systems

How effective your systems are has a direct effect on your profitability.
You can be the best clinician, but if you don’t have systems and protocol in place, your business will suffer – there is freedom in structure.
Creating systems starts with a conversation to identify the clients’ values and goals.
Then Kristine helps the client take a step back and figure out what systems need to be put into place to make these goals a reality.
She works to create and implement the systems through training and follow up with the rest of the team.

Knowing Your Numbers

With all the continuing education and running of the business, sometimes the numbers get lost.
You may know your sales, but do you know your profit?
Learning what the benchmarks and trends in your industry is one way to judge where you are at.
There are also lots of resources available to help you figure out the numbers.
There is a sense of scarcity in dentistry – dentists can feel like they can’t share what’s working for them with other practices nearby for fear of all their clients leaving.
But this is not the case and this is one of the major challenges of dentistry.
We need to be able to share what’s working and when we are struggling with each other and grow into a more supportive community.
We need to adopt a mindset of prosperity to break free from this behavior and think differently.

P & L Line Items You Need to Know

Doctors compensation – 23% of revenue
Front Office – 7% of revenue
Dental Assistant – 7% of revenue
Hygiene – 7% of revenue
Doctors Benefits – 3% of revenue
Training – around 2%-3% of revenue
Facilities – 5% of revenue
Marketing – 3% of revenue
Dental Supplies 5% of revenue
Lab Expenses – 6% of revenue
Professional Fees – 2%-3% of revenue
Taxes – 5% of revenue
Make sure to track treatment acceptance (by office if you have more than one):
- 85% – 95% of current patients should be accepting treatment plans.
- 70% – 85% of new patients should be accepting treatment plans.
- 60% – 80% of the doctors’ schedule should come from the hygienist.

Best Quotes:

“We can change our circumstances, we can change our choices, so hence we can change our level of happiness, if we want to.” (10:27)

“I think structure can actually set you free.” (13:33)

“If your office doesn’t run effectively, you may not be able to have enough cash flow to have your team cash their checks.” (14:36)

“It’s establishing the systems in place but then it’s following up with the team.” (20:35)

“I think that scarcity mentality is threatening a lot of providers. They don’t want to share with their colleagues that they may be struggling.” (27:05)