In any business we often look outside of our industry to find new perspectives and inspiration. Recently I read MJ DeMarco’s Millionaire Fast Lane, and his 5 core business concepts really struck a chord for me. While it may sound like a “get rich quick” kind of theme, it is not.
On this episode of the Business of Dentistry podcast I’ll explore those 5 concepts and how they apply to your business practice.
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In The Millionaire Fast Lane MJ DeMarco discusses 5 concepts that can take a business from average to making millions. His position is that these 5 things must be in place and working to your full advantage, in order to make the most profits with the least effort on your part.
As I listened to this book I made notes on the 5 core concepts he discussed and began to explore how they applied to my dental practice; I looked at which of the 5 I was doing well and which areas I had room to improve. And as I did I found there were some gaps in my personal solo practice. I also believe there are gaps in our industry as a whole.
To understand these concepts I explain each in full on today’s episode, and have listed a brief summary of the five below.
Is there a need for your business? Do you solve a problem or provide a product that gives consumers something they want? If the answer is yes you are filling a need in the marketplace, and you have fulfilled one of the 5 core principles to having a millionaire fast lane business.
What is the barrier to entry in your business? In other words, how hard is it to start your business? For dentists the barrier to entry is high, and that’s a good thing according to M.J. The higher the barrier to entry the less likely others will saturate your marketplace – and that’s a good thing! We as dentists have a high barrier to entry so congratulations, you’ve fulfilled another of the 5 core principles.
How much control do you have over your business’ practices? Are you the sole owner or are you a contractor? Do you have partners or associates? If you have 100% of the control you reap 100% of the financial rewards, another good thing. So if you own your practice you can say yes to this core principle.
Scale boils down to two things: reach and magnitude. Reach simply means the number of people you can reach and serve with your business. Do you have one location or multiple? The more locations the more people you can serve.
And magnitude is simply the cost of your services. Are you primarily doing exams and dentures? Then your magnitude is lower versus someone who is doing high end cosmetic surgeries. With a greater reach and magnitude you have greater scale. The greater the scale of your business the higher the likelihood you have of creating a millionaire fast lane business.
Finally is the core principle of time. Time is a finite commodity: no one can create more time, and no one knows how much time they have on this earth. More money can always be generated, but more time cannot.
The idea behind this core principle is to free up your time from your business so you can do other things you love. If you are a solo practitioner your time is directly tied to your business’ income: you have to see patients to create revenue. If you have associates and have systems in place for the administrative side of your practice you now have more time to do other things you enjoy.
These are all important principles to use to examine your business and the model you’ve been operating under. I have taken a hard look at my own practice; I now know where there are gaps to be addressed and that’s something I discuss on today’s show. I recommend you do the same! Tune in to this episode of the Business of Dentistry Podcast and then check out The Millionaire Fast Lane.