Sitting Down With Dr. Chad Williams

Episode 070

In this episode I have the privilege and honor of speaking with my friend and colleague Dr. Chad Williams.  In our discussion he gives his story on how he went from an associate to practice owner and then we delve into some of his experiences over the past 16 years.  I think you will find what he shares informative, educational and entertaining.  Give a listen to episode 70 of Business of Dentistry!

2017 Staff Photos 031

More About The Business of Dentistry

I asked Dr. Chad Williams to join us for a number of reasons. He’s my top referral, and one of my closest friends. Because he’s has been in practice for 16 years, he has plenty to share about what he’s done right, what he’s done wrong and what advice he has for someone in the first few years of their practice – and he’s talking about it all on today’s show.

We are both located in Lebanon, TN. He arrived in town after graduating from dental school in Louisville, Kentucky. But before settling down here, he tried to join the Army Reserves in Clarksville, TN. The Army wouldn’t take him because of multiple knee surgeries, so when he heard about a dentist in Lebanon who was leaving his practice to become a firefighter, Chad jumped at the opportunity. He’s been here ever since.

Those first few months and years had their rocky moments though. Originally he was given five months to work in the practice before deciding if he wanted to continue, walk away or buy the dental practice outright.

A few months in Chad decided he wanted to buy it. He liked the people in town, and the proximity to Nashville. So on January 1 of 2002 he bought the practice.

It didn’t take long for his new practice’s office to need an overhaul though. The original dentist hated being a dentist, and hated having a practice so he did the bare minimum in terms of services, and spent as little as possible to keep the practice running. Chad gave it a complete makeover from the carpeted floors to the outdated wallpaper.

Plus the office was in a residential area; the original dentist had remodeled a family home into a dental office so by 2005 the practice was at maximum capacity. Chad had only 1.5 rooms to work in so he and his wife Betty looked into all their possible alternatives.

They found a piece of property on the main drag of the town and thought it would be a perfect place to build a new office. It was about 1.5 acres, so he built 5,000 sq. ft. of space to lease to others, plus 4,400 sq. ft. for his dental office. They loved it and got to work on the design in 2006 and started building in 2007.

He says the entire process was as smooth as broken glass! The economy took a downturn so they struggled to fill the additional office space. They had been looking for service professionals to complement a dental practice: dental specialists, medical specialists, CPAs, lawyers, etc.

They turned down 200 liquor stores, tobacco stores, and other non-professional service businesses. Because of that they were the only tenant in the building for a few years, but recently they signed a lease with a hospice that will occupy for the front 3,000 sq. ft. and are hopeful the rest will soon be occupied as well.

We also talk about his two pieces of advice if you are in the first 3-5 years of your private practice. His first bit of advice is to lose your ego, put down your pride. He admits his practice has always done much better when he’s put aside his pride.

For example, whenever he sits down with a patient and looks at them as a peer, it changes the dynamic in a positive way. He talks to them about how he can help them, and what they need done, rather than telling them what he could do for them. Then he listens to their questions. All of this helps his patients to be less nervous and more agreeable to his treatment plan recommendations – that and his use of humor, something he is known for!

Hear the other piece when you listen in to today’s show. You’ll also hear how he works 3.5 days a week, how presents his treatment plans for greater patient buy-in, and the three hurdles that patients have. Dig in to that and more on episode 70 of the Business of Dentistry podcast!

Tweetable: “Learn from your ears, not from your mouth.”

Episode Resources

Dr. Chad Williams’ website
Dr. Chad’s practice on Facebook
Eaglesoft Dental Software
The Alan Mead Experience
Patient Activator from 1-800-Dentist
Solutionreach Total Patient Relationship Management
Platelet Rich Fibrin Basics course

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Business of Dentistry on Facebook

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Are You Doing A Quarterly Review?

Episode 069

This is the first installment of a weekly double header. In this episode I wanted to touch base and see if you were getting quarterly business statements from your accountant. I go over a few things I look for in mine on episode 69 of Business of Dentistry podcast.

More About This Show

I will start this episode off by saying I’m not an accountant – nor do I play one on TV! – but I recommend using quarterly reports. They help me understand where my practice is at so I can adjust accordingly. Let me explain how I use them and how I tailor my practice with the information in my quarterly reports.

James is my accountant and he does quarterly business statements for me, these statements are actually called “statements of revenue and expense on an income tax basis”. He runs these for me every quarter.

I suggest doing these every quarter because it gives you a snapshot of how your business is doing compared to last year at this same time. I like that fact, it breaks up the year into smaller chunks and gives time to recognize any trends in profits (good or bad). Because I do these quarterly I can adjust to those trends much quicker than if I waited til the end of the year to review everything.

Now here’s what I’m looking at when I look at these quarterly reports: first is income, then is expenses and then finally net profit.

Regarding income I look at what we collected in this year’s quarter versus last year’s, did we go up, down or stay flat? I look for trends and potential reasons why we increased or decreased, and then I either continue those trends if they helped us increase or I look for the solutions to any decrease.

For example in the first quarter of 2017 versus the first quarter of 2016 we went up 10%. I was happy with that – it’s double digit growth so of course I was happy! But I began to think back to 2016 and realized I took more time off in the first quarter of last year than I did in the first quarter of this year. So that 10% is a little misleading. If I factor in my time off from last year it could make that income be flat rather than 10%.

Next is expenses followed by net (or the bottom line). In my report expenses are covered, things like CE for my employees, payment for staff uniforms, computer improvements, marketing & advertising, service charges, dues and subscriptions, the various forms of insurance like malpractice, disability, etc. any license expenses, office supplies, etc. Those are all expenses.

Naturally we want less money spent on expenses if possible, that will give us a better net profit overall.

Finally, a the end of all of this, I look at our net income for this year’s quarter vs. last year’s quarter at this time. The first quarter of 2017 saw our practice have a 41% net increase over last year’s first quarter. We lowered our overhead, generated more income and had a better overall net income as a result – exactly where I wanted this practice to go!

I have a few qualifications, which I explain on today’s show. You’ll hear a specific example of why I stress having an emergency fund/savings for your business, and how my fund was useful for the practice earlier this year.

Listen in for that story, and then let me know if you are doing quarterly reports in your business. If not, why aren’t you? Everyone has their own way of running their business so I’d love to hear what you do differently, and how it’s working for you. Hear my thoughts on that and more on episode 69 of the Business of Dentistry.

 

Tweetable: “It’s the barometer of the health of your business and your practice.”

Episode Resources

Platelet Rich Fibrin Basics course
Email me

Business of Dentistry on Facebook

Connect with me on Twitter