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Backwards Decisions: Why Your Practice Growth Might Be Failing · The Millionaire Dentist™

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  Speaker 1: Hello, everyone, Welcome to the Millionaire Dentist Podcast, brought to
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  Speaker 1: you by four Quadness Advisory. On this podcast, we break
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  Speaker 1: down the world of dentistry, finances and business practices to
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  Speaker 1: help you become the millionaire dentists you deserve to be.
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  Speaker 1: Please be advised we do speak with an honest tongue
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  Speaker 1: and may not be safe for work.
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  Speaker 2: Hello and welcome.
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  Speaker 3: This is Casey Hires back at the Millionaire Dentist Podcast
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  Speaker 3: in studio with co host Jared Bridgeman.
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  Speaker 4: Casey, how are you today?
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  Speaker 2: Doing well?
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  Speaker 4: Doing well? You look like you've been You've had a
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  Speaker 4: busy day today. I've realy seen you made me sad.
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  Speaker 4: You're you're you know, you're the light of my life.
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  Speaker 4: You just come in. You're the sunshine to my to
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  Speaker 4: my day.
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  Speaker 3: Oh man, compliments early, I'm better to be on on
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  Speaker 3: on guard for what's coming.
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  Speaker 2: No, this is this is fun.
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  Speaker 3: We've a lot of events, a lot of traveling, a
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  Speaker 3: lot of dental organizations want us to come in.
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  Speaker 2: We do our own.
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  Speaker 3: It's it's all good, busy, a lot of conversations with
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  Speaker 3: the practice owners.
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  Speaker 4: You were out in Scottsdale very recently. I've never been
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  Speaker 4: to Arizona. I've always liked to go visit at some point.
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  Speaker 4: Did you How was your time out there?
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  Speaker 2: I love Scottsdale.
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  Speaker 3: If I was a tattoo person, I'd probably tattoo Scottsdale somewhere.
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  Speaker 3: I love it. Got in and out, was a good boy.
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  Speaker 3: Didn't bring my clubs. We were there for business, but
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  Speaker 3: I love that area. Yeah, uh oh, you seventy six.
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  Speaker 3: When I left Indianapolis it was four.
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  Speaker 4: Yeah, so that's got some.
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  Speaker 3: In an out burger, got some coffee bean because I
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  Speaker 3: used to live out Western some of my favorites.
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  Speaker 2: Got to enjoy your staples.
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  Speaker 4: You got a hit while you're.
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  Speaker 3: There, Yeah, and then a great event and then boom airport.
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  Speaker 4: That's awesome. I mean, I'm glad you had a good time.
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  Speaker 3: But I told my two daughters and my wife, like, hey,
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  Speaker 3: I came back, you know to be a family. Yeah person,
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  Speaker 3: And yeah, where's my medal? Like I wanted praise and
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  Speaker 3: did they get you one? No, Apparently that's just part
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  Speaker 3: of the thing you're supposed to do. I wanted extra accolades.
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  Speaker 4: Yeah, I'm that way with My daughter is eleven now
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  Speaker 4: is just doesn't seem to really care about anything. I
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  Speaker 4: have to say, yeah, it's coming whatever my Boy store
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  Speaker 4: aroundy seven. So Casey, one of the things I wanted
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  Speaker 4: to just mention real quick, quick little PSA for our
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  Speaker 4: listeners out there. You've heard us mentioned in some previous podcasts.
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  Speaker 4: The boy reporting that has originally was due back on
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  Speaker 4: December thirty first. It keep it kept getting pushed back
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  Speaker 4: and there's litigation. Currently it is back on track and
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  Speaker 4: there's a new due date of March twenty first. If
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  Speaker 4: you have not done that reporting, you need to or
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  Speaker 4: have your someone on your team take care of.
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  Speaker 2: That as a business owner.
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  Speaker 3: Yes, the government wants this document and not doing it yep,
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  Speaker 3: can be problematic penalties and fine and there's been litigation
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  Speaker 3: in courts and different things.
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  Speaker 2: But March twenty first.
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  Speaker 4: Thays dolls and may get pushed back again. But you know,
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  Speaker 4: keep an eye on it because if you miss it,
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  Speaker 4: it could could cause issues. So just just keep an
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  Speaker 4: eye off for that.
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  Speaker 2: Yeah.
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  Speaker 3: Well, it's a time of year for accounting and taxes
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  Speaker 3: and things of that nature.
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  Speaker 4: Dude, less than two months, Yeah, but what a month
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  Speaker 4: and a half now almost into February, tax days coming up.
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  Speaker 4: I personally dread tax Day just because I don't like
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  Speaker 4: messing with numbers and things too much. You know, you've
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  Speaker 4: been here longer than I have. You've been around our accountants,
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  Speaker 4: You've obviously done taxes in your lifetime. You're not a
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  Speaker 4: super young man anymore. But my question for you is
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  Speaker 4: what would be the what would be a major difference
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  Speaker 4: something to catch on very quickly of knowing if you
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  Speaker 4: have a proactive accountant versus an accountant that's just kind
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  Speaker 4: of reacts to news as it comes.
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  Speaker 3: Yeah, where there's smoke, there's fires sometimes, and specifically with
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  Speaker 3: practice owners. They provide a good product to their patients.
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  Speaker 3: They expect those that they employ to do things for
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  Speaker 3: them to do them well.
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  Speaker 2: Unfortunately that's not the case.
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  Speaker 3: We've talked about a lot of these things during the
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  Speaker 3: life of the podcast, but during tax time, if it's
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  Speaker 3: being extended, right, if your quick books are months behind,
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  Speaker 3: If your profit and loss statement and balance sheets are behind.
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  Speaker 3: If your QuickBooks say one thing, your financials say one thing,
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  Speaker 3: and your taxes say one thing, that's not good. If
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  Speaker 3: you have a shareholder loan on your balance sheet, what
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  Speaker 3: the hell is going on?
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  Speaker 4: Where to come from? You even have it?
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  Speaker 3: Yeah, the BOI, your CPA should be handling that or
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  Speaker 3: reminding you, because that's just how it should be.
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  Speaker 2: So if you're.
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  Speaker 3: Experiencing some of those things, you know, that might be
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  Speaker 3: your sign that you have here sign you have a
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  Speaker 3: nice person, you like them, they work with fifteen other dentists,
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  Speaker 3: but you might not be getting the expert tax advice
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  Speaker 3: that you need, I mean forced compost nice.
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  Speaker 4: I want to have him do my taxes. What listen. Well,
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  Speaker 4: one of the other things I wanted to bring up
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  Speaker 4: is you know, every once in a while, you got
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  Speaker 4: a business owner out there, you know, making several hundred
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  Speaker 4: thousand dollars a year in terms of their collections, and
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  Speaker 4: they're still possibly using like a you know, one of
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  Speaker 4: those online I don't want to name the companies, but
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  Speaker 4: you know you see commercials for them. What about those
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  Speaker 4: people that are just trying to file not only personal
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  Speaker 4: but their business through a simple software.
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  Speaker 3: Like that, oh like Turbo Tax or H and R
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  Speaker 3: Block or just now And we've run across that. It's
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  Speaker 3: typically newer owners and they they're yeah, they're trying to
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  Speaker 3: get their taxes done. They're still thinking as a civilian,
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  Speaker 3: not as a business owner. Right, Yeah, you get what
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  Speaker 3: you pay for yeah. I mean as a business owner,
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  Speaker 3: that should give you.
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  Speaker 4: Yeah, and if that's what your plan is this year,
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  Speaker 4: you may want to reconsider well.
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  Speaker 2: Tax strategy is a big deal.
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  Speaker 3: And again we don't hang our hat on one singular
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  Speaker 3: thing here, but just recently, some of the folks that
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  Speaker 3: we're working with and looking at their information and data,
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  Speaker 3: just by what we do as a standard of care,
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  Speaker 3: we're lowering people's tax liability. One person fifteen seven hundred
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  Speaker 3: dollars per year, another person it's like twenty one eight.
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  Speaker 4: That can almost get you some eggs.
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  Speaker 2: Nothing, it's nothing different.
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  Speaker 3: It's just structuring it in a way that masters the
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  Speaker 3: opportunity for good tax management.
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  Speaker 4: And don't get me wrong, it's a confusing world. Taxes
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  Speaker 4: can be very confusing, and you know there's one hundred
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  Speaker 4: forms for everyone thing. So that's why having a team
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  Speaker 4: or somebody's who's an expert in the dental field in
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  Speaker 4: terms of taxes is important. Yeah, yeah, Casey, you wanted
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  Speaker 4: to really bust my chops about something I did. I
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  Speaker 4: don't know. It could be what did you bring to
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  Speaker 4: the table for me? I brought all the other stuff.
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  Speaker 3: Now, the thing I the topic for today is ass backwards.
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  Speaker 2: There you go.
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  Speaker 3: Typically, for anything, there's a sequence of events needs to occur,
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  Speaker 3: and if you do something too soon or too late,
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  Speaker 3: it's not good. What am I talking about? Here's the
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  Speaker 3: big one. A lot of times a practice owner will
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  Speaker 3: want an associate, but everything else in their practice isn't great,
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  Speaker 3: and they get an associate where the order of things
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  Speaker 3: should have been different. We'll get into that a little
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  Speaker 3: bit later, but there's a lot of real life examples
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  Speaker 3: of getting out of order of doing something asked backwards,
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  Speaker 3: And the first one that came to my mind was,
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  Speaker 3: this was a long time ago. I met a on
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  Speaker 3: spring break in South Padre. I met a lovely lady
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  Speaker 3: and just getting to know her a little bit, her
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  Speaker 3: dad had reserved her wedding reception because there was a
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  Speaker 3: five year plus list to have a South Fork ranch
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  Speaker 3: in Dallas, which is where the show Dallas was recorded,
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  Speaker 3: And so she was twenty two or twenty one and
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  Speaker 3: they had already reserved that wedding spot. But here's the point.
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  Speaker 3: I didn't know her very long, and she had shared
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  Speaker 3: that with me. That's like on a on a second date,
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  Speaker 3: you're talking about how you're reading wedding or set like,
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  Speaker 3: that's ass backwards, that's that's not doing things in the
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  Speaker 3: right order, right, right.
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  Speaker 4: So you know this is something that was not with me,
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  Speaker 4: but a friend, a family friend. They wanted a really
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  Speaker 4: one of those expensive different cats, you know, like like
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  Speaker 4: man coons, those kind of things. So they went and
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  Speaker 4: got a pure bread and it was like, I don't know,
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  Speaker 4: a couple like two thousand dollars something, you know, I'm
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  Speaker 4: a go down to the shelter kind of guy. But
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  Speaker 4: they did that and brought the cat home and realized
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  Speaker 4: that their daughter was severely allergic.
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  Speaker 2: Yeah. Yeah, same principle, right, it's do things in order.
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  Speaker 3: And there's endless examples of this right of doing something
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  Speaker 3: asked backwards where you're like, oh, I should have done
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  Speaker 3: these three things first, and you learn the hard way.
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  Speaker 3: But in owning a practice, holy cow, And that's one
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  Speaker 3: of them. And the example you just use. If you
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  Speaker 3: want to buy a practice and be a business owner
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  Speaker 3: ahead of time, you need to speak with some very
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  Speaker 3: very good accountants and CPAs because there's so many implications
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  Speaker 3: and if you're using one of the basic items that
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  Speaker 3: we talked about earlier, you need good tax advice before
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  Speaker 3: you go out and do something major. But then once
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  Speaker 3: you're an owner, it's incredible how many things are backwards
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  Speaker 3: in a practice.
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  Speaker 4: I mean, we've mentioned before we've come across cases where
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  Speaker 4: an associate was making more money than the owner.
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  Speaker 2: That happens a fair amount, right.
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  Speaker 4: Or it was costing you know, buck ten for every
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  Speaker 4: dollar they were earning.
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  Speaker 2: Yeah, yeah.
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  Speaker 3: Or you know, somebody has a practice and they're overhead
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  Speaker 3: seventy five percent and they go open a second practice.
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  Speaker 2: Ideally you would get.
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  Speaker 3: Your first practice great cash flow, great income, great overhead,
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  Speaker 3: really really humming, and then you would launch that second one.
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  Speaker 4: Well heck, once you get everything rolling the right way
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  Speaker 4: in your one practice, you may realize I'm pretty happy
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  Speaker 4: with what I'm doing right now.
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  Speaker 3: Well, people I talk to who want extra practices because
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  Speaker 3: they don't make the money they want. If they could
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  Speaker 3: make the money they want with one, they would prefer one.
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  Speaker 3: But it's out of order. So many times with again
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  Speaker 3: the associate or a second or third location. There are
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  Speaker 3: things that you need to do first. Yes, where that
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  Speaker 3: can be a really good idea, right.
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  Speaker 4: So, I mean there's always a positive thing to set
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  Speaker 4: a goal. This is something I would like to do
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  Speaker 4: because I really do love the idea of having someone
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  Speaker 4: work under me or having a second practice. Set that goal,
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  Speaker 4: but then talk to the experts, talk to the people
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  Speaker 4: and be like, what are the steps that need to
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  Speaker 4: be done to get myself secured and make that happen.
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  Speaker 3: Yeah, you need to know what needs to happen to
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  Speaker 3: get there. In the example of the talking about your
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  Speaker 3: wedding reception location, when you just meet somebody, Okay, if
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  Speaker 3: you want your wedding to be someplace, what needs to happen, Well,
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  Speaker 3: you need to meet somebody, and you need to establish
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  Speaker 3: a good friendship, and you need to you know, do
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  Speaker 3: all these things first. Then having a wedding reception a
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  Speaker 3: really cool venue that's booked out five years can be amazing.
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  Speaker 4: How many shotgun weddings need know that we're successful for
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  Speaker 4: a long time. I maybe back in the day, well,
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  Speaker 4: and I was going to make a joke about how
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  Speaker 4: you know, I'm not going to enter a bodybuilding petition
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  Speaker 4: and go tomorrow and hope for first place. Yeah, I
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  Speaker 4: know you can't see me right now, folks, But a lot.
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  Speaker 3: A lot of practice owners will bring on that associate
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  Speaker 3: hoping and thinking that that's going to be that, that's
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  Speaker 3: going to be the one. And so again it's just.
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  Speaker 4: Having a baby together, we'll save our marriage. Having an
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  Speaker 4: associate will save my practice. Just burned down everything.
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  Speaker 2: Yeah, it's in dentistry.
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  Speaker 3: There's a lot of things that need to be done
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  Speaker 3: a certain way, and people will jump steps, skip steps,
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  Speaker 3: ignore steps, and then they'll make big decisions and they
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  Speaker 3: don't like the result, they don't like where they're at.
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  Speaker 3: And again it's just it's getting things ass backwards. Get
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  Speaker 3: your practice and everything about your money right. Then you're
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  Speaker 3: in a better position to go make decisions or take
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  Speaker 3: some risks, or grow or whatever.
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  Speaker 4: That looks not any different than when you perform your
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  Speaker 4: It don't work on a patient. There are certain steps
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  Speaker 4: you follow to ensure that everything is done, you know,
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  Speaker 4: sanitize and clean and done in the right order and
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  Speaker 4: the patient isn't in pain and all that stuff.
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  Speaker 2: Yeah, if you if you skip six steps and jump ahead.
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  Speaker 3: It's not it's not going to turn out the way
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  Speaker 3: you want it. So many, so many of these examples.
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  Speaker 3: That's how it is. As a practice owner. It's easy
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  Speaker 3: for us to talk about it. We see it a lot.
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  Speaker 3: And then when we bring strategy and a plan and
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  Speaker 3: put numbers to things. Yep, boy, it adds clarity. You know,
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  Speaker 3: you're so right, because, like you know, we see.
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  Speaker 4: Dentists and talk to gnis all across the country and
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  Speaker 4: we see all these cases and for us, there's so
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  Speaker 4: many common issues that may be different a little bit
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  Speaker 4: here and there. There's a lot of common issues. But
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  Speaker 4: to the person we're talking to, it feels like it's
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  Speaker 4: just them against the world. You know, you always say
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  Speaker 4: like maybe, like are you do you think like you're
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  Speaker 4: on an island. They don't realize that this is there
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  Speaker 4: is people out there to help them with these things.
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  Speaker 3: Yeah, this cliche saying, but it's very true. People just
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  Speaker 3: don't know what they don't know. A lot of practice
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  Speaker 3: owners they're not trained or educate in on a lot
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  Speaker 3: of the decisions they're making, and it's hard.
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  Speaker 2: They just don't know.
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  Speaker 3: When you add the again, the strategy and expertise and
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  Speaker 3: the numbers, they quickly realize. We love to educate them.
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  Speaker 3: Oh that makes sense. This isn't necessarily a bad idea,
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  Speaker 3: but it would be a really bad idea if I
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  Speaker 3: did it when I thought I should do it. Instead,
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  Speaker 3: I need to do these three things and then this
• 12:05
  Speaker 3: will be the trigger for this action. Boy, when you
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  Speaker 3: put systems in and have numbers to guide you, it helps,
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  Speaker 3: and so many practice owners get things ass backwards.
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  Speaker 4: I mean, even just being in my own little department
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  Speaker 4: and marketing over here. I've built my own systems and
• 12:19
  Speaker 4: have some things going that might have taken a little
• 12:22
  Speaker 4: work on the front end, but it's really made things
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  Speaker 4: better in the long run.
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  Speaker 3: Well, you could come up with a really nice marketing
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  Speaker 3: piece to send out that we're doing something really cool
• 12:29
  Speaker 3: in some city, but if we haven't reserved the space
• 12:31
  Speaker 3: and scheduled flights and planned accordingly and invited people, then
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  Speaker 3: that action was a terrible.
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  Speaker 2: Decision, was of everything.
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  Speaker 4: Yeah, yeah, Casey, thank you so much for stopping in today. Folks.
• 12:43
  Speaker 4: We talk about our events a lot. We've got way
• 12:45
  Speaker 4: more coming up. Next week, we're going to be in Birmingham, Alabama.
• 12:50
  Speaker 4: That's gonna be pretty exciting. We're going to we just
• 12:52
  Speaker 4: launched some events and we're gonna be in Denver, Colorado.
• 12:55
  Speaker 4: In a few months. We're gonna be hitting Louisville and
• 12:57
  Speaker 4: Kentucky and Lexington. We're gonna be the Carol Visit four
• 13:00
  Speaker 4: Quadrantadvisor dot Com slash events check it out and.
• 13:03
  Speaker 2: Please come, please register be at the Henman too.
• 13:06
  Speaker 4: We'll hope and you're presenting at them, right, Yeah, that'll
• 13:09
  Speaker 4: be fun. And the night before we're doing a social
• 13:11
  Speaker 4: you're in Atlanta.
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  Speaker 3: We're gonna we got another we're sending off one of
• 13:14
  Speaker 3: our clients. He was the president of a state dental association.
• 13:17
  Speaker 3: We're gonna send him off with a nice event that's
• 13:18
  Speaker 3: more private, right, I shouldn't have probably that.
• 13:21
  Speaker 2: We love our clients.
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  Speaker 4: Anyways, Casey, thank you so much and I can't wait
• 13:26
  Speaker 4: to hear on your next trip.
• 13:28
  Speaker 2: I'll when Thanks.
• 13:31
  Speaker 1: That's all the time we have today. Thank you to
• 13:33
  Speaker 1: our guests for their insight and for sharing some really
• 13:35
  Speaker 1: great information, and thank you to you the listener for
• 13:38
  Speaker 1: tuning in. The Millionaire Dennis Podcast is brought to you
• 13:40
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• 13:43
  Speaker 1: a good fit for you and your practice. Going over
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• 13:48
  Speaker 1: year they retain over ninety five percent of the clients.
• 13:51
  Speaker 1: Thank you again for joining us, and we'll see you
• 13:53
  Speaker 1: next time.