When Dr. Karen Verga engaged our firm to help with her dental practice, KAV Pediatric Dental, she immediately shared with Ernie Villany (Chief Advisory Officer) and Lara Gonzalez (Senior Accountant in Charge) her need to expand her financial education and improve knowledge surrounding business best practices.
“Managing the financial side of my business was frustrating,” she said. “I know dentistry, but I knew very little about the financial aspect of running a business. In fact, I didn’t even know enough to start asking the right questions! With Ernie and Lara as financial tutors, I realized I could learn key financial skills that would benefit myself, my staff, and my business as a whole.”
Ernie and Dr. Verga create a strategic plan
While Ernie was impressed with the health of Dr. Verga’s business and the potential of her practice, he was also able to identify key areas of concern that were holding the business back. Together, the two worked to define short- and long-term goals designed to amplify the practice’s growth.
WE KNEW THE PRACTICE HAD ROOM TO GROW
“(Karen’s) business was doing fine when she contacted me,” explained Ernie. “The only problem was that it wasn’t growing or blossoming in the way it could have. We knew the practice had room to grow, and we were determined to make it happen. Plus, Karen is an excellent pediatric dentist, but she didn’t have much financial literacy. So, in addition to growing her business, we wanted to teach Karen how to handle her company’s payroll and help her develop basic money management skills, like saving for retirement and preparing for tax season.”
Developing a business owner’s mindset
As is common among dentists, many solo practitioners fail to recognize that while their day-to-day tasks may be clinical, at the end of the day they are business owners – and need to take responsibility for wearing that hat in addition to their chosen profession.
Ernie set to work helping Karen embrace the totality of her role as the CEO of her dental practice.
“It’s about more than just learning financial basics and how to do my taxes,” noted Dr. Verga. “It’s about changing my mindset. Instead of seeing myself as a dentist with my own business, I now see myself as a dentist and an entrepreneur! I couldn’t have gotten here without a strong accounting firm that I trust implicitly.”
A HOME RUN – MAKING MORE MONEY THAN EVER
“My experience has been amazing,” she continued. “A home run! I’m making more money than ever, but more importantly, I’m comfortable paying my bills. In addition to getting my practice back on track financially, Ernie and Lara helped me build my understanding of business, taxes, and financial management. I’ve learned how to prepare for retirement, grow my savings, and build a better business.”
Tools implemented, lessons learned, and success achieved
Part of our advisory process with Dr. Verga has been to help her implement an effective payroll system and create a Quickbooks Online account to help her expand and manage her practice.
Along with getting together to review financial statements, Ernie has educated Dr. Verga on the nuances of loans, lines of credit, and more. She proved to be a quick study and her new, savvy approach to business led to a 300% increase in gross income over just seven years. Greater success also made it possible to provide PTO, insurance and other benefits for the staff at KAV Pediatric Dentistry, leading to improved employee satisfaction and retention.
“I want to make it abundantly clear that the increase in gross income was largely due to Karen’s self-empowerment,” said Lara Gonzalez. “Karen is anything but a bystander. She is in complete command and right in the middle of every decision-making process. We provided her with tools to better understand the financial aspects of her business, but her success is all her own doing.”
LOOKING FORWARD
Dr. Verga is determined to continue expanding and growing her practice, caring for children while further strengthening her thriving and profitable business.
CHALLENGES
- Lack of financial literacy
- Frustrations with business management
- No strategic plan or long-term growth vision
- Insufficient tools and software to manage business properly
SOLUTIONS
- Collaborate to identify and set short- and long-term goals
- One-on-one financial education consultations
- Implement Quickbooks online and other financial management tools
- Empower owner to change her business mindset
RESULTS
- 300% gross revenue growth over seven years
- Full command over financial decision-making process
- Dr. Verga adopts an entrepreneurial mindset and spirit
- Dental practice continues to grow and expand
