Tuesday 1 February 2011

W=V X L




I was at a seminar this morning discussing the equation for wealth

A group of us acknowledged that W=V X L

Where W = Wealth

V = Value

L = Leverage

So what this means is that our wealth is determined by how much value we add multiplied by how much leverage we can apply

For most of us the concept of wealth and value are relatively easy to understand, the term leverage is a little more abstract.

Essentially leverage is a multiplier, if you can remember back to your days of elementary physics you will recall a lever allows you to move a heavy load with reduced effort, or a much heavier load with the same effort. So to with wealth generation when you have got leverage you can achieve so much more with reduced effort.

“So what are these levers?”

5 levers in wealth generation

· Finance – tha ability to use other peoples money.

You may be wanting to develop, extend, or refurbish your practice, and not have the funds yourself, who else can you get to invest in the project for you?

· People – other people’s time.

As a principal of a busy dental practice you have many demands on your time, who else can you ask to do the work? Who can you develop a stragegic alliance partnership (SAP) with who may be willing to develop your practice? Some people do not want to be paid, I have come across a local business school whose graduates are looking to have business project for a discertation and want to do the work and not get paid. Win Win

· Systems and technology

Systems and technology are a great way to save time and improve your offering to clients. And yet inmy experience with the practices I work with the systems and technology are generally under utilised or not fit for purpose. I was talking to two practices the other day who have gappy appointment books about their recall and reactivation systems, only to discover that they are not computerised and are trying and failing to maintain a steady flow of patients with pen and paper. As you think about your practice, where could effective use of systems and technology enable you to grow your wealth?

· Marketing

Marketing, particularly digital, social and online marketing are a wonderful way of communicating your message and value to many people at one time. Using your computer and the right software, it takes the same effort to converse with one potential client as it does to 1,000. Developing joint ventures (JV’s) with people who are already working with your ideal patient base, and you theirs, is a very cost effective way of accessing potential patients at minimal cost. If your marketing was really working what added wealth could it generate for your practice? Who could you joint venture with to build your practice?

· Franchising and licensing

This is a very efficient way of converting knowledge, systems and concepts in to wealth. This is really under utilised currently in the dental market place at present although I am seeing increasing evidence of people embracing the concepts and making returns. What specific system, concept or piece of knowledge do you have in your practice that you could franchise or license?

If you would like to discuss or explore any of the issues raised in this blog please e mail me jane@healthyandwealthy.co .uk or call me on 0044 (0) 7989 757 884

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