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The Jam Jars were back our yesterday, during my team training day with the lovely folks at Celia Burn's practice "Nothing but the Tooth" in Sutton Coldfield, near Birmingham.
Celia had provided an analysis of her last 9 months of trading, I provided the 100, £1.00 coins, and we asked the team to allocate coins to:
Lab and Materials;
Clinicians fees (excluding Celia);
Staff wages;
Overheads;
Reinvestment and Growth;
Taxation;
Celia's net earnings.
As always, the suggestions from those present as to how much should be allocated to each "jam jar" were wildly different and mostly inaccurate. By way of examples, estimates of the cost of lab and materials ranged from 5% to 40%.
That's no surprise - why should anyone who works in a dental practice know where the money goes - unless you show them?
However, I commend this exercise to you - not as a pity party for the Owner (although what's left isn't much) but for the team to gain an understanding of where the money does go when a patient dobs their debit card at reception.
You might also raise a few associate's eyebrows (as we did) as to the "benefits" of owning their own practice.
The attached PDF will help you to get started - have fun.
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