Anne: Hello everyone, it's Anne Duffy. Welcome to Dental Entrepreneur, the Future of Dentistry podcast. I'm so happy that you're with me today. I have such a dear friend. We go way back. that is going to be my guest. But before we get started, I wanna tell you a little bit about her. Barb Stackhouse has a rich background in dentistry, having worked as a dental hygienist before launching her entrepreneurial career.
Barb is the author of Prophet First for Dentists and The Companion Guidebook. So much more about you, Barb. I can't wait to Tell them more, but a fun fact. I know there, she's got her, books. Fun Facts. Barb has a horse named Duke and two Goats named Dolly and Reba. She is a proud nana to four grandsons.
Please help me welcome my dear, dear friend, Barb Stackhouse. Hi Barb, how are you? Hi,
Barb: I'm great. I'm doing great and thank you so much for having me. Looking forward to this.
Anne: Well, your, bio is like so humble. There's hardly anything in that because you have done so much in dentistry. you've spoken at our DeW retreat, you have done podcast, you've done group therapy. Yeah. Group therapy profit first, and And then you've been coaching individual dentist for so many years. I was one in one of your coaching programs. It really helped me. I was just talking to you about, you know, good thing I, had money put away in another account.
Mm-hmm. Because Tax Man came this year and I was surprised, you know, that's the thing about being successful, isn't it great? But then it's like, whoa, wait a minute. We gotta pay more taxes this year. I think about you all the time because I don't think about the money that I put in this other account after being in your program and good thing I don't, because, you know, it comes in handy occasionally. And not just for tax purposes, but just for a trip or something for the grandkids or, something like the air conditioning goes out in our 30-year-old home. That was a joy working with you and, um, I appreciate that.
So you wrote the first book with another gentleman? Which is really good. We kind of went off that. The first time, but then you decided to write a follow up book and I knew from the first time that a lot of what was in there was all coming from you and your relationship with Mike Markowitz. That came up with Prophet first to begin with. Mm-hmm. So tell us a little bit about that journey.
Barb: Yeah, I've been coaching dentists for 21 years, can you believe? And been a hygienist for 37. during that coaching career the last seven years I've been on my own it was actually a dentist that I was coaching who told me about this book called Profit First by Mike Michalowicz.
I said, sure, I'll get the book, I'll read it. And I just kind of devoured that book. You know how sometimes you just can't put it down, and in my mind I just kept saying, oh my gosh this could work for dentist. But Mike Michalowicz doesn't know anything about dentistry. Like he didn't know the percentages that dentist would be using, and so.
In the book, he talks about, has these proper first professionals you can be licensed under him. So I called him up and I said, Hey, I'm not a CPA, I'm not a bookkeeper, I'm a dental hygienist. But I coached Dennis I've been coaching, for a long time. And so they let me in their program and anyway, through that.
I went on and did the mastery level through that. Then I was able to write the first book. so you have to have the rights to that book through Mike Mcal.
Anne: Okay. Okay, that makes sense to
Barb: me. drew Hinrichs, who is a CPA, and he's also a private trust professional, already had purchased those rights and through.
Serendipitous God thing in my world. I referred a client to him who needed a CPA, and so I wanted to talk to him first on the phone. And so we talked and my client started working with him. He started seeing how I was coaching my client and she was actually doing Profit First, and he reached out to me and said, Hey I have the rights to this book.
I now realize I'm never gonna write it. Would you write it? So he paid for the rights. I wrote the book. We became partners on that book. He did do the tax chapter. I will say that. And Drew's a great guy and he's, been generous with me and allowing me to write the book. Then all the things I've learned, you know, since it's been five years.
Anne: Wow.
Barb: Years. No, the first book came out and I said, you know what? I wanna do a workbook, but I didn't wanna call it a workbook because it wants to work. Right. So it's a guidebook and it's, full of it areas where you can journal and there are questions. And so it's a companion book. To the first book, but it's got all the things that I've learned in the last five years with coaching dentists.
So it's, more in depth. It's the do it yourselfer who really wants to. Dig in and learn top at first. So there're four dentists. It's, really the how to manual of doing it. and then my coaching is, part of this too because I, use these, I mean, all my clients have my books and we use them as tools.
During my coaching. So anyway, that's kind of how, how I got into profit first.
Anne: Well, that's great because the guidebook helps you execute the plan and so often how many times do we go to continued ed and, learn all these things and if I hadn't done the program with you, I wouldn't have.
actually work the plan. So I feel so much more confident in what I'm doing it gives me more joy in my work also. 'cause I can see a bit more of the results, if you will. Mm-hmm. And the good things that you can celebrate. But you've been coaching, like you said for many, many years and I know that, you know, the heart and soul of, dentist.
And a question I have is, how does a dentist keep perspective of the human side of dentistry and the financial business side of dentistry? guess you have to marry those two.
Barb: Yeah, it's a great question. And I constantly remind them that you are running a business. Mm-hmm. And they would give the farm away if they could, most of them.
Mm-hmm. And, And they do give away a lot. I find that dentists tend to be very generous So one of the things, and I think this is true of us too, as entrepreneurs, you know, our hearts go out to somebody, we wanna help them. We also have to remember we're running a business and we have to be financially sound.
So how I blend those together is this, the more financially sound a dentist is and the more they have money in the bank. The less worry they have about money and the more open and freer they are to take care of their patients. It's like the little thing sitting on your shoulder, right? The little person chatting in your ear.
We would never want patients to look like dollar signs to us. Yeah. But when we are financially stressed, that can happen. and we don't want it to. And so when we are financially secure, when we know we have a system set up and we know we have, what money for what purpose, we don't have to worry about it.
you know how that feels.
Anne: Yeah.
Barb: When you know you've got those bank accounts and you have money there, all you have to do is open your bank accounts and look at it. And when that money goes into that account, it's as if it was already spent. And then there's no worry. It takes that worry away. It takes that stress away about the money.
And there's still enough to pay all the bills. Mm-hmm. There's plenty there. But we have this, rainy day fund. We have the taxes set aside. We have profits set aside we can look at that at any given time. And that gives us peace. And to me that peace, that financial peace.
It gives the dentist freedom. They now don't have to worry about that. They can totally focus on the patient and do what they need to do. And if they wanna be charitable, they can be charitable because we know we have money set aside.
that's how I marry the two. It's like you, you have to learn the business principles because if you don't do that, you are not gonna serve your patients to as high a level as what you could.
Anne: Yeah. and you say worry, but it really is fear also. Yes. And you, decisions made in fear diagnosis made in fear for yourself and your finances is just not the right way to practice. And that's not the way anyone that goes into dentistry wants to practice. Exactly. so tell me, how does Profit First work?
Barb: I liken it to the old envelope system that like my grandparents used,
Anne: okay,
Barb: where they get their paycheck, they cash it, and they put cash in an envelope for food, and they put cash in an envelope for their housing and cash for their vehicle, whatever. So they had all these envelopes and then they would just use that cash, that's what they had.
So they were separating their money based on their needs. So we do the same thing, but we use bank accounts. So. There are five core bank accounts, okay? The main account is called the income account, and all the money that blows into the business, into the practice that gets deposited in the income account, but we do not pay the bills from that account.
Now, once a week, we take whatever money has accumulated in that account and we divide it up four ways and we can have more additional, but there are four core ones. We transfer by percentage to profit owner's compensation to pay yourself taxes to make sure you're okay with the government. Yeah. And operating expense to pay all your bills.
And every week, one day out of the week, you just click due the allocations by percentage and figuring out those percentages is what I helped them as do. like it helped you do in your business. so every week you do that. You don't have to worry about it. Now we know we have the exact amount in the operating expense to pay the bills, and we've removed all the other things that we need to have for later to take care of the owner of the business.
So that's the basis of it. It's actually very simple. The hard part is doing the assessment and figuring out your correct percentages and then setting some targets for where you wanna go. And then adjusting how you're spending money so you can reach your targets. that's the kind of things I do with dentists that's, I have to help them work through that.
Anne: Yeah. And that just gives them the peace of mind again because how many dentists do we know that are still working and they don't want to, it's one thing if you love working, ' you know, I'm still working and I love what I do, but there's another thing when you're, work because you are afraid, and you know, and it's tough because that job is tough on the body and it's not easy to do that when you're trying to rob Peter to pay Paul, or you have to rob Peter to pay Paul, if you will.
I just
Barb: read a statistic, I think it came from the Aada this week, and they were saying that dentists. Average retirement age is 69. The US population as a whole is 64.
Anne: Wow. That's pretty amazing. I guess, dentists are used to spending first not saving first
Barb: and, and I guess, you know, that can be for various reasons.
Like you said, maybe some of them want to work, they enjoy it and they are set up and they're okay. They could retire. But my guess is there's a, segment of, them that are working because they don't yet have enough to retire.
Anne: So what's the timeframe? when should you start?
Profit First you should be teaching this in colleges, by the way, I think, right?
Barb: Yeah. I've actually helped some startups. Oh, we laid everything out and we made the projections and we knew what the loan amount was gonna be. there was money, you know how they always borrow some, because the first six, eight months they're kind of living off of borrow money.
and it's worked beautifully. we just set up a plan and boom, they're there. they just follow the plan. So it works. I think you should start it as soon as possible. I mean, I run my business like this too, and I can open up my online banking, look at my accounts and go, okay, we're here.
You know, I'm all right.
Anne: Yeah. And so then you can make the good choice that you need to make. Yeah. So you're, you're starting some group coaching, I find that really valuable. Because I think, especially in the dental world, if you have a vault and when you start something like this, I'm sure it would be like a vault.
Whatever's happening in this. room, stays in this zoom room. And we do that a lot with the do community. It's, very much like a vault. Like what happens in this room stays in this room, I think that's a great way to go because that way they would be able to realize, get some tips and tricks, not just from you. But also as the conversations evolve from each other, like what are they doing? what does that look like now as you're going forward?
Barb: we're launching the first group, in the group coaching. I, I still offer one-on-one coaching for a dentist who comes to me and says, look, I need a lot of handholding, you know, they want me to do the majority of the work. I almost act like a. Chief financial officer for a bit because I, pull everything together and create that plan for them.
And they're busy doing dentistry, they want the one-on-one help. But you gotta pay for me to do that. And so I have a lot of dentists who are struggling with some cash flow. They still wanna learn these concepts and, you know, maybe they don't have. The money or they don't have the time either to invest mm-hmm.
In a lot of coaching calls. 'cause when I'm doing it one-on-one, you know, it's a lot more. So I started this group coaching program, we're launching it in July it's all the same training. It's actually more in depth training. And they're actually gonna do the work. They're gonna come to the meetings and they have to all take turns being in the hot seat.
And I will be over the shoulder looking at the work they've done, helping them, guiding them so they have their correct percentages. So then they start implementing and then they're gonna come back the next meeting and report, how did it go? What were your challenges? And we're all gonna learn from each other.
So everybody's gonna share their numbers, everybody's gonna share, open up the books, you know, and do the work that it's gonna take to get it organized. And you know, the dentists are gonna learn from each other because. Somebody who's gonna have something pop up and they're gonna go, oh, I never thought of that.
You know? Oh, yeah.
Anne: Um,
Barb: so it's a time to learn from each other, but also from me being able to coach them in front of each other, you know, they can learn from that coaching too. I'm excited about it.
Anne: you're scared about that, listen, there's no good time to do it.
Yeah, put on your big, for sure big girl, big boy panties and lay it out there because. You don't have much time and getting that together now, sooner than later. You know, you certainly don't wanna start this when you're 69. I was glad I started it a couple years ago with you, Barb.
I'm telling you. It's, it was really, really important. But they just get their p and ls they're expenses. Yeah.
Barb: the training and in there we'll explain all the documents they're gonna need all the spreadsheets, all the things, right?
And they're basically gonna do the work themselves, fill in the blanks with the questions, and then they're gonna come to the meeting. Then I will help them as we look at that assessment together. So here's what they put together. I'll ask the questions. You know, if I see something's not there or doesn't look right, we can course correct right as we're going. they'll just be on the hot seat for that time. And there'll be a couple of hot seats at each meeting where we'll be learning and growing together. And they just bring their stuff.
Anne: I just hope the new young docs are listening to this podcast will reach out because I, can't think how amazing it would be to start with that right off the bat.
Because everyone says you gotta need to know your numbers. Yeah. And, you know, dentists are not trained for that. Yeah. And to know your numbers early on and have that profit first, you know, then you can actually see the goal and work toward it.
And work when you want, when you want, you know, with who you want. Yeah. And where you want.
Barb: the part about sharing the numbers, I mean, you kind of get over that pretty quickly because
the numbers are the numbers. And I'm in a group of probably first professionals.
Anne: Okay. We have
Barb: kind of a mastermind, and so we share numbers, so I know how that feels. And at first you're like, oh, what are they gonna think? You know, It's not about you at that moment it's about, I wanna learn. I'm willing to share everything here so I can learn and everybody else is doing the same.
So there's this bond of trust that happens. Yeah. Between everybody in the group that like, oh my gosh, mine's not so bad. Right? Somebody. Yeah, I was gonna say,
Anne: yeah, that's probably what you're gonna be like, yeah. But I, love that also. because again, you, feel you're all alone, but then it gives you a plan to work on and to understand that, you're not that far away from getting there.
sometimes it's just that little, one or two degrees shift it gives you peace of mind. You don't wake up in the middle of the night in sweats. And that kind of thing. So, I think back on my career and just even the dentist and the hygienist and the business owners and entrepreneurs that I run into, having that sense of security and knowledge your own business, it's important and I think as a. Business owner in this field. We have to lead the way. because that's gonna help give the whole profession the respect that we deserve in dentistry. because we're all about caring for others. But, you know, this is about caring for ourselves.
Barb: you don't take care of yourself, how can you really care for others?
Anne: Right?
Barb: It's the same, you know, with our health. It doesn't matter what it is. Wealth can be many, different things. It's not just money. there's a lot of things in life We have to take care of, our spiritual health, our physical health, if we don't put the time into that to doing that for ourselves, then how can we take care of others?
Anne: exactly. something else just dawned on me. Especially if you're practicing and you're fearful of the money, you're gonna be fearful, you're gonna think all your patients are fearful for spending the money also. So even as far as diagnosing, if you're confident and you know you can handle that.
Sort of thing, then you just expect the people that you're dealing with in your chair. a whole mindset. shift that I think will carry over into, treatment planning and, acceptance and all of those things. Yeah. So let's see.
If you could give one piece of advice to a new dental entrepreneur, and this is like, you know, business owner, a practice owner or one of us, one of us dos you know, we, developed a widget and we're gonna go to the top. Yeah. What advice would you give them now and honestly no matter what age, but what would you give us?
Yeah.
Barb: Here's what I would say I think Mike said this, so I'm just gonna share something he said because it's, stuck with me and helped me, and that is you have to learn to love saving more than you love spending.
Anne: Hmm. Okay. I like that.
Barb: it's a proven, we get a dopamine rush when we buy things right? And. Emotional spending. We've all done it. I raise my hand, but when you can start saving and then see that amount in that account and get that, rush of, oh my gosh, I did that.
I put that money there. it. a discipline. You learn and you just have to learn to love saving more than you love spending. And then you'll have an account full of money.
Anne: Wow. And you'll know where the money went something you said here it was, whether it's your home finances or your business finances, they must be managed or you will find yourself wondering where the money went.
When does that stop though, Barb? I mean, still Tom and I were like, dang. You know, you, get your, tax returns and all those kind of things. It is so interesting. In this day and age, it goes fast. So, I'm glad that you said that because I mean, I remember something like that when, last time we talked about this, I'm gonna revisit that that's the new book with Mel Robbins.
Let them, everyone's tattooing that on their arm you know, let them let them. Yeah. I think we should, tattoo love saving more than you love spending. And I think if you did that when you were like 18 years old or something like that, think about that. Oh my gosh. Yeah.
Barb: back to the whole mindset thing, that that is just a mindset shift.
And lucky for me, I married a guy who. He was a saver.
And I had to learn that because I didn't grow up in a family that saved there was always money problems, yeah. So I didn't have, any kind of view of myself and what I could do with money. that just never even dawned on me.
luckily I had a husband who understood money and was a saver, and then I learned a lot of these concepts through. having coaches, through joining Prop first. You know, just all the things and it's changed my life. I think one of the big things too is just understanding to operate from abundance.
Anne: Hmm. Not
Barb: scarcity.
Anne: Yeah.
Barb: That's another mindset too. Love saving but understand there will always be an avenue to make money. Mm-hmm. And there is abundance out there. it is there and you are worthy of it. And you go after it. We all are. that's what we're trying to do.
Anne: Exactly. And especially in dentistry. We're smart, we're caring. We've got everything it takes. And, uh, I've shared this before and I've always loved this when Tom first started his entrepreneur journey, I mean, I remember going, you know, riches to rags. 'cause it was like, he was, yeah.
Corporate and very successful. And, uh, it started its own chemical company. Takes a little bit of money and yeah, my patient said to me, you know, Anne, you're never gonna be poor. you might be broke, but you'll never be poor. And so I, always hung onto that, but. Again, if you have ownership of that, and then of course, you know, luckily, you know, we've all done well and survived, but it's still a mindset there and it goes, back to profit first you know, there is a way to feel good about money.
And, and when you spend it, you feel like, oh, maybe we'll go first class this year, because look at the bank account that we've saved all these years. Right.
Barb: So, right. you know, just again, it does allow you to do those things. but it's interesting when you look at the cash sitting there that you have to use, it's different than putting it on a credit card because now you're removing that cash from that account. And actually using it and it makes you put more thought into it. Yeah. So I really think it, brings about more intention and more purpose in what we do with our money rather than just, oh, it's outta sight, outta mind.
It's on a credit card. that can happen really fast. And do I use credit cards? Yes. Do I pay them off every month? Yes. so I have a plan for how I use them. 'cause I want my points too, you know, I mean, I play the game. I want those airline points. Or whatever they're for. I want them, but we have to be disciplined that if we use it, we know we have the cash paid for.
Anne: Yeah. It's, being aware and purposeful, which I love. Yes. So how does anybody find you that's listing this, that maybe wanna get in one of your group coaching or get your book? your book is on our, do Nook. We have a do my book Nook.
Barb: Yes.
Anne: and that takes you directly to Amazon.
would recommend?
Yeah. You can
Barb: order it on Amazon. I'll hold 'em up again so y'all can see them. There's two different books. this is the main book, this is the guidebook, the workbook. you can go to my website as well.
There's a link there that'll take you right to Amazon. my website is just profit first dentist.com. or just do a search for profit first for dentist and my website will come up. There's a link there if you wanna reach out to me. if you want my email, it's just [email protected].
You can reach me that way. That email is in my book as well. So yeah, I'd love to hear from you
Anne: Do you recommend getting both books though? '
Barb: if you're really like a do it yourselfer and you want the down and dirty and all the, steps, how to do it yourself you want the guidebook too.
If you just wanna read the first book, it's also on Audible. I read my own Audible. So if you're a person that likes to listen to books. Just have a listen first and see if it resonates with you. and then maybe you'll say, oh, I think I could do this myself. Maybe you'll get the guidebook or you'll say, Hey, I really need to be in one of ours programs and honestly, if you join my program, I'm gonna send you the guidebook.
So gimme a call. You go, let's talk let's just chat about it and if it makes sense for you to be in the group. I would love that.
Anne: I love being in your group and I love continuing that. Practice as I continue my journey here. And so, anybody that's listening, don't forget now.
If you're a woman in dentistry, we're having our retreat November 13th through 15. As I said, Barb has spoken at our retreat before it was fantastic, but it's for personal and professional development in Charlotte, North Carolina. So we'd love to have you sit at our table then the most important thing for everybody listening is to keep doing you.
Barb, thank you so much for being here, for sharing about Profit First for Dentist, and for sharing about you. I appreciate you so much.
Barb: Thank you, Anne. My pleasure.
