Rewind: Adding an associate: Understanding marginal chair cost to leverage your practice

Welcome to this episode of 20/20 Money! My guest on today’s show is Dr Matt Mitchell and this is actually an episode rewind, going back to episode #43 of 20/20 Money which aired almost 2 years ago to the day!   I’ve been having a lot of conversations with both new and existing clients about how and when to break through to the next level and add an associate to help grow revenues and, ultimately, net income to the practice owner. There are a couple of different ways to determine when to take that next step, and this conversation with Matt really got into the weeds about how he thinks about capacity constraints in his office. Here’s my recommendation for this episode if the words “marginal chair cost” sound foreign: have a cleaned up/accurate profit/loss of your practice handy for the first 20 minutes or so of the episode and take good notes about how Matt calculates his marginal chair cost. If you want a sample P/L that we recommend ODs, click on the link in the show notes to download a sample chart of accounts that we’ve put together for your P/L. Once you’re through the first 20 minutes or so, then you can go for your run, or go to the gym, mow your lawn, or whatever else it is that you do when you listen to 20/20 Money on a weekly basis.   As a reminder, you can get all the information discussed in today’s conversation by visiting our website at integratedpwm.com and clicking on the Learning Center. While there, be sure to subscribe to our newsletter and you can also set up a 20-30min Triage conversation to learn a little bit more about how we help ODs around the country reduce their tax bill, proactively manage cash flow, and make prudent investment decisions or check out any number of additional free resources like our eBooks, blog posts, and on-demand webinars.   If you’re interested in having your question and your voice featured on the 20/20 Money podcast, you can submit it here. You can either include your name or submit anonymously. Please keep your questions short and to the point. Sometimes writing it down beforehand can help.   And with that introduction, I hope you enjoy my previous conversation with Dr. Matt Mitchell, OD.