The upheaval some have been predicting is upon us. Surely, you recognize the signs; higher prices for nearly everything, gas lines, a wildly fluctuating stock market, wild crypto and other currency swings, bad news internationally and an acute lack of trust in our leadership. All of this on top of a Pandemic which has caused a collective case of PTSD.
Worries about inflation, underemployment, business closures and other economic “canaries in the coal mine” seem to portend a less–than–smooth road ahead.
And just when you thought it couldn’t get worse, something else hits the fan.
What are you to do?
Jim Collins in his book “Good To Great” refers to a strategy he calls the Hedgehog Concept. I prefer to think of it as the Castle Principle.
The overall strategy is to build a MOAT around the things that matter most and that are within your control and/or sphere of influence, so you can protect and defend them against the upcoming onslaught.
Here are a few tactics that you might consider deploying.
The MOAT you build will protect you, slow down erosive factors but will not totally shield you. The wider and deeper your moat is, the better. Having a toll or drawbridge into your Kingdom can help control the flow in both directions. The higher the toll, the longer the bridge, the better too.
Many younger practitioners have no idea of just how tacky the road can be. Some might have been around for the 2008-10 deluge, but few were in practice in the late 70’s as I was.
Dentists were particularly impacted by both events. The skyrocketing costs in the 70’s entirely changed restorative dentistry, as it prompted research into materials to replace gold. Still, because the costs of practice (overhead) hadn’t yet skyrocketed and insurance dependence didn’t come close to current levels, dentists survived.
The financial discomfort of 2008-10 was substantial because the profit margins had shrunk, insurance dependence became the norm and student debt grew substantially. The result? Bankruptcies skyrocketed. Even my practice was flat in 2009!
Experience can be a harsh teacher. It’s better to learn from others’ painful experiences rather than personally feeling the pain. Unless you’re a masochist. Then, ignore the above.
Plus, there’s a new looming catastrophe awaiting dentists. Uncle Sam (Joe) has plans to double the size of the IRS. Guess who they’ll be coming after?
Remember the pass-throughs that you enjoyed? Remember the car, the home office, the paper toweling, Ibuprofen and other items bought for “office use”?
These and MORE are what the IRS will be looking to take away from you. With a penalty to boot!
Too bad your moat won’t be able to keep Uncle Sam from knocking at the door of your castle!
Want to know how YOU can build or expand your moat?
Want to learn how to implement some of the aforementioned strategies?
Want a shoulder to cry on?
Book a strategy session today.
To Your Excellent Clarity, Success and Moat Building,