If you’ve been following my recent blogs, you knew I couldn’t help but write this one with three tips for the successful practitioner.
1. Maintain the status quo.
It’s quite common for the successful dentist enjoying peak productivity to slow down and refer out procedures he or she no longer wishes to provide. What’s critically important to recognize, however, is that a practice must generate enough cash flow to be attractive – not only to a buyer – but to a bank willing to finance a practice transition.
2. Plan a practice’s transition five to ten years out.
If the owner of a practice doesn’t know it’s value, how can a transition begin? Establish a relationship with a transition team you respect and undergo a practice evaluation. Doing so provides a starting place which enables the owner to make any necessary changes or improvements over time to enhance the likelihood of success. Additionally, it protects the surviving spouse and provides a roadmap for transition should the owner die before the practice has been sold.
3. Maximally fund retirement plans.
A new practice is concerned primarily with cash flow, while a growing practice is reinvesting to resolve issues of capacity. The mature practice, however, has overcome those issues, and should use its economic engine to maximally fund all retirement vehicles to provide for the retiring doctor’s financial security. Take advantage of opportunities to “catch up” with 401(k) and IRA contributions and begin evaluating the various filing options regarding Social Security.
Enjoy dentistry and practice for as long as you wish, but don’t overlook these important steps which will enhance your ability to retire when you wish!
Life After Dr. and How to Get There
Only one in five dentists will successfully transition their practice to new ownership. Learn key concepts to facilitate the process, five critical purchase parameters, and important steps to take after the sale. Evaluate a dentist’s typical retirement budget and learn how to calculate your “retirement number.” Examine the importance of retiring TO something, and identify specific ways to love “life after Dr.” This fun and thought-provoking presentation will help you take the steps you need to become “one of the five!”
“Success is giving your all. It’s using your abilities to the fullest and
reaching for the highest that is within you.”
~~Dr. James R. Pride, Founder