When retirement is upon us, a million things impose themselves to be considered, and that’s just how it is, for everyone. If you have worked in a unique business niche, such as dental practice, there are a few specific considerations that need to be taken care of.
One of such things is the most common one, and it involves selling that practice and making sure your long-standing patients are well taken care of, long after your retirement. Here are a few tips on how to sell your dental practice and how to prepare for your own financial and legal needs after retirement.
Preparing to Sell Your Dental Practice
You’ve spent your entire professional life working and building your dental practice to be successful and answer your patients’ needs. That is why it’s normal to consider them an extended part of the family and wish to make sure their dental needs are met after you’ve stopped practicing.
You’ll need to remember that these kinds of preparations will take time, so the practice continues the work after you retire. One of the first tasks is finding an adequate dentist to whom you can leave your business legacy, lab, or a building/office you’ve spent so many years working in. With partnerships, it’s often a matter of selling your shares to the other partner(s), but there can be a number of ways to address these considerations and meet them in both parties’ best interests.
Selling the Space to Another Practice
If you are the sole dentist in your practice, there are some important things to consider before selling, and preparing in advance can help to maximize the practice’s price. Dental brokers recommended that the planning process should start a few years earlier, 3 to 5 at least.
Starting a bit earlier can help in finding the best possible partner to sell to, it allows the buyer to get to know the neighborhood, the amenities inside the building, the income your practice generates, and how much your patients are aware of your existence.
There are also some things that you should consider improving in order to attract potential buyers for your practice, and stay relevant and desirable in the niche:
- Increasing the patient roster
- Reducing expenses and getting insurance
- Modernizing the offices and adding important amenities
- Updating organizational and technological procedures
- Increasing income
- Enhancing team performance
Make plans for the future
It’s not the end!
People often put off retirement because the planning seems complicated, but yet another common reason for postponing is their fear of “doing nothing”. We assure you there are a lot of things you can consider doing in the retirement days, but the best way to get rid of that fear is to start an early plan. The sooner you start to plan your retirement, the better prepared you are to launch your departure strategy.
You should also keep in mind that every plan can be changed, they are not set in stone. You can still swim within the market and adapt to different life changes, but preparing in advance gives you more information to make the best decisions.
Make a Plan for Your Retired Life
Making a plan for retirement is purely a personal choice. Some retired professionals continue to work by teaching classes or practicing on a part-time basis. Other dentists retire and do something completely different. Whatever your plan for transition is, it’s important that you assess what you need in order to live comfortably and happily.
Take a Look at Your Practice Finances and Analyse Your Own
It’s important to analyze the finances of your practice on a regular basis. When you’re planning on selling it, you need to assess your assets and make the practice more attractive for future buyers.
Another issue that many people face upon their retirement is the inability to live within their budget or afford some extravagances they used to have while working. By maintaining a good understanding of all of your debts and assets, you get a more wholesome picture of your savings.
Have a Plan of Succession
As a dental practice owner, you need to plan a new way for your practice, and a way of your own after retirement. If you own the commercial property in which your practice is located, do need a plan on selling the property and the practice together? Perhaps you’d like the help of a dental agent, to help you clear the view to the future?
When you are working toward preparing to sell your practice, you’ll also want to consider and adjust your insurance, as well as verify that your malpractice insurance remains in good reputation as long as is necessary.
If you’re currently considering your retirement, or even if it’s years away, contact the experts at IPG today! Our experienced team has a long history of working with doctors just like yourself and can help you plan for your best future.