When is it too soon to start planning what to do with the practice when you’re ready to retire? It’s a trick question, because the answer is that it’s never too soon. Every practice opening today will eventually be somebody’s nest egg, and it’s never too soon to start painting a picture of what that sellable practice will look like.
For the new doctor just opening, it’s time to consider how large, how many associates (if any), and will you ever want a satellite practice. By planning early with the end point in mind, you’re much more likely to reach your goal, rather than just hoping to eventually leap to the next step.
For the doctor in their 40’s and 50’s it’s all about sustainability. You want to be sure to keep production and up and complacency away. A practice that dips slightly on new patient numbers or production each year is a declining and will be harder to sell and/or less likely to be able to support an associate.
For the doctor in their 60’s starting to think about retirement…..get a professional involved to help appraise the practice and plan the exit strategy at least 5 years prior to being ready to retire. Having all the details in place early can make all the difference in the sale price of the practice.
For every business, their always must be an exit strategy, so unless you’re raising the next generation of practitioner to inherit the practice, you should be planning now for the future.
