Does Your Practice Stand Out From The Competition?
As a kid, I would beg my dad to take me fishing. The day of the trip, he would help me rig my line, get it out in the water and tell me to be patient. But then I would spend the next few hours fiddling with my rod, reeling my line in, checking the bait, recasting, reeling some more, you get the picture. My dad used to tell me that I would never catch a fish if I didn’t put my line in the water. He was right!!
Practitioners spend their entire careers learning, working and sacrificing to build successful practices. Even if you’ve allowed yourself to daydream about spending more time with your family, more time on the golf course or more time on the lake, the idea of taking the steps that are necessary in order to sell your practice can be very daunting. As with fishing or any other worthwhile pursuit, dreaming is not enough, it has to be combined with action. You have to get your bait in the water!! We’d like to suggest several key, but certainly not all inclusive, steps that can help you begin the process of transitioning away from practice toward retirement.
Get started yesterday!! It’s been said that “the secret to getting ahead is getting started.”. If you are considering retirement, it is imperative that you begin taking important steps now!! If you want to retire in January, and you wait until August to begin the process, while certainly not impossible, the realization of that goal may be slightly more chaotic than you would have hoped.
Get your house in order. Begin now looking at the books. If you have a huge backlog of long term collections, either make one final push to collect or write them off. If your day to day accounts receivable is sluggish or inefficient redouble your efforts. Take a close look at your expenditures and try to cut unnecessary or excessive spending. Any effort in this area will pay dividends when you begin marketing your practice to potential buyers.
Commit to increasing your production. “Wait! I thought I could just coast into retirement!” Whatever you do, do not take your foot off the gas! Slowing down is one of the single worst things you can do with regard to making your practice appealing to potential buyers. Increase your production! Keep your patient schedule full. Work a full work week. Limit unnecessary referrals. Do everything you can to increase the profitability of your practice. You want to show consistent, if not growing production going into a practice sale.
While this is certainly not an all inclusive list of the Dos and Don’ts, and includes things that you have heard a thousand times, it does get at the heart of what should be your focus when you begin to consider transitioning away from practice. Your goal is to make your practice shine . . . to make it stand out from your competition. You want to present your practice in a way that will make potential buyers feel like they cannot possibly find something better somewhere else. So rig up your line!! Put on a little bit of PowerBaitⓇ and get your line in the water!! Who knows, retirement may be closer than you think!!