Dental practices provide an important service, but let’s not forget that they’re a business just like any other. As well as providing great care, seeing a return on your investment should be a priority. It needs to be a priority if you ever plan on moving from the practice to new challenges. So here’s what you should be looking at regarding making it a sound investment.
Take a closer look at the assets
Let’s assume, for a moment, that you won’t be able to get your practice sold wholesale. It’s not the best-case scenario, but it’s best to know the kind of assets you’re going to be able to rely on if that’s the case. For example, consider all the dental equipment as well as the IT equipment you have in the practice. Then think about getting your premises valued. If you’re a good businessperson, you might have done some work on the building that could improve its value as commercial property. As well as helping you keep track of your net worth, these help you understand the bare minimum you can get for the assets of your business at any time.
Working towards increasing value
Now we’re going to work under the much happier assumption that you’ll have no problem selling the business. What you need to do is make sure you get the best possible deal you can on it. This means working to increase the value. Improving the aesthetic value of the practice is going to play a big role. Even if it’s just the interior, making updates to keep it looking current will make it a much more attractive business.
Passing the business into new hands
Then it’s all about who you sell the business to. You’ve naturally done a lot of work up to build up a dentistry practice. It only makes sense that you start by looking into other dental experts. If you want to sell up, transitions your dental practice to an experienced network. They see a streamlined, seamless passage of the business from your hands to others. Often it’s better to consider networks, as well. After all, 70% of associate-to-buyout partnerships fail before they ever achieve their desired effect. Keep the business to businesses rather than people you know personally who may let you down.
So, how do you attract those dental networks? Increasing the value of your premises itself is only the start. It’s even better if you can show the intangible worth of your business. This means getting profitable and keeping all of the documentation that proves you are. A practice of any size can get profitable if they act in the laws of the business. Expenses, lab costs, supplies and facility costs all need to be in scale. Simple economics is all it takes to make a business profitable on paper.
There are three keys to making your investment a successful one. Know the value of it. Know how to increase that value. Finally, know the right people to sell it to. These principles apply everywhere in business.