How To Transition Your Dental Practice

transition your dental practiceIf you own a dental practice, you know that some day you will want to retire.  You may want to gear down and then retire or you may want to just retire outright. Here are some things to think about if you are thinking about retiring soon and if you are going to transition your dental practice.

You should think about your time frame for retirement. The first step is to recognize that you will one day retire and then plan for it.

Next, you should have a transition plan.  You want the transition to retirement to be as seamless as possible and you want to be able to maximize the value of your practice as it is transitioned.

There are different ways to transition your practice. One way is where the practice is transitioned to someone who already works there.  There may be a younger associate who was hired into the practice for the intention of taking over your practice when you retire. Another method would involve selling your practice to someone who hasn’t worked for your practice or has only worked for a short time.  You want to think about what the best plan for you would be soon so that if it takes some years to transition you will know.

– Transitioning Your Dental Practice.pdf.

Dentists Struggle To Retire

dentists struggle to retireAccording to the ADA, about 96% of dentists struggle to retire and maintain their lifestyle. In an article from Will Parrish on Dentistry IQ he explains that this is because dentists are stretched too thin.

Most dentists are the ones in charge of the whole practice, seeing virtually every patient and spending a great deal of time in the chair.  But too many dentists tend to take on too many other roles of their practice as well.  Many do their own payroll, accounting and HR.  This is the reason dentists are stretched too thin. These are duties that they could be hiring someone else to do.

So how does this impact a dentist’s ability to retire? Because dentists who feel the need to be in control of all these areas lose revenue. But what is the answer? Simply having more staff is not the answer.  It is important that the dental staff is placed into areas of strength and accountability. Another reason that it is difficult for dentists to retire comfortably is the fact that dentists work hard. Hard work is an honor.  This makes it difficult to give it all up.

Parrish offers some practical steps that dentists can take to address the issues:

  • Invest in your staff
  • Offer performance and production based bonuses
  • Be proactive in building your team of advisors
  • Make some time for you and your family

Why 96% Of Dentists Struggle To Retire: Stretched Too Thin|Dentistry IQ