Building Wealth Through Your Dental Practice
Creating value for your business
Build Wealth
Creating value for your business
The average dentist currently works to age 74 according to Practice Exchange, the online job and course board. Even though this piece of data may lack accuracy, being an extrapolation from US figures, it raises a significant question: are dentists always in control of their lives? And another: when a dentist works into his/her 70s is it always because he/she wants to?
The answer, unfortunately, is no. Which might seem extraordinary to outsiders given the high incomes that dentists enjoy. Problems can happen at the outset when you buy an overvalued practice and see your margins all but squeezed into nothing as you struggle to meet debt repayments on top of rising costs. Or it might be something to do with your business proposition: why are you trying to sell Invisalign in a neighbourhood full of pensioners who aren’t interested in it?
HAVE YOU DONE A FORECAST?
Whatever it is you can fix it, but only if you are prepared to have a frank discussion about where you are and what is going on.
Many practice owners still assume they will be able to support their retirement through the sale of their practice but don’t realise they’ll need to drive up its value in the meantime. Ironically another nasty surprise is that people often live longer than they think they will. Research by the Institute for Fiscal Studies has found that people in their 50s and 60s underestimate their chances of survival to 75 by 20%.
Many practice owners still assume they will be able to support their retirement through the sale of their practice but don’t realise they’ll need to drive up its value in the meantime. Ironically another nasty surprise is that people often live longer than they think they will. Research by the Institute for Fiscal Studies has found that people in their 50s and 60s underestimate their chances of survival to 75 by 20%.
Even if you’re not going to be working into your 70s, many dentists in the UK are working longer than they expected because they’re so bad at saving. There are five million self-employed people in the UK (with an average age of 46), yet fewer than one in five save into a pension. Dentists are as bad, if not worse, than everyone else.
Even if you’re not going to be working into your 70s, many dentists in the UK are working longer than they expected because they’re so bad at saving. There are five million self-employed people in the UK (with an average age of 46), yet fewer than one in five save into a pension. Dentists are as bad, if not worse, than everyone else.
You really don’t want to be exposed at an age where your mind and body is failing. The only way to avoid this is to prepare your exit plan strategically at least five years in advance. Luckily the private dental market is in rude health and there’s no reason to work longer than you want to, so give us a call, let’s start the conversation and make a plan for you.
You really don’t want to be exposed at an age where your mind and body is failing. The only way to avoid this is to prepare your exit plan strategically at least five years in advance. Luckily the private dental market is in rude health and there’s no reason to work longer than you want to, so give us a call, let’s start the conversation and make a plan for you.
