Your practice is more than just a business built on transactions. If you’ve developed and maintained a successful dental practice, it’s a testament to your vision, values, and reputation. Your dental practice also serves as a significant asset that will shape your next life phase.
As you consider the path ahead after leaving your dental practice, take time to do the following:
Examine Your Motivations
In his book, It Starts With Why, author Simon Sinek emphasizes the importance of starting with your motivations and inside-out thinking. Simply put, it’s vital to identify the underlying reasons behind our actions. Understanding our motivations is not only essential for motivating others but also for finding fulfillment and purpose in our own lives.
Don’t rush while reflecting on why now is the right time to sell your dental practice. You may recognize that the current market conditions are favorable for sellers, which could allow you to maximize the value of your practice. But it is also important to slow down and not skip over the deeper reason behind your goals.
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Are you feeling burnt out?
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Do family members need more of your support?
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Are you interested in pursuing other business opportunities?
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Do you want to move to a new region?
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Are you looking to prioritize your health?
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How many travel destinations are on your bucket list?
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Are you experiencing injuries related to ergonomics?
These questions focus on what you want, which is an excellent starting point. After reflecting on your motivations and discussing them with trusted individuals, it is essential to consider what will shape your life after leaving dentistry.
Establish a Clear Sense of Purpose
While it is important to determine your motivations for selling your practice, it is also crucial to plan for the next phase of your life. You can think of this as turning your “why” into “how.” Leaving dentistry can provide more flexibility and free time. Still, it can also leave some dentists feeling bored and purposeless after a career centered on structure, appointments, and professional relationships with patients.
Throughout your career, you have helped others improve their daily lives. By planning ahead, you can find a new sense of purpose that brings lasting satisfaction. Another book with fantastic insight for those facing a transition after their primary career is Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life by Arthur C. Brooks. By setting a new course with a fresh perspective, you can experience some of the most fulfilling moments as you move beyond your primary career.
As you wrestle with your reasons for leaving dentistry and plan for the next phase of your life, you can’t overlook the financial aspects. There are many factors to consider in this crucial area.
Organize Your Finances
Your dental practice provides a steady income source that supports your current lifestyle. When you leave dentistry, a comprehensive financial plan ensures that you can maintain a life you love. This plan involves many interconnected elements that can become more complex over time, so plan ahead for the financial resources you need.
We advise our clients to work with financial experts who understand the intricacies of high-level planning. A dental CPA can help keep your practice reports and data organized and up to date and provide tax projections as your plans progress. A practice transition advisor can provide insights into the projected value of your practice and help you understand your exit options.
Your CPA and transition specialist can also help you identify ways to increase the profitability of your practice. Even minor improvements can provide additional funds and increase the value of your practice. This information is critical for a financial planner to formulate an effective strategy.
Your patients may desire comprehensive dental treatment but may not be aware of the technical aspects of a successful full-mouth rehabilitation case. Similarly, dentists may need help understanding how tax efficiency, estate and trust planning, asset allocation, and other factors work together to create an optimal financial plan.
By working with experts, you can gain a deeper understanding of these complex issues and benefit in the same way that patients do from comprehensive dental treatment. For example, most clients may be unaware of the opportunities in tools such as Spousal Support Trusts until they work with financial experts.
Plan For Potential Outcomes
You’ve spent years building a successful dental practice and improving many people’s lives, and only you know when it’s time to move on. Regardless of your timeline, don’t delay starting the process; explore your goals and begin planning for the next phase of your life. Maybe it’s time to take advantage of current market conditions and maximize the value of your practice. If time is on your side, you can explore options that offer even more current profitability and future value. Either way, a thorough plan will help you thrive after leaving dentistry and ensure you’re enjoying every day.
At DDSmatch, we embrace and understand the career journey that you face. We offer a free baseline valuation to help you start this process and would be happy to discuss potential options for your future. Contact us today to begin planning an exit plan on your terms!