What You Need to Know About Succession Planning for Your Dental Practice
When you were beginning your career, you likely had big dreams of building your own dental office, growing the practice, and helping countless patients. Now that you’ve accomplished those goals, you’re likely starting to focus more on the next dream – retirement. Before you get there, you need to make sure you’ve planned for a final significant business decision: your succession plan.
What is Succession Planning?
Succession planning is the practice of preparing for your exit from your business. Much like retirement, business owners need to begin the succession planning process early. Many advisors recommend you start the process a minimum of five years before your anticipated retirement, and starting 10 or more years out can be even more beneficial.
What are Your Options?
The succession plan you ultimately choose will depend on your goals, and your goals for your practice. Do you want to keep the practice in the family? If so, do you have a child or relative who is willing and able to take over? Even if you’re more than 10 years away from retirement, consider how you’ll prepare them for the role of owner now, so they’re ready when the time comes.
Another option, of course, is selling the business. But even that seemingly simple decision comes with multiple options. Will you bring in a new dentist or groom an existing partner to take over? Think about the steps you’ll need to take in the next year, three years and five years in order to bring a new dentist on board or transition smaller responsibilities to one or more of your partners over time.
Who Should You Involve?
To create the best succession plan for yourself and your practice, you’ll want to involve a handful of professional advisors to help you through the process. This may include your tax advisor or CPA, attorneys, your business banker and/or industry consultants. An industry consultant, especially, can help you narrow down your options and connect you with other experts to help you through the succession planning process.
Learn more about how to get your succession plan started by contacting one of Bankers Trust’s Business Banking team members today.