Protecting Production

Let’s face it. Dentistry is can be rewarding, very lucrative and fun. What other profession allows you to hand out free toothbrushes and, at the same time, change the lives of thousands of your friends who visit you throughout the year?  But dentistry can also be challenging, tedious and strenuous, especially physically. Some of you out there will want to practice until the day before your funeral while some of you are thinking, “Can yesterday be my last day?”  Eventually though, the day will come when we all will have to lay down our scalers and call it a day.  Then, the thought of not doing what you’ve always done might be scary.  You’ll wonder: Am I ready financially and emotionally? What will I do? How will I transition?   Our goal at PracticeCFO is to help you overcome the fear of the future by helping you be prepared.  PracticeCFO does this with complimentary readiness assessments, practice valuations and tax reviews. Consider this statement, “If we are prepared, we need not fear.” Trouble comes when circumstances surprise us and catch us flat footed. Often, we meet with clients who have “pushed through” their physical challenges or have opted to work less only to find that their waning confidence or ability in the chair has lead to a clear downward trend in production. Production not only drives value but also drives the liquidity of a practice—in other words, time on the market. Production is what we have to protect at all costs. Buyers, banks and brokers are all looking and hoping for steadily increasing production numbers.  It doesn’t have to be much, just steady.  However, the moment it dips, flags go up, questions get asked and the money pulls back in caution. The worst case scenario comes when production continues to trend downward.  This produces a “falling knife” effect, and finding buyers who are able to get loans becomes near impossible and value spirals downward quickly.   But don’t think all is doom and gloom! If you’re prepared with a solid exit plan, if your books and records are in order, and your production stays steady, then you’ve got the tiger by the tail are ready for life’s surprises. The trick is to be ready because challenges always come when you least expect them. Whether it be cleaning up your back-of-the-napkin accounting, slapping Uncle Sam’s hand when he comes for a tax grab or transitioning to beach chairs and Piña coladas, PracticeCFO can help you come out a fearless winner!
WordPress Image Lightbox