29 Apr Why Succession Planning Now and Not Later is Important for Your Practice
As the owner of a medical practice, you wish to see your facility prosper and be an attractive investment for the next generation as well a source of wealth for you.
However, many doctors remain busy in their day-to-day routine and fail to plan for the future. Succession planning is essential for any business.
A majority of functioning medical practices fail due to the departure of a key or sole practitioner.
Therefore, regardless of what the setup of your business is, you must plan for succession beforehand. This will maintain your patients’ trust and prevent your practice from failing once you have retired.
Here are some tips you can use to prepare for succession planning.
PLAN ON TIME
As mentioned earlier, many health practitioners fail to realise the importance of succession planning. Rather than waiting until you retire, you must plan while you are working.
This is also important because if you make decisions at the last minute, you are bound to impact the goodwill value of your practice and incur costs associated with winding down the business and stop taking new clients.
Moreover, the potential buyers for your practice will smell desperation and use that to lower their offer. You must ensure that you have a proper plan in place long before it’s time to give control of your practice to someone else.
By doing this, you will ensure patient retention and continuity in your business operations.
GATHER A TEAM
It would help if you did not make succession decisions without the help of qualified experts.
You will need a team of legal professionals, tax advisors, and other consultants to make the right decisions.
Calculating the worth of your practice also requires the help of these professionals.
ENSURE THE PRESENCE OF VALUABLE DATA
A smooth transition entails the presence of valuable data associated with patients’ history, referral partners and practice expenses.
The professional use of the Customer Relationship Management (CRM) System will help you build a better relationship with your patients and provide valuable clarity for potential investors.
Furthermore, the transition process is more convenient thanks to the visibility of the data the buyer can readily access.
REVIEW PLANS REGULARLY
If at any point, you feel that your practice has grown, or moved into new areas of support after your succession planning, you can revise your plans.
This is important because the value of your practice might not be as it was earlier.
Therefore, to avoid failing to capture the increase in the value of the practice, you must review your successions plans regularly with your team.
To make sure that your practice does not fail after your departure, you must think about the long-term.
You can maintain your patients’ trust if they feel your practice provides the same service even after you have left.
Therefore, take your time to assess and decide on the essential aspects of your practice’s future.