Preparing for Retirement? 5 Ways to Make Your Dental Practice More Desirable
It’s never too early to start preparing for retirement. With proper planning, preparing for retirement can be a smooth transition. For most dentists, one crucial step towards retirement includes selling your dental practice.
Buyers typically have specific criteria in mind when evaluating potential dental practices and you need to ensure your business stands out from others on the market. Thankfully, there are a few things you can do to make your dental practice more desirable to be purchased.
Here are a few ways you can improve your business before retiring to better attract dental practice buyers.
1. Get Your Dental Equipment up to Date
One of the most important steps to take when you’re planning on selling your practice is to update your equipment.
Modern and well-cared-for equipment is in high demand for dental practices. It’s one of the main reasons dentists will choose to open a brand new dental office from scratch rather than purchasing an existing one.
Of course, your equipment should work without any problems. Dental practice buyers will typically hire a third party to evaluate the operating condition of your equipment to ensure it functions properly and safely.
It’s a given that your equipment is clean before any potential buyers view it. Depending on how old your equipment is, you may even want to upgrade it before putting your dental practice on the market. Investing in new dental equipment may be a tipping point in attracting the right buyer.
2. Upgrade Your Building
Once your equipment is up to date, you’ll want to focus on your building.
Remember, first impressions are everything. What potential buyers see will greatly impact their decision on whether or not they will buy. You must ensure you’ve maintained the integrity of your building over the years.
Structural soundness is important as it gives buyers assurance that the property is safe. Plus, it increases the value you’ll receive in an appraisal. You can improve your building through renovations, remodeling, and simple aesthetic improvements like upgrading furniture.
3. Organize Your Technology
Now that you’ve covered the physical, it’s time to dive into the technical.
Analyze your current filing system. Do you store all your files in physical filing cabinets? Or do you use a digital filing system?
Buyers are looking for practices with the latest industry-leading technology set up and ready to go; complete with membership plan platforms, patient engagement platforms, and practice management software (PMS) with eco-friendly features like paperless billing. Is the practice established so someone can dive in without extensive training?
Your dental technology plays a crucial role in the perceived value of your practice. Modern tech and organizational systems show potential buyers that your business is up to date and operates smoothly.
4. Continue Attracting & Retaining Patients
As you get closer to retirement, you'll want to present your legacy in the best possible light. This is a wonderful opportunity to showcase the professionals in your network, discuss competition, and talk about how the next owner can build on your success.
In the time leading up to the sale, continue to reinforce the strategies and processes that have led you to success. One of the strongest selling points for a practice is a full appointment book and a steady stream of new patients.
If you’re looking to increase recurring revenue leading up to the sale of your practice, a platform like Kleer can help you launch a simple dental subscription program.
5. Have Clear Numbers on Hand
Once potential buyers start reaching out, you'll want to show them your office, building, and technology. But, at the end of the day, if those are all up-to-date, but your numbers are struggling, you’ll struggle to sell your practice.
Potential buyers want to see your dental practice’s financial documents. Providing crucial details that highlight the value of the dental practice is a surefire way to attract an offer.
You need to be able to clearly demonstrate the value of your business. This means showing them your tax returns over five years to break down your average annual revenue.
Most buyers will also want to see any leasing information you have for office equipment. You also need to show buyers any liabilities you have including bad debts. Don’t forget to prepare your balance sheets and profit-and-loss statements.
You should consult with an accountant and bookkeeper to help you prepare all financial documents so when a buyer comes knocking, you can easily demonstrate that your practice is a valuable investment.
Launch a Dental Membership Plan With Kleer
As you begin thinking about retirement, one of the most important steps to take is ensuring that you’re continuing to grow and diversify your revenue.
One easy way to do this is by offering a dental membership plan. Subscription-based membership plans provide a stable stream of recurring revenue that you can rely on, and Kleer makes it easy to get started.
From building and pricing your plan to onboarding, marketing, support and beyond, Kleer has the expertise, insight, and passion to create a membership plan that works for your practice and your patients. If you’re interested in boosting practice performance by making dental care more accessible Kleer is here to help.
To launch your dental subscription plan with Kleer, request a demo today.