An Exerpt on Business Planning Vision, Philosophy and Mission

Visualizing what success looks and feels like for us means that as we get closer, we can realize and enjoy our efforts. It can also assist in identifying those efforts which are not paying off for us, and allow the opportunity to readjust the settings of our vision or navigate a new path along the way. Many of us are more confident in what we don’t want, and this can be a starting point but remember the Universal Law of Affinity which states that “like attracts like.” If our focus is on what we don’t want, that is what we will attract. Even if we are not exactly certain of our complete long term vision, best to start with those things that we do want to achieve and build on them. We will always get what we focus on so we must ensure that our vision, even if it is limited, is clear and detailed. The person who simply wants unconditional love, is as likely to get that from a puppy as from another human being. Since success is a journey, we all must be prepared to fail on occasion in order to fully appreciate our achievements. That means we have to act; to strive ahead and be prepared to learn from our mistakes.
Asserting our philosophy of practice; patient care and career fulfillment is a practical next step in this process. These must be matched cohesively to one another and your vision. The answer to the following question will help determine how the 5 “P”s are structured in our business plan. To read more about the questions to ask yourself about the 5 "P"s in your planning visit our website and sign up for full articles. Magazines featuring Nadean's articles include Spectrum Dialogue and Team Work and the Canadian Journal for Cosmetic Dentistry.

Going for Broke-r

Whether buying or selling a dental practice, dental professionals know they need to involve an accountant, a lawyer (solicitor) and financial institution (usually a bank). Each one of these professionals has a specific area of expertise and function. The “optional” service provider appears a “broker”. I say optional because there are an increasing number of FSBO (For Sale By Owner) practice transitions, particularly in the “hot” urban markets. The presumption is that brokers’ services provide a minimal value to Sellers and zero value to Buyers. As a licensed realtor who is specialized and strictly involved in professional private practices, I would like to take this opportunity to clear up some common misconceptions and presumptions about brokers, facilitators and others who endeavour to assist professionals in transition

The brokers’ services should include (but not be limited to):

- assisting the client to determine all reasonable options in transition into or out of practice ownership
- review and analysis of practice performance that results in a detailed and comprehensive practice valuation report;
- understand and explain the terms and terminology involved in the sale/purchase process;
- protect one’s confidentiality appropriately;
- pre-qualify prospects;

The functions offered and delivered by your broker will depend on their level of expertise and capabilities. There are tips available on our website (www.edu-dent.com) to help you conduct your research before hiring a broker.

To find more tips and the full article printed in Canadian Journal of Cosmetic Dentistry, visit our website at www.dentalbusiness.ca and sign up for membership and free access to other coaching & transition resources.

From Associate to Owner

There is a certain price tag that comes with what we want to be, to have and to accomplish in life. Sometimes it is more than we are willing to pay in terms of financial obligation, cash flow, or the effort required to accomplish our goal. The quest to become a practice owner begins with certain observations, assumptions and expectations – good and bad – that lead most professionals to make their decisions long before they analyze a specific opportunity. Here are some myths and realities that you may want to consider as part of your move from associate to ownership.

Myth:

Owners are compensated in the same way as contractors.

Reality:

There are advantages and disadvantages to every career management option. Being an associate (contractor) offers a relatively higher percentage of production as compensation with the risk that there is little to no control over practice management decisions, patient scheduling, and no equity is built in your own business. Most owners earn a smaller percentage of their production as compensation, but have opportunity to enjoy long-term equity and an escalating personal income as debts are retired and infrastructure is built. Your accountant wil also tell you that practice owners benefit from more tax deductions than their contractor counterparts. It is true that in the first 1-3 years as an owner, personal income and retained earnings are lower than what properly this is a short-term. Depending on the community that the practitioner decides to buy or set up, capital investment and operating costs vary considerably. The prospective buyer needs to decide what best fits their business and lifestyle goals before focusing on any one community or specific practice.

For more myths and realities explained, visit our website www.dentalbusiness.ca and sign up as a member to view full versions of our written articles. Nadean Burkett’s articles appear in various trusted dental professional magazines including Spectrum Dialogue, the Journal for the Canadian Academy of General Dentistry, and the Journal for the Canadian Academy of Cosmetic Dentistry.