I’m Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits.
Start with the end in mind. Many physiatrists have tremendous and highly profitable practices. However, that doesn’t necessarily translate into a physiatry practice that can be sold to someone else. For example, a consultant that works alone has nothing to sell. In this case, their expertise is the entire physiatry practice. As you work hard to build your physiatry practice, ensure that you’re building it in a way that permits you to sell at retirement.
If you currently own an unsellable physiatry practice, there may be things you can do to change that. It’s wise to create a physiatry practice that will sell for the best price in the future. Take advantage of these strategies, and structure your practice, so it’s attractive to potential buyers in the future:
1. Ensure your skills aren’t the only value in your physiatry practice. If you’re the sole income stream, you’re drastically limiting your ability to sell at retirement. This may mean hiring others to provide value as well. For example, if you’re a consultant, build a physiatry practice large enough to hire other consultants.
2. Overtime, attempt to remove yourself from the income-producing activities. Many physiatry practice buyers are looking to purchase a practice that allows them to create a full-time job for themselves. However, many other buyers would rather just be investors. They’re looking for a physiatry practice that can be run from afar with minimal time demands.
Making $1 million a year with 60 hours of work per week isn’t bad. Accomplishing the same with 30 hours a week is much better. Keeping the other items in mind, how can you effectively reduce your workload? Imagine if you could only work 20 hours a week. What changes would you make to your physiatry practice? What about 10 hours a week? How could you restructure it and still be profitable?
3. Project possible income. Potential buyers are interested in the amount of revenue they can expect to earn. Many physiatry practices sell for multiples of the expected annual income. The exact factors vary depending on the type of physiatry practice you are running. Keep in mind that anything that can be done to boost profitability will increase the sales price of your physiatry practice.
4. Consider your risks. Buyers also want to know how much risk is involved in earning that revenue. As a physiatry practice in an area with growing competition, how long have the most lucrative contracts been in place? How much debt is the physiatry practice carrying? Consider what you can do to minimize the risks involved.
5. Assess the physiatry practice’s potential. What are the long-term prospects for your practice? Is it a physiatry practice that can grow in the future? Is there a limit? The more potential your physiatry practice has, the more you can get for your practice when you’re ready to sell at retirement.
6. Seek expert advice. Physiatry practice brokers are generally willing to give advice for a small fee. After all, they stand to make a lot of money if you decide to use them in the future. Find a physiatry practice broker with experience in your type of practice and get advice on what potential buyers are looking for. A few hundred dollars spent here could mean thousands in profit later on. With a bit of work, you might even find someone willing to help you for free.
Position yourself and your practice for the future. With some planning, your seemingly unsellable physiatry practice could be worth a lot of maximum value when it’s time to sell at retirement. Get some expert advice and structure your practice in value-producing activities to make it attractive to buyers. When it comes time to retire, you’ll be glad you did it.
Looking to start your own practice but not sure where to start? Check out our blog here for four easy steps to build your practice.
I am Dr. Hassan, Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own independent practice so that they can achieve financial independence and live without limits. Please go to businessofrehab.com/guide to pick up the free guide to help you determine the best business entity for your new for physiatry practice and ensure the resale value will be great.
Attention, Physiatrists! Stop leaving money on the table. Sign up for the free video series: How To Build A Profitable Practice in 90 Days or Less: http://www.sixtytosuccess.com