When you have a solid legacy strategy, it’s an easy tweak as your lifestyle changes. Your strategy should include branding, financial management and human relations. Today, we’ll talk about your financial management.
Financial Checklist for Practice Legacy
PUMC’s checklist addresses the essentials you need to consider for expansion, sale or transfer of your medical practice.
Audited Financial Statements:
Whether you are expanding or selling your practice, a potential associate will want to review cash flow documents. You need at least 24 months of audited financial statements that show your profitability. This is especially important when you want to sell your practice.
Create Your Practice Brand:
Every practice has a brand. However, a strong brand that stands on its own requires consistent marketing. Ask PUMC for a brand analysis if you aren’t sure of your brand’s strength.
Do you lease or own the building(s) where your practice is located? Your financial checklist should include options for buying, leasing or moving locations.
Where is your practice located? Do you have more than one location? Is it a thriving community that would be a desirable location for another doctor to continue the practice? Or perhaps you are located close to a metropolitan area where your practice could be expanded. Ask your marketing strategist to help you list options for your financial checklist.
Consultants and Agencies:
Are your consultants and advisors effective entities a potential buyer would want to work with. Talk to your marketing agency and banker about how they would support a practice sale. Experience counts! Ask for a financial checklist of essentials to have in order prior to selling your practice.
Of course, maintaining employees and continuity of patient care is critical too. We’ll talk about human resources and patients in another blog.
Creating a practice legacy takes time to have a good history. Some doctors miss their window and wait too long to prepare for the successful transfer of their legacy at a profit. Contact PUMC to talk about how to start your financial checklist and create a strong practice legacy.