There is an old maxim, “If you fail to plan, you plan to fail.” No one knows just how long they will practice dentistry. It could be one year, ten years or fifty years, no one knows. A normal practice lifetime for a dentist is usually around thirty to thirty-five years, and we each like to think that this applies to ourselves. However, the vicissitudes of life are such that no one would even try to predict this; we just have to leave things to fate. We can’t do anything about the number of years
There's an old maxim, "There are two ways to get rich in this world, either be born rich or marry rich". If you are rich you don't need to read this article, but if you count yourself among the less fortunate millions (not dollars but people), then this article is for you.
“What consideration, if any, should be given to the new dentist as it relates to the increased value of the practice resulting from the associate’s added production during the deferred period (before buying into the practice and becoming an owner)?”
It's time to take control and do something for yourself... use economy of scale as a business tool.
Planning... everyone keeps bugging you about planning for your future, and you’ve barely enough time to take care of the present. Who has time to plan for the future? Retirement? That's light years from now. After all, you’re young, why worry about the future when there are so many things to take care of now. Besides that, who is going to retire? You probably plan on working as long as your health holds out. You don’t need to plan on retirement because you’ll just keep on working right up u
I recently had a consultation with a 62 year old dentist who owned a dental practice that had been recently appraised for $750,000 (let’s call him “Dr. A”). The practice was free and clear of any liabilities so this amount represented Dr. A’s net equity in the practice. In addition, Dr. A had accumulated about $1,000,000 in savings over the years, and when that amount was combined with his practice value, the total could enable him to retire in the not too distant future.
Have you ever noticed how many dentists frequently talk about how they will retire as soon as they have saved another few hundred thousand dollars for their retirement? They will continue to practice dentistry for years trying to save enough money towards their retirement goal...
If you were told that you were going to die tomorrow and someone offered you a way to extend your life for one more year… for a price, how much money would you be willing to pay? Ten thousand dollars? One hundred thousand dollars? Perhaps one million dollars?
“Yes, sir, five more years, and that’s it! I’m going to quit practicing dentistry, I’ll be out of it for good, finished, through.”...
Doing an associateship the wrong way and getting bad results does not mean associateships don't work, they just need to do it the right way!