A practice transition is a long-term proposition that will change your life and upend your daily routine. Be specific about your transition goals. Determine whether you want to retire partially or fully and map out a timeline. Decide if you are looking at a five or ten-year window. Depending on which you choose, the financial implications will be vastly different. Once you run the numbers associated with each transition scenario, you will be positioned to make the right choice.
Many transitions fail because the dentist about to sell is unprepared for the journey. Stephen Covey has it right when he says in his book, The 7 Habits of Highly Effective People, “Begin with the end in mind.”
Imagine where you would like to be five or ten years from now, and what kind of life you want to live. Calculate the money required to finance your desired lifestyle. Once that navel-gazing exercise is complete, your transition journey will become clear. A careful practice transition plan will help crystalize your thoughts about what you really want from retirement and help you achieve your dreams.
To keep focussed on your goal, avoid spur-of-the-moment actions. Resist the urge to accept unsolicited offers, unless you are sure they meet your requirements.
Even if you are eager to leave your practice and have an overflowing bucket list of things to do and places to visit during retirement, we suggest you hit the pause button for a moment of self-reflection. Imagine what your life would be like if you left your practice and dentistry altogether. Your identity is probably more wrapped up with your profession than you might think. Recognize that habits are hard to change. Think about how long you have reigned over your practice. For years, you have risen early five days a week, looking forward to the morning huddle. You have long-time staff members who respect you both as a leader and friend. You have loyal patients who look forward to their appointments; they too have become your friends. Staying on top of your game has been your religion and you have spent countless hours honing your skills through professional development courses. Your philosophy, “Do what’s best for the patient and the money will follow” has helped you build a practice that has succeeded beyond your expectations. And because work has meant so much, you have not taken time to develop many outside hobbies.
When you hand the keys to your successor, it will be curtain time. Dig deep to determine how you will feel about joining the ranks of retired dentists. When we talk to clients about their lives after dentistry, we get a full range of responses. Some say they are elated and thrilled with their newfound freedom; others complain they feel adrift and lack motivation. We have been surprised by the emotional toll retirement exacts on many clients who quit, only to struggle to find a new purpose.
Not surprisingly, the best dentists, those who are passionate about looking after their patients, have the hardest time letting go. We have observed many dentists overcome by seller’s remorse kill a deal just prior to signing. Dentists with less emotional attachment to what they do, whose central life interests are outside the clinic, have a much easier time with transition. They can’t wait to quit dentistry and pursue full-time hobbies. For them, the transition is not an emotional event, it’s a financial transaction.
