Once it is determined how a practice will be sold, it is common for sellers to wonder about what the office will be like after they are gone. Many valuable relationships have been built with employees, patients, service providers, and the local community. Advising the new owner on how to manage the existing practice could be the difference between protecting those relationships or putting them at risk.
A good approach is to help the buyer understand the marketing strategy you have in place and how well it is working for you. The following are a few factors the new owner should consider about your marketing plan after the transfer.
- Run the Numbers: First, the new owner must determine which strategies are effective and which facets are not. How many new customers are your marketing plan bringing in and at what cost? It is important to set up a diverse ad platform, but if one part is not working, the new owners need to know it has to go.
- Cash Flow: Turnover is involved when an established business transitions to a new owner. A necessary step is to have a dental CPA develop a detailed cash flow projection for the buyer. This will clarify what type of budget will be most affordable. The existing strategy may have been lucrative for you, but the marketing budget might be out of reach for the new owner.
- Diverse Marketing: It is tempting to focus solely on acquiring new customers when putting together a marketing plan or making cuts. While building your customer base is always important, it is also vital to your business to retain your current clients. Long-term customers are more a lot more valuable than a handful of visitors who receive services one time and never return.
Regardless of the size of your budget, always allocate a portion of your funds to distributing advertising content showcasing new services and regular customer reminders of routine checkups. This also serves to let existing customers know they are important to the new owner as well.
Releasing a hard-earned dental practice into the hands of a stranger is no easy feat. The process can be difficult and emotional, but you don’t have to lose all the relationships you’ve worked so hard to build. Screen potential buyers carefully and make sure the new owner share your values. Be sure to offer advice to ensure the office will continue to be the success you created.
Principal Dental Partners provides free dental practice appraisals all over the state of Ohio! Our skilled and experienced management team will create a custom transition plan that works best for your specific circumstances. When you hand over your life’s work, you will rest assured your legacy is in good hands.