Why are the new GP’s terrified of Practice Ownership?
The fear factor…!
News reports https://www.healthandlife.com.au/wp-content/uploads/2016/01/Id-be-terrified-Why-new-GPs-fear-practice-ownership.pdf that new GPs are terrified of practice ownership is more a myth than a reality. Ignorance is the source of much unnecessary fear. Clearly many practice do not have any succession planning programs in place which is breeding much uncertainty in practice.
GPs unnecessarily fear practice ownership. This is usually due to not understanding the real opportunities inherent in owning a practice. There are a number of excellent reasons to consider practice ownership. Greater financial freedom as well as being tax and asset protection friendly are a few. Why continue to eat what you kill when you could earn while you sleep?
Sadly, many practice owners themselves do not understand this opportunity. Accordingly, their practices are not succession planning ready. Succession planning is a 3 to 5 year process and not an event. There is a right way and a wrong way to run your practice for optimal growth and practice value. A well structured and disciplined practice delivers amazing opportunities for the current and next generation.
You are not locked in when it comes to practice ownership. From the outset, a mutually agreed shared vision, clear agreements and communication stops the worry.
For practices, knowing how to run a practice correctly and being open and transparent as well as how to
create owner ready practices can eliminate this unfounded concern.
The fear of the unknown is the problem and practices who fail to invest and explain this have a lot more to fear as it may lead to their eventual demise. See https://thebusinessofhealthcare.com.au/2015/10/06/succession-planning-will-practice-manager-co-ownership-save-healthcare-practices/.
Not understanding the real opportunities, such as earning passive income (eat while you sleep rather that eat what you kill), more freedom to control your destiny, better asset protection and tax saving opportunities are often overlooked, or not truly appreciated by current or future practice owners.
Many owners are simply not clear on how to run a practice correctly, which can only breed unnecessary fear. Education is the simple. You do not need a Harvard MBA, be a Chartered Accountant or Philadelphia lawyer to run a practice. To be quite honest, it just takes patience, common sense and an ability to work pragmatically with people.
See our articles.
1. Successful succession planning – it is the practice and not you!
2. How to run a successful practice – things to look out for if you want to buy into a practice.
3. Directors Pathway Program – A solution for successful succession planning in your practice.
Where to from here?
Need a jump start?
If you are serious about joining a future proof practice contact David Dahm at firstname.lastname@example.org to arrange a free no obligation chat. This should demystify what can become an unnecessarily complicated process in less than two hours.
Do not short change yourself on what may be the biggest decision of your life. It is very hard and expensive to reverse a poor decision.