Do you have a practice transition plan?

When you start thinking about the practice succession and bringing another dentist into your practice, you must have a solid transition plan in place. This plan not only helps you spell out your financial and retirement goals but also provides a roadmap for the dentist joining a practice. It is important to share your transition […]

What separates the top 10% of dentists from the bottom 90%?

The question of what separates the top 10% from the bottom 90% of dentists was put to top performers in dentistry. The answers are contained in the book “Titans of Dentistry: How the Top Performers Think and Act Differently” by Drs. Short and Maloley. Here is a sampling. “Goals and FEAR. I believe that the […]

Fast Tracking to Practice Ownership

Suffocating under a $300,000 student loan, most dental graduates decide to work as associates until the student debt is gone. If you really want to pay off your loan quickly, consider becoming an owner as soon as you can. Use a short-term associateship to hone your clinical and patient communication skills and enjoy the benefits […]

Incorporating with Student Debt

There is a general impression, particularly amongst young dentists, that there is no benefit to incorporate as long as they have personal debts. There are significant benefits for a new dentist if they spend less than they earn. Here’s an illustration that shows how a new dentist can benefit from incorporating his/her practice: Dr. Young […]

A Great Tax Shelter-Soon to Disappear

Many dentists are taking advantage of a tax strategy of converting the regular dividends from their corporations into a capital gain generating huge savings. To illustrate, the capital gains tax on $200,000 of income from the corporation is about $22,500, compared to a tax of $54,400 on dividend income. A tax saving of nearly $32,000! If […]

Am I ready to retire from dentistry?

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 […]

Ready to sell? Maybe not…

One of the first steps in properly planning the sale of your practice is to secure the benefit of receiving the sales proceeds tax-free. You want to make sure that the sale of the shares qualifies for the Lifetime Capital Gains Exemption (LCGE). The LCGE for 2020 is $883,384 for each shareholder. If you sell […]

Slaying the overhead monster

Creeping practice overhead is one of the biggest problems facing the practice owner today. Before you look at strategies to reduce the overhead, you need to know first of how to calculate it. And most dentists are not sure what the true overhead of the practice is. This lack of knowledge is not the dentist’s […]

Want to be a successful practice owner? Start with a mission statement

Your financial success of owning your practice is not determined by how much you work in your practice i.e. performing the actual dentistry but how well you work on your practice; that is building relationships with patients, managing staff, handling negotiations with landlords, bankers, and dental suppliers. When Christopher Columbus set sail for what became […]