There is no greater personal satisfaction than to have a thriving business and know that you were responsible for its success. Besides setting the standards of care and level of client service you desire, the financial benefits of practice ownership can be significant.
Being a practice owner means you will succeed or fail on your own merit. No one can tell you what to do, they can only advise. This usually fits perfectly in the independent nature of the average veterinarian. There is no better personal satisfaction than to have a successful business and enjoy its rewards.
The financial rewards of ownership can be significant as ownership generally provides an opportunity for an increased annual compensation, plus the opportunity to realize an increase in future equity value of the practice. This latter benefit of ownership, building equity in the future practice value, can be very sizable. However, the significance is often overlooked by buyers in their contemplation of purchasing a practice. Here is just how profound a difference owning vs. working as an associate can be on your financial future.
As an associate you could make $80,000 per year, save 10% annually and at the end of 10 years have a nice little nest egg. Alternatively, as an owner, you could purchase a practice worth $500,000 and take home at least the same $80,000 per year, save the same 10%, creating a similar nest egg at the end of 10 years. BUT, as owner of a successful practice, you would also have built up owned equity as the owner of a successful business, which is often worth more than a million dollars for an average sized practice. Now you see there is no financial comparison between associate and owner. It’s something to think about.
If you want to be your own boss, enjoy business management, are not intimidated by the risks of ownership, accept that ownership can restrict geographic mobility and appreciate that, at least in the early years, your personal life may take a back seat to practice responsibilities, then ownership may be right for you. When all the pro and cons of practice ownership are weighed, for most, the rewards of autonomy and practice equity will far out weigh any risk or sacrifice. Remember ownership is not a one way door, and you don‘t have to remain an owner for your entire career. It certainly is a great way to improve your personal financial success.
If practice ownership is for you, contact a Simmons advisor. We‘ll answer all of your questions. We look forward to meeting you and helping you become a practice owner!