5 Simple Steps to Take BEFORE You Sell Your Veterinary Practice
We recently spoke with Kayla Donovan about her thoughts on selling a veterinary practice. Below, she's shared an overview for vet practice owners.*
Owning a veterinary practice can be a fulfilling and financially rewarding venture. However, it also comes with its unique set of financial challenges. In this blog, we'll explore the critical role of personal financial management for veterinary practice owners and how your personal finances can significantly impact the success of your practice.
As a veterinary practice owner, your personal financial stability is closely intertwined with the health of your business. By understanding and managing your personal finances effectively, you not only ensure your own financial well-being but also lay a solid foundation for the growth and prosperity of your practice.
1. Establish Financial Goals
Setting clear financial goals is the first step towards securing your financial future. As a veterinary practice owner, it's crucial to have both short-term and long-term goals for your personal finances. Short-term goals may include paying off debt, building an emergency fund, or saving for a family vacation. Long-term goals might involve retirement planning, investing in real estate, or funding your children's education.
By defining these goals, you create a roadmap for your financial journey. These goals will serve as a source of motivation and direction, helping you make informed financial decisions.
2. Plan for Cash Flow
Managing cash flow is paramount for personal financial stability and the success of your veterinary practice. To ensure you have enough funds to cover both personal and professional expenses, consider creating a detailed cash flow plan. This plan should account for your practice's income and expenses as well as your personal financial obligations.
A well-structured cash flow plan allows you to allocate funds efficiently, ensuring that you can reinvest in your practice, pay yourself a fair salary, and maintain a healthy work-life balance.
3. Manage Debt
Debt management is a critical aspect of personal finance. High-interest debts can quickly erode your financial security and put your practice at risk. It's essential to develop a debt repayment plan that prioritizes paying off high-interest debts first while maintaining necessary business and personal expenses.
Consider consolidating high-interest debts into lower-interest options, such as a business loan or personal line of credit. This can reduce the financial burden and help you regain control of your finances.
4. Plan for Retirement
Planning for retirement is often overlooked by many veterinary practice owners. However, it's a crucial step in securing your financial future. Working with a financial advisor who specializes in retirement planning can help you create a tailored retirement plan that aligns with your personal goals and the financial needs of your practice.
By contributing to retirement accounts and investments, you not only secure your own retirement but also ensure the continued success of your practice, as a well-prepared owner can transition out of the business smoothly when the time comes.
5. Seek Professional Counsel
Aside from a personal Financial Planner, there are two other relationships you must have before selling your veterinary practice.
A Trusted CPA (ideally one who specializes in veterinary practices)
An experienced Practice Broker
The value of an experienced Practice Advisor can’t be discounted… here are a few things they’ll help you to consider before putting your business on the market.
Preparation is Key: Start planning early with your broker to maximize offers. They'll help construct a roadmap, ensure clean financials, and offer guidance on making your practice more marketable.
Timing Matters: Discuss your personal and professional timing with your advisor, aligned with market trends. Timing the sale right can significantly impact offers and opportunities.
Know Your Worth: Work with your advisor and accountant to determine your practice's value and uncover growth opportunities. Early valuation helps shape your roadmap.
Unlock Higher Offers: Utilizing a broker not only ensures higher offers but also streamlines the sales process, allowing you to focus on running your practice stress-free. Don’t leaving money on the table by trying to do it on your own!
Conclusion
In summary, mastering your personal finances as a veterinary practice owner is not just about securing your own future; it's about ensuring the continued success and growth of your practice. To thrive in the veterinary industry, follow these five key money moves:
1. Set clear financial goals for both the short and long term.
2. Develop a cash flow plan that balances personal and professional expenses.
3. Prioritize debt management and consolidation to reduce financial stress.
4. Collaborate with a financial advisor to create a solid retirement plan.
5. Aligning yourself with the right trusted advisors can make all the difference in successfully selling your practice.
By taking action now to improve your personal finances, you are setting the stage for a prosperous future for both you and your veterinary practice. Your financial stability and success go hand in hand, and with careful planning and dedication, you can achieve both.
ABOUT TRIUNE FINANCIAL PARTNERS
Triune Financial Partners is committed to empowering people with life-changing financial counsel. Triune is an independent firm that values clarity, simplicity, and transparency. We're a fiduciary, which means we always put our clients' interests first. In addition to Financial Life Planning for individuals and families, we also serve 100+ businesses, churches and nonprofits to craft powerful 401(k) and 403(b) plans for their organizations. Whether you're working with one of our Financial Life Planners or setting up a 401(k) plan for your organization, Triune is here to help you thrive financially.
Interested in working with us? Get in touch here.
*The content shared in this blog post includes material and viewpoints from a collaborating entity, Kayla Donovan of Evo Transition Partners. Please note that the business operations, opinions, and perspectives presented by the collaborator are solely their own and do not necessarily reflect the views, policies, or endorsements of Triune Financial Partners, LLC (Triune). Triune does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process disclosed by the collaborator. The inclusion of any third-party content does not imply endorsement or recommendation by Triune.
