What is the first thing you should ask yourself when you want to buy a private practice? What is the general process for selling a private practice? If you would consider selling your practice in the future, why should you itemize your sales?
In this podcast episode, Joe Sanok answers your questions about how to sell a private practice.
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In This Podcast
- Is it worth the value?
- Itemize your sales
- Factors to look at
Is it worth the value?
Why do you want to purchase a private practice? Often purchasing a private practice simply means purchasing a website, a logo, and an email list. Can you make that yourself in six months?
When you are wanting to purchase a private practice, be sure to ask:
- What kind of network does it have?
- What types of clients does it work with?
- What kind of contracts is it involved with?
All these things are factors that if you want to sell your practice, you need to build that value outside of yourself. Because, as soon as someone buys the practice, you typically will leave. (Joe Sanok)
Put value into your private practice that is not dependent on you still being a part of it. If you can increase its value and it is not dependent on your presence within it, you can sell it for more.
Itemize your sales
If you sell e-courses or other resources besides your normal therapy services, be sure to itemize these different sales in your accounting books:
Because you’re going to have to go back three to five years to look at how much of this [practice value] is outside of your own work, because you doing counseling does not really count as money into the business because you’re going to leave, so that’s not going to come in. (Joe Sanok)
Value every part of the practice, such as:
- The website,
- The furniture,
- The email lists.
Factors to look at
A few other factors you should consider are:
- How much you will receive for your practice if it has 1099 or W2 employees. Typically, people pay more for a practice with W2 employees than contractors.
- Recognize the emotional side: selling a private practice is a full letting go of the practice and your hard work.
- Consider adding in some transition planning with a consultant.
- Be open to negotiating.
Books mentioned in this episode:
Useful Links mentioned in this episode:
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- Allie Casazza wants You to Declutter Like a Mother | POP 604
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Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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