One of the most difficult decisions to think about is the transfer of your business – your pride, joy and most important your creation. Turning over management/ownership authority is not easy for any founder, nor is it easy for the successor. However if you want your practice to continue to prosper then you must seek a way to do it. Research shows that practices tend to fail after death and fewer than 30 percent are transferred successfully to second generation or associate.
Convincing chiropractors to have a disaster replacement plan in the event of a tragic event is not too difficult; persuading them to prepare people for advancement years ahead of their actual promotions presents more challenges. Therefore, replacement planning is a start, but only a start.
Consider that many succession plans pertain to most large organizations such as hospitals or healthcare administrators, most small companies don’t have one, much replacements for key positions such as Chiropractic Assistants, therapists, associates, etc. Succession planning balances the short and long-term needs and promotes the simultaneous analysis of each.
What I personally believe is that succession planning is a deliberate, effort for the chiropractor to plan a transfer of duties and revenue to that person or person’s whom can continue the culture and care of patients without hesitation. Done well, succession planning maintains a balance between overall patient care and the continuance of practice revenue.
So, if the stories above concern you and there is a desire to position the practice for continuity what are some areas of consideration? Ask yourself the following:
- During a short-term illness whom is responsible for maintaining the practice?
- Does the current team have enough training to continue practice standards when the principle is away?
- Should a crisis occur whom is my go to person?
- What areas of the practice are covered in a crisis and where is there vulnerability?
- Do I wish a one time payout or do I want an annuity if I retire from the practice?
- Do my siblings desire the practice in times of a crisis, death or retirement?
- What is my legacy? Do I want to leave one?
What are you doing to plan for your future? Make plans now before it is too late!
© 2012. Drew Stevens PhD. All rights reserved.
Drew Stevens Ph.D. is a world-renowned marketing mentor for chiropractors. Drew is one of those very rare chiropractic-marketing experts with not only 30 years of true experience but advanced degrees in marketing productivity. Not many can make such as claim. Drew works with chiropractors and professional services firms who struggle like crazy to create customer centric relationships that create new revenue. Dr. Drew has aided professionals to reach billions of dollars in new revenue by strategically implementing processes and methods that develop new relationships and new revenue.
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