460: What creates value in a business

The Savvy Dentist

Valuing your dental practice is crucial for understanding its financial worth.
It's really important to understand that as we go about growing our practice, we want to build your practice the right way. Accurate valuation helps in making informed business decisions and ensures that you maximise your practice’s potential and profitability.
In this episode of The Savvy Dentist Podcast Dr. Jesse Green discusses the concept of ‘building to sell’, regardless if you envisage selling your practice or not.
To understand your business value involves assessing tangible assets like equipment and property, as well as intangible assets such as patient base and brand reputation. Which can be essential for securing loans, attracting investors, or planning a future sale.
To build value in a dental practice, focus on enhancing patient experience by providing exceptional care and maintaining a welcoming environment, which fosters patient loyalty and referrals. Invest in modern equipment and continuing education to offer the latest treatments and maintain a competitive edge. Additionally, implement efficient practice management systems to streamline operations, reduce costs, and improve profitability.
So when we talk about building to sell, it doesn't mean you have to sell. It's about making sure that you're building an asset that has tangible value in the marketplace.
If you build it right and your business is easy to sell, then your business is also fun to run because it's giving you the income that you want and it's giving you the freedom that you want.