How does a private practice owner know when they should move on from their business? Below, we discuss the clear signs that it’s time to sell your private practice, from exhaustion to increasing market competition.
Lost Drive & Exhaustion
One of the most common reasons that owners sell their private practice is that they feel they’ve lost the spark that drove them or are too exhausted to do it anymore. Running a private practice is more than a full-time job—it can consume your life.
To withstand the daily grind of running a private practice, an owner needs to have a strong motivation and drive to succeed, but the grind can take its toll on people mentally and physically. Whether it’s age or exhaustion, if you no longer have the daily hunger to make your practice the best it can be, it may be time to move on.
Increasing Competition
Another sign that it’s time to sell your private practice is that more businesses are encroaching on your market territory and providing stiff competition. Markets can change rapidly, and if your private practice has a lot of success, others will likely see that and try to achieve the same thing.
More competition means using more manpower and resources to rise above the competition while managing shrinking profit margins. If your private practice used to be the only game in town, but now others are popping up and eating away at your target market, it might be best to sell while you’re still ahead of the competition.
Strike While the Iron Is Hot
Often, it’s best to get out when things are at their best or while the iron is still hot. Every market has its ups and downs, especially with private practices, and when the market is at its peak, it could be extremely lucrative to cash out before it swings the other way.
If your private practice is performing extremely well—like it couldn’t be doing any better—then there’s no better time to sell to an interested party. Your practice will never be more valuable, and if the industry is peaking, it’ll never be a more attractive market for buyers to want to join and pay a handsome dollar for a well-performing practice.
You Want To Try Something Else
Another personal reason that many owners decide to move on from their private practice is that they get bored with the business or want to try something else. Perhaps you’ve done all you can in the industry, and now you have a new idea you want to try, but you can’t do it while still running a private practice.
Many owners will sell their private practice and use the sale proceeds as funding for their next business idea for a smooth and stable transition. If you’ve got an idea you’re itching to try, there may be no better time to attempt it than now.
Conclusion
If these reasons resonate with you and you’re interested in selling a tax practice or other private practice, Private Practice Transitions can help connect you with interested buyers for a smooth transition. Contact our expert team to learn how we can help you sell your private practice today.
