As a dental practice owner, you juggle countless responsibilities every day. But amid all the hustle, it’s crucial not to overlook preparing for unexpected circumstances, such as death or disability. Ensuring your loved ones are equipped to handle these events can safeguard their future, the future of your practice, and provide peace of mind. Here are a few essential steps to help you prepare:
- Develop a Succession Plan
Identify and talk to other local dentists who would be willing in an emergency, to either help by working in your practice, or who would be willing to purchase it at a fair price. It’s not uncommon for a group of practice owners to arrange a cooperative agreement between the group of them.
- Create Detailed Operational and Informational Manuals
Operational manuals are invaluable in times of uncertainty. Document your business processes, key contacts, important protocols, and your disaster plans. You should also have in one secure place, information allowing your loved one to see all bank, investment, asset, insurance, and other important information. This documentation should be clear and accessible, enabling your spouse or loved one to step in with minimal disruption.
- Establish Comprehensive Estate Planning
Estate planning ensures that your assets, including your business, are distributed according to your wishes. Work with an estate planning attorney to create a will or trust that clearly outlines how your business interests should be handled. This will help prevent disputes and ensure a smooth transfer of ownership. Additionally, consider setting up power of attorney and health care directives to address your wishes if you become incapacitated.
- Review Your Insurance Coverage
Insurance can provide a financial cushion for your practice, it can support your loved ones in the event of a premature death, and it can support you in the event of a permanent disability. Maintaining and understanding your insurance coverage is paramount in unexpected circumstances. Work with your insurance broker to understand your current insurance coverage and to see where you might be at risk.
- Regularly Review and Update Your Plans
The business landscape and your personal circumstances can change rapidly. Regularly reviewing and updating these items ensures they remain relevant and effective. Schedule annual reviews or updates whenever there are significant changes in your business or personal life.
By taking these proactive steps, you not only protect your family but also provide clarity and stability for your business, your employees, and your patients in challenging times. Preparing for the unexpected is not just about safeguarding your assets; it’s about ensuring your goals can still be reached after an unexpected event.