– A practice that can show that there’s still potential, there are still unexplored avenues for growth, is always gonna attract a higher price.
– So I’m with Simon Palmer, here again at practice Sales. And I guess the question I have is should a practice that’s ready to exit, ready to retire, the practice Manager, sorry the Doctor, should they do more marketing to increase their profit and revenue, or should they keep it nice and untamed, or undone, so that gives the next buyer the hope that “hey, you know what? “If I buy this practice, I have someone more potential I can raise it to?” Do you have any opinion on that?
– Look, there’s a lot to unpack in what you just said. And it’s not a straightforward answer, right? So I think if you are able to spend a marketing budget wisely and increase the revenue, then absolutely that’s gonna translate into a higher price, but the problem that you’ve got is, what if you spend the extra money and you don’t have the right returns? Well all of a sudden, you’ve made the practice a lot less profitable, right before you wanna sell it. So it’s a dangerous game that you’re playing. You don’t wanna… You wanna make sure that you’re getting a return for that reinvestment. The other thing that I’ll say is that if the practice is doing well already, or is attractive already, and doesn’t have a website, I wouldn’t add the website right before you’re gonna sell it. Because really it’s more attractive without the website because someone’s gonna say “okay, shit! “This practice was doing 900,000 without a website. “Imagine if I put the website in!” If you put the website in right beforehand, you haven’t shown the benefit of having that website yet, in the exit timeline.
– So we’ve got plenty of other videos similar to this, where he helps you with the marketing of your practice. Either subscribe to us on YouTube, or like us on Facebook, and be notified the next time a video comes out.