January 5, 2016

Three New Year’s Resolutions To Keep

At this time of year, many people take a moment to reflect on the past year and plan for ways to improve in the new one.  In addition to traditional resolutions about personal health, there are some resolutions you should consider in your practice as well.

  1. Review (or make) your estate plan.

Although it can be an uncomfortable topic, estate planning is vitally important, particularly for professionals with significant assets, to guard against the unexpected.  You should consider what would happen to your loved ones and your finances if something were to happen to you.  For most professionals, this means having some core estate planning documents, such as a revocable trust, living will, and powers of attorney, in place to ensure that your assets are distributed according to your wishes in the most efficient manner possible.  If you have an estate plan, the New Year is an excellent time to review it to determine whether it still meets your needs.

  1. Review your retirement goals.

Regardless of whether you are nearing retirement age or whether you are still decades away, the New Year is a good time to take stock of your financial situation and establish savings and retirement goals for the coming year.  If you are nearing retirement and own your own dental or medical practice, you should start planning for the transition out of practice.  Consult with experts to determine what your legal obligations are when closing your practice, whether there are any loose ends that need to be wrapped up before you retire, and how best to maximize the value of your practice for sale.

  1. Review your business goals

Business owners, and in particular dental and medical professionals, should periodically review their business plans to determine whether they can increase their profitability, either through expansion or through cost reduction.  If you think you are in a position where you can expand, consider whether the time is right to bring on an associate, to purchase new or upgraded equipment or to expand your office space.  If you are looking at reducing costs, consider whether, and how, you can cut staff without decreasing revenue or triggering a lawsuit.

The New Year is also an excellent time to review your most important business agreements, such as building leases, employment agreements, partnership agreements, and equipment leases, to determine whether they still meet your needs.  If they do not, look at whether they can be re-negotiated or cancelled and, if so, what the consequences are.

When reviewing these areas, you should have trusted and experienced legal, financial and accounting professionals on whom you can rely to ensure that your practice’s immediate needs and your long-term goals are met.  If you have questions, consult with these professionals so that you can make informed decisions to reach those goals.