Growing your practice requires dental or orthodontic practice valuation. This will give you an idea of where you were, where you are, and where you want to go. For more information, click on the link to the video above.
There are three main types of valuation:
- Asset valuation – based on assets of the practice.
- Revenue valuation – anticipate future based on earnings in the past.
- market-based valuation – comparing between other dental practices in the same field.
In the dental world, the latter two are most often used. It’s important to know your earning potential, but you also what to have a solid idea of what the market is doing at any given moment so that you can adjust accordingly.
When you’re looking at valuation, it’s important to figure out how to drive performance. The performance of a dental practice can be improved by simple bookmaking procedures that are often the easiest thing for an accounting firm to do.
The simple things impact the money you take home, bank loan approval, and your valuation. By starting with solid bookkeeping and other fundamentals, better planning and execution can take place.
Make sure your vision is something you can execute. Work with accountants to get a solid assessment of your practices value.