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honeycomb-charcoal.svg

Lifecycle
of a health
services practice

Explore the key opportunities at every stage

Stages
of a lifecycle

Click on each to find out more.
young-nurse_gettyimages-1087655854_1280x760_1.jpg

What does the time
horizon of starting a
new practice look like?

Post Grad

Year 1-3

Opportunities:

Now is the time to think about managing cash flow: tuition credits, student debts, and how to plan ahead for savings vs. debt reduction—all while thinking about opening your own practice.

Consider associateships for the opportunity to gain experience in a practice and learn how to best manage all the moving parts. This means hands-on training for practical clinical skills, as well as training to be a business owner.

STAGE 1
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As a new entrepreneur,
what are your needs
for debt and personal
cash flow?
Purchasing
Year 4-7
Opportunities:

At this point, your cash flow projections include paying for your practice and maintaining your desired lifestyle. What type of structure is best to fit this lifestyle? Is it a clinic, hospital, research centre? And how do personal and professional investments like RRSPs, TFSAs, and RESPs come into play?

When applying for funding to purchase a practice, banks favour a balance between debt and savings—so prioritize saving wherever possible.

STAGE 2
male-dentist_gettyimages-911844046_1280x760.jpg

During these critical
years, what steps can
you take to improve profitability?

Growth

Year 7-20

Opportunities:

The growth phase is a time to concentrate
on the technical part of your practice: new equipment, setting up offices, and expanding your footprint.

Such activities are great opportunities to discuss government incentive strategies
that might help combat restrictions like that
of COVID-19.

Above all, now is the time to start planning
for a future for you and your family. You don’t need to be in your retirement years to start planning for them.

STAGE 3
mature-opthamologist_gettyimages-89987841_1280x760_1.jpg

How would current
market conditions
impact investments or
selling the practice?

Maturity

Year 21+

Opportunities:

As a mature practice, now is the time
to think about goals for retirement, how savings can be leveraged, and what the
time horizon looks like. How can you plan
for remuneration and succession, while managing wealth and investment mixes?

It’s also time to think about the future
sale of your practice. Will a senior
associate take over, or will it be sold into a conglomerate network? And how can you set up tax planning now for a future sale?

1066
STAGE 4
mature-pharmacist_gettyimages-883064974_1280x760.jpg

After all your planning
and hard work start
to wind down, what’s
next?

Retirement

Final years

Opportunities:

As you approach your final professional years, you can start reviewing formal
plans to exit. Do things need to be adjusted as a result of a shorter runway? How predictable is income; and is it sufficient
to maintain your desired lifestyle? Is the corporation in good hands?

Now is the time to consider the weight
of expenses like health and travel. It’s
also time to take care of housekeeping
items like insurance, updating wills, and redistributing wealth.

STAGE 5
female-doctor-at-computer_gettyimages-105783575_1280x760.jpg

How BDO can help.

From recent graduate, to someone looking to retire—we explore the key opportunities at every stage of a health service practice’s lifecycle. As we build our professional relationship and your practice, we’re here to provide guidance so you achieve your goals every step of the way. As your business matures, priorities and markets may change. We’re here to pivot and evolve with you so your practice grows the way you want it to.

Lifecycle of a
health services practice

Explore the key opportunities at every stage
honeycomb_images.png
honeycomb-charcoal.svg

Stages
of a lifecycle

Explore each stage to  find out more.
young-nurse_gettyimages-1087655854_1280x760_1.jpg

Post Grad

Year 1-3

Opportunities:

Now is the time to think about managing cash flow: tuition credits, student debts, and how to plan ahead for savings vs. debt reduction—all while thinking about opening your own practice.

Consider associateships for the opportunity to gain experience in a practice and learn how to best manage all the moving parts. This means hands-on training for practical clinical skills, as well as training to be a business owner.

What does the time
horizon of starting
a new practice look like?

1
veterinarian_gettyimages-594832991_1280x760.jpg

Purchasing

Year 4-7

As a new entrepreneur,
what are your needs
for debt and personal
cash flow?

Opportunities:

At this point, your cash flow projections include paying for your practice and maintaining your desired lifestyle. What type of structure is best
to fit this lifestyle? Is it a clinic, hospital, research centre? And how do personal and professional investments like RRSPs, TFSAs, and RESPs
come into play? When applying for funding to purchase a practice, banks favour a balance between debt and savings—so prioritize saving wherever possible.

2
male-dentist_gettyimages-911844046_1280x760.jpg

Growth

Year 4-7

During these critical
years, what steps can
you take to improve profitability?

Opportunities:

The growth phase is a time to concentrate on the technical part of your practice: new equipment, setting up offices, and expanding your footprint.

Such activities are great opportunities to discuss government incentive strategies that might help combat restrictions like that of COVID-19.

Above all, now is the time to start planning for a future for you and your family. You don’t need to be in your retirement years to start planning for them.

3
mature-opthamologist_gettyimages-89987841_1280x760_1.jpg

Maturity

Year 21+

Opportunities:

As a mature practice, now is the time to think about goals for retirement, how savings can be leveraged, and what the time horizon looks like. How can you plan for remuneration and succession, while managing wealth and investment mixes?

It’s also time to think about the future sale of your practice. Will a senior associate take over, or will it be sold into a conglomerate network? And how can you set up tax planning now for a future sale?

How would current
market conditions
impact investments or
selling the practice?

4
mature-pharmacist_gettyimages-883064974_1280x760.jpg

Retirement

Final years

After all your planning
and hard work start to
wind down, what’s next?

Opportunities:

As you approach your final professional years,
you can start reviewing formal plans to exit.
Do things need to be adjusted as a result of a shorter runway? How predictable is income; and
is it sufficient to maintain your desired lifestyle?
Is the corporation in good hands?

Now is the time to consider the weight of expenses like health and travel. It’s also time to take care of housekeeping items like insurance, updating wills, and redistributing wealth.

5
female-doctor-at-computer_gettyimages-105783575_1280x760.jpg

How BDO can help.

From recent graduate, to someone looking to retire—we explore the key opportunities at every stage of a health service practice’s lifecycle. As we build our professional relationship and your practice, we’re here to provide guidance so you achieve your goals every step of the way. As your business matures, priorities and markets may change. We’re here to pivot and evolve with you so your practice grows the way you want it to.

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