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 | Avoiding
Mistakes Made by Other Dentists - Volume
4
by David Chong Yen (Mar. 2002) |
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There is certainly value in learning from your
own mistakes. However, learning from the mistakes of others can be a lot less
painful - and less expensive.
Choosing Advisors
Just as others
come to you for your dental expertise, you will undoubtedly seek advice from other
professionals. It is critical to use advisors who independent and objective. They
will protect your best interests and can play a fundamental part in your future
success. Biased investment advice may well lead to significant losses - or even
bankruptcy.
One investment mistake that is unfortunately very common
is to purchase what you think is a tax shelter, only to learn subsequently that
the Canada Customs and Revenue Agency (formerly Revenue Canada) will not allow
the tax deduction. You are left with a useless investment and a huge loan.
Your best resource for choosing reliable advisors is references from other
dentists.
Mutual Respect Is Key
The difference between a good
advisor and a great one is that the latter understands you and your profession.
Valuable advice results from knowing your business, your personal and professional
circumstances, your past experiences and future goals.
It is important
to build a level of trust and comfort with each of your advisors and to understand
the value they bring to your business. Many dentists make the mistake of not asking
their lawyer or accountant to review documents before signing on the dotted line.
Whether you are considering a lease for office space, or signing an associateship,
financing, or
purchase and sale agreement, your lawyer and your accountant
should first review these documents to ensure your interests are protected. During
this review process, your advisors can arrange your affairs to minimize taxes
and legal exposure.
Think the Unthinkable
Divorce, death and
disability: three events no one wants to think about. However, lack of planning
for these occasions can truly upset your financial state.
Preparing for
these events can preclude unnecessary consequences of already tragic circumstances.
For example, a prenuptial agreement may be advisable, given that, in many instances,
a dentist enters into marriage with a greater number of assets (or potential earning
power) than the other spouse. Without a marriage contract in place, your assets
remain unprotected in the event of a divorce. Similarly, many dentists do not
prepare a will and power of attorney. Even though it is unpleasant to think about
disasters, it is necessary to plan for them.
Invest In Yourself
It is human nature to be enticed by "get rich quick" schemes. However,
experience shows that such schemes rarely succeed: investing in "opportunities"
about which you have little knowledge or control generally leads to disappointment.
Instead, invest in your dental practice. Few investments yield better returns
than those for which you have been trained.
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