Leverage your business to avoid doctors’ greatest regret

Avant Growth Academy is a series of two-day, in-person workshops delivering insights specifically curated to empower doctors at each career stage.

We’ve brought together expertise from across Avant’s group of businesses, as well as selected external specialist partners, to deliver a comprehensive program that aims to give you the knowledge, skills and tools to help you build a successful medical practice.

Program Director, Steve Macarounas talked to some of the Avant team who will be presenting at our upcoming events in Melbourne in August 2025, about some of the key factors doctors need to consider to design a financially viable business that aligns with their lifestyle goals.

Not enough family time

I’ve asked thousands of doctors in Australia and abroad the same question: ‘What is your greatest regret?’ The overwhelming majority have answered: ‘I didn’t spend enough time with family.’ Even worse, young doctors gave a similar answer, appearing to acknowledge this will also be their fate.

However, it doesn’t need to be this way. The reason for this tragedy is not because doctors love their families less than other professionals, or are more dedicated to their patients and community. In my experience, it’s because some doctors don’t understand the fundamental principles underpinning business and leverage.

A practice is only a business when it’s structured in such a way that it thrives despite its owners, not because of them.

Structure and governance

Gail Wang, Risk Adviser, Avant’s Risk Advisory Services, stresses that from a risk perspective, proper structure and governance is pivotal.

“Good governance is not fire-fighting or crisis-management,” she says, quoting India’s Prime Minister, Narendra Modi. “Instead of ad-hoc solutions, address the root causes of problems with qualified staff supporting the business to allow you to focus on medicine, rather than fighting a raging fire on your own with minimal support.”

Incorporate key metrics

Building on this foundation of good governance, Dr David Williams, a neurologist, practice owner and General Manager, Avant Practice Solutions, says incorporating key metrics into your business plan is essential to build a sustainable practice.

“Surveys of practice owners frequently cite administration, financial and human resources issues as their most significant burden,” he explains. “Running a successful practice requires principals to consider a number of metrics including their time cost and return on investment.”

“Through these lenses business success can be defined as high return on investment and low personal time cost, giving you a higher quality of life,” Dr Williams says. “Not coincidentally, practices that minimise the time cost of principal doctors are more resilient, sustainable and financially viable.”

These practices commonly engage experts to provide services including bookkeepers, payroll, HR services, practice management consultants, industry-experienced accountants, lawyers, IT experts and medical billings services to reduce the burden on practice owners.

Optimise practice operations

Another important aspect is viewing your practice as a saleable asset, and optimising your practice operations by maximising efficiencies and minimising costs.

“Focus on quality administration work to give potential investors or purchasers confidence that the business has value,” Dr Williams says. “This may be as simple as demonstrating good quality data and processes in your practice management software, reliable work processes and documentation, and a healthy workplace culture with clearly defined roles and responsibilities.”

“Getting these things right can help any practice,” he says. “For practices that are being sold, managing these components in the two or three years prior to going to market can maximise your return on investment.”

Start with the end in mind

While it might seem like extreme forward planning, Ben Ryan, Partner, Commercial & Corporate, Avant Law, says doctors need to start with the end in mind by having clear owner and practice documentation in place for effective management and succession planning.

“Too many times we hear from doctors one to two years out from their retirement about their plans and how they want to maximise the value of their interest on exit,” he says. “While it’s great they’re having those conversations, it’s something that should be planned for even before the practice opens.”

“In our experience, having the right documents in place for both practice owners and non-owners results in fewer administrative headaches and greater streamlined processes for managing people and avoiding potential disputes,” Ben says. “This means you can run your practice more effectively and be better prepared for your retirement.”

Saleable value

To help ensure a good return when the practice is sold, it’s essential for doctors to consider what makes their practice saleable and capitalise on opportunities to enhance its value.

Kate Farley, Head of Residential Lending, VIC and SA, Avant Finance, emphasises that sellers must consider what buyers are looking for when assessing business viability.

 Lease terms

An important consideration is the lease arrangements; whether updates are required or if the remaining lease terms offer options at a market rate.

“It’s a point that often holds up negotiations and some lenders align borrowing terms with the lease terms,” Kate explains. “Since lease or mortgage expenses are a large component of the practice’s running costs, buyers would struggle to assess the practice’s viability without this information.”

Profitability

Buyers also evaluate whether additional investment will be required, and practice profitability based on the last two years of financials.

Kate suggests practice owners ask themselves: “Will growth be necessary for viability or do the numbers stack up from day one?”

Lending and handover

Lenders also prefer existing doctors buying into practices over external buyers.

“The assumption is the doctor knows how the practice runs, ensuring a smooth handover with less need for sellers to stay on post-sale,” Kate says.

“Owners often limit their prospective buying pool and the funding that can be supported, when these key factors aren’t considered.”

2025 Avant Growth Academy events

Want to hear more insights from Steven Macarounas, Program Director, Avant Growth Academy and the Avant team? Register now for one of our programs coming to Melbourne on August 9-10, 2025.

Transition to private practice - Build a practice that aligns with your financial and lifestyle aspirations. Designed for advanced trainees, recent fellows, and consultants making the leap to private practice, this course helps to ensure a smooth transition into the entrepreneurial world of healthcare.

 The future-ready private practice - Improve operational efficiencies and growth at your established practice. Tailored for doctors and practice managers with established practices, this course is your gateway to elevating your medical business to new heights.