We are often asked what keeps a community pharmacy owner from executing their exit strategy. We generally provide one of these answers: The pharmacist has not identified or established a purpose for his or her life after pharmacy that is powerful enough to replace the emotional attachment they have for their life in pharmacy (we discussed this in a previous blog). Or, the pharmacy owner is not financially prepared for life after pharmacy.
We are then asked, “What can a community pharmacy owner do to be financially prepared for life after pharmacy?”
The answer to this question is a simple concept that we call the Interdependent Asset Strategy™.
The best way to understand and apply this concept is to think about buckets (if you have ever seen the movie The Bucket List, then please note that this is your financial bucket list). Here is how it works: You only have a limited number of buckets in which you can invest money. They can include your pharmacy (of course!!!), your investment portfolio, real estate, insurance, other businesses, retirement plans, and more.
It is important to manage your buckets individually and collectively. Each bucket should be helping advance you towards your goals individually and collectively. Risk should be assessed and managed on individual and collective bucket levels. This will allow you to make the necessary adjustments to the buckets to avoid catastrophic consequences (i.e. the real estate developer who was heavily invested in real estate in 2007 and 2008).
Managing these buckets effectively and efficiently can make the difference between having a more fulfilling, inspired and independent life after pharmacy or being stuck in an uninspired, dependent life after pharmacy. Below are three reasons to put an interdependent asset strategy in place and to monitor and manage it's performance towards reaching your goals:
- It relieves pressure on the pharmacy: If you have a high level of financial independence outside the pharmacy, you can be picky about whom you sell your pharmacy to. It also allows you to take more risk and try new ideas in the pharmacy because you will not be as worried about the consequences failure might have on the pharmacy.
- Pharmacy values have taken a hit recently: Many pharmacy owners believe that they will finance most of their life after pharmacy by selling. While this is a possibility, the sheer demographics of community pharmacy are putting downward pressure on pharmacy values. Having your interdependent asset strategy in place, will free from being totally dependent on the pharmacy for your life after pharmacy income.
- You deserve a more fulfilled life after pharmacy: You work too hard in your pharmacy life to leave the quality of your life after pharmacy to chance. We once heard someone say “Live like no one else today, so you can live like no one else tomorrow.” The concept of the interdependent asset strategy requires discipline and insight today for an inspired independent life in the future.
You have the opportunity to have a very fruitful life after pharmacy. It will be enhanced if you apply the interdependent asset strategy to create and manage your buckets effectively and efficiently. Wayne Gretzsky once said “You miss 100% of the shots you do not take.” You may may only get one shot fat this, so please make it count.
Where does the stuff in our blog come from?
The content of this blog is inspired and substantiated by our experience helping independent community pharmacists enjoy financial independence during and after their life in pharmacy. When a pharmacist reaches out to us for information and help, we endeavor to give them as much free value as is possible. In addition to providing educational and strategic planning tools (like The Bucket List Check Up), we invite qualified pharmacists into our formal discovery process.
The first step of the process is completing The Inspired Goals Workshop. This 90-minute session enables us to deliver a detailed and personal Inspired Independence Blueprint. The blueprint provides a personalized roadmap for achieving your goals and enables you to fully understand the value of joining The Inspired Independence Program.
If you wish to learn more about any aspect of our work, the free value we offer, or to be considered for The Inspired Goals Workshop, visit our web site at www.waypointus.com or call 843.873.4420 and ask for Ben or Matt Coakley.
At Waypoint Pharmacy Advisors, we take care of you!
If you found this blog post helpful, please check out the following blog post as well from a couple of months ago:
