{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"How successful practice owners actually become wealthy","description":"A profitable practice can create tremendous cash flow\u2014but it does not automatically create personal wealth.   In this episode of 20\/20 Money: The Business of Optometry, Adam bridges the gap between running a successful optometry practice and using that success to build lasting financial independence. Drawing on nearly 20 years of working with business owners, he explains why practice size, income, and personal net worth are related\u2014but far less correlated than many owners assume.   Adam shares several patterns consistently demonstrated by financially independent practice owners, including intentionally moving excess cash out of the practice, diversifying into multiple income-producing assets, maintaining adequate liquidity, and increasing their investments before expanding their lifestyle.   He also addresses one of the biggest financial risks facing practice owners: relying on the eventual sale of the practice as the primary retirement plan. Buyer availability, health changes, burnout, market conditions, taxes, outstanding liabilities, and unrealistic valuation expectations can all disrupt a transition.   The wealthiest owners Adam has worked with did not become wealthy when they sold their practices. They became wealthier. The practice sale simply converted one asset into another\u2014it was the whipped cream and cherry on top of the financial sundae, not the sundae itself.   In this episode: Why generating cash and deploying cash require different skill sets How excess cash in the practice can create significant opportunity costs The importance of building wealth outside the practice Why net worth and liquidity are not the same thing How lifestyle creep can reduce flexibility inside the business Why practice owners should build income-producing assets The risks of making the practice sale your retirement plan How personal financial pressure can derail practice-sale negotiations Why financial independence should be built before closing day   Next Best Step: Ask yourself this question: If your practice were worth 30% less than you expect\u2014or you had to retire five years earlier because of your health\u2014would your financial plan still work?   If the answer is no, your practice is not merely part of your retirement plan. It is your retirement plan\u2014and that may be the greatest financial risk you are carrying.   Referenced episodes: Are you building wealth...or just feeding the machine?? 3 financial lessons learned from my grandpa and grandma   Have a podcast-related question? Contact our team here!   Resources: Book a Triage call with Adam Download the Practice Owner's Financial Toolkit 20\/20 Money Ultimate Financial Success Masterclass OD Mastermind Interest Form Check out Adam's new book: How to Buy an Optometry Practice   \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 Please rate and subscribe to 20\/20 Money on these platforms Apple Podcasts Spotify \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014 For past episodes of 20\/20 Money with full companion show notes, please check out our episode archive here!   Check out Adam's other podcast! The Optometry Success Podcast  Subscribe on Apple Podcasts: https:\/\/bit.ly\/4tttng6 Subscribe on Spotify: https:\/\/bit.ly\/4tuf0YM      ","author_name":"20\/20 MONEY: The Business of Optometry","author_url":"https:\/\/www.integratedpwm.com\/","html":"