Do some homework.
The failure rate for dental practices is low however a failure rate could be a professional disaster. Discuss opening a practice with established dentists. See what they recommend and what the pit falls are setting up. What would they have done differently? Once you are comfortable with the challenges you face you are less likely to fail.
Build a network of trusted advisers.
Get a team of industry specific advisers such as dental practitioners, accountants specialised in dental practitioners, and dental equipment specialists who will advise you on the best course of action as opposed to how much money they can make. You may even need a dental specific lender who will know how dental practices work.
Secure financing.
You need to consider the loan term, like a mortgage 10-15 years, whether it is pre-payment, and consider interest rate levels.
Have a business plan.
Templates can be gained from your lender provider.
Develop your business acumen.
Dental practitioners often feel they are not given business acumen. It would be possible to speak to other students who are built their practices can help you with your dream of practice ownership. Also attending practice management seminars and downloading articles on the business dentistry can help.
Maintain a high level of credit worthiness.
This tip is no secret. This must be maintained both professionally and personally as a low score can affect your practice loan. Some-one like Experian.com can help you check your rating.
Maintain a manageable debt load and do not overextend yourself.
Be mindful of new technology. New technology might be expensive and equipment companies may say it will generate more income. However it can be a burden on your cash flow if you are not ready to optimize its use for immediate revenue or expanse savings. You can start off with two dentist’s equipment at first and then get more outfit when the practice supports them.
Stay on budget.
You will have a budget to build your practice. Try to stay in your budget, allowing for an overrun of 10%. Any more than that may create concern for the lender.
Establish professional and practice goals.
Goals either short – term, medium-term, or long term should be achievable and measurable. Once you establish a goal, the measureable component will help you stay focused and force you to reinvent ways to achieve it. You will be ultimately responsible for achieving these goals. It can be a certain number patients a week or a month, number of hygiene appointments a week, anticipated financial income a month and so on. It will motivate you and your team to make the difference of success and challenges.
Maintain an associate position as you grow your business.
No one is more familiar with your debt load then you. From your car loan, student debt and practice debt, and the debt can be enormous. It is important to have a predictable income as you open your practice and build revenue. As an associate 2 or 3 days a week you can better predict cash flow, pay your bills and add patients to your practice.
Call Ajay Patel on 020 7403 1500 for a consultation.
