118 AUSTRALASIAN DENTIST FINANCE Expanding your dental practice is an exciting prospect. But where does one start? Bigger could mean more service offerings like an extra chair, providing an in-demand specialty under the same roof or opening a new location. It could mean more patients and it certainly could mean more revenue. One thing is for certain, it’s going to mean more work and perhaps additional overheads, so it’s important to consider your options. Before rushing into anything, it’s important to confirm you’re ready for growth. Patients are often a good sign for this, particularly when your patient base is both steady and growing. They may be asking after additional services rather than being referred out or mentioning that they would love to see more convenient locations. And while we know all dental professionals put their patients first, it’s important that expanding your practice makes good business sense in the first place. When it comes to expanding your practice, there are generally two paths you can go down, both of which have advantages and disadvantages. The first is expanding your geographic footprint with additional practices. The second is expanding to larger premises by relocating or growing your existing location. Buying or setting up another practice(s) Expanding your footprint with additional practices can be a costly exercise. Practice start-up costs alone run upwards of $300,000 for newfitout and equipment. Assuming you need to borrow the funds to achieve this, it’s important you speak with your lender to determine how much debt you can take on. Cash flow is also extremely important as unforeseen costs often creep in. Is a bigger dental practice necessarily better? Human capital is going to be another significant investment if you have more than one location. Even if you plan to travel fromone practice to another, it’s likely you’ll need regular staff such as a receptionist and dental assistants or nurses available at each site. On the upside, additional practice sites mean you can provide your services to a broader group of patients. You can also consider expanding the service offerings whereby you have consulting practitioners or services available that are different to your core skill set. You may also consider sub-leasing the space when you’re not using it. Expanding to larger premises by relocating or growing your existing location Keeping everyone under one roof is certainly advantageous as you can leverage off your existing staff and dental team. You’re also able to save time on travel between practices and possibly enjoy a lower rent than if you had multiple locations. There are also economies of scale in buying consumables and office supplies for one place rather than multiple. However, if your appetite for growth has been driven by increased volume and the desire to add new providers, it’s important to determinewhether or not your existing or new location (even if it’s a larger footprint) can support the planned growth. Do your patients want to see you in a larger practice or is it the smaller nature of your practice that appeals to them? Is there sufficient patient demand in the same geographic location for the increase in providers? To determine which path is best for you, you should map out your one, three and five-year plans, assessing your patient flow, prospective revenue and responsibilities. What else to keep in mind This is a commonly overlooked element or often left to the end without much thought, despite being a source of competitive advantage. Once you decide to expand your practice, remember that you need to have a plan in place to ensure that patients – new, existing and prospective – are made aware of the news. In other words, market your practice to let the community know. Will you utilise social media platforms and how often will you be posting to build up some momentum and interest? Will your practice need a bit of help and require paid advertising methods to target your ideal patients? So, is a bigger practice necessarily better?There are advantages andchallenges for every scenario. What’s key is to ensure you’re across the considerations for your unique needs and requirements. u The team at Credabl is always here to support your practice plans with bespoke funding solutions. You can chat live on our website 24/7 www.credabl.com.au or call one of our specialist lenders on 1300 27 33 22. Give your dental practice a $10,000 Helping Hand Grant! If you own, manage or work for a dental practice, apply at credabl.com.au/ helpinghand22 before 31 December 2022. This article is a guide only and does not constitute any recommendation on behalf of Credabl Pty Ltd (ACN 615 968 100) or any of its related bodies corporate (Credabl). The information in this article is general in nature and we have not taken into account your personal objectives or financial circumstances or needs when preparing it. Before acting on this information you should consider if it is suitable for your personal circumstances. Credabl is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate. 1800 806 450 www.amalgadent.com.au SEE BACK COVER FOR SPECIAL OFFER! THE BEST JUST GOT BETTER “It’s great for long term provisionals” Dr Megan Shelton BulkEZPlus Footer #96.indd 4 25/10/2022 9:04:54 AM
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