GAP Australasian-Dentist-May June 2019

Category 124 AustrAlAsiAn Dentist FInanCe H aving your name on the door of your own practice is undoubtedly a reflection of your first-class dental skills that brings about a great sense of pride and achievement. As exciting as the move into private practice can be, it may also be financially overwhelming. there are many new and unfamiliar responsibilities to factor in. Buying into an existing practice or setting up on your own there are advantages and disadvantages to both. sometimes the decision is based on opportunity (there may a colleague selling a practice in you preferred location) or you may have a very clear vision of what you are looking to create. in this instance you may need to start from scratch. Many practitioners like the security of buying into rooms with like-minded professionals. the flip side of this is you will most likely pay a premium for the option to buy. starting up may involve buying or renting your commercial premises. if you own your own business, it may make sense to own the property you work from. there is plenty to take into consideration and it is not an easy decision to make. Download Credabl’s start up or Buy in guide to find out more – available at www.credabl.com.au/blog. Plan Whether you’ve chosen to buy an existing practice, buy into a practice or start up your own, creating a business plan that defines Planning your finances for practice ownership what you are doing and how you are going to do it is your roadmap to success. the plan should articulate: 1. Why you have chosen the proposed location and type of practice; 2. Your competitive advantage and how it will you differentiate you from others; 3. Your competition; 4. Your hours of operation; 5. Cash flow considerations; 6. legal/accounting structures; and 7. A general vision for the practice. Practice marketing As the level of competition increases, how you market your practice is becoming one of the more critical areas for success. love it or hate it, there is certainly a significant opportunity to leverage social media to grow your practice. Whether it be Facebook, instagram or linkedin, social media enables you to engage with your patients as well as referral sources and provide details about what the practice is up to. Business structure in today’s world there are many options – from sole traders and companies to partnerships, and of course various trusts! You will need to consult with your accountant to ascertain which structure will be the most effective for you, in particular for accounting and legal reasons. Cash flow there will be costs to setup your practice. if you are buying a practice, you need to fund goodwill, stock and equipment. You may want additional funding to upgrade the current chair and add some additional equipment. if you are establishing a practice, you’ll need to determine the equipment you need and what the costs of fitout and/or renovations will be. seeing patients is the only way to cover these costs – so you need to figure out how much will you charge them early on. Once you’re operational, day-to-day expenses of running a practice can be easily supported by an Overdraft Facility. if you’re retaining employment elsewhere while establishing your own practice, which is not uncommon, you may find you don’t need as much working capital as you have an additional income source to provide the capital support. Whether you’re thinking about buying a practice or starting up a practice of your own, it’s important to have every scenario covered. What is right for one person, and one location, may not work for another, so you need to do the research and get the right advice for you. Credabl offers finance for dentists. Our knowledge of the ins and out and are just a click (www.credabl.com.au) or phone call away, and we welcome the opportunity to talk to you about your private practice dreams. u 1300 CREDABL (1300 27 33 22)