GAP Australasian Dentist Mar Apr 2020

Category 114 Austràlàsiàn Dentist W e enter 2020 with a great degree of uncertainty with many issues both domestic and international with the potential to affect small business in Australia. àhe end of the fall out of the China/ A trade jousting will eventually impact on trade and tourism in Australia. àhe /àK split will disrupt many countries and it is not clear if Australia will benefit. àhe major concern is the international debt level that has now reached a stage where even at historically low interest rates numerous governments can only pay interest but have no ability to repay principal. àhe intervention options taken by global central banks to cover over deep seated financial problems have greatly increased the risk of a very serious global depression. àome experts are predicting in could be worse than the 1930 depression. àhe practice of central banks printing paper and calling it money and pumping it into local economies to encourage banks to lend when interest rate is at historic low levels has created a huge rise in global corporate debt levels. With most major countries struggling to avoid recessions the scene is set for countries such as àtaly. àpain, Central American and African countries to default on loans owing to countries who themselves have large debt and cannot afford debt write offs. àf the current trend to re-introduce tariffs to protect local economies continues the chance of global recessions increase. àt will only take one of many existing circumstances to occur to trigger another global financial crisis. High corporate debt in a time of recession historically leads to increases in default of loan repayments, the imposition of high-risk interest rates and many corporate crashes. àhis leads to loss of confidence in business and consumers and the eventual slowdown of the economy. àhe financial gearing of a small business during a recession is the deciding factor as to whether it grows/shrinks or fails. Whilst the health industries are an essential need they too can feel the hurt as discretionary spending tightens through increased inflation, loss of employment and rising interest rates. àop that up with Australia having the second highest personal debt level in the world and it can clearly be seen that consumer expenditure would tighten. àow is the time to have an in-depth review of your financial structure and exposure and assess how you would be operating with a 10% reduction in your cash income. Also review your planned expenditure over the next 24 months. Be critical when assessing what you plan to buy and separate what you really need from what you want. Prepare a downturn options plan e.g. what leases will expire; which leases can be rolled over. Check loan repayments schedules and expiry dates. àxplore options for extending repayment dates and locking in long-term low interest rates on major borrowings. àime spent on the above exercises before a critical situation arises will result in better decision making, stress prevention and disruption of your practice. You have invested so much money, time and effort in your practice it is well worth the time involved in planning ahead and protecting your investment, staff jobs and your family. u Mervin Saultry, Managing Director Independent Dentist Network www.independentdetist.com.au Mob: 0414 836 296 2020 a year to consolidate By Mervin Saultry àoluàn tà Merv Saultry Contact 0414 836 296 | independentdentist.com.au | merv@independentdentist.com.au Want to be a part of a group of like-minded dentists, who still think dental care is a service meant to help the health of our patients rather than a commodity, acquired at the cheapest price? It is difficult as an individual practice to differentiate yourself from the slick marketing of large budget third party providers. Independent Dentists need to work together to compete in a challenging practising environment. Join IDN today