New Start Practices
In today’s competitive market place, starting a new medical practice requires great commitment.
New start practices require meticulous planning and I can offer over 35 years of experience and guidance in this regard. Helping customers to start their own business is by far the most rewarding aspect of financial services.
I have helped over 600 customers to do just that with my tried and tested finance strategy.
The two main factors in setting up a new practice are the cost of the investment and the strength of the applicants.
For larger value projects, such as practice purchases, it is a great advantage if the borrowers can make their own financial contribution or deposit towards the investment - perhaps by means of savings. Freehold premises or rental tenancies with at least 10 year terms remaining will help the whole process. New applications involving more than one borrower will also be more favourably viewed and this is because the risk is shared. All this provides more comfort to lenders and offers a faster route to getting deals approved. Partners with specialist skills or applicants who may bring goodwill with them will also fare better at the application stage.
A robust marketing strategy together with a sound knowledge of the geographical area is a vital part of any new application. This will help to provide a sound platform for future growth and is especially important when new practices intend to offer private treatment.
Finding the right location and the right premises is the key factor.
Obtaining an NHS dental contract can also be a help in obtaining finance.
However, the development of a predominantly NHS practice from scratch may not be easy to implement and may not suit all regions or areas. It may also place a preconceived label on the practice and perhaps put-off higher fee generating patients who are seeking exclusive private treatment plans.
New start practices must therefore be clear about their business brand, the marketing strategy, getting the right staff and, most important of all, the long term clinical services to be offered.
Hints and Tips on Starting a New Practice
- Choose an area that you know well and is most likely to have a suitable patient base
- If possible buy freehold premises with good access and scope for development
- Check if there is rental income from any sitting tenants as this could help cover loan costs
- Obtain a minimum of 10 year leasehold contract if premises are to be rented
- Ask local planning office in advance if they are likely to grant D1 Medical use
- If planning permission proves difficult, try to get a ‘patients-lobby’ to help gain D1 use
- Obtain the advice of a qualified marketing expert who knows what you want to achieve
- Prepare a comprehensive cash-flow forecast and business plan that lenders will understand
- Provide a CV for all borrowers that clearly endorses the business strategy
- Keep a current associate position going as long as possible - it helps cushion the outgoings
- Seek the services of an accountant who fully understands dental and medical businesses
- Only choose the equipment and fittings you need to get started, avoid buying luxury items
- Make sure the new practice reception area and patient toilet facilities are well presented
- Save money on furnishings by buying chairs, sofas, tables, office furniture etc. online
- Some sundry suppliers offer preferential discounts for new start practices, but only if asked!