Starting your own medical practice can be daunting. Whether you are setting up a new practice or taking over an established practice, there are things to consider before committing.
Location and Client Demographic
What suburb do you want your medical practice to be located? How accessible is the location and what is the parking and public transportation like? Is there foot traffic and is it near other establishments such as pharmacies?
Where your practice is located will be a big factor in determining who your clients are and their needs. For instance, if you are a dentist, orthodontic work for children may dominate your workload if your practice is located in a suburban area with a predominantly young family demographic.
Assets and Fit-Out
Will you own or lease your equipment? What is the realistic asset life before you need to upgrade? You need to consider the cost and benefits of purchasing the equipment against leasing the equipment. How will you pay for the practice fit-out? What is your budget and business strategy?
Human Resources and Processes
If you purchased an existing medical practice, you need to consider whether you will retain the existing staff. Contractually, you may be required to. New staff may be less resistant to change and may bring fresh ideas and capabilities to your business.
Will you implement new processes and systems? If so, your staff will need to undertake training, so they understand your new procedures and systems.
Valuation and Financial Positioning
If you are purchasing an existing practice, you should do your due diligence and obtain a professional valuation to determine the business value. Have your contract reviewed by a solicitor to ensure if reflects your intentions.
You need to consider your business structure, practice management, inventory, and human resources when starting a medical practice. You should also plan for future potential expansion and ensure you have an exit strategy.
Here at Launch Finance, we understand setting a medical practice can be daunting and complex. We offer the ease and convenience of finding the right loan for you at competitive rates so you can focus on your work.