You’ve got experience under your belt and ready to go from ‘practitioner’ to ‘business owner’ – but do you buy an existing practice or start from scratch?
Doctors can spend years studying in the field of health, but can often leave little time to develop the skill set required to successfully run their own business.
Our team of specialists can help you when taking over someone else’s practice or establishing your own, you need to start by analysing all the financial statements, forecasts and past tax returns “at a minimum”.
“You’ll want to know if the business is trading well and making money, but it’s likely you’ll also want to consider its capacity for growth and the need for any short and long-term investment in new equipment.”
How successful you are will ultimately hinge on your ability to compete in your chosen market.
“If you decide to take over an established practice with a solid track record of meeting market demand, the value of the goodwill you purchase can be conserved and enhanced through an agreed transition plan with the incumbent.”
Starting from scratch, while opening your own practice can be an exciting venture, it can present times of uncertainty and will require you to use what you know about the market in general.
“Our team of trusted advisors will help you to consult and scope out the competition. They will work with you to consider how you’ll attract, keep and afford the best talent to staff your practice. There’s also the need to make some critical assumptions about demand for your services in the area and factor in the inevitable ramp-up period to establish the practice.”
Also, the location of your practice, how much space you’ll need and the overall experience you plan on offering your proposed target market are all important decisions to make early on, as you can’t easily – or cheaply – change your mind down the track. “A higher end demographic may justify you spending more on a higher quality, more expensive fit-out or redesign, while a more affordable presentation for a more budget focused demographic may allow you to save on costs.”
The best benefits come from determining the level of clientele you plan to capture and sustainably maintain from day one.
“A bigger initial investment may hold potential for accelerated returns and faster payback if the needs of the target market are well met.”
Manage the business effectively and track your journey to profitability and growth, speak to us today!