Many people contact us at Samera Finance to discuss opening a start up dental practice, rather than buying the goodwill of an existing practice. We have done many of these and, provided that the application is put together properly, funding can be obtained for them.
Why would you want to start up a new dental practice?
Starting a new dental practice (sometimes known as a squat practice) allows you to:
- Build the practice you want
- Control the costs
- Build your own goodwill value rather than buy it
- Provide the services you want to
The timeline of a start up dental practice
So, what is the process or timeline or setting up a new practice?
- Find a location you want to work in
- Find a property that can be converted or one that already has D1 use
- Obtain a change in planning to D1
- Ensure the lease is for 15 years within the Landlord and Tenant Act or if freehold a valuation will be required in due course
- Draw up a plan of the proposed premises and obtain a quote for the refurbishment / fit out of the premises
- Prepare 3 years projections preferably by an accountant including profit and loss and cashflow
- Prepare a business plan
- Obtain the finance
Once you have the finance and property dealt with, you will need to start furnishing the business itself. This means:
- Dealing with CQC
- Ordering equipment
- Obtaining a valuation if freehold
- Planning and supervising building works
- Hiring staff
- Preparing and executing marketing plans
So, it’s quite a list of things to do – but you can of course get help with many of the items!
Location and planning your start up dental practice
With regard to location and a suitable property, you can do this yourself by visiting the chosen area and canvassing local agents. Alternatively, you could employ a firm to do this for you. We work with some commercial agents to seek suitable properties with and without D1 use.
Planning and lease changes -D1 is obtained by approaching the local council and going through the planning department. Lease discussions are dealt with by talking to the landlord, again you can get help to do both. Plans and quotes need to be obtained carefully utilising the services of firms that have done similar work before to make sure the work is CQC compliant.
Projections need to be prepared in detail showing all costs such as:
- Staff costs
These need to be in a format that the lenders understand and have assumption (explanations) of why figures have been input at the levels they have and these need to be prepared by an accountant.
As we deal with many start-ups we have a lender accepted from of projections that can be completed by our accountants and agreed with you showing the full costs of setting up and how the practice will work on cashflow going forward.
Join our Setting up in Practice Bootcamp on 18th July to understand more: https://www.samera.co.uk/event/setting-up-in-practice-bootcamp-2020/
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