2010 profit and loss statements and/or production reports readily available. Every owner should revise his/her business plan on In the past year, many small business owners across the country have worked to cut expenses, reduce spending, and may have even taken a pay cut. A few brave dentists have embraced the opposite approach. Some of you decided to expand your current location, bought an additional practice, or upgraded your current location with new technology and a facelift. The improvement wasn’t easy and likely meant taking on additional business debt. But for these dentists, the reward was worth the risk.
All successful practice (start-ups or acquisitions) owners eventually face the issue of wondering if they are ready for expansion or growth. That decision occupies a stage of a practice cycle that is with significant risk and reward. The real question is, “would you rather have a head start on your competition, wait for the U.S. economy to improve, or when other dentists elect to move forward?”
Expanding your practice doesn’t necessarily mean dealing with the same problems on a larger scale. The growth process begins with a detailed internal assessment of your business. Here are a few questions to consider prior to moving forward on a potential new venture for your practice.
✦ How many new patients were added to the practice last year?
✦ What were the collections for the practice last year?
✦ What is the percentage of production that was collected?
✦ What percentage of my collections do I typically spend on overhead?
✦ What is my CPA’s opinion on growing or expanding my practice?
✦ What is my financial planner’s opinion on growing or expanding my practice?
Small businesses that are looking into growth or expansion options often require financing. The first three questions above are typical initial questions a bank will ask you. Obtaining financing could be a frustrating experience for those who don’t have an annual basis and update their marketing strategies. Be prepared for a lender to also review your personal financial position. The historical cash flow from your practice should be reflected via your personal liquidity and retirement savings. Each of these components will provide your lender a clear perspective of your practice growth potential and ability to take on additional debt.
Are you ready to look into growing your practice? Bank of America Practice Solutions™ can offer a wide array of business solutions and is a comprehensive lender* for all of your business needs. Ask your Mosaic Management Professional representatives to contact your local Bank of America Practice Solutions™ Business Development Officer Jeremy Keck. He would be happy to discuss any financial solutions that you are seeking in order to assist you in achieving your financial goals.
*All programs subject to credit approval and loan amounts are subject to creditworthiness. Some restrictions may apply. Bank of America is a registered trademark of Bank of America Corporation. Neither Bank of America nor its wholly owned subsidiary, Banc of America Practice Solutions™, are affiliated with program provider, and sponsorship does not create, express or imply any endorsement, recommendation or approval of the products and/or services of program provider.
