|
|
Private Practice Financing
|
Logged in as: Guest
|
|
Users viewing this topic:
none
|
|
Login  | |
|
Private Practice Financing - April 26, 2005 4:46:00 PM
|
|
|
TLB
Posts: 347
Joined: September 13, 2002
From: Arizona
Status: offline
|
Question for those of you who have started PP clinics. What is the best way to get funded if you don't have a whole lot of collateral? I've been told some people mortage their home or get financing through family members. Not a good idea in my opinion, I believe you should never mix personal and professional income and are asking for problems if borrowing from family members. Any thoughts?
_____________________________
Todd
|
|
|
|
|
Re: Private Practice Financing - April 27, 2005 2:08:00 AM
|
|
|
Sebastian Asselbergs
Posts: 1116
Joined: September 29, 1999
From: Barrie, Canada
Status: offline
|
Lease everything that you need (including office computers/printers/etc). It is a long term financial burden, but it spreads out your start-up cost and makes it manageable. Don't get hung up on too much PT equipment: spend lease money on good treatment space/offices and table(s). I went at it alone, and indeed kept my personal assets completely seperate sand did not borrow from family. Glad I did.
I initially used a new line of credit for the first month-and-a-half to pay for front desk goddess/administrative assistant/primary marketing asset and other things like rent.
Good luck.
_____________________________
Mundi vult decipi
|
|
|
|
|
Re: Private Practice Financing - April 27, 2005 5:51:00 PM
|
|
|
TLB
Posts: 347
Joined: September 13, 2002
From: Arizona
Status: offline
|
Thanks for the info.
_____________________________
Todd
|
|
|
|
|
Re: Private Practice Financing - April 28, 2005 2:30:00 AM
|
|
|
SJBird55
Posts: 2309
Joined: May 10, 2004
From: Michigan
Status: offline
|
I've just started a clinic, although I'm not open yet. Since it is an LLC, the money made or lost is always tied to me and my social security number. Because it is an LLC, I also won't have a W2 for myself.
We decided the most cost-effective way without any fees would be to outright purchase the equipment with our own money and create the paperwork that the business is leasing the equipment from us. So, what we did is use a lot of our savings to purchase the equipment and then we took out a line of credit. The line of credit is through us, not the business. The line of credit is nice because the money is sitting there, but I'll only have to pay back whatever I use, instead of the way a loan would work. For me, I think the financial aspect is going to get confusing... but my husband has a MBA and basically deals with finances day in and day out and to him what we are doing isn't unusual or confusing.
If you don't go that route, then you will need to have a lot of information formally put together to have a bank back your business proposal and a lot more red tape. And, from what my husband said, a bank won't always just back a new business without some sacrifice on the part of the owner. I'm not sure exactly what that means, but he was looking to buy a $1+ million dollar company and at the time knew he'd have to show that he'd only be paid like $20,000/year to show he'd be taking a risk by not paying himself the $80,000+ a year. (I can't remember what exactly happened in that case, but he didn't go through with it because when he looked at the business records the accountant had done some dinking with the funds and he decided it was too great of a risk and that the company worth wasn't as the owner said.)
Another source of information - the small business bureau. They do have some free programs offered to provide advice for anyone interested in starting up a small company. I met with a retired executive and I believe that if I would have gone the loan route, he would have helped me put together the information I needed. Looking back, I had already put together an analysis of the business, a SWOT, and a marketing stratety - so I was way ahead of what most people do when they meet for advice. I was meeting with him to just pick his brain to see if I had overlooked something important.
|
|
|
|
|
Re: Private Practice Financing - May 3, 2005 6:29:00 PM
|
|
|
webrehab
Posts: 24
Joined: January 31, 2002
From: San Diego
Status: offline
|
I would recommend leasing initially to maintain liquidity.
Also, I would recommend limiting your office hours initially and spending as much time out of the office meeting physicians and networking with others.
Don't be afraid to go into debt but make sure you have a good business plan with achieveable goals and work hard to meet those goals.
I have been in private practice for 10 years now and have made some mistakes but networking, reading, and sharing experiences with others will help make the road to success a little easier.
Email me any time if you have questions.
Best of luck.
Dave
_____________________________
David Straight, MPT, OCS
|
|
|
|
 New Messages |
 No New Messages |
 Hot Topic w/ New Messages |
 Hot Topic w/o New Messages |
 Locked w/ New Messages |
 Locked w/o New Messages |
|
 Post New Thread
Reply to Message
Post New Poll
Submit Vote
Delete My Own Post
Delete My Own Thread
Rate Posts |
|
0.063
|
Printable Version
