Setting up your own practice is often the goal of many medical professionals; however, modern practices can be expensive to get off the ground. Fitting out a new practice can cost anywhere from $400,000 to $500,000, which means owners will need to plan how to both finance and build out their practice. Here are four effective ways to fit out your practice for maximum efficiency and success.
Add as you go
While the excitement of setting up your practice can drive many people to want everything up and running from day one, it might not be the most effective approach. Consider whether certain equipment or practice room setups can be delayed without compromising your initial operations. Taking a phased approach to fit-out allows you to prioritise essential elements, easing the initial financial pressure and allowing you to keep your costs lower until your practice is established.
Look at the intangibles
Beyond physical assets, the intangibles and “back office” capabilities significantly contribute to the effectiveness of your practice. Elements like layout design, software and cloud storage systems may not be factored into traditional financing options. Consider the broader aspects of your practice and then look to assess your finance needs. A well-designed layout and streamlined backend processes can enhance patient experiences and the overall efficiency of your practice.
Consider equipment lifespan
It’s important to assess the lifespan of equipment you’re purchasing, while staying on top of industry trends when looking at your practice fit-out. Understanding the income-producing potential of each asset and conducting cash flow projections over their lifespan ensures that they add to your business. This forward-thinking approach helps in managing cash flow, making informed decisions about necessary investments, and ensuring that each asset pays for itself.
Be smart with your spend
You can optimise your spending by making good financial decisions before you begin. Start by working with a finance broker and compare your options based on your requirements. There are many different ways to finance the different types of equipment you will need, so your first move should be to talk to a professional about your individual circumstances.
This article is for general informational purposes only and does not constitute any investment or financial advice. If you intend to make any investment or financial decisions, please consult your registered financial advisor or accountant, or contact Simon Wu Financial Services. Phone: (02) 9211 0228; Website: www.simonwu.com.au. Simon Wu Financial Services is a member of Premium Wealth Management (AFSL No: 237498).