Want to grow your dental practice?
As a professional dentist, deciding to expand an existing practice or invest in a new one can be both exciting and daunting in equal measure.
While growth means more potential to build your patient base and increase revenue, it brings with it many challenges.
Everyone needs dental care, but there are no shortages of practices out there, so setting yourself above the rest is key to future-proofing your business.
Get it right and you can take advantage of the growing UK population and the ever-increasing demand for dental health services. However, attracting new patients is not enough to grow a dental practice. You need to make sure you work hard to retain them.
There are several steps to help set you in the right direction and maximise your return on investment.
These include:
- Offering additional services – such as new advanced cosmetic procedures
- Taking on a hygienist – as an outsourced service or employee
- Bringing in a second chair – potentially doubling the treatments on offer
- Opening a branch surgery – either from scratch or taking over an existing practice
Potential will depend on your location and the size of your premises – and on securing the funding you need.
Offering additional services
Exciting advancements in technology and techniques such as whitening, alignment and straightening, are revolutionising dental services and offer important new sources of revenue.
Most will require investment in new equipment. Asset Finance solutions can provide the most cost-effective options whether buying outright or leasing.
- Hire Purchase – With hire purchase you effectively loan your dental equipment until it’s paid for. You normally pay a deposit then fixed monthly repayments until you own the equipment outright. This solution can be ideal for durable items that you will require long-term.
- Leasing – gives you flexibility. You can regularly update equipment to ensure you always work with cutting-edge technology – such as laser whitening. In some leasing arrangements, you have the option to own the asset at the end of the term, upgrade it, or simply give it back.
You also have the option to include maintenance and insurance in a finance agreement and whether you need the item for its entire working life or an agreed fixed period.
Taking on a hygienist
Offering patients an increased level of care from a hygienist will provide an additional income stream and help pave the way for future growth.
You can opt for the services of a self-employed hygienist who will attend as required but they will still need a workstation. Setting up a second chair could be a worthwhile investment for the future.
You can reduce initial costs by investing in high-quality pre-owned dental equipment. Asset Finance can provide funding for this.
Bringing in a junior
Taking on a newly qualified dentist could be the logical next step. By upgrading the facilities established for the hygienist, equipment costs should be minimal.
As a junior is more likely to be an employee as opposed to a partner, this will mean an extra wage to pay. A Working Capital Finance arrangement for an initial period may be a useful option, enabling cashflow to remain positive while the new patient list grows.
As he or she progresses, you can expect them to take on an increasing share of your own workload.
Buying a second dental practice
With a second – or even a third – chair and an increasing patient list, your existing practice will eventually reach capacity. The next natural step may be to consider a second practice, perhaps in a nearby town.
This will require substantial investment but may be achievable through a relatively straightforward Secured Loan or Commercial Mortgage.
Secured Loans –
- Can be used to borrow upwards of £250,000, and so may be more suitable for the costs involved in a business purchase.
- Provide an appropriate level of funding, with rates that can be as low as 2% above base rate, and 10 or more years to repay.
- Are supported by security – such as your existing business premises or your home – that the lender can seize and sell if you are unable to make repayments. This sounds like a risk – but is only ever used in the most extreme cases.
Commercial Mortgages –
- Enables you to spread the costs involved.
- Work like a residential mortgage.
- Can be cost-effective, especially if the practice you are buying owns its premises.
Again, Working Capital Finance could provide additional financial support to pay staff and suppliers during the early weeks and months of your new venture.
Finance solutions bespoke to you
At Chase de Vere Dental, our independent financial expertise is truly specialised.
In partnership with leading business finance specialists Rangewell and the only financial advisers accredited by Simplyhealth Professionals , we are perfectly placed to support you with your vision for the future.
We can provide bespoke funding opportunities to help take your business to the next level.
Get in touch today to find out more.
Content correct at time of writing and is intended for general information only and should not be construed as advice.