The First Step to Success
Starting your own dental or healthcare practice is a dream for many, but let’s face it—the biggest hurdle for most is securing the funds. If you’ve been wondering how to navigate this critical phase, you’re not alone. I’m Derek Leonard, AKA “The Dental Startup Guy,” and in this blog, I’m going to break down the first step of my SPEED formula: S—Secure the Funds. This is the foundation of everything you’ll build, so let’s dive in.
Why Securing the Right Funding Matters for Your Practice
When you’re starting a practice, it’s easy to get overwhelmed by all the numbers. The reality is, without the proper funding, your dream can stay just that—a dream. Lenders, whether they’re traditional banks or private investors, want to see that you have a solid plan for success. They’re looking at your ability to turn a profit and how soon that can happen.
But it’s not just about getting any loan—it’s about securing the right loan for your needs. Whether you’re self-funding, getting family support, or going after a bank loan, this first step can set the tone for the success or failure of your practice.
Projections: What Lenders Want to Know
When approaching lenders, one of the key things they want to know is how quickly you’ll reach profitability. This means having clear projections in your business plan. You’ll need to outline expected revenue (collections) and subtract anticipated expenses to show your net profit. Your lenders want to see that you have a roadmap to profitability—and they’ll judge you based on how realistic those numbers look.
Budgeting for Your Practice
If you’re lucky enough to have personal funds or family backing, congratulations! That takes some pressure off, but many new practice owners will need outside funding. You might need a traditional bank loan or private funding, and it’s crucial to know exactly what you need. Lenders will expect you to decide whether you want to be a solo practitioner or part of a partnership, and what type of partnership that will be.
Owning vs. Leasing Your Practice Space
Another key decision is whether you’ll own or lease your space. Leasing may seem easier, but owning has serious advantages—tax benefits, property appreciation, and the potential to generate rental income. These decisions can impact your funding needs and should be factored into your business plan.
Credit Issues? Fix Them Early
Here’s the deal: If you have credit issues, the time to start fixing them is now. There are plenty of credit repair companies out there, but timing is critical. The sooner you tackle this, the fewer complications you’ll face with lenders.
My Personal Experience
I’ve been involved with over $100 million in startups and IPOs, so I’ve seen firsthand what it takes to secure the right funding. Trust me, starting early with a solid plan is the best way to ensure your success.
If you’re serious about taking the first step to launch your dental or healthcare practice, I encourage you to download a free copy of my book Startup 101: Ignite Your Practice. In it, I dive deep into securing the right funds, and you’ll also get more details on how my SPEED formula can help you transform your dream into reality. Don’t wait—book a discovery call with me today and let’s talk about how I can help you secure the funds you need for your practice.