The simple and short answer to the question is yes, you will need to have money saved in order begin your practice. However, there are a number of influencing factors that can impact the financing of your new practice and where you can obtain it from in order to determine how much you need to begin. Below are a few of the more important considerations to help you determine how you need to begin:
- Start-Up Costs: Catalog all your initial start-up costs, including the lease payment or purchase price, design, construction, equipment, technology, supplies, licensing, permits, marketing, staffing needs, etc. Gaining an accurate understanding of what you need will help you determine the best route of getting that money.
- Funding Source: Next, have a few conversations with healthcare-specific lending institutions. These are professionals who have helped successfully fund and open hundreds of practices, just like yours, giving you peace of mind that you aren’t missing anything.
- Legal Structure: Outline the legal blueprint for your practice. This can be set up as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has different implications for financing, liability, taxes, and ownership, so consult with a lawyer or accountant to determine the best fit for your situation.
These are just a few of the many factors that determine how much money you need to begin your practice. For more information and dedicated expertise, contact your healthcare real estate agent.