Starting your own medical or dental practice is a significant step towards independence and creating something that reflects your vision, goals and values. For many, this may be related to an aspirational goal, or it may represent the next step in your professional growth. Owning a practice represents autonomy, flexibility and the ability to shape patient care on your terms, as well as providing the opportunity to build your own business.

Transforming your vision into a reality involves a series of financial and operational decisions that help define your success. Understanding these decisions, and their long-term impact is critical. At Pilot Partners, we help hundreds of doctors and dentists transform their vision of practice ownership into a reality.

The transition from being an employed doctor or dentist to a private practice owner requires careful planning. It is critical that you have the right, trusted advisors by your side throughout this process to help guide your decision making and avoid costly mistakes. With the right guidance, this process becomes far less daunting.

Below, we outline the key stages we’ve seen lead to successful private practice businesses.

Stage One – Your Vision

If you’ve been thinking, “What if I ran my own practice?” then it could be time to start taking steps towards realising this vision. For many doctors and dentists, this vision could relate to being your own boss and creating an environment that aligns with your philosophy of care. Before you dive in, remember every great idea needs a robust business plan and a solid financial foundation. That’s where your advisor can assist to ensure your numbers stack up.

Stage Two – Seek advice early

Your first email or phone call should be to your trusted advisor. The Pilot Medico team has guided hundreds of practices from their private practice concept and planning, to establishment and implementation. We know what works and what pitfalls to avoid.

At this stage, we can help you answer some important questions:

• Buy or Build? Should you purchase an existing practice or start fresh? Each option has financial implications, and we’ll guide you through the pros and cons including an analysis of the financials for your personal goals and circumstances.
• Choosing the Right Structure: Sole trader, company, trust, partnership – what’s best for you? We’ll explain the tax and asset protection implications of each structure so you can make an informed decision. At Pilot Partners, we take the time to understand your long-term goals, values and individual circumstances to make sure the selected structure is right for you. We think big picture in terms of scalability, bringing on future associate practitioners, and succession planning.
• Building Your Advisory Team: Think of us as the captain of your team. We’ll coordinate with trusted banks/mortgage brokers, lawyers, and financial advisors to ensure your advisory team aligns with your goals. We delegate tasks but stay across the finer details so nothing falls through the cracks. We make sure everyone is aligned with your goals and interests.

Stage Three – Laying the Foundations

Before setting up a practice, it is often important to understand your financial position and appetite for risk. This includes getting clarity on your:

• Personal borrowing capacity;
• Required cash reserves;
• Insurance requirements (income protection, professional indemnity etc); and
• Compliance (registrations and licensing).

Once this groundwork is laid and the plan is underway, it’s time to:

• Organise & commence your practice fit-out;
• Set up your Xero file (accounting software) and connect bank feeds once the business bank accounts and loans are finalised;
• Implement your financial systems for bills and invoicing;
• Consider practice management software to streamline operations;
• Establish your marketing to promote your practice and build your client bookings; and
• Begin executing your business plan. Develop a cash flow forecast to understand the capital requirements and project what the next 6 to 12 months of trading may look like.

We’re always here to answer questions and provide clarity at every step.

Stage Four – Building Your Practice Team

Your practice is taking shape, now comes staffing. Key considerations include whether you hire a practice manager, admin staff, nurses, and other clinicians.

This may be your first time managing and employing staff. We can connect you with HR specialists to ensure contracts and pay awards are correct.

We can also assist with calculating service fees and work closely with your practice manager during the early stages, and whenever you need us in the future.

Stage Five – Opening the Doors

The fit-out is complete, your team is ready, and your first patient is booked. The first few months often reveals processes that need tweaking. If your accounting or bookkeeping systems need adjustments, we’re here to help.

Stage Six – Smooth Sailing

By now, your business should be running smoothly. Processes are in place, and you’re focused on patient care. Your advisors remain just a phone call or email away. Depending on your needs, we can:

• Provide monthly management accounts;
• Handle quarterly Business Activity Statements (BAS) and financial check-ins;
• Tax planning before financial year end;
• Or simply manage year-end work if you have internal staff for day-to-day tasks.

Whatever level of support you choose, we’re always available for advice throughout the year, so we can take care of your accounting and reporting needs, while you focus on your business.

Contact Pilot

Thinking about starting your own practice? We are here to make sure your financial foundation is rock solid. Contact Angela Stavropoulos or Kristy Baxter from the Pilot Medico Team at taxmed@pilotpartners.com.au or on (07) 3023 1300. We’ll help turn your vision into a reality.