If you are considering taking the plunge into the world of medical practice ownership, knowing where to start can be the biggest challenge. Whether you are looking to buy in, take over or start a medical practice from scratch, Walshs specialises in the medical accounting and financial planning space and can help you make sense of this exciting and daunting opportunity.
There are many different aspects of the business you will need to think about when starting out. The first step is to identify which ownership option is best for you.
- Buying into a practice
- Has established systems, structure and client base
- Must research to pay the correct price and understand the business you are joining
- Limited flexibility for change
- Taking over a practice
- Has established systems and client base
- Must research to pay the correct price and understand the business you are buying
- Some flexibility for changes to business
- Starting your own practice
- No established systems, structure and client base
- Must research to understand the viability of the proposed business
- Unlimited flexibility for business decisions and setup
Walshs are here to help you on your journey towards building a successful practice. To assist you we have put together a summary of the main considerations.
Timeline and Business Partners
- When do the doors open? What needs to happen between now and then?
- Does your opportunity involve other colleagues? Do you have the potential to bring on other owners in the future or as business increases? What legal agreements are needed?
Location and Premises Options
Leasing
- Find a location, negotiate lease terms and incentives.
- Is there an opportunity to buy the premises in the future?
- Is a fit-out required? What about equipment? How is this funded?
Buying
- Find a location, negotiate purchase contract terms
- Who owns the premises? How is the purchase funded?
- Is a fit-out required? What about equipment? How is this funded?
Structure Considerations
Finding the right structure for your medical practice can be difficult as each practice and person has unique needs depending on their ownership option. We can help you navigate this by designing a custom structure that considers the following:
- Entity function – business, asset ownership/protection, investment.
- Ownership – single or multiple owners.
- Taxation – income tax, GST, payroll tax, etc.
Practice Management and Employment
Your team are the lifeblood of your medical practice and are instrumental to the overall success of the business. This is true whether you are talking about your practice manager, reception staff or your contracted doctors.
We have a great blog that sets out what you need to know about employing in your medical practice, you can check it out HERE.
Having the right service agreement in place between the practice and doctors is vital to provide clarity and legal validation to the relationship between parties.
Finance and Lending Requirements
Determining how to fund a medical practice can be daunting and depends on a number of factors:
- Purchasing a business or ownership stake?
- Purchasing premises? Other costs?
- Fit-out and equipment needed?
- Cash/lending available
Set-up and operational budgets are pivotal to understanding the amount cash or lending you will need to fund your practice. They also provide clarity to the lender on your projected cash flows.
Our Network
From legal to IT and property, we have a network of specialist firms we will engage, who can draw on collective understanding, experience, skills and capability to assist with all functions required to move you through the path of buying, joining or starting a new practice.
At Walshs, we specialise in medical accounting services and take pride in our ability to guide our clients through the exciting transition into medical practice ownership by having our team and larger network available to assist at every step.
To find out more about how we can assist you with your medical practice opportunity, send us an email or call 07 3221 5677.
By Kate Chant CA, Senior Accountant (Medical Practice Specialist)
