Ray Cox, Managing Director of Medifinance reviews the real opportunities and the advice and help available for dentists looking to start up their own practice

No matter how much you love your job, it’s difficult not to feel somewhat jaded from time to time. I know that I get a huge amount of pleasure and satisfaction from what I do, but occasionally a feeling of ‘been there and done that’ can be hard to resist. And having worked with the profession for decades, I am only too aware of the stresses it can impose on dentists.

Allied with the seemingly endless media negativity and failures of politicians of all hues to grasp the realities of delivering dentistry, one can be forgiven for perhaps allowing a degree of cynicism to creep in. Yet despite the pressures, I find the profession overall in remarkably good shape and a meeting I had a week or so back at an event I attended, underlined its sheer enthusiasm and positivity and that fills me with a good deal of optimism.

One dentist at this event (I’ll call him ‘B’) was little short of inspirational. What struck me as we listened to his story, was that his success was achieved not through any privilege or exceptional piece of good fortune, but through hard work, a clear sense of purpose, and crucially the determination to overcome and learn from setbacks. In short what he was saying (and with genuine modesty) was that what he had and was achieving is within the grasp of any young dentist prepared to make a positive commitment, plan carefully and accept that setbacks are never to be considered failure.

Translating positive thoughts into positive action

If you go online there are vast amounts of advice on the values of positive thinking and sharing that positive thinking with others. It’s well worth reading. As is attending motivational courses by many of the highly qualified and experienced dental business gurus. But the point that B emphasised was that you need to have a clear and realistic business plan in place from an early stage or positive thinking will remain just that.

Later in the day I asked B to talk a little more about the steps he took to put in place a plan that would make his dream a reality. What I found both reassuring and impressive was that his suggestions were not some combination of ‘marketing speak’ and techno jargon but rather a set of sensible disciplines that are simple to understand and implement.

I found myself nodding along. I hope you will too.

1. Talk with colleagues who have and/or are achieving success. Most are happy to share what they did to get it right and advise you of ways you may be able to avoid the pitfalls that are an inevitable issue for any and every business.

2. Be honest with yourself about your strengths; but equally be honest about your weaknesses and how you intend to overcome them.

3. Set clear business objectives and targets for yourself and ally them to the lifestyle that you want. This is crucial. We don’t all measure success in the same way. At the same time write down and agree with your teams (see 6 below) your criteria for measuring success.

4. Don’t think short term or be dictated to by immediate economic factors such as interest rates. ‘Experts’ are consistently inconsistent with their forecasting and frequently wrong!!

5. Recognise from the start that whilst you may have a plan in place, many factors over the course of time will occur that will need you to review and adjust. Be nimble and flexible enough to deal with the unexpected and turn those problems into opportunities.

6. Define the sort of people you want to work with and for. This means your day-to-day work colleagues, your patients and your advisory team

7. Recognise the importance of everyone’s physical and mental well-being and consider what steps you can take to maintain both. This is not simply a nod towards ‘being seen to do the right thing’ but a genuine part of building loyalty and teamwork

B and I agreed that we will be working together to assist and advise dentists who are looking to start up their own practice. This advice will cover business planning and strategy, budgeting and sourcing funding. Do please contact me, with no commitment on your part, on 07785 757782 if this is of interest to you and /or you have any immediate or longer term funding requirements.

Ray Cox, Managing Director of Medifinance explains the importance of presenting an evidence-based case when seeking funding

I’m sure you’ve heard the saying that banks lend money only to people who don’t need it. Which at face value seems both contradictory and faintly ridiculous. But a cautionary tale highlights why perhaps there is more than a germ of truth lying there.

I was talking to a particularly successful practice owner recently who was looking to expand. His business was certainly profitable, and he had never experienced any significant difficulty in finding funding as and when needed. Essentially, he considered himself and his business to be ‘a good risk’ and that his relationship with his bank would stand him in good stead. This would, almost certainly, have been the case when that relationship was effectively between him and the Bank Manager, but things are different now.

Firstly, he had to establish the right person within the bank to whom the funding application should be submitted and having done that send in his written plan for ‘consideration’. He was not given any guidance by the Bank on what the plan should cover, but he felt he could put together a proposal that would produce a positive response.

Much to his amazement he was turned down flat. Why? Because, successful as his business was (and is!), he did not present an evidence-based case for funding. He made the assumption that a detailed, costed and realistic business plan was not necessary.

He was wrong.

How to prepare a plan that will give you every chance of sourcing the funding you need

Of course, rules are there to be broken and a good few entrepreneurs break them and still the profits roll in. But for we mere mortals, it makes sense to understand from the start that to run a successful business and maintain that success depends on one key factor…..being and staying informed.

This means you will run your business in a business-like manner. It also means that when you need funding the lender appreciates that your case is based on reality rather than speculation.

So let’s take a look at what will reassure the Bank/Lender and ensure that you not only secure the funding you need, but obtain the most favourable terms:

1. Above all, monthly management accounts will demonstrate you keep your finger on the pulse. It will immediately convince the lender that you have the level of commitment required to run a business responsibly. Quite simply, it is not being run well unless it consistently monitors its costs, its profits, its losses and its cashflow.
2. It always pays to have a good team of advisers that understand their roles and can lend authenticity and credibility to your business plan. An accountant with experience of the profession is a given, but, depending on circumstances and resources, you may add legal, marketing and financial advising expertise to your team.
3. Indicate your ability to delegate and put in place the reporting procedures that allow you to assess and implement the information provided
4. Be absolutely honest about the costs involved and the resources required to implement your plan. Do your research diligently and demonstrate you have done it. Do not attempt to ignore potential problems in the hope that ‘something will turn up’. It rarely does!
5. As appropriate, support your application with evidence of your financial track record and management eg:
   • Loan repayments
   • Credit rating
   • Credit control
   • Management and control of overheads
   • Cashflow
   • Salaries, bonuses and pensions policy
   • Assets

If your business plan meets the above criteria, your application for funding will, without doubt, result in a positive outcome. It may require a little extra effort, but the longer-term rewards will more than justify the time it takes.
If you feel we may be able to help you with putting together a business plan and sourcing funding and/or you have any other financial requirements do please contact me at This email address is being protected from spambots. You need JavaScript enabled to view it. mobile 07785 757782 www.medifinance.co.uk