How much does it cost to start your own medical practice?
Starting a successful business is tough for new business owners. Studies show that 90% of most startups fail within the first few years of operation. For health care professionals who are interested in owning their own practice, it can be just as difficult, if not more so, to get started.
However, with some careful planning and a long-term financial strategy, you can save up enough to start your own practice and keep it running.
The average cost to start your own medical practice
Starting your own private practice can be a pricey endeavour. On average, a medical practice requires $70,000 to $100,000 to get started. The reason it is so expensive is because of all of the factors a new practice owner has to make sure they have covered, including:
- Fees for registering your practice
- Malpractice insurance
- Office space rental and renovations
- Equipment and supplies
- Marketing and sales
- Your salary
- Your employees’ salaries
You should have enough funds when starting your practice to cover at least three to six month’s worth of everything in this list. It takes some time for your practice to get off the ground and start generating enough income to where you can operate your practice with it and live off of it.
Calculating the cost of your practice
As you outline your plans to start and operate your practice, you should use a medical practice startup calculator to help you out. This free tool from Software Advice helps you estimate how much you will need to set aside to budget for your first year of opening up your practice.
It is important to remember that this tool provides a general estimate for getting started but can never substitute the advice you can receive from a human financial advisor.
Making a financial strategy for starting and operating your practice
CERTIFIED FINANCIAL PLANNER™ professionals, like our team at ProVise Management Group, can help you navigate the financial challenges of starting and operating your own medical practice. We have years of experience in working with health care professionals like you to help achieve the dream of owning a practice.
Our ProVise financial advisors can work closely with you to learn your goals, values and risk tolerance. We combine these with your current financial circumstances to draft a financial plan that can help you reach your short-term and long-term goals.
We offer our plans at a fiduciary standard of care. If you are unhappy with your written plan, we offer an unconditional money-back guarantee. Simply return it to us and we will refund 100% of the fee paid.
Are you ready to take your first steps toward owning your own private practice? Contact ProVise today to schedule a complimentary consultation.