Kunal Thakker delves into funding a squat practice, including financial planning, startup costs and effective budgeting.
Today we’re going to be talking about funding.
So, the initial start up cost. The way that I look at funding a squat is in two different elements.
Firstly, you’ve got your asset finance. Your asset finance pays for things like your equipment, all your dental equipment, your scanners etc. It also pays for your IT equipment, and can also pay for things like air con. So any tangible bit of equipment you can do on asset finance.
Typically, asset finance has a better rate than unsecured finance, so putting as much of your equipment on asset finance is really key.
The next element is the unsecured finance that we take out. This is for things like the refurbishment cost, paying for your reception desk, for the paint in your practice. Those things you can’t do on asset finance, you buy on an unsecured loan.
The way that you can fund your practice includes reaching out to a bank that will do it. You may have an existing practice, and this is your second one, so you may be able to take a loan out on your current practice. There’s lots of different finance options, but I’m not a finance guru, so what I would suggest is reaching out to a really good broker that can scan the market for you
Budgeting
Budgeting is super important. Spend some time thinking about your entire project, and plan every element of where you’re going to be charging costs.
I’d also make sure that you have got a buffer in there, so about 10 to 15% for anything that potentially could go wrong, or last minute things that come up.
When you go out, get two or three quotes for each thing so that you know that you’re getting the best price.
However, I would say cheapest isn’t always the best. You want to make sure that you’re really understanding the value proposition in your quotes. You’re working with some people that are really reputable in the industry, and people that aren’t going to cause you more pain and work down the line, because that will end up costing you and eating into your buffer very quickly.
Watch the video for the rest of Kunal’s funding tips.
Catch up with the rest of the Developing a Squat Practice series:
- Episode three: the key to marketing a squat practice
- Episode two: defining a clear brand for your squat practice
- Episode one: finding the perfect squat practice location.
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