To improve your chances for success, Denise Tumblin, CPA, co-owner and vice president of Wutchiett Tumblin and Associates, says you need to consider the cost and return you can expect in the first year of practice. She offers this example of the potential costs:
Q. I lease space for my hospital but want to purchase some land and build a facility when my lease expires in three years. My Individual Retirement Account (IRA) contains enough money to cover the down payment on the land. Is this a wise use of my IRA funds?
Q. I want to move my veterinary practice from a strip-mall leasehold to an adjacent property that the mall owner recently bought to expand the shopping center. I can either rent a larger leasehold in the new shopping center or lease part of the land. Is it wise for me to lease the land while owning the freestanding building on it?
You've spent a year researching the benefits of laser surgery, and you think this new service will enhance your practice's surgical options. You've even selected the unit and considered financing options. But have you done all your homework? Before you buy expensive equipment, take time to calculate the financial benefits--and hidden costs.
Many associates dream of a fixer-upper they can buy for nothing down and low payments, then turn it into a $1 million practice overnight. I hear an occasional success story, but most new owners experience something different.