Preparing for Practice Ownership

[AdminWolf]

In Preparing for Practice Ownership with Jim Baum, Senior Business Development Manager at Wells Fargo Practice Finance, we teach emerging optometrists how to make a successful transition from new graduate or associate to practice owner.

The webinar provides the tools to help optometrists navigate the process of acquiring or buying into an existing practice, or starting one from scratch.

Some highlights:
* Determine whether to buy or start a practice
* Understand financing options available
* Make informed decisions about career options

... whether you are just starting out, or are a seasoned clinician looking to make the jump to your own practice.

If you have any questions for Jim, please post them in this thread!

 

[AdminWolf]

If you know of any students who are interested, just forward the thread's link onto them. It is an unusual opportunity to get Q&A time with a VP at one of the largest lenders.

 

[David Hite]

Don't like how they talk about financing a new graduate for a opening a practice. Wells fargo was one of the banks that wouldn't touch me with a 10-foot pole when it came to financing to a new grad.

They need to stipulate that by "new grad" they mean you have at least 2-3 years experience. IMO I think of "New Grad" as in you are actually newly graduated.

Dave

 

[AdminWolf]

Don't like how they talk about financing a new graduate for a opening a practice. Wells fargo was one of the banks that wouldn't touch me with a 10-foot pole when it came to financing to a new grad.

They need to stipulate that by "new grad" they mean you have at least 2-3 years experience. IMO I think of "New Grad" as in you are actually newly graduated.

Dave

They take into account a number of factors before issuing a loan -- experience is one of them.

The talk is more about everything that you need to do to get your ducks in a row in order to have a fighting chance. Too often people go in half-cocked or "don't know what they don't know".

These guys have every incentive to make sure ODs succeed -- after all, they want their money back!

 

[Meredith Walton]

I'm excited for this one! I just finished the process of getting a loan and location, now it's time to put it into action!!

 

[AdminWolf]

I'm excited for this one! I just finished the process of getting a loan and location, now it's time to put it into action!!

This one should be fun. Remember Jim has seen hundreds of practices of all types (not just eye care), so I'm sure he's going to go over some common factors he's seen which will get you in the right direction.

Good luck with the new practice!
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[AdminWolf]

Thanks again to Jim for a fantastic show. There's a lot of material and information here, if you have follow-up questions for Jim, post them here. I'll make sure he gets your questions, and hopefully he can answer them here in-line

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[AdminWolf]

I've attached a copy of the slides here.

Good stuff! Again, please ask questions in this thread, i'll be sure to get answers for you.

 

[Anonymous Post Bot]

An Anonymous Poster asks...

Working capital

If I buy a practice, how much working capital do I need?

The loan is 750,000, which includes buying the AR.

This is my only option.

Editor's note: this Anonymous Poster needs to offer far more information for an intelligent conversation with useful advice.
Pardon my ignorance but AR stands for?

 

[Anonymous Post Bot]

An Anonymous Poster asks...

Working capital

If I buy a practice, how much working capital do I need?

The loan is 750,000, which includes buying the AR.

This is my only option.

Editor's note: this Anonymous Poster needs to offer far more information for an intelligent conversation with useful advice.
Pardon my ignorance but AR stands for?

Anonymous Poster clarifies...

AR stands for accounts receivables. You need to buy it to get income from payments that are past due.

 

[Frederick Frost]

I would not recommend buying anyone's accounts receivables, especially if they are really past due. These are most likely uncollectible, and you will not get the value you are paying for them.

 

[AdminWolf]

I would not recommend buying anyone's accounts receivables, especially if they are really past due. These are most likely uncollectible, and you will not get the value you are paying for them.

I would ask them for the Aged AR, so you can see exactly what you are getting; someone somewhere must know in eye care what % is collectable after a certain period of time?

(IE, i'd imagine 30 days or less is high, any longer than that...)

 

[Jason Gospodarek]

I am interested in opening a practice. Who do I contact for financing options? Thanks!

 

[AdminWolf]

I am interested in opening a practice. Who do I contact for financing options? Thanks!

Hi Jason, fill out this form, it will contact Rhonda Meyer at Wells Fargo, she will hook you up.

Or alternatively send her a Private Message (PM): @Rhonda Meyer (click on her name, then click "Send Private Message".

Thanks
adam

 

[Michael Molamphy]

I would not recommend buying anyone's accounts receivables, especially if they are really past due. These are most likely uncollectible, and you will not get the value you are paying for them.

That's good advice.