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Choosing a Practice Location: One Doctor’s Story

Choosing a Practice Location: One Doctor’s Story. Practice Management Dr. Classé April 6, 2009. Partnership. Personal lifestyle and compatibility issues Patient care philosophy Business savvy Hometown commitment. Business Plan. Getting started. Took business plan to four banks

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Choosing a Practice Location: One Doctor’s Story

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  1. Choosing a Practice Location:One Doctor’s Story Practice Management Dr. Classé April 6, 2009

  2. Partnership • Personal lifestyle and compatibility issues • Patient care philosophy • Business savvy • Hometown commitment

  3. Business Plan

  4. Getting started • Took business plan to four banks • Interviewed two attorneys • Interviewed three accountants • Located insurance agent

  5. Where to locate • Vestavia Hills, our hometown • History of eye care • Nineteen dentists • Six business zones • Highway 31, close to home

  6. Opportunity knocks once • Primus Eye Care offer • Highway 31 in Vestavia Hills • Change sign, change locks, practice • 3000 sq. ft., $5000 per month ($ 20 sqft/yr) • No patient stream = No income stream

  7. Location #1, upside • Highway 31 • 29,000 vehicles/day • Main drag from Hoover into Birmingham • Next to City Hall, in city center, visibility • Older building, gutted, completely rebuilt • Less than one mile to home

  8. Location #1, downside • 1828 sqft x $16.50 x 1 year = $ 2513.50 per sqft-yr 12 months • 1828 sqft x $ 2.00 x 1 year = $ 305.00 per sqft-yr 12 months • Total rent and fees: $ 2818.50 per • Security deposit: $ 2513.50 • Build-out estimate: $ 70,368.00 • No help with build-out, six-year lease, personal guaranty • Lease was a joke, landlord was too (lawyer). • Acid stomach, sleepless nights, disturbed spirit

  9. Location #2, upside • Columbiana Road, heavy traffic • New construction, unfinished space • Near a middle school • Surrounded by residential • Dentists in other half of building • Landlord was owner and dentist

  10. Location #2, downside • 3300 sqft x $16.00 x 1 year = $ 4400.00 per sqft-yr 12 months • Build-out over $100,000 • Less traffic, fewer commercial neighbors

  11. Location #3, upside • Smaller business zone • Stores, shops, banks, restaurants • Five miles to home, half-mile to VHHS • 1260 sqft @ $ 12.50 per sqft-yr • $ 1300 per month ! • Build-out = $22,500 • Landlord really wanted us…modified lease • 1st refusal, firebreaks, delayed 1st rent

  12. Location #3, downside

  13. Other considerations • Contractor who KNOWS VH building code • Floor plan and ADA regulations • Demolition and painting • Insurances • Inspectors • Permits, licenses

  14. Opportunity knocks twice • Primus Eye Care offer • Frame display boards • Equipment lanes • Diagnostic equipment • Lab equipment • Office furniture • ~ $ 0.30 on the dollar

  15. Final things • Six years • Having a ball • Each work two days/week, still • Started off taking $100/day • Obviously needed other income • BP predicted break-even in month 13 • Actual break-even in month 5 • 1st dividend paid in 2nd year

  16. Thank you

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