Starting a practice from scratch can be a daunting yet exciting process. From beginning your journey at University, to becoming a salaried employee with a steady income, it’s not uncommon to aspire to eventually start your own practice. However, setting up a practice does come with many responsibilities and overheads such as rent, staff, IT, marketing, equipment and fit out costs – to name a few!

To make this less daunting and more exciting, the process can be broken down and simplified so you feel like you are in charge of every step as you go. Your exact start-up costs will depend on the type of medical practice you are planning on setting up so it’s important you do your research and speak to the professionals to cover all bases.

Business Plan and Cash Flow Forecast

The first step is to write a Business plan that includes factors such as practice vision, location, processes and more. This can be done by yourself, your accountant, or in conjunction with a mentor who works in your industry. This way you know how much you will need to outlay. As part of this, you can use tools such as a SWOT analysis to work out where the strengths, weaknesses, threats, and opportunities lie.

As part of this business plan you should prepare a Cash Flow Forecast. This will give you an understanding and visualisation of what revenue is required to cover your expenses and to make a profit. Chances are you didn’t learn how to do this type of spreadsheet at Uni, so be sure to reach out to a professional for help. Specialists lenders like Credabl can assist with a template to get you started. Your accountant and mentor can also assist you with preparing this.

Capital to get you started

There are two components to the capital required for starting up your business,

  1. Fixed costs are the expenses that remain constant for a period of time irrespective of the level of outputs. Any small business owner will have certain fixed costs regardless of the level of business activity. Since they stay the same throughout the financial year, fixed costs are easier to budget. They are also more controllable than variable costs because they’re not related to operations or volume. Fixed costs for instance include:
    1. Fit out
    2. Technology and equipment
    3. Insurance
    4. Loan Payments
  1. Variable costs are expenses that change directly and proportionally to the changes in the business activity level or volume, meaning they are based on business performance. Variable expenses are harder to monitor and control and can decrease or increase rapidly and cut your profit margins. Variable costs could include:
    1. Consumables
    2. Marketing
    3. Wages
    4. Direct Labour
    5. Operational Expenses

How can we help?

In conjunction with your accountant who will advise you on the tax considerations relating to your personal situation, Credabl can tailor a Finance Solution around your practice needs. This comes from 30 years of experience lending to the Medical Profession.

Our consultants have had experience assisting thousands of Dentists, GP’s, Specialists and Vets in their own practice/s, and are passionate about going on that journey with their clients.

You can borrow up to 100% of the money required to set up a practice. Loan terms can be for up to 20 years depending on the asset. There are loan facilities where no payments need to be made for 6 months while you are growing your practice.

The tip here is to be as prepared as possible and have a good team around you as you embark on your exciting journey as a Practice Owner.


For more tips to setting up a private practice, be sure to download Credabl’s Private Practice Checklist.


The Credabl team is available to chat live on our website or you can call one of our specialist lenders on 1300 27 33 22.

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