As an allied health professional,you’ve maybe worked in a hospital or clinic and have decided to strike out on your own. You’ve defined your style of practice, location, and where you sit in the allied health ecosystem of your local community, as the RACGP suggests.

Though Australia has an aging population and needs specialised care more than ever, a “build it and they will come”approach isn’t always guaranteed. Financing your new practice, whether it’s mobile or in consulting rooms of your own, is often the first challenge. The entrepreneurial side of running a health business can often take back seat to the technical side. We have teamed up with Savvy, a leading financial institution to come up with 3 tips to start your own practice.

Getting the right funding for the right assets

If you are going to purchase a space for your clinic, you may look for recently vacated clinics or consulting rooms – or you may rent a room in an already established clinic. You might even consider running a mobile clinic. These fixed, long-term assets require long-term funding solutions. Though you may be tempted to bundle all your start-up expenses into one long-term loan over many years, this can actually be the cause of inadequate cash flow. Bill Tsouvalas, Managing Director of Savvy says that long-term assets require long-term liabilities. “Don’t use your commercial mortgage to finance your office chairs and desks,” he says. “You’ll need exam couches, patient chairs, procedure room equipment – but these are short-term assets. Finance your equipment according to the life of the asset.”

Financing your start-up phase

If you are contracting through an agency or simply waiting for your clinic to come online, you’ll need to ensure you have adequate cash flow when money is tight or even worse, not coming in. In this case, you’ll have to make sure you are approved for an unsecured business loan.

“This helps you shore up your cash flow in the short-term while you get on your feet or go through a rough patch,” Tsouvalas says. “There are many types of unsecured funding you can use to ensure your business thrives in the long-term, such as lines of credit, overdrafts, and invoice factoring. Instead of going cap in hand to your bank which is handling your long-term finance – and those long-term assets – seeking out a broker for unsecured finance means you won’t have to jump through as many hoops and don’t need security or collateral.”

Get help with your finances

Enlisting the services of a good accountant is always welcome –but they can only keep score, not give you a helping hand in scoring goals. “Maintaining a relationship with a broker, a financial adviser, and other financial services professionals can help you out of the teething phase and get your business thriving,” Tsouvalas says. “Don’t think you can do everything alone. Get a financial controller part-time or even on contract so you avoid the pitfalls and make sure you’re on track with insurance, payroll, and everything else a business needs to maintain positive cash flow.”