The World Is Saddled By Debt
Debt to get an education. Debt to buy a house, Debt to buy a business.
The world, and individuals, are saddled with debt.
This cannot go on, in my humble opinion.
However, debt can be good, it can even be great, but only for the right reasons and situations.
Following close on the heels of our American cousins, the UK student comes out of university with debt of £50,000, the average dental student comes out with even more!
People with strong degrees from desirable universities can get jobs, like young dentists, but the myth that is perpetuated is that to be really successful you must BUY a flash car and have your own dental practice, to show you have made it!
Really? Sadly, this is something I come across increasingly often. The flash car and the dentist who is saddled with debt after living the big life and having the big debt to buy a practice at an over inflated price.
Buying The Dream
Having been in the sector for almost 20 years and owned various private practices with my wife, a dentist, it chokes me to see young dentists borrowing to the hilt to buy their “dream practice”. Soon after buying, often at over inflated prices, the dream is not as rosy as they had hoped.
Of course buying a dental practice can be a smart move, but it has to be the right practice at the right price. Remember this saying by Warren Buffett:
“You make your money when you buy”
So in essence if you pay too much at the outset, you will struggle to grow its value further.
And at what cost to your life? Working endless hours to make the figures work, missing out on your children growing up just to fulfil the treadmill of an NHS contract.
Is It Really Worth It?
As an entrepreneur at heart, I am the hugest advocate of owning your own business, but the level of debt some dentists take on does concern me , especially when buying certain dental practices.
In truth, it’s beneficial to my business if you buy a highly-valued practice, as we assist clients to borrow money from banks. The larger the loan, the higher our fee.
Straight Talking Advice
However, our team is all about being straight and honest to our clients. A wrong decision by our clients at the outset can be a noose for many years which is NEVER good for our clients nor us.
Our team have considerable experience (and grey hair) to advise if we think you are paying over the top.
So when you are thinking about taking on debt, come and talk to us, we will guide you so you are aware of the pitfalls as well as the opportunities that await in this changing sector.
Debt is easy to acquire but it doesn’t have to be a burden, so the next time you receive the sales brochure for a dental practice, remember you don’t have to buy it at the price it is being quoted for!!!
Further Information on Raising Finance
You can find out more about working with Samera and the financial services we offer by booking a free virtual consultation with one of the Samera team or by reading more about our financial services at the link below.
Find Out More
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