WHAT?!

[llamaoverlord]

I was reading on the Orthodontic Cyber Journal and they said "As a general rule, you shouldn’t expect to begin turning a profit until five years down the road." FIVE YEARS TO TURN A PROFIT!? What do you do in the mean time? Where do you get money for yourself and family from during this period?

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[Sugoi Travis]

Turning a profit in 5 years doesn't necessarily mean that you'll be without money for 5 years. Granted I'm not in the dental field, but your start-up costs in a business will hamper you down for quite some time. You'll be making money, but you won't break even and start gaining a net profit until later on.

 

[llamaoverlord]

Turning a profit in 5 years doesn't necessarily mean that you'll be without money for 5 years. Granted I'm not in the dental field, but your start-up costs in a business will hamper you down for quite some time. You'll be making money, but you won't break even and start gaining a net profit until later on.

Yeah but doesn't profit mean your income after expenses?

 

[Cawolf]

I can't speak for the business model of an orthodontia practice, but generally the net profit would be accounted for after salaries.

Therefore, even though the business as a whole is losing money during it's growth phase, the practitioner and employees are generally being paid.

 

[Sugoi Travis]

Yeah but doesn't profit mean your income after expenses?

Yeah sorta, but what profit are you referring to? The business's profit or your own personal profit AKA income? Read the quote below. Chances are that the business took a loan out to cover its start-up costs and that immediately puts you into a negative NET PROFIT, which is different from your income.

even though the business as a whole is losing money during it's growth phase, the practitioner and employees are generally being paid.

 

[llamaoverlord]

Yeah sorta, but what profit are you referring to? The business's profit or your own personal profit AKA income? Read the quote below. Chances are that the business took a loan out to cover its start-up costs and that immediately puts you into a negative NET PROFIT, which is different from your income.

Yeah I was referring to my income as the orthodontist.

 

[llamaoverlord]

Also how hard is it to get a full loan for a orthodontic practice? Do you have to have a business plan?

 

[Sugoi Travis]

Yeah I was referring to my income as the orthodontist.

Your income as an orthodontist will be up to you, since you'll be the head guy of the business. You can choose to pay yourself however much your budget allows.

Also how hard is it to get a full loan for a orthodontic practice? Do you have to have a business plan?

You'd have to ask someone else that. I don't know enough to give you a decent answer.

 

[llamaoverlord]

Your income as an orthodontist will be up to you, since you'll be the head guy of the business. You can choose to pay yourself however much your budget allows.

But it isn't really wise to pay yourself the max because you leave no more for expansion, advertisement, etc. Right?