Page 33 - The Dental Entrepreneur
P. 33
The Dental Entrepreneur
“A head full of knowledge and not
doing anything about it is about the
same as strapping a bunch of books
on a donkeys back.”
Earl Estep DDS
CHAPTER 5
The Business Plan
When I graduated from dental school, all that was required in most areas to get started in
practice was to find a building that resembled a bank, wander in, find someone that looked like
they worked there, tell them you were a “doctor” and that you needed some money. After
signing a few papers that you never took the time to read, a check was cut and you were off
and running. I know this sounds a little ridiculous but it was truly almost that easy.
It is no wonder why dentists and physicians have historically been such poor stewards of
money. It was always readily available and the was little accountability. Today, I would say that
doctors are on the same playing field when it comes to borrowing money as the average
consumer. There is no longer a silver spoon attached to your diploma and you will be made to
jump thru a myriad of hoops in order to secure financing. Collateralizing and cross
collateralizing means that they will attempt to back your loan with anything of value . You may
need cosigners from every branch of your family tree.
Your Credit Score
I have been told from several sources that maintaining a favorable credit score, even though
you may have a limited length to your history, is critical in today’s lending environment. Any
irregularities can tip off lenders to your habits and attitudes toward money management. There
are currently two major compilers of credit scores in the USA: The Fair Isaac Corp (FICO) and
VantageScore – the latter is relatively new, and the credit scores used for mortgages are
generally FICO scores.
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