One of the questions being frequently asked by younger dentists who are becoming frustrated in the search for a practice (usually in the CBD/Metropolitan area) is “why can’t I just start my own practice ?” Colloquially this has been referred to as “squatting” stemming from our colonial pastoral heritage and the practice of early graziers squatting on a tract of land on which they claimed ownership and grazed their cattle without paying for the land.
A modern day dental squat would incur significant capital outlay in terms of fit-out, equipment and rental outgoings. The concept of this is quite daunting, particularly if one doesn’t have the capital to fund the fit-out. The most common approach is to finance the entire amount and commit to significant monthly outgoings in terms of leasing, loan repayments and rent. Understandably, without a patient base many dentists are not comfortable to proceed on this basis just as many financiers are also unwilling to lend to fund the start-up practice. So why do so many do this, and often against the recommendation of their advisers?