I am winding down the project to open my office. I accumulated alot of credit card debt after buying this townhome and being out of work from January until now (working part time actually) so that I could get this office together. I consolidated that debt into my loan b/c the rate is pretty good etc etc and my income is low now. Was that a dumb move? It will be very tight on me until I get patient flow. I am looking at $220K loan for the office, but $75K of that is working capital to keep us afloat once we open. The loan has deferred graduated payments. Did i fu*k up?
Well, it's hard to say without looking at all your financials. It sure sounds like you're way undercapitalized but, an awful lot of small business's start off that way. The huge downside to rolling cc debt into a mortgage is, you'll be paying for that dinner out or whatever you charged for 30 years. No way that's a good deal. And, you replaced unsecured debt with secured debt. If you start running up those cc again, you will have really fouled up. As to the graduated payments, I think it's a good idea in your situation. You can always take another look at the situation at any point in time and if you feel business has taken off, you can renegoiate. As my old grandfather used to say, "the dough is cake". What's done is done. Your job now is to bring in patients and keep them coming back and bringing friends. Good luck to you!
Hi roni, Hey as a small business owner, how about checking out my post on Taxpayer ID# after BK. I would appreciate your opinion. Did you get an EIN #. Sorry, I don't know more about your business to help. Any husband prospects on the horizon? LOL
yes. i got an tax id #. I had to really to accept insurances. I havent been able to use the number to apply for credit. They all said that they needed to use my ss#. I got turned down for the AMEX blue business card and decided to not apply for any more business credit. I thought consolidating was good for my cc's which had interest rate above 10% b/c my loan rate is lower. (8.9%) I spent money on things like intraoral cameras(7K), new dental chairs and equipment (60K), wallpaper, paint, new floors, bathroom, (30K), bleaching one hour system (5K). It is taking some major bucks to make the place nice. I bought my lobby furniture from IKEA though....lol...i save there. PRay for me....pleze...my advertising is alot too.
Hey Roni, You are doing the right thing. Look how far you have come from 1 1/2 years ago. Just keep focused. You are doing what you really want to do and I have no doubt whatsoever that you will be fine. Keep it up!
Roni, I know it isn't cheap to open a dental office. I handled a loan for a new dentist in 1978 {I think} and just to get the guys doors open was $50K. I can easily see the expenses that you face. This guy did very well. He basically worked his hind end into the ground. He had office hours Mon.-Sat. and was always available when someone couldn't get to his office during regular hours or, if there was an emergency. Again, good luck!
Roni, you're doing what you really want to do!! Go for broke, gal!! And don't skimp on advertising - you gotta have people come in there!
thanks guys. I will try to keep optimistic. Looking to hire a receptionist within a week. Now that is scary.....
