Latest / Hey Docs! / The Financial Guide for Startups and Acquisitions with Matt Kroeker, Bank of America

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The Financial Guide for Startups and Acquisitions with Matt Kroeker, Bank of America · Hey Docs!

• 0:05
  Speaker 1: Welcome to the Hey Docs podcast with your host, Jill Allen. Today,
• 0:10
  Speaker 1: I am welcoming back Matthew Croker from Bank of America.
• 0:14
  Speaker 1: Matt works closely with doctors as they navigate the financial
• 0:18
  Speaker 1: side of practice ownership from building a practice from the
• 0:21
  Speaker 1: ground up to evaluating and purchasing an existing one. Deciding
• 0:26
  Speaker 1: how you want to step into ownership is a big decision.
• 0:29
  Speaker 1: There's a lot more to it than simply comparing the
• 0:32
  Speaker 1: price tags. In this episode, we're talking about startups versus acquisitions,
• 0:37
  Speaker 1: what lenders are actually looking for, how to evaluate what
• 0:40
  Speaker 1: you can afford, and the unique financial challenges orthodontists need
• 0:44
  Speaker 1: to understand before taking the next step. So let's take
• 0:47
  Speaker 1: a look. And now a word from the sponsors who
• 0:51
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• 0:57
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  Speaker 1: us at go.solventum.com forward slash clarity. Again, that is go.solventum.com
• 2:40
  Speaker 1: forward slash clarity to learn more. Matt, I am so
• 2:48
  Speaker 1: excited to have you back on Hey Docs. Thanks for
• 2:50
  Speaker 1: being here again.
• 2:51
  Speaker 2: Of course. Thanks for having me. I'm excited.
• 2:53
  Speaker 1: Yeah, I feel like this is the perfect time. We've
• 2:56
  Speaker 1: had some changes in the market and okay, who better
• 3:00
  Speaker 1: than to have Matt back on with us. So in
• 3:02
  Speaker 1: the event that somebody maybe hasn't caught one of our
• 3:06
  Speaker 1: previous conversations, do you mind just giving us a real
• 3:08
  Speaker 1: quick refresher on who you are, your background and how
• 3:13
  Speaker 1: you're helping doctors when they're working with Bank of America?
• 3:16
  Speaker 3: Yeah, my name is Matt Croker, live out in Colorado,
• 3:19
  Speaker 3: cover Colorado and really the whole country with my entire
• 3:23
  Speaker 3: job is just helping doctors, dentists, specialists, including orthodontists, kind
• 3:28
  Speaker 3: of figure out if they want to start a practice,
• 3:30
  Speaker 3: buy a practice, grow their practice. Is it the right
• 3:32
  Speaker 3: fit for them? Working with doctors in school, figuring out, hey,
• 3:36
  Speaker 3: if this is in your plan, here's the things to
• 3:38
  Speaker 3: plan for.
• 3:38
  Speaker 2: So love it. It's very fun.
• 3:40
  Speaker 3: And I get to do stuff like this where we
• 3:42
  Speaker 3: just help educate and get people to feel comfortable making
• 3:46
  Speaker 3: a big life decision.
• 3:49
  Speaker 1: That is so true. And I think you and I
• 3:50
  Speaker 1: have these discussions all the time with doctors because this
• 3:54
  Speaker 1: is probably, besides maybe getting married and buying a house,
• 3:57
  Speaker 1: probably one of life's big, big decisions that somebody is
• 4:01
  Speaker 1: going to make, number one, to bet on themselves and
• 4:04
  Speaker 1: number two, to take on a pretty significant debt load
• 4:08
  Speaker 1: and say, all right, I got this and I'm going
• 4:10
  Speaker 1: to move forward with this. So I want to unpack
• 4:13
  Speaker 1: that a little bit and just kind of talk about
• 4:16
  Speaker 1: what we're seeing right now in the market when doctors
• 4:18
  Speaker 1: are kind of thinking about, do I do a startup?
• 4:21
  Speaker 1: I know you and I both live in this world
• 4:23
  Speaker 1: a lot with the startup loans. Do I do an acquisition?
• 4:27
  Speaker 1: When we're looking at those two opportunities, kind of what
• 4:30
  Speaker 1: does that look like? What are the things we need
• 4:32
  Speaker 1: to be thinking about when we're evaluating that? Maybe what
• 4:36
  Speaker 1: even factors kind of drive that decision when we're unpacking
• 4:40
  Speaker 1: all right what is going to be the best move
• 4:42
  Speaker 1: when we're looking at betting on ourselves.
• 4:44
  Speaker 3: Yeah i mean i think like you a lot of
• 4:46
  Speaker 3: that is the first thing is a mindset which the
• 4:49
  Speaker 3: financial point aside which we can get into it's really
• 4:52
  Speaker 3: determining can they see themselves taking what some people view
• 4:58
  Speaker 3: as a bigger risk and starting a practice where you're
• 5:00
  Speaker 3: going into a space that may or may not have
• 5:02
  Speaker 3: been a dental or an ortho office before. It could
• 5:06
  Speaker 3: have been a restaurant and you got to be able
• 5:07
  Speaker 3: to see a vision and there's a big runway there.
• 5:10
  Speaker 3: But the flip side of that is it's all yours.
• 5:13
  Speaker 3: You get to pick what it looks like. You get
• 5:15
  Speaker 3: to pick where it is. You get to pick the staff.
• 5:17
  Speaker 3: You get to pick what your brand is from the start,
• 5:20
  Speaker 3: which is really exciting. For some people, that's terrifying. And
• 5:24
  Speaker 3: they like the thought of, hey, I want to go
• 5:26
  Speaker 3: find a practice and I know what the cashflow looks
• 5:29
  Speaker 3: like and I'm moldable to go work with anybody anywhere.
• 5:33
  Speaker 3: So that's always more of the counseling session that I
• 5:37
  Speaker 3: go through anybody early on. That's trying to figure that
• 5:41
  Speaker 3: out more than just the banking and financing aspect of it.
• 5:45
  Speaker 3: And then it's really like, once you get past that,
• 5:47
  Speaker 3: if they decide they want to do startup, awesome.
• 5:49
  Speaker 2: And then we talk through here, the things that we,
• 5:51
  Speaker 2: we need to look.
• 5:52
  Speaker 3: At from a financial perspective, It's not like buying a
• 5:56
  Speaker 3: house where there's like a pre-approval process.
• 5:58
  Speaker 2: Every scenario is different.
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  Speaker 3: Every doctor comes in with a different amount of debt
• 6:02
  Speaker 3: or a different lifestyle that they lived. And it's determining
• 6:05
  Speaker 3: how we can fit that in with what they're looking
• 6:08
  Speaker 3: to do, which generally we can. And it's just a
• 6:11
  Speaker 3: matter of kind of figuring out what that path looks
• 6:14
  Speaker 3: like and what decisions they've made going up to that
• 6:17
  Speaker 3: point that will set them up for it.
• 6:19
  Speaker 1: Yeah, yeah. And that kind of leads me into my
• 6:21
  Speaker 1: next question, because as you alluded to, it isn't just
• 6:26
  Speaker 1: a cookie cutter approach that you guys are taking with doctors.
• 6:29
  Speaker 1: I mean, you're really evaluating where they're at. There's all
• 6:32
  Speaker 1: these different factors that go into what type of a
• 6:36
  Speaker 1: loan they're going to be able to qualify for, how much,
• 6:38
  Speaker 1: all of that. And I'm wondering if you can... I
• 6:42
  Speaker 1: know on previous discussions in the past, you've kind of
• 6:44
  Speaker 1: talked about this a little bit, but especially now from 2026,
• 6:49
  Speaker 1: 2027 forward standards, you know, what is it that the
• 6:54
  Speaker 1: banks are looking for right now? Maybe there's been some
• 6:56
  Speaker 1: changes out there in making somebody a strong borrower. What
• 7:01
  Speaker 1: are some of those key things that we should be
• 7:02
  Speaker 1: thinking about?
• 7:04
  Speaker 3: Yeah, so I think that goes back to where are
• 7:07
  Speaker 3: they right now in their lives?
• 7:09
  Speaker 2: Again, a lot of that's financially driven.
• 7:11
  Speaker 3: I mean, we get doctors that are right out of
• 7:13
  Speaker 3: residency that are ready to go start a practice.
• 7:15
  Speaker 2: And generally, we expect them to have student loans.
• 7:19
  Speaker 3: We expect them to have some sort of potentially a
• 7:21
  Speaker 3: car payment, some sort of mortgage payment. How big those
• 7:24
  Speaker 3: are and how much of a burden potentially that is
• 7:28
  Speaker 3: will factor into the startup piece of it, especially. My favorite,
• 7:33
  Speaker 3: which is not... We don't run into it a ton,
• 7:35
  Speaker 3: but like, hey, I have student loans. I have a
• 7:37
  Speaker 3: car payment. I'm living in an apartment. My number one
• 7:40
  Speaker 3: goal is to start a practice. And so I'm open
• 7:43
  Speaker 3: to moving anywhere, but I'm keeping payments low. It doesn't
• 7:47
  Speaker 3: happen a ton, but that's great.
• 7:50
  Speaker 2: And if truly owning a practice is... the top priority.
• 7:54
  Speaker 3: I would love more people to have that mindset of, look,
• 7:58
  Speaker 3: you're going to come out of school making really good money.
• 8:00
  Speaker 3: And you've been in school a long time. So absolutely
• 8:02
  Speaker 3: enjoy it. Just know all of the little things do
• 8:06
  Speaker 3: add up. And so the more we can limit really
• 8:09
  Speaker 3: the monthly costs that you're paying on the personal side,
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  Speaker 3: that's all we're doing to try to make it work
• 8:15
  Speaker 3: when we're looking, especially at a startup. And fitting it
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  Speaker 3: into a box where the first, second, third years are
• 8:22
  Speaker 3: the most crucial, you're going to have lower income than
• 8:25
  Speaker 3: you will in years four on.
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  Speaker 2: Obviously, everybody knows that.
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  Speaker 3: But being able to control the constants, which is kind
• 8:33
  Speaker 3: of the personal debt load that you've taken on or
• 8:36
  Speaker 3: you plan to take on, that's somewhat of a controllable,
• 8:39
  Speaker 3: maybe outside of the student loans. So that's where it's
• 8:41
  Speaker 3: just be very conscious of it. And just making sure
• 8:44
  Speaker 3: you're talking to somebody financially that can help guide you
• 8:47
  Speaker 3: on that stuff.
• 8:48
  Speaker 1: Yeah, that is a tough one, right? Because there's so
• 8:50
  Speaker 1: many different views and perspectives and what should you do
• 8:54
  Speaker 1: and what should you not do. And I think that
• 8:56
  Speaker 1: kind of can sometimes even lead us into financial mistakes
• 9:01
  Speaker 1: that doctors may get like, oh, pay off all your
• 9:04
  Speaker 1: student loan debt. Or I'm not saying that that's necessarily
• 9:07
  Speaker 1: a bad thing, but sometimes wiping out all of your
• 9:09
  Speaker 1: savings is maybe not the best solution. And so I'm
• 9:14
  Speaker 1: wondering if you can also talk a little bit about that.
• 9:18
  Speaker 1: Like what would be good advice? Maybe what might not
• 9:21
  Speaker 1: be great advice? What are some mistakes that we should
• 9:24
  Speaker 1: be aware of that have kind of gotten people into
• 9:27
  Speaker 1: some trouble potentially and getting the loan that they want?
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  Speaker 2: Yeah.
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  Speaker 3: I think the big thing to remember is it's not
• 9:33
  Speaker 3: about how much debt you have. It's more about what
• 9:37
  Speaker 3: the monthly payments that you're making looks like. So as
• 9:40
  Speaker 3: you're fast forwarding and what are the banks looking for,
• 9:43
  Speaker 3: how can we control the monthly number that you're responsible for?
• 9:46
  Speaker 3: So whether that's student loan payments, great. I deal with
• 9:49
  Speaker 3: this every day and it's still hard for me to
• 9:51
  Speaker 3: keep track of what the repayment options are. But at
• 9:55
  Speaker 3: the end of the day, the more we can stretch
• 9:57
  Speaker 3: it out and lessen your responsibilities, especially as you're starting
• 10:02
  Speaker 3: and growing a practice, the better for your sake from
• 10:06
  Speaker 3: a monthly perspective. So again, talking to somebody that's got
• 10:10
  Speaker 3: 500 or 600,000 in student debt, which is a ton
• 10:12
  Speaker 3: of money and way more than we would have seen
• 10:14
  Speaker 3: 10 years ago.
• 10:16
  Speaker 2: It's not uncommon now, but going.
• 10:18
  Speaker 3: After the, Hey, I was offered a 2% rate to
• 10:21
  Speaker 3: pay that back in 20 years. Well, that may be
• 10:24
  Speaker 3: a $ 6, 000 a month payment that you have to make,
• 10:26
  Speaker 3: whether you're making a hundred thousand or 500,000. So that
• 10:30
  Speaker 3: definitely comes into play. I would say the debt that's
• 10:33
  Speaker 3: a no-brainer to pay off is credit card debt, which
• 10:36
  Speaker 3: sometimes is you just can't get around it, especially when
• 10:40
  Speaker 3: you're going through school and your income is limited. That
• 10:42
  Speaker 3: calculation from the bank's perspective is, hey, how much money
• 10:46
  Speaker 3: do you have set aside? And they subtract out the
• 10:49
  Speaker 3: credit card debt, and that's the number we're taking. So
• 10:51
  Speaker 3: that's definitely one that you're getting a 15% to 25%
• 10:54
  Speaker 3: interest rate on it. It's crazy how much you're paying
• 10:59
  Speaker 3: some of these credit card companies. definitely pay that off.
• 11:01
  Speaker 3: But the rest of it, we sort of expect, but
• 11:04
  Speaker 3: we would love more than anything to make sure our
• 11:07
  Speaker 3: doctors have a cushion so that, I mean, COVID 2.0,
• 11:11
  Speaker 3: if that ever happens, which hopefully it doesn't, but offices
• 11:14
  Speaker 3: shut down for whatever unforeseen reasons, like you have money
• 11:18
  Speaker 3: set aside To not just support your practice, but support you,
• 11:22
  Speaker 3: your family, and everything else. Again, we expect debt to
• 11:26
  Speaker 3: be out there. We expect our doctors to borrow money
• 11:28
  Speaker 3: for student loans, you know, to buy a house, whatever.
• 11:30
  Speaker 3: It's not as important to pay that down as quickly
• 11:33
  Speaker 3: as it is to pay down things that would hurt
• 11:36
  Speaker 3: you in the long term, which is credit card debt.
• 11:38
  Speaker 3: And then, you know, making sure you have something set aside.
• 11:40
  Speaker 2: Along the way.
• 11:42
  Speaker 1: Yeah, yeah. I almost think of it this way and
• 11:44
  Speaker 1: tell me if you guys kind of see it this
• 11:45
  Speaker 1: way too. It's like when I'm talking to doctors, when
• 11:48
  Speaker 1: we're looking at doing a startup, let's just use that
• 11:51
  Speaker 1: as our example. What the banks are looking for is
• 11:55
  Speaker 1: they're looking for, can you keep yourself safe on your
• 11:57
  Speaker 1: personal side? So that debt to income ratio with that
• 12:01
  Speaker 1: associateship job and all that's going to come there because
• 12:05
  Speaker 1: those financial obligations are already in place. And we know
• 12:09
  Speaker 1: that our loan is set up to give us a
• 12:13
  Speaker 1: ramp up to be able to build up our practice.
• 12:17
  Speaker 1: But what we don't want is thinking that our loan
• 12:19
  Speaker 1: for our practice is going to be able to cover
• 12:22
  Speaker 1: the startup and your personal. And so we kind of
• 12:26
  Speaker 1: have to have that perspective of we've got two different
• 12:30
  Speaker 1: things that the bank is looking for. You guys understand
• 12:33
  Speaker 1: the numbers of what it takes to get a startup
• 12:36
  Speaker 1: practice and the runway with working capital and all of that.
• 12:39
  Speaker 1: And we know that doctors are not going to be
• 12:42
  Speaker 1: making money in that first year or maybe even that
• 12:44
  Speaker 1: second year, but we're kind of setting it up knowing
• 12:47
  Speaker 1: that that income is coming, but we've got to keep
• 12:50
  Speaker 1: them safe. And I think that that's the piece where
• 12:52
  Speaker 1: I think sometimes doctors miss is they think that, The
• 12:56
  Speaker 1: loan for the startup should cover everything. And well, if
• 12:59
  Speaker 1: I just bet on myself and quit my associateship job,
• 13:02
  Speaker 1: my startup will start faster and I'll be more successful.
• 13:05
  Speaker 1: And unfortunately, as much as I would love that and
• 13:09
  Speaker 1: you would love that, it isn't necessarily the case. There
• 13:12
  Speaker 1: are some very specific ramp ups in how a startup goes.
• 13:16
  Speaker 1: And it's very, very rare. The doctors are able to
• 13:19
  Speaker 1: cover both sides of that.
• 13:20
  Speaker 2: Yeah, agreed.
• 13:22
  Speaker 3: And it's one of those things too, because not in
• 13:24
  Speaker 3: every scenario we require a doctor to have an associate
• 13:27
  Speaker 3: position to start. A lot of them we do because
• 13:29
  Speaker 3: of what you just talked through, but it doesn't mean
• 13:32
  Speaker 3: it's still not the right thing for them. And that's
• 13:34
  Speaker 3: where they still have to factor in, hey, there's more
• 13:38
  Speaker 3: going on in life than just me building this practice up.
• 13:42
  Speaker 2: You still have to be able to balance it.
• 13:44
  Speaker 3: And that's where, again, just having a conversation and making
• 13:46
  Speaker 3: sure that you understand where everything is, is huge early on. Yeah.
• 13:50
  Speaker 1: Yeah, for sure. For sure. Has there been any changes
• 13:53
  Speaker 1: in what you guys look for from liquidity or savings
• 13:59
  Speaker 1: or anything there that you're seeing that maybe from the
• 14:02
  Speaker 1: past time we've talked till now that we're looking for
• 14:05
  Speaker 1: there at all?
• 14:06
  Speaker 2: Not really.
• 14:07
  Speaker 3: I mean, we, again, speaking hopefully more in banking terms
• 14:11
  Speaker 3: than Bank of America terms, I mean, we've always been
• 14:13
  Speaker 3: a little more conservative making sure that doctors have some
• 14:16
  Speaker 3: money set aside and we're not giving a million dollar
• 14:19
  Speaker 3: startup loan when there's not just obviously debt, but they
• 14:23
  Speaker 3: don't have much in case something happens.
• 14:25
  Speaker 2: More than anything, it's stayed pretty steady.
• 14:29
  Speaker 3: I mean, we look at the success of the portfolio
• 14:31
  Speaker 3: and we know that We're going to look at a
• 14:34
  Speaker 3: doctor right out of residency differently than somebody that's been
• 14:37
  Speaker 3: practicing for 10 years that now they've decided it's time
• 14:40
  Speaker 3: for them. And that's just, again, goes back to kind
• 14:43
  Speaker 3: of the character of the borrower in our case. And
• 14:46
  Speaker 3: the doctor is, hey, what have they done to show
• 14:50
  Speaker 3: if they've been out of school for a while and
• 14:52
  Speaker 3: practicing and hopefully making some good money, what have they
• 14:56
  Speaker 3: done to show that they can save money and.
• 14:57
  Speaker 2: Be responsible with it?
• 14:59
  Speaker 3: Whereas somebody out of school, we're not expecting them to
• 15:01
  Speaker 3: have hundred thousand dollars in savings sometimes we do which
• 15:05
  Speaker 3: is awesome but not everybody has that yeah we want
• 15:08
  Speaker 3: to make sure they have something and and that there's
• 15:10
  Speaker 3: a backfall just in case but it's definitely more driven
• 15:13
  Speaker 3: by the age or how long they've been out versus
• 15:17
  Speaker 3: a standard number.
• 15:18
  Speaker 1: Yeah yeah again and what i really appreciate about you
• 15:20
  Speaker 1: guys is that it isn't just this cookie cutter you
• 15:23
  Speaker 1: only fit in the box or it doesn't work So
• 15:26
  Speaker 1: let's talk a little bit about qualifying for financing. And
• 15:30
  Speaker 1: you and I both know, I mean, we've watched the
• 15:33
  Speaker 1: numbers over the years that we've been in this. You know,
• 15:35
  Speaker 1: it used to be that, ah, we're high end. If
• 15:38
  Speaker 1: you're 500,000 for a startup, you know, like that's just crazy.
• 15:42
  Speaker 1: And then went up after COVID and it's went up,
• 15:44
  Speaker 1: you know, again after COVID. And we know that we're
• 15:47
  Speaker 1: kind of right now around 850 to a million for
• 15:51
  Speaker 1: a startup in financing. And I want you to talk
• 15:54
  Speaker 1: a little bit about about that. Because I think sometimes
• 15:58
  Speaker 1: doctors can maybe get it in their head that, well,
• 16:01
  Speaker 1: I got a million, so I got to spend a million.
• 16:03
  Speaker 1: I got 950, so I got to spend 950. And
• 16:05
  Speaker 1: I really want you to talk a little bit, maybe
• 16:11
  Speaker 1: give some counsel here on what we should be thinking about.
• 16:15
  Speaker 1: What does that really mean when we're looking? Because those
• 16:18
  Speaker 1: are big numbers. I mean, I always say it's easy
• 16:22
  Speaker 1: to get that loan, but you still got to pay
• 16:24
  Speaker 1: back that loan, you know, and you got to understand
• 16:26
  Speaker 1: what you're doing with it.
• 16:28
  Speaker 2: Yeah, for sure.
• 16:29
  Speaker 3: My first point will be, we're not going to give
• 16:32
  Speaker 3: somebody 900 or a million dollars that we don't feel
• 16:36
  Speaker 3: like is going to be in their best interest. Hopefully
• 16:38
  Speaker 3: that goes without saying. There's that side of it. But
• 16:41
  Speaker 3: to your point, just because you get a million dollar
• 16:43
  Speaker 3: startup loan doesn't mean you should spend a million dollars
• 16:46
  Speaker 3: on your startup loan. So one, having the right team
• 16:51
  Speaker 3: around you. If they're a client of yours and your team,
• 16:53
  Speaker 3: you're going to make sure the doctor is surrounded with
• 16:55
  Speaker 3: people that we can trust, with contractors that aren't going
• 16:58
  Speaker 3: to take advantage. Every equipment person in the country wants
• 17:02
  Speaker 3: to sell them $ 400, 000 worth of equipment to make the
• 17:06
  Speaker 3: practice look awesome from day one.
• 17:08
  Speaker 2: It doesn't mean it's the right thing.
• 17:11
  Speaker 3: Sometimes maybe, sometimes maybe not, but just because you can
• 17:16
  Speaker 3: doesn't mean that you should. So I do think there's
• 17:19
  Speaker 3: the financial responsibility of it, but there's also the team
• 17:22
  Speaker 3: that you have around you ensuring that everybody's on the
• 17:25
  Speaker 3: same page with what the vision of the practice is.
• 17:28
  Speaker 2: And if we can get away with doing a.
• 17:30
  Speaker 3: Practice for $ 500, 000, Awesome. I mean, that's less money a month.
• 17:36
  Speaker 3: It's quicker to pay back. It's more equity in the
• 17:38
  Speaker 3: practice sooner if you want to expand. Otherwise, as soon
• 17:42
  Speaker 3: as you pay that loan off, that's more money in
• 17:44
  Speaker 3: your pocket or to reinvest.
• 17:46
  Speaker 2: In your practice. I guess really two things.
• 17:48
  Speaker 3: We're not going to give the doctors the budget if
• 17:50
  Speaker 3: we don't feel like they can handle it and afford
• 17:53
  Speaker 3: it with everything they have going on. But ensuring that
• 17:57
  Speaker 3: the team around you is all rowing in the same
• 18:00
  Speaker 3: direction with your best interest at heart. That's where all
• 18:02
  Speaker 3: of this really comes into play to make sure that
• 18:06
  Speaker 3: what you're spending is going to come back. It's an
• 18:09
  Speaker 3: investment that's going to make sense.
• 18:11
  Speaker 1: Yeah, yeah, absolutely. And now a word from the sponsors
• 18:15
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• 18:21
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• 18:26
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• 18:31
  Speaker 1: built from the ground up, not pieced together like the
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  Speaker 1: it's streamlining the workflows your team already relies on while
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  Speaker 1: efficiently than ever. Ready to see it for yourself? Head
• 18:51
  Speaker 1: to grayfinch.com forward slash Jill Allen for a special discount
• 18:56
  Speaker 1: exclusively for my listeners. I'm wondering if you'll indulge me
• 19:05
  Speaker 1: here for a minute. And I kind of want to
• 19:06
  Speaker 1: talk about the loan as a whole and kind of
• 19:09
  Speaker 1: go on a little rabbit trail here just a little bit.
• 19:13
  Speaker 1: But one of the things that I think doctors a
• 19:16
  Speaker 1: lot of times miss is that they think that they're
• 19:19
  Speaker 1: just getting this big lump sum of money that they
• 19:21
  Speaker 1: just get to spend however they want. And I want
• 19:24
  Speaker 1: to kind of break it down into, I kind of
• 19:26
  Speaker 1: try and explain it like you kind of have buckets
• 19:29
  Speaker 1: that the bank is going to kind of break your
• 19:31
  Speaker 1: loan down into. There's a certain amount of money that
• 19:34
  Speaker 1: they're allocating for construction. And there's a certain amount of
• 19:37
  Speaker 1: money that they're allocating for equipment. And there's a certain
• 19:41
  Speaker 1: amount of money that we're allocating for working capital and this, that,
• 19:44
  Speaker 1: or the other. Would you mind talking through that a
• 19:48
  Speaker 1: little bit? Because I think especially... and I want to
• 19:50
  Speaker 1: go through each of those buckets a little bit, but
• 19:53
  Speaker 1: I think what I see, especially with where things are
• 19:57
  Speaker 1: at right now in our economy and where the cost
• 19:59
  Speaker 1: of construction is and why the banks, your consultant, why
• 20:04
  Speaker 1: we're all scrutinizing things so much is It's really easy
• 20:09
  Speaker 1: to have kind of to your point of be oversold
• 20:11
  Speaker 1: on equipment. It's also very easy to be oversold on
• 20:15
  Speaker 1: your construction costs. And even if we've got a million
• 20:18
  Speaker 1: dollar loan and somebody says, oh, you know, 650 in
• 20:22
  Speaker 1: your build out, when you look at what's left... That's
• 20:25
  Speaker 1: not a lot like realistically for what we need to do.
• 20:28
  Speaker 1: So I'm wondering if you can kind of help us
• 20:31
  Speaker 1: understand what you guys are looking for and why you're
• 20:36
  Speaker 1: asking doctors like, hey, we need to see your construction
• 20:40
  Speaker 1: bid before we open things up. And I'd also, if
• 20:44
  Speaker 1: you don't mind, I want you to unpack a little
• 20:46
  Speaker 1: bit why you guys kind of scrutinize where their rent
• 20:50
  Speaker 1: is going to be to kind of all in on that.
• 20:53
  Speaker 1: I know it's because we're trying to keep them safe.
• 20:55
  Speaker 1: But I think that there's kind of this misconception out
• 20:58
  Speaker 1: there that they're just trying to control everything where that's
• 21:01
  Speaker 1: not the case at all. So do you mind unpacking
• 21:03
  Speaker 1: that a little bit for us?
• 21:05
  Speaker 2: Yeah.
• 21:06
  Speaker 3: So I guess just moving chronologically, generally, how we're looking
• 21:09
  Speaker 3: at this is you get your approval and you have
• 21:12
  Speaker 3: a general budget, which obviously is very exciting and important,
• 21:15
  Speaker 3: but really doesn't come into play until the lease is
• 21:18
  Speaker 3: finalized and we start getting contractor bids on what the
• 21:22
  Speaker 3: construction is going to look like.
• 21:23
  Speaker 2: To your first point, which comes up first on the
• 21:25
  Speaker 2: rent amount, absolutely.
• 21:28
  Speaker 3: Those first four years, I mean, not just even the
• 21:31
  Speaker 3: first four years, prior to you even opening, making sure
• 21:35
  Speaker 3: that the doctor is either not paying much or paying very,
• 21:39
  Speaker 3: very little, hopefully in most scenarios to where there's some
• 21:42
  Speaker 3: sort of free rent period because there's no revenue coming.
• 21:45
  Speaker 2: In to be able to make that payment.
• 21:47
  Speaker 3: And then those first four years are the most crucial
• 21:51
  Speaker 3: in bringing on patients, bringing on referral partners, just getting
• 21:56
  Speaker 3: your brand out into the community. And so we are
• 21:58
  Speaker 3: very much looking at those numbers to where there's projections
• 22:01
  Speaker 3: on what we expect to our doctors to be doing
• 22:04
  Speaker 3: in terms of total collections and revenue and how rent
• 22:07
  Speaker 3: plays into it. Because if rent, which is a fixed
• 22:11
  Speaker 3: cost that once you sign that lease, you.
• 22:13
  Speaker 2: Very, very rarely are going to ever be.
• 22:15
  Speaker 3: Able to adjust it for five to 10 to 15 years.
• 22:20
  Speaker 3: So we're looking at that to ensure that it's putting
• 22:22
  Speaker 3: you in the best scenario from a cashflow perspective so
• 22:26
  Speaker 3: that you can make money and pay staff and do
• 22:28
  Speaker 3: everything else.
• 22:28
  Speaker 1: Yes.
• 22:29
  Speaker 2: So Yes, we care.
• 22:31
  Speaker 3: Yes, there's oversight, but that is for very good reason
• 22:34
  Speaker 3: because that's something you'll never be able to change or
• 22:37
  Speaker 3: you won't be able to change for a long time.
• 22:38
  Speaker 1: Yeah.
• 22:39
  Speaker 2: So once that lease.
• 22:40
  Speaker 3: Is signed or very close to being signed, doctors start
• 22:43
  Speaker 3: getting bids from contractors to figure out how much construction
• 22:46
  Speaker 3: is going to cost. Because for the most part, and
• 22:48
  Speaker 3: there's a lot that goes into construction, but for the
• 22:52
  Speaker 3: most part, that is going to be the largest chunk
• 22:54
  Speaker 3: of the budget. And that's going to dictate, hey, do
• 22:56
  Speaker 3: I need to spend 900,000 or can I spend 700,000?
• 23:00
  Speaker 3: So no, we're not just giving money to the doctors
• 23:04
  Speaker 3: and saying, Hey, good luck. We are going to monitor
• 23:07
  Speaker 3: the process the whole time to ensure that contractors aren't
• 23:11
  Speaker 3: taking advantage of you, that the contract that they give
• 23:13
  Speaker 3: you into us is matching what's coming through on the invoices.
• 23:18
  Speaker 3: And that goes for kind of everything throughout the process.
• 23:22
  Speaker 3: So the way that the loan works again, you're not
• 23:24
  Speaker 3: just taking on $ 900, 000 of a loan. the loan starts
• 23:29
  Speaker 3: to accumulate a balance as invoices go out. So generally
• 23:33
  Speaker 3: you're going to make a lease deposit. That could be
• 23:36
  Speaker 3: the first payment. An architect is going to be soon
• 23:38
  Speaker 3: after that because they're going to draw the space, which
• 23:40
  Speaker 3: then makes way for the contractor to be able to
• 23:43
  Speaker 3: give a bid to our doctors. And so these little 5,000, 10,000, $ 20, 000
• 23:48
  Speaker 3: payments to some of these people as they go out, yes,
• 23:51
  Speaker 3: now you have a loan of 40,000 or 50,000. And
• 23:53
  Speaker 3: then the big stuff comes when the contractors start their
• 23:57
  Speaker 3: work and.
• 23:58
  Speaker 2: You know, they need chunks of 100 or 150,000, which.
• 24:01
  Speaker 3: Again are all very big numbers, but it's going to
• 24:04
  Speaker 3: a team that's monitoring this so that we know throughout
• 24:08
  Speaker 3: your project, everything is staying within budget on plan. And again,
• 24:14
  Speaker 3: fast forward and signage and equipment and supplies and consulting
• 24:19
  Speaker 3: and everything in there. You could say there are three
• 24:23
  Speaker 3: buckets with 20 things in each one, or you could
• 24:25
  Speaker 3: say there are 20 buckets with, you know, a couple
• 24:27
  Speaker 3: of things in each one.
• 24:28
  Speaker 2: Just depending on how you want to look at it.
• 24:30
  Speaker 3: But at the end of the day, as the money
• 24:32
  Speaker 3: goes out the door, that's what ends up being your
• 24:35
  Speaker 3: final loan amount. And then ultimately at the very end
• 24:38
  Speaker 3: of the project is when we will give the remainder
• 24:40
  Speaker 3: of the working capital to our doctors.
• 24:42
  Speaker 2: And that goes into a checking account.
• 24:44
  Speaker 3: And that is something that once they open their doors,
• 24:47
  Speaker 3: that's money for them to use for staff and for
• 24:50
  Speaker 3: marketing and for whatever else from a cashflow perspective, that's
• 24:53
  Speaker 3: going to help them get through this first few months
• 24:57
  Speaker 3: to a year as they're getting patients in the door
• 25:00
  Speaker 3: and starting clients and things like that. Yeah.
• 25:03
  Speaker 1: I really appreciate you kind of going through that because
• 25:05
  Speaker 1: I do think there's been over the years, you know,
• 25:07
  Speaker 1: kind of this misconception that I opened my loan and
• 25:10
  Speaker 1: they just dropped 900,000 into my account. And, you know,
• 25:13
  Speaker 1: I can go buy that second house because they don't
• 25:15
  Speaker 1: really care what I do with it. And no, that
• 25:17
  Speaker 1: isn't it. And, And I do think that even though
• 25:19
  Speaker 1: it's oversight, what I want everybody to hear is this
• 25:22
  Speaker 1: is for everybody to stay safe. And I think that
• 25:26
  Speaker 1: it's good, especially if you've never done this before. It's
• 25:29
  Speaker 1: good to know that you've got a team of professionals
• 25:32
  Speaker 1: that are looking, you know, just making sure that, hey,
• 25:34
  Speaker 1: that invoice doesn't look right or that bid looks exceptionally high.
• 25:39
  Speaker 1: Or I say this all the time when I'm looking
• 25:41
  Speaker 1: at equipment. To your point, I just am not sure
• 25:44
  Speaker 1: that we need this much equipment for a startup, you know.
• 25:48
  Speaker 2: Ha ha!
• 25:49
  Speaker 1: We need to use that money for marketing to getting
• 25:52
  Speaker 1: patients in the door. So it's good to have, you know,
• 25:55
  Speaker 1: extra set of eyes that are looking at it and
• 25:57
  Speaker 1: to have a better understanding of how that loan is
• 25:59
  Speaker 1: dispersed and really how you're going to be working with that. Now,
• 26:03
  Speaker 1: I want to kind of switch gears a little bit
• 26:05
  Speaker 1: and talk about acquisitions now, because we work a lot
• 26:09
  Speaker 1: with doctors who that camp of, you know, I don't
• 26:12
  Speaker 1: think of startups for me. I still want to be
• 26:14
  Speaker 1: a practice owner. And I've got this really great opportunity.
• 26:20
  Speaker 1: to do an acquisition, but I don't know what I'm
• 26:23
  Speaker 1: looking at. And I don't know if this is a
• 26:25
  Speaker 1: good deal or not. And I'm wondering if you can
• 26:28
  Speaker 1: now talk a little bit about that side of it,
• 26:31
  Speaker 1: because you and I both get in the weeds here
• 26:33
  Speaker 1: with doctors about that too. And we don't just say,
• 26:37
  Speaker 1: oh yeah, they asked for that. So yep, therefore we
• 26:40
  Speaker 1: will pay that. You know, like there's a lot that
• 26:41
  Speaker 1: goes into that evaluation. Do you mind talking about that
• 26:45
  Speaker 1: and kind of how a loan works with that too?
• 26:47
  Speaker 2: Yeah, so.
• 26:49
  Speaker 3: I think my disclaimer first is the bank is never
• 26:52
  Speaker 3: going to be the one to say, hey, they're asking $ 900, 000.
• 26:56
  Speaker 2: We think it's worth $ 800, 000. Not necessarily our role.
• 27:00
  Speaker 3: Our role is to look at, just like we do
• 27:02
  Speaker 3: in a startup, to look at the overall picture for
• 27:04
  Speaker 3: that specific doctor and can that practice support borrowing money
• 27:09
  Speaker 3: to pay for that practice and support them and their
• 27:13
  Speaker 3: family and everything else that they have going on.
• 27:16
  Speaker 2: Do we have a very good idea of if a
• 27:17
  Speaker 2: practice is overpriced? Of course.
• 27:19
  Speaker 3: And I will always give my opinion, but not necessarily
• 27:23
  Speaker 3: in our lane. Where I'm really coming in is I
• 27:26
  Speaker 3: will give my opinion on that. But also, I think
• 27:28
  Speaker 3: even more importantly at times, looking at trends of the practice.
• 27:32
  Speaker 3: And again, what's the practice making? If we take that
• 27:35
  Speaker 3: owner out and we put you in, what expenses leave today?
• 27:39
  Speaker 3: And then what are you bringing to the table in it?
• 27:41
  Speaker 3: And is the practice, does it make sense for you?
• 27:43
  Speaker 3: Because you could look at five practices. And three of
• 27:46
  Speaker 3: them may make sense and two of them may not
• 27:48
  Speaker 3: make sense. And it's practice dependent. It's always very much
• 27:53
  Speaker 3: a case by case scenario, but I'm always diving into
• 27:57
  Speaker 3: what expenses are they paying that are industry norms are
• 28:02
  Speaker 3: very close. Are there things that are sticking out from
• 28:06
  Speaker 3: one year to the other? I mean, did the practice
• 28:08
  Speaker 3: increase 15% in collections from 25 to 2026?
• 28:10
  Speaker 1: Great.
• 28:14
  Speaker 3: It doesn't tell me anything other than there's something going
• 28:16
  Speaker 3: on and we want to know what it is because
• 28:18
  Speaker 3: at the end of the day, yes, that may be
• 28:20
  Speaker 3: a good thing. Maybe it's a bad thing for you
• 28:23
  Speaker 3: because they're part of some group that's bringing in a
• 28:25
  Speaker 3: lot of referrals and that's not going to happen anymore. Again,
• 28:30
  Speaker 3: these are just examples of, it doesn't tell you what's
• 28:34
  Speaker 3: going on. It tells you something's going on and we
• 28:36
  Speaker 3: want to know. And like I've seen practices that have
• 28:39
  Speaker 3: doubled from year over year, but then you look that.
• 28:41
  Speaker 2: They spent $ 80, 000 in marketing one year.
• 28:42
  Speaker 3: Well, Okay, that just means you're going to need to
• 28:46
  Speaker 3: count on doing the same thing and understand what they're doing.
• 28:50
  Speaker 3: It's just looking at it and helping evaluate the financial health.
• 28:54
  Speaker 3: And I a lot of times instead of answering questions,
• 28:58
  Speaker 3: I bring more to the table and say, Hey, here's
• 28:59
  Speaker 3: what I think. But here's the five to seven things
• 29:02
  Speaker 3: I think you should go back and ask, because this
• 29:05
  Speaker 3: is really going to determine Is this the right fit
• 29:08
  Speaker 3: for you or not? But again, and then at the
• 29:11
  Speaker 3: bottom line, we're going to make sure from a cash
• 29:13
  Speaker 3: flow perspective, from an income perspective.
• 29:15
  Speaker 2: For the doctors. Yes, it makes sense.
• 29:18
  Speaker 3: I just want to along the way, make sure they
• 29:21
  Speaker 3: know what they're getting into and really uncover anything that's
• 29:24
  Speaker 3: going to be helpful. So they're not surprised, you know,
• 29:26
  Speaker 3: week one, they get into the practice and they're like,
• 29:28
  Speaker 3: what the heck? I just get myself into.
• 29:30
  Speaker 2: That's what we're all here for is to avoid that.
• 29:33
  Speaker 1: Yeah, absolutely. I'm sure you can think back through the
• 29:35
  Speaker 1: years and think of you know, things, but is there
• 29:38
  Speaker 1: anything that are maybe whammies or red flags that doctors
• 29:43
  Speaker 1: should be aware of? I know you kind of said,
• 29:45
  Speaker 1: you know, a whole lot of income, but is there
• 29:48
  Speaker 1: anything that kind of jump out to you that you're like,
• 29:51
  Speaker 1: these might be a couple of things that you just might,
• 29:53
  Speaker 1: we as a bank will pay attention to, but you
• 29:55
  Speaker 1: should also from a financial health standpoint, pay attention to?
• 29:59
  Speaker 2: Yeah. I mean, the fixed costs are always the toughest
• 30:02
  Speaker 2: to change.
• 30:03
  Speaker 3: So I think if somebody's paying a lot in rent,
• 30:07
  Speaker 3: there's only so much you're going to be able to
• 30:08
  Speaker 3: change with that. If the wages are really high because
• 30:12
  Speaker 3: certain staff members have been there forever and they're the
• 30:14
  Speaker 3: staple of the practice.
• 30:16
  Speaker 2: Again, you're not going to be able to change that.
• 30:18
  Speaker 2: I don't know.
• 30:19
  Speaker 3: Individual red flags is tough. Other than if I hear
• 30:22
  Speaker 3: a doctor say, I love this practice. But in three
• 30:26
  Speaker 3: to five years, I want to move this practice closer.
• 30:28
  Speaker 2: To me or whatever.
• 30:30
  Speaker 3: Again, location is something that is so difficult to change
• 30:34
  Speaker 3: that if that's a goal right from the start that, hey,
• 30:37
  Speaker 3: I don't want to be here long term. It may
• 30:39
  Speaker 3: not be a red flag of the practice, but it's
• 30:41
  Speaker 3: definitely something that this may not be the right fit
• 30:44
  Speaker 3: for you specifically. I think it's very case by case
• 30:47
  Speaker 3: of what the doctor is looking for. But the red
• 30:50
  Speaker 3: flags are generally the trends of year to year versus
• 30:53
  Speaker 3: one specific category for the most part.
• 30:55
  Speaker 1: Yeah, yeah, that's perfect. And I know I was kind
• 30:57
  Speaker 1: of putting you on the spot there a little bit,
• 30:59
  Speaker 1: but audience loves to hear, you know, okay, is there
• 31:01
  Speaker 1: something I should be watching for, should be looking out
• 31:05
  Speaker 1: for as they're going along here?
• 31:06
  Speaker 3: Yeah.
• 31:07
  Speaker 1: So I want to jump back to startups now. And
• 31:10
  Speaker 1: I think this could apply a little bit to acquisitions,
• 31:12
  Speaker 1: but you and I both know that startups have this
• 31:15
  Speaker 1: really unique challenge, right, of purchasing. our ramp up between
• 31:19
  Speaker 1: opening our doors and, you know, getting going. And, you know,
• 31:22
  Speaker 1: I talk to doctors all the time about, for the
• 31:24
  Speaker 1: most part, most of my docs in a startup in
• 31:26
  Speaker 1: their first year are going to have between $ 20, 000 and $ 25, 000
• 31:28
  Speaker 1: in fixed expenses. And kind of use this example of
• 31:32
  Speaker 1: our expenses are here and our income is here. And,
• 31:35
  Speaker 1: you know, we're waiting on AR to kind of even
• 31:37
  Speaker 1: us out before we're actually making any type of income.
• 31:41
  Speaker 1: I'm wondering if you can talk a little bit about,
• 31:45
  Speaker 1: because again, as a bank, you guys are also anticipating
• 31:49
  Speaker 1: that deficit of expense to income. And I'm wondering if
• 31:54
  Speaker 1: you can just kind of talk a little bit about that.
• 31:57
  Speaker 1: And maybe that plays into how you guys deal with
• 32:00
  Speaker 1: working capital or leaning into that. Hopefully they're getting TI
• 32:03
  Speaker 1: expenses and some of that. But can you kind of
• 32:06
  Speaker 1: talk to that and what you guys are looking for
• 32:09
  Speaker 1: or at there? Yeah.
• 32:10
  Speaker 3: It's all expected, which is why, again, going back to
• 32:13
  Speaker 3: the team you put together around you, you guys do
• 32:17
  Speaker 3: a great job. We're going to help with that also
• 32:19
  Speaker 3: and ensuring that the expenses that we can control, like rent,
• 32:24
  Speaker 3: in the first few years, there is sort of that
• 32:26
  Speaker 3: gradual increase, hopefully, from a rent perspective. As revenue increases,
• 32:32
  Speaker 3: rent's going to increase. Same thing with the loan as well.
• 32:34
  Speaker 3: So it all gets taken into account. And we know
• 32:39
  Speaker 3: we're the biggest critics because we want to get paid back.
• 32:42
  Speaker 3: We're looking at anything and everything for those first four
• 32:45
  Speaker 3: years to ensure there's nothing there that's going to prevent
• 32:48
  Speaker 3: you from not being able to practice. We expect that
• 32:52
  Speaker 3: expense and income ratio to flip over time, but it's
• 32:56
  Speaker 3: going to be very gradual. So it's, do the loan
• 32:59
  Speaker 3: payments increase? Does it give you the biggest runway? Does
• 33:02
  Speaker 3: the rent increase and give you a big runway? And then, yeah,
• 33:05
  Speaker 3: to your point, there will be generally on most startups
• 33:09
  Speaker 3: about $ 100, 000 in working capital that can be used for
• 33:12
  Speaker 3: a variety of things.
• 33:15
  Speaker 2: Ideally, at the end of your project, you have a.
• 33:18
  Speaker 3: Very big chunk of that that's going to get you
• 33:20
  Speaker 3: through that initial period to where, yes, hopefully a lot
• 33:22
  Speaker 3: of these expenses are still low.
• 33:25
  Speaker 2: But.
• 33:26
  Speaker 3: it will get you through some of those months. And
• 33:29
  Speaker 3: that's huge because again, if we need to use personal funds, fine.
• 33:33
  Speaker 2: Generally, we're trying to keep them separate. You already talked
• 33:36
  Speaker 2: about that.
• 33:36
  Speaker 3: We're trying to keep those separate and we'd love for
• 33:38
  Speaker 3: the practice to sustain itself. And so there's going to
• 33:41
  Speaker 3: be a chunk of money there that you need to
• 33:44
  Speaker 3: talk to you or to us and figure out, is
• 33:46
  Speaker 3: it good to put towards marketing? Do I need to
• 33:48
  Speaker 3: plan on using this for staff wages? That is a
• 33:50
  Speaker 3: combination of both. And there are plenty of our clients
• 33:54
  Speaker 3: that they go through it in the first six months
• 33:57
  Speaker 3: and then it starts to come away and they aren't
• 33:59
  Speaker 3: having to dip into it. And we have some clients
• 34:02
  Speaker 3: that 100,000 sits in their checking account for the entirety
• 34:05
  Speaker 3: of the first year. And then they come back to
• 34:07
  Speaker 3: me and they're like, hey, can I just pay this
• 34:08
  Speaker 3: back on the loan? Which yeah, you can, but it's
• 34:11
  Speaker 3: there as a safety net. It's not a bad thing
• 34:14
  Speaker 3: to use it. It doesn't mean it's a good thing
• 34:16
  Speaker 3: that you're not using it. I mean, again, there's no
• 34:18
  Speaker 3: right or wrong answers in any of this. It's really
• 34:20
  Speaker 3: just being able to grow your practice at the pace
• 34:24
  Speaker 3: that it needs to, to be successful. And those first
• 34:27
  Speaker 3: few years, they're going to be growing pains along with it.
• 34:29
  Speaker 3: But financially, we just want to make sure we're putting
• 34:32
  Speaker 3: you in the right position so that that part, I mean,
• 34:36
  Speaker 3: financial is always going to be in the back of
• 34:38
  Speaker 3: your mind, but you should have enough money to get
• 34:40
  Speaker 3: through it. And then it's just a matter of, Hey,
• 34:41
  Speaker 3: what's the strategy to do it and how quickly.
• 34:44
  Speaker 1: Yeah, I love that. It is strategy because I think
• 34:47
  Speaker 1: that's exactly it. We're trying to stay as safe as possible.
• 34:50
  Speaker 1: We know we're going to have those fixed expenses in
• 34:52
  Speaker 1: that first year. We know that they're going to increase
• 34:55
  Speaker 1: a little bit in year two. But if we're smart
• 34:58
  Speaker 1: about the way we're growing the practice and we're smart
• 35:00
  Speaker 1: about the way we're incurring expenses. You know, I always
• 35:04
  Speaker 1: tell docs like there is no invisible expense. If you
• 35:07
  Speaker 1: commit to paying it, you're committing to paying for it
• 35:09
  Speaker 1: and it will show up on your P & L.
• 35:11
  Speaker 1: So what takes you from 20 to 25,000 to 30
• 35:15
  Speaker 1: to 35,000? And as we're growing that AR and offsetting
• 35:19
  Speaker 1: that difference, there's a lot of strategy there. And if
• 35:22
  Speaker 1: we're smart about it and smart about how we're going
• 35:24
  Speaker 1: about it, ultimately what I want is my docs to
• 35:27
  Speaker 1: be making money. You want that? I want that, right?
• 35:32
  Speaker 1: Paying their bills and making the money. And so I
• 35:34
  Speaker 1: think we just have to be really careful. And I just, again,
• 35:37
  Speaker 1: I'm going to go back to, there's a lot of
• 35:39
  Speaker 1: strategy and how we think about that from what we're
• 35:43
  Speaker 1: doing with TI to what we're getting from our bank
• 35:46
  Speaker 1: with our working capital and how we're a strategically kind
• 35:49
  Speaker 1: of planning that out, in my opinion, over the first
• 35:51
  Speaker 1: two years, that to me is like really make it
• 35:54
  Speaker 1: or break it our first two years. And if we
• 35:56
  Speaker 1: can get that in place and set aside, you know,
• 35:59
  Speaker 1: three to six months worth of savings for a rainy day.
• 36:02
  Speaker 1: And then from there, we're pulling income. That's what I'm
• 36:05
  Speaker 1: ultimately looking for, for, for everybody out there. So I
• 36:09
  Speaker 1: know that you and I could just talk and talk
• 36:11
  Speaker 1: and talk about this. And, you If somebody wants to
• 36:16
  Speaker 1: connect with you, if they want to have a conversation
• 36:19
  Speaker 1: and just, you know, like, hey, I've been thinking about this.
• 36:22
  Speaker 1: I'm not sure what Matt's going to be the best
• 36:24
  Speaker 1: way that they can reach out, talk to you, get
• 36:26
  Speaker 1: some information about whether it's an acquisition or a startup
• 36:30
  Speaker 1: and what you guys are offering loan-wise.
• 36:32
  Speaker 3: Yeah.
• 36:33
  Speaker 2: I mean, they can always reach out to you and
• 36:34
  Speaker 2: you can connect us.
• 36:35
  Speaker 1: Yeah.
• 36:36
  Speaker 3: Anybody can email me. My email is matthew.croker.com. at bofa.com.
• 36:41
  Speaker 3: And then my cell phone 720-338-1165.
• 36:46
  Speaker 2: Always happy to help.
• 36:47
  Speaker 3: Awesome. Awesome.
• 36:48
  Speaker 1: Well, I appreciate what you guys are doing. And you
• 36:51
  Speaker 1: guys take such good care of all the docs that
• 36:53
  Speaker 1: I know that work with you guys. And so thanks
• 36:56
  Speaker 1: for being a good resource out there too, Matt, for us.
• 36:58
  Speaker 2: Thank you. Likewise. Likewise.
• 37:03
  Speaker 1: And now a word from the sponsors who make this
• 37:05
  Speaker 1: podcast possible. Hey docs, let's talk about SmileSuite because it's
• 37:12
  Speaker 1: not just another scheduling system. It's a game changer in
• 37:16
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• 37:19
  Speaker 1: SmileSuite partner, I've witnessed the incredible impact it has on
• 37:23
  Speaker 1: practices of all sizes. SmileSuite means your new patient calls
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  Speaker 1: and web leads are expertly handled seven days a week,
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  Speaker 1: even during nights and weekends. And they offer top-notch customizable
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  Speaker 1: presentation software and seamless post-consultation follow-up. It's like having a
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  Speaker 1: secret weapon for your practice's success. Curious? Dive into the
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  Speaker 1: revolution at GetSmileSweet.com. And don't forget to mention HeyDocs to
• 37:50
  Speaker 1: unlock some extra goodies. Elevate your practice with SmileSweet because
• 37:55
  Speaker 1: every smile deserves a suite of excellence. So you know
• 38:00
  Speaker 1: how I like to finish up HeyDocs? I like to
• 38:02
  Speaker 1: finish us up with a little speed round. Are you
• 38:04
  Speaker 1: ready for the speed round challenge?
• 38:06
  Speaker 3: All right. Okay.
• 38:07
  Speaker 1: What is one thing people would be surprised to learn
• 38:11
  Speaker 1: about you?
• 38:12
  Speaker 3: My friends wouldn't be, but I do love a good
• 38:14
  Speaker 3: karaoke night out.
• 38:16
  Speaker 2: Ah, I love that.
• 38:17
  Speaker 1: That's great.
• 38:18
  Speaker 3: Okay.
• 38:19
  Speaker 1: What's a job you think you'd be surprisingly good at
• 38:22
  Speaker 1: besides the one you have?
• 38:24
  Speaker 3: One of my retirement plans, I would love to go
• 38:27
  Speaker 3: and teach high school business class and be a high
• 38:30
  Speaker 3: school basketball coach.
• 38:32
  Speaker 2: Oh, fun.
• 38:32
  Speaker 1: I love that.
• 38:33
  Speaker 3: Okay.
• 38:34
  Speaker 1: And last one, what is one thing you think people
• 38:37
  Speaker 1: should delegate a little bit sooner?
• 38:39
  Speaker 2: The small stuff.
• 38:40
  Speaker 3: We can be good at tasks that Others can certainly
• 38:44
  Speaker 3: do instead and make sure that we're in the areas
• 38:47
  Speaker 3: that are bringing business in, supporting our clients. So you
• 38:51
  Speaker 3: need to be comfortable getting rid of the small stuff
• 38:54
  Speaker 3: and trusting other people along the way.
• 38:56
  Speaker 1: Yeah. Oh, that's such a good one and such a
• 38:59
  Speaker 1: hard one.
• 38:59
  Speaker 2: It's very hard. It's very hard. I struggle with it
• 39:02
  Speaker 2: every day.
• 39:04
  Speaker 1: Me too. Me too. And I think about it too.
• 39:06
  Speaker 1: And yeah, it's so important and so hard at the
• 39:09
  Speaker 1: same time. So, well, Matt, thank you so much for
• 39:12
  Speaker 1: being on Hey Docs and just giving us some good information. Again,
• 39:16
  Speaker 1: I always love it when you're able to make time
• 39:18
  Speaker 1: for us.
• 39:18
  Speaker 2: Love it as well. Thanks so much.
• 39:20
  Speaker 3: All right.
• 39:20
  Speaker 1: See ya.
• 39:21
  Speaker 2: See ya.
• 39:23
  Speaker 1: Are you ready to start a practice of your own?
• 39:26
  Speaker 1: Need a new fresh set of eyes or some advice
• 39:29
  Speaker 1: on your existing profession? If so, reach out to me,
• 39:32
  Speaker 1: Jill Allen at www.practiceresults.com. If you like what we're doing
• 39:38
  Speaker 1: here on Hey Docs and want to hear more of
• 39:40
  Speaker 1: this awesome content, be sure and give us a five-star
• 39:44
  Speaker 1: rating on your preferred listening platform and subscribe to our
• 39:48
  Speaker 1: show so you never miss an episode. Remember, new episodes
• 39:52
  Speaker 1: drop every Thursday. See you next week.