Dental Tribune UK Edition, October 4-10, 2010, No.24 Vol.4

October 4-10, 201018 Business Management Tribune United Kingdom Edition About the author Geoffery Long FCA is a specialist dental account- ant based in Hertfordshire. Geoff has over 15 years ex- perience managing dentists’ accounts and is recognised for his proactive approach to dental taxation and business problems. Call him on 01438 722224 or email office@den- tax.biz. Options for young dentists Geoff Long looks at the professional outlook for those starting out O ver the past four years, we have seen the pool of independently owned practices in the UK dwindle. This has been brought about by ag- gressive purchasing by the cor- porates and strict funding control from the PCTs for new start ups. It is not surprising that options for young dentists are somewhat limited working as an associate for 35 per cent or £9 a UDA. I can see the day coming when associ- ates will be working for corpo- rates for as little as £3,000pm as they do in South Africa. Dentists become used to crises, moan a little and absorb their problems into the great British characteristic of “putting up with it”. However, given the popularity of dentistry, there is no great wave of public sympathy about to solve the problems for young dentists. Disparity between the wages of nurses and dental nurses is a tell- ing example of the unpopularity of dentistry and public support for nurses It is worth looking at the wealth accumulation ability of dentistry. We took a sample of 1,000 dentists, split roughly 400 principals to 600 associates. Why that split is probably down to the effect of corporate dentistry swal- lowing up the larger three or four chair practices. The results were remarkable: Millionaires in dentistry Percentage of Millionaires – prin- cipals 34 per cent, associates one per cent Percentage of Multi-Millionaires – principals 6 per cent, associates 0 per cent Of the 34 per cent of prin- cipals who were millionaires all but two made their money from dentistry. The usual story was one of hard work and not spend- ing the money! The average age for hitting the elusive million was 39. Incidentally, the two as- sociates made their million out of property and shares. Looking to the future, the am- bitious young dentist will find it more and more difficult to make a million pounds out of dentistry. It is not surprising that one of the most common questions I am asked as a dental accountant is, ‘How do I earn a living outside of dentistry?’ The answer is: ‘Not easily!’ Nevertheless, I have compiled a list of businesses/occupations of some of the self-made million- aires to help young dentists with career planning. Businesses/occupations of self-made millionaires: Agriculture, Antique Sales, Artist- Commercial, Attorney, Audio/ Video Reproduction, Author-Fic- tion, Author-Text Books/Training Manuals, Automotive Leasing, Baked Goods Producer, Beauty Salon(s) Owner-Manager, Beer Wholesaler, Builder/Real Estate Developer, Commercial Laun- dry, Cafeteria Owner, Clinical Psychologist, Coin and Stamp Dealer, Business/Real Estate Broker/Investor, Computer Con- sultant, Developer/Construction, Engineer/Architect, Farmer, Fast Food Restaurants, Florist, Invest- ment Management, Jewellery Retailer/Wholesaler, Engineer- ing, Lecturer, Marina Owner/Re- pair Service, Medical Research, Micro-Electronics, Motor Sports Promoter, Nursing Home, Patent Owner/Inventor, Physician, Plas- tic Surgeon, Publisher of Newslet- ters, Printing, Publishing, Scrap Metal Dealer. DT