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Offline JV- Dental Clinic in India

Discussion in 'Joint Ventures' started by oblivion19, Jun 24, 2012.

  1. oblivion19

    oblivion19 Senior Member

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    Hey there,
    I actually posted this in the juniorVIP, but I thought I would go ahead and put this out here. You guys probably know how dentists make a killing in most parts of the world. Dentistry is a very lucrative business model. I am a recently graduated dentist who harbors dream of opening my own practice. I am based in a metro city in India(Hyderabad). So, I am looking for investors willing to fund it. Here are the details.


    Details about myself
    -I have recently completed my graduation and working at a clinic.
    -My fiancee is also a dentist and will complete her graduation in 8 months.Both of us are around 25 years of age.
    -Working as a dentist is a badly paying job here. The real profit is in running your own practice. Hence, the JV.
    - I don't make any substantial income from my job. My main source of income is IM and that's not a large amount either(approx. $500-1k per month) which is going towards my wedding.
    -I am not a shady guy. Would be happy to hand over my personal details as well as sign an agreement.

    Details about the venture
    -This is not an immediate plan. It will probably take 6months to one year to execute. I'll have to keep my eye out for clinics that are getting sold.Also, in the meanwhile, I am going to be enhancing my skills as a dentist.

    -The ideal plan is to buy a clinic which is not doing very well, renovate it, splurge on marketing and turn it in to a profitable business. Being in IM, I know that solid marketing can turn fortunes of any business.

    -My estimate is around $20k for this. We are not buying the place. We will be renting it out. It will not cost $20k immediately. It will be probably be $10 k for the dental chairs,instruments and materials, $2-4k for renovation and the rest for marketing. This guestimate is for an average clinic in decent location. It will probably cost more for advanced equipment and posh location.

    -I am ideally looking for one investor since it will be easier to work out.

    -Me and my fiancee would be working in the clinic, if things go well, we can hire a post-graduate specialist dentist as well. Me and her will not be taking a salary, but a % of the profit. Basically, after expenditure, 50% to us, 50% to the investor.

    - It will probably take a year for the clinic to get established. I estimate a monthly income of anywhere between $1k to $5k per month once the clinic is established.


    Risks/Guarantees
    I am pretty sure people interested in this JV are thinking about the guarantees that I would offer. What if something goes haywire and the clinic is not profitable etc.


    Well, Ofcourse, I can't guarantee the income but I am quite confident about my ability and my business sense. I would be happy to work out a deal to safeguard you from a heavy loss. I understand that such a kind of JV is not a commonly occurring phenomenon on BHW and hence would be happy to sign the paper work to safeguard your investment.


    I can also consider an offer where I invest a percentage of the money required. I am not sure how much I can do though. That will depend on how much I am able to save till next year.


    To people reading this thread. Do reply to this thread with your opinions even if you are not interested.
    Do you think the idea is far fetched for someone to invest in this JV?
    Do you think I'm offering a fair deal?
    What are your suggestions to improve my chances of success and improve chances of finding an investor




    P.S: I am not willing to take a loan from the bank. Since, I have nothing to secure the loan against and the interest rates will be crazy.
     
    Last edited: Jun 24, 2012
  2. oblivion19

    oblivion19 Senior Member

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    You seem to be the only one interested in this JV. I'll give it to you at a *discounted* price
     
    • Thanks Thanks x 1
  3. mainhoondon

    mainhoondon Regular Member

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    EDIT:
    Found the answer
     
  4. Ramsweb

    Ramsweb Senior Member

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    The biggest problem with this JV thread is that only people who are living in your area are going to be interested, so that they can check out your premises and also work with you in person. Hence, you will have to out your area of residence and then get an online lead that you can take offline. There are a lot of Indian people at BHW and I hope you find someone who can work with you. It is a long shot though, as most people here are interested in IM ventures.
     
  5. krishnaverma

    krishnaverma Power Member

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    All the best with you JV man. I am also from India. Where are you properly from and from which college have you done your BDS ?
     
  6. howard_hughes

    howard_hughes Elite Member

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    Too bad you dont reside in Bangalore, I own a place which I recently rented out to another dentist.
     
  7. oblivion19

    oblivion19 Senior Member

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    I thought this could get some interest since $20k to established BHW members isnt much to invest in an offline business model with a chance of permanent income. I haven't got any serious queries till now though.
     
  8. bond0007

    bond0007 Regular Member

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    what would be a possible return on the 20k investment?
     
  9. social engineer

    social engineer Regular Member

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    what are property prices like in india.

    and indian dental practices much the same as uk ones aka they are converted 5 bedroom houses on the whole or are they generally specifically built to be dental practices
     
  10. patnemtravel

    patnemtravel Junior Member

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    [FONT=arial, sans-serif]hi mate.

    [/FONT]Dental tourism forms 10 per cent of the total Indian medical tourism which is projected to grow at 30 per cent to Rs 9500 crore by 2015. travelers for Uk come to india to do dental implants ( nobel biocare } in 30 % of cost they have to pay back in UK here they get free holiday on beach.

    in cities like Goa there are investors who hire dentist in fully
    equipped clinics on share basic season last only for 5 months. investors also take care of local marketing to get tourist. there are few other cities like goa in north India where where dental business last for season time only. i know some one who has ready clinics in goa.

    So 20k investment return mean only 7
    dental implants cases with 5 Full month rehab cases. i can connect you with investor with ready clinic.

    thanks





     
  11. indianbill007

    indianbill007 Jr. VIP Jr. VIP

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    20k$ in IM investment can turn out 100k$ per year or more. Whats the comparative ROI in dental biz?

    Anyways I doubt you will get someone interested from BHW for the amount you are looking at from a single person, you might try to open it for 5-6 people and then you might get some hands. 2k$-3k$ should be easy investment for many Indians here.
     
  12. Knoxgates

    Knoxgates Supreme Member

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    The best thing you could do is JV with someone who is residing in the same city you are in i,e hyderabad.
     
  13. oblivion19

    oblivion19 Senior Member

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    Hey,
    Thanks guys for all your input. I'll try to answer some of the questions that you guys addressed.

    I haven't got anybody yet in my city who would be looking to invest such an amount since its quite a big amount by Indian standards. As far as the revenue expected from the clinic. I estimate it should earn $1k -5k once its established which could take a year or two.

    The reason why I am expecting interest in this JV is because its reasonably safer than IM investment. There is a great chance of success and if it does not work it, you wouldn't lose more than 50% of the money.

    Regarding the property prices, they are sky high here. Since, the population is so high, space is at a premium here. I'll make this more clear. We are not buying the space for the clinic. We will be renting it in a commercial complex which will probably cost $500-$800 per month. We are using the money to buy equipment and market the dental clinic.

    Hope that answers any queries. You are welcome to leave suggestions and critique my plan. Would love to hear from you guys.