One of the best ways for a chiropractor to increase his or her salary is to start a private practice. In general, all medical professionals who are owners in a private or group practice make a higher annual salary, have more control of their schedule, and make a variety of decisions about their day-to-day operations that can increase overall satisfaction with their work.
What is a Private Practice?
There is a wide variety of work environments for chiropractors, which include the following:
Of these options, the private practice gives chiropractors the most control over their earning potential, work hours, types of clients, office activities, and more. In a private practice, the chiropractor is essentially self-employed. In addition to calling the shots, they are also responsible for marketing, attracting clients, keeping records and standards, and hiring staff. They may also have more hours dedicated to completing non-clinical care duties, such as bookkeeping, payroll, website design and development, consultations, and the many other things associated with owning a business.
In a private practice, all matters of the practice are under the control of the chiropractor — they are completely independent of other entities. Chiropractors in private practice are able to make the decisions they feel are best for the short- and long-term goals of their practice. In a group practice, decisions are made among the member-owners, often through meetings and memos, and frequently with a democratic approach to problems or considerations. In a franchise, the chiropractor uses the name, procedures and marketing determined by the franchise, while maintaining limited ownership in return for their investment in the franchise.
The Pros and Cons for Starting a Chiropractic Private Practice
Starting a business in today's economic climate is not simple. The process is filled with several steps that can cause even the most dedicated entrepreneur to forgo their dream of owning their private chiropractic office. However, for those that are dedicated to the craft, there are a few pros and cons of making the decision to start a private practice that they must consider.
Pros of Starting a Chiropractic Private Practice
Everybody wants to be their own boss. But when you open up a private practice, this become a reality. However, beyond the fact that you make all the business decisions, being a business owner also comes with several other financial perks including:
Another advantage of starting your own private practice is the ability to determine your location. Having a location with high visibility, includes ample parking, and is easily accessible to the chiropractor ideal demographic, is vital to having a successful practice. In addition, a nice building that offers comfortable surroundings and is professional is also necessary. This location should have a reasonable rent or lease payment and lease terms, as well as be able to be built to the chiropractor specifications, when fitting.
Cons of Starting a Chiropractic Private Practice
Although there are several advantages of opening your own practice, the reality is that it can also be quite a struggle. Many doctors tend to believe that the allure of making more money with a private practice will outweigh other hurdles. However, they quickly realize that this is not always the case. Some of the cons of opening your own private practice may include:
One of the best things that a chiropractor starting a private practice can do is consider themselves an entrepreneur. As such, they will be able to look at their practice from a business standpoint and make decisions about their management, communication, business growth goals, expenses, and more. This role is different from considering oneself an employer as it takes into consideration the many aspects of owning a successful business.
It is wise for the chiropractor to get specific training in business if they are going to start their own practice. This can be done at any time during their education, as part of continuing education credits, or self-taught. The benefits of business knowledge are likely to be what separates a successful private practice, from those that falter.
If a chiropractor is not comfortable with the business aspects of owning a private practice, it’s advisable to consider partnership in a group practice, or purchase a franchise so these decisions can be made alongside others who may have more insight or experience.
One of the essential considerations for starting a private practice is overhead cost. Start-up money, investment in location (rent or purchase), marketing budget, business expenses and more, add up quickly. These expenses should be kept in check with a strict budget. According to some experts, start-up costs for the first year can easily reach $100,000, not including the necessary marketing costs to get people in the door.
In addition to start-up costs, the cost of employees, even part-time help, should be taken into consideration as the chiropractor will most likely require the use of an assistant or administrative staff. Even if these employees are working only a few hours a week, it’s important their salary is covered, as well as any benefits the chiropractor decides to offer.
Another budget concern for a new private practice is the software needed to track all of the book-keeping, accounts payable/receivable, third-party payers, insurance claims, bank deposits, loans, payroll, taxes, and expenses. Using an accountant is wise, but costs money, and having the right software is advisable, but can add up as well
Resources Available to New Business Owners
One of the key elements of a successful chiropractic private practice is how it distinguishes itself from other practices. If operating in an area where there is little, or no competition, there will be less need to distinguish the practice from the others. However, in most cases, private practices are started in medium to large cities where competition may be only a few blocks away. So, it is imperative to develop a specific niche of care that will attract people to a chiropractor’s practice.
One of the best resources that a new chiropractic office can use is the United States Small Business Administration or SBA. The SBA has been a great source of business start up ideas for several decades. However, in regards to helping a chiropractor start up a new business, they have multiple areas to consider including:
How to Start Up and Manage a Business
Regardless of the size of business you want to establish, the first step is always doing the research to determine whether or not opening a private chiropractic office is the right thing to do. Take time, investigate completely and make sure to seek the advice of others in the chiropractic field that have made the decision to open their private practice.