Welcome to the Planning for Practice Success Newsletter

Practice Startup Success

Information Advice Encouragement

 September 3, 2007                                                                             ISSN 1934-3248

 The trouble is, if you don't risk anything, you risk even more. - Erica Jong (author)

In this issue:

Risk:  Risk has been defined as “a source of danger; a possibility of incurring loss or misfortune.”  There are all kinds of risk, including risk of infection, taking a chance, hazards, gambling, adventure, venturing, attempting….  The thesaurus is full of risks.  I believe life itself is a risk. We take risks all the time, every day.  What Ms. Jong is referring to, I believe, is that if you don’t risk, you never know the possibility of great loss, but you also never experience great gain, great reward, and great happiness.  And, to me, that’s the greater risk.    

Leasing vs. Buying Equipment.  If you’re confused, join the club.  Here’s what I would suggest:  First, put all of the equipment you want to get in the “to be financed” column on your Startup spreadsheet, assuming you will buy.  Buying is almost always better for two reasons: 1. It’s cheaper, with a lower interest rate. (Lease rates are 1%-2% higher interest rate) 2. The interest on your business loan is tax-deductible, and 3. Equipment you buy can be depreciated.  Having said that, why would anyone lease?  Two possible reasons: 1. Sometimes, the bank restricts the amount you can borrow, so if you want the equipment you’ll have to take it off the loan and put it on a lease.  2.  You can lease something like a computer that is outdated quickly and replace it when it’s obsolete in a couple of years. 

Ask if the lease payments can go toward a purchase or be tax deductible.  Some leases can be deductible and you can depreciate the equipment, if you end up buying the equipment at the end of the lease.  As usual, ask questions and read the small print.

For more information, read the startup financing section of Planning for Practice Success (at www.dcpracticesuccess.com ) and don’t forget that when you buy the book you receive the Startup SuccessPlan workbook to help you write your business plan and start your practice.

What kinds of stores make good neighbors for a chiropractic office?  Good question that I was asked recently.  Here are some great neighbors:

·        Dry cleaners--people who go to the dry cleaner have lots of “disposable income” and they aren’t afraid to spend it on themselves.

·        Coffee shops (same here)

·        Health food stores, fitness centers (some DC’s set up inside), Curves for Women – places where people go to stay healthy are perfect neighbors. 

·        Other professionals – dentists, orthopedic surgeons (for referrals, of course).

·        Also, don’t be afraid to locate close to another chiropractor.  I’d bet you have different USP’s and you could refer to each other.

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 Ask Dr. Jean Murray a question (email jean@dcpracticesuccess.com )
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