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Practice Startup Success

Information Advice Encouragement

 September 17, 2007                                                                           ISSN 1934-3248

 "Look at what your idea of success would be. The more that you take in external motivators, the more it reduces your ultimate satisfaction because it doesn't come from inside."     Chris Messina

In this issue:

External vs. Internal Motivation, or Why do you want to do this?  As author Chris Messina says it, external motivators are not as powerful as internal ones.  A good example of this in a marketing strategy would be like this:  Giving someone an incentive (discount, buy-one-get-one-free) is an external motivator, while giving that person a true desire to be healthier is an internal motivator.  Internal motivators always are more powerful than external ones.  Think of this the next time you’re trying to figure out how to get patients.  Giving them something free is only a temporary, minor incentive.  Having them understand the importance of continuing care is much more powerful. Sure, it is more difficult for you, but you will find that the benefits to your practice are more lasting.  If you keep working on your skill at providing internal incentives, you won’t have to spend time and money trying to think up new gimmicks.

This works in your own life too.  Why do you want what you want: To start your own practice?  To move back to your hometown?   Examine your motives; sometimes what we think we want is really imposed on us by others.  True happiness and fulfillment comes from doing what we really (internally) want to do.  Now, I’m not saying that you should ignore your spouse’s feelings about where to set up practice, because life is, after all, about compromise.  But, don’t do something because you think others (your parents?) want you to.  Listen to your ‘gut’ and figure out what you truly want.  You’ll always be happier. 

Non-compete agreements: Are they illegal? Can they be broken?  This informative article from Medical Economics (http://www.memag.com/memag/article/articleDetail.jsp?id=452905
has some great information on non-compete agreements.  It also includes a link to a website called Breakyournoncompete.com which gives you some brief information about legal cases where a non-compete was broken.  (They want you to buy their services; I didn’t check the cost.)  Some instances in which a non-compete was thrown out by a court include:

·        The employee was fired for cause – the court said the firing made the employee’s work not valuable, so why were they trying to enforce a non-compete (interesting reasoning!)

·        Other employees left and were allowed to breach the non-compete

·        The non-compete was for unreasonable time, distance, and type of activities (specialties)

·        The specialty being practiced was determined by the court to be needed by patients. (In this case is was an orthopedic specialty, but if you could make a case that a chiropractic specialty was needed, that might work too)

·        The employer failed in its obligation to the employee (to pay all monies due, for example).

·        The employee was forced to sign the contract without understanding the terms of the non-compete (a contract signed “under duress” is invalid).

Some key points:

·        Read what you’re signing.  If someone says, “You MUST sign now,” RUN!

·        Keep track of what’s owed to you.  Don’t rely on what your employer says you are owed; keep your own records.

·        Before you sign on as an associate, talk to previous associates, if there are any.  If the employer doesn’t allow you to talk to them, question this.

·        If you get into a situation like one of the above and decide to fight, look for a good attorney who specializes in this kind of case. 

·        Consider carefully before you sign a contract with a required arbitration clause.  An arbitrator may not be as interested in precedent (prior case law) as a court, and you may not get the result you want. 

My bottom line:  Don’t put yourself into a situation where you have to worry about breaching a non-compete.  Even if you think it’s unreasonable, it will take many years and lots of money to get through the legal process.  Meanwhile your career and your life are on hold.

Reporting Sole Proprietorship Income/Expenses.  A new report by the General Accounting Office shows that sole proprietors are underreporting both income and expenses.  Over 38% underreported income, while 73% underreported expenses.  The expense underreporting occurred most often in car/truck, depreciation, and supplies expenses.  One particular issue noted in the report is the requirement that if you pay someone more than $600 in any year for work done for you (independent contractors, not employees), you must file a 1099 for this person and provide him/her with a copy. 

For these reasons, and many others, it’s best for you to find a good CPA who is experienced in tax matters.  Have the CPA help you set up your monthly books, and meet with him/her on a quarterly basis and at tax time.  Keep records of everything, so the CPA has all the information to create a complete and accurate tax statement for you.

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