Welcome to the Planning for Practice Success Newsletter

December 18, 2006
ISSN 1934-3248

Optimism is the faith that leads to achievement. Nothing can be
done without hope and confidence. -- Helen Keller

In this issue:
Tips: Non-compete vs. Non-solicit in associate contracts

Leasing Tip: Classes of buildings (A, B, C)

Financing Tip: Using credit cards to fund your new practice

Newsletter Publishing Note:  We won't be publishing next Monday (December 25), but we will send out an edition on January 1.
Have a wonderful holiday!

Last "Shopping" day for the special holiday offer for Planning for Practice Success. Order now by going to this link:
http://www.dcpracticesuccess.com/holiday

Contract Tip:  I see lots of associate contracts, and one thing people get hung up on is the difference between "non-compete"
and "non-solicit" restrictions.  A non-compete restricts you from starting a chiropractic practice within a certain area for a specific length of time.  A non-solicit restricts you from soliciting "directly or indirectly" for patients or employees of the former practice.
I just saw a contract that spelled out "indirect" solicitation to include advertising (Yellow Pages, newspaper, etc.).  Here's the catch:  You could be in compliance with the non-compete, by locating your office outside that restricted area, but if you advertise for patients, you could be considered to be in violation of the non-solicit.  My strong suggestion:  When you leave the practice, move far enough away so that neither the non-compete nor the non-solicit can be brought into question.

Leasing Tip: Commercial office space is divided into three classes: A, B, and C.

 
Class A is defined using terms like "prestigious" and "premier" and "state of the art."  These are most often newer buildings, with wireless Internet and high quality build out, in the most desirable locations.  Of course, you'll pay more for these properties.
Class B is the "average" space, for a wide range of users, and rents are pretty average too.
Class C offices are below average for the area in services and location.

So what does this mean for you?  You may get a better deal by looking at only B and C offices. Even a C office might be fine for your needs, even if it's not in the prime area.  Just make sure that the office isn't in an area that is declining, because it will be extremely difficult for you to get out of the lease.  Read more about leasing in my book: Leasing Your Office
(http://dcpracticesuccess.com/practice_success_bookstore.html)

Financing Tip: Financing with Credit Cards.

Should you consider financing your startup with a credit card?
I've known several DC's who have done this, when they couldn't get bank financing.  If you use credit cards, pay them off quickly to avoid large interest rates.  Most credit card companies have 0% interest cards for some initial time period, and many have some incentives (travel points, etc.). Some considerations:
* Review terms and conditions carefully so you don't get trapped with a large interest rate if you have a balance at the end of the initial time.
* Favor the cards that have no annual fee.
* Look at the annual rate after the initial offer.  Lower is always better.
* Consider a card that will most closely align with your needs (travel, for instance).  BUT, I can tell you from experience that the incentives are almost never worth the extra time and trouble.  For example, I had an incentive card, but you had to spend $10,000 to get a $100 incentive.  I'm not sure they are worth it!
For comparison listing of different business credit cards, go to http://www.creditcards.com/business.php
__________________________________________________________________

Ask Dr. Jean Murray a question: email her at jean@dcpracticesuccess.com
Order Planning for Practice Success or one of our other
products or call our toll free number at any time (24/7): 1-866-940-7526

Best wishes for your continued success,

Jean Murray
Planning for Practice Success
Online at:   http://www.dcpracticesuccess.com

The most absurd and reckless aspirations
have sometimes led to extraordinary success.
-- Vauvenargues

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