StudentDC Interactive

If you are in the process of looking for an associate position or considering an associate or independent contractor contract, you probably have lots of questions.  Here are some recent blogs and links that might be helpful:

Finding an associate position (from StudentDC.com)

The best way to be paid as an associate

Length of an associate contract

Average associate pay

Leaving an associate position

Signing a non-compete (from StudentDC.com)

If you have questions, feel free to email me (jean@dcpracticesuccess.com) .  Or you can post a question in reply to this blog post and everyone can see my reply.

Sure. I know of several people who started out of their homes or by going to people’s homes with a portable table. This is an excellent way to build a patient base before you commit to paying rent.

Here are some things to consider:
1. Working from Home. If you have a house you want to use as an office, you will need to check with the city where you live, to see what their zoning requirements are. They may have restrictions on how much of the home you can use, and parking restrictions. Many cities require you to poll the neighbors to see if someone objects, and then you must show up at a city council meeting to present your case. If no one objects, and you have met all the restrictions, you may be able to work from home. If you are in an apartment, you will also have to get permission from the landlord.
2. Traveling Office. If you want to work by going to people’s homes, all you need is a telephone and a portable table. This is a good way to get started in a small town, where you can build a patient base quickly. Be careful about going into homes of people you don’t know, especially in the city. You may want to schedule a brief first visit to talk to the family before you decide you want to continue going to this home. You may still need a license from the city, in addition to your chiropractic license, so check their requirements.

The answer is:  probably, but you will have to pay more to do this.  (In interest, I mean.)Here are some suggestions to work on to increase your credit rating: 

50 tips

Ways to increase your credit score

I was asked if putting your student loans into deferment or forbearance would have a negative effect on your credit rating.  As usual, I have to say “it depends.”  In this case, it seems to depend upon the lender, and the credit rating service. 

First, you will need to understand the difference between deferment and forbearance.

Deferment is a time when you can suspend payments on student loans.  This is the more common situation, and you can get a deferment for such reasons as being in school, graduate studies, and economic hardship.

Forbearance is another way to get your loan payments suspended, and it is usually reserved for situations when deferment cannot be granted.  Here is a good website which explains both situations in more detail:  http://studentloan.citibank.com/slcsite/repay/defer/1a6b.asp 

Be aware that, in both cases,  interest will continue to accrue on your loan, and it will need to be paid at some point.  So the amount of your loan will continue to increase, even if you are not making payments for a time.

If the credit bureau (Experian, Equifax, or TransUnion) sees that you are not making monthly payments on a loan, they may consider this a negative.  You would have to write the credit bureau and explain.  If you otherwise have good credit, it probably won’t affect it much.  If your credit score (FICO) is low, it would be another thing that would lower your score even more. 

Here is a good article from eHow with some suggestions:   http://www.ehow.com/how_2002591_avoid-loan-deferment.html

SCORE recently had some tips for new businesses. One tip stated you should “brand” yourself by getting a logo, business cards, and stationery. But your “brand” is a good deal more than your logo. A brand isn’t just words and pictures; it is what makes your practice unique.

Please take time to go through a process of thinking carefully about the image you want to convey about your practice. To create all of those “branding” materials, you will have to find a graphic artist to create the logo, business card, and stationery. This will cost you hundreds, if not thousands, of dollars.

All of those materials you are creating might be pretty, but what if you create a brand and you change your mind a year later? You will have to completely rework all of those expensive materials and start over.

All I’m saying is that you need to spend time to really think about and plan your branding statement. It’s worth the time and money to do it right the first time.

Here is a great place to get a brand, logo, or website (or all of these) at a good price. It’s called “Design Contest.”  It works like this:  You set up a contest, and invite designers to create your logo or website.  You pay an “award” for the designer who creates the best logo.  This is a good way to look at potential logos and get some good designers to work for you.  Check it out and let me know what you think.

Here is an online workshop from SCORE that walks you through questions relating to starting your practice.  Here are some thoughts on what I saw as I took the workshop:

1.  You will have to log in before you can access the workshop.

2.  Skip the home business example.

3.  Use the retail business example and modify it for a chiropractic practice.

4.  Note that the working capital example asks you first to estimate PERSONAL expenses, then you will be asked to estimate BUSINESS expenses.  Don’t confuse the two.  The personal expenses are what you will need to live on while you’re starting your practice. 

5.  The workshop takes you through startup expenses first, then working capital.  Read the information working capital; this is an important concept for startups.

Here is the website:  SCORE Online Workshop

I am not sure where this loan started, or who is funding it, but it’s a great idea.

Students have been telling me they can get a “transition” loan of up to $15,000 from NELNA or Key Bank.  The loan is a variable rate, right now at 11.5%, with a 20-year term.

I will keep you posted as I find out more information.

As usual, it depends.  It depends on the area where you’re working, and on the doctor who is hiring you and the number of other associates in that practice, and the experience the doctor has had with previous associates. 

Many associates receive a base pay with bonuses for higher levels of collections.  Some doctors pay only incentive/bonus, which is pretty tough for someone starting out.

According to the Chiropractic Economics latest pay and expenses survey, the average associate makes about $60,000.  But “average” is a tricky word.  My father used to tell me, “If your head is in the oven and your feet are in the freezer, on average, you’re comfortable.”  Some associates are making a lot more than $60,000 and I know for certain that many are making a lot less.

If I were considering going into an associate position, here are the two questions I would ask:

1.  Is the base enough for me to live on, including my student loan payments?  Consider that in any one month you might not bring in enough patients to get the additional incentive. 

2.  Can I make more working on my own?  Never forget that you are bringing in patients for someone else.  The phrase “you can’t take it with you” applies here.  This is a very complicated question, but keep asking it and thinking about it. 

Set yourself a time limit, and then move on, if you’re not making enough or you think you’re ready.)

What do YOU think is a reasonable amount for an associate to be paid?  Let me know your comments. 

If someone said, “I have the perfect practice for you to purchase, but you have to act TODAY,” would you be ready?  It might happen; as a matter of fact, it did happen to a new DC I know.  She was ready because:

Her business plan was prepared (in general, not the specifics of this business)

Her credit rating was impeccable

She had established a relationship with a bank

She had lined up a CPA and, most important, an attorney

Her bank gave her a letter telling the seller that she was approved for the loan.  She is in the proces of working with her attorney to put together a preliminary contract.  She is in a position to take over the business early next year.

If you found the perfect practice to buy and you had to act quickly, would you be ready?  Think about it.  Then go through the list above, check StudentDC.com for specifics on

• checking your credit
• finding a CPA and attorney
• preparing your business plan
• working with a bank, and …

Go for it!

Some of you may be wrapping up (pun intended) a term, while others may be looking forward eagerly to a term break over the holidays.  Me too. 

Use the time on break wisely by preparing.  Sure, enjoy the time with your friends and family and get some rest.  But also think about doing some of these small projects you can do to get ready for practice. 

This first end-0f=year project relates to checking your credit.  If you haven’t checked your credit in a year, you should do that.  Go to www.annualcreditreport.com to see your credit report.  If you are close to graduation, get the reports from all three credit reporting agencies (Experian, Equifax, and Transunion) and pay the extra to get the 3 FICO scores.  If you’re not close to graduation, get one of the reports and see if there’s anything negative.  If you need to get something taken off, follow the dispute process outlined on the credit reporting bureau’s website and keep working on it until the issue is resolved (this might take many months).

If you have a low credit score, work on improving it.  Here is a great video about the 5 things you can do to improve your credit rating, from Miranda Marquit at AllBusiness.com

http://www.allbusiness.com/personal-finance/4968821-1.html

For more information about credit scores and how they affect your ability to get bank financing, go to the Financial Preparation section of StudentDC.com