StudentDC Interactive

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3. And of course, you can comment on any post. I’d love to hear what you think.

It is a great time to be a chiropractor!  Not only are you in the position to lead patients to better health, but you can make a profit doing so.
Forbes Magazine has named chiropractors and other “alternative” health care providers as one of the 10 most profitable types of business.  Chiropractic (and the other related professions) came in as #5 with a 17.5 percent average pretax margin. 

Here is the article:  The Most Profitable Businesses to Start

It is not surprising to me that chiropractors are listed as more profitable than dentists.  As you look at the top businesses on the list, you’ll notice that most are professional firms (accountants and lawyers top the list) and many are in the health care field (doctor’s offices, dentists, medical services).  Having the professional background and business expertise to run a successful chiropractice practice is a path to success.

The question of the day was:  I am ready to start my practice, but I really don’t want to have to pay a CPA.  Can’t I do my taxes myself with good accounting software?

I’m always curious why chiropractors think they can do it all themselves.  You were trained as a chiropractor, not an accountant.  Even if you are starting out your chiropractic practice as a sole proprietorship, you need an accountant, and you REALLY need a CPA.  So what’s the difference?

An accountant or bookkeeper can do your monthly/quarterly accounting and help you with payroll taxes and some other tax filing, but a CPA has to keep up to date with tax issues and is able to go with you to the IRS if you get audited.  If you think taxes aren’t complicated, here is a site that lists federal, state, and local taxes, called “Tanned Feet.” 

By the way, a CPA is not a financial planner, although many can give you tax advice.  A financial planner can help you figure out how to set up pension and profit sharing plans, and 401k’s and all that tax-shelter stuff.
Here is my suggestion:  Find a local CPA who has a bookkeeper on staff, someone who can help you with QuickBooks or other financial software.  At some point when you start to make lots of money, start looking for a financial planner too.

The SBA has given approval for more guaranteed loans in 2007, primarily through its 7(a) business loan program.  “It’s good that we’re reaching a lot of smaller businesses,” said SBA Administrator Steven Preston in a news release.

“A lot of them have challenges getting capital.”  No kidding.  

The amounts of the government-guaranteed loans have declined this year, but I don’t see that as much of a problem for new practices, since the amounts you borrow are typically smaller.  So if you need an SBA guarantee on a loan, maybe you will have an easier time getting it. 

If you are interested in a gettting an SBA-guaranteed loan, there are several ways to go about it.

1.  You could pre-apply for a loan.  I know of one DC who did this.  When no bank would agree to loan him money he went to the SBA and got a pre-approval, which he took back to a bank and finally received a loan.

2.  If you are working with an SBA preferred or guaranteed lender, they can walk you through the process and help you with the paperwork.  I checked on the SBA website, and found that the list of Preferred/Certified lenders is being updated (it’s been in the “update” mode for some time).  When you talk to a bank for the first time, ask if they are a Preferred or Certified lender.

The SBA guarantee will cost you a little more in terms of interest rates and fees, but it’s a good alternative if you don’t have a co-signer.

Please comment and let us know if you have had a good or bad experience with SBA guaranteed loans.

Hi. I’m Jean Murray, and I’m excited to be able to welcome you to the new blog for StudentDC and chat with you directly.

My goals for this blog are:

• To provide you with information, advice, and encouragement to help you prepare for your career in chiropractic, whether it is as an associate or independent contractor, or a practicing chiropractor in your own practice or a multi-disciplinary clinic, or anything in between.
• To provide a way for you to ask questions and get answers from me and from other experts in chiropractic and practice startup. I know from talking to students and recent graduates that you have lots of concerns and questions. If I can’t provide the answer, I am sure it’s out there.

I will be posting several times a week, and I welcome your comments and your suggestions on the kinds of information you would like to see on this blog. The best way to get in touch with me is to respond by commenting on a blog posting.

If you have a burning question about practice startup, now is the time to ask.

To get your thought processes going, here are some topics you might want to know about:

• Can you use credit cards to fund your practice startup?
• How do you get a credit report?
• What form of business structure should you choose?
• How important are Yellow Pages ads?
• Do you need a co-signer for a practice startup loan? If so, how do you get one?
• How do you know what fees to charge?
• How do you find information on costs of equipment?
• What is “working capital” and how do you figure it?
• Do you take your business plan to a bank before or after you find a place to lease or buy?
• Which is better, buying an existing practice or starting your own?
• Are there too many chiropractors?
• Is this a good associate contract?

What else would you like to know?