Five Invaluable Lessons I Have Learned Helping Hundreds of Chiropractors Buy Practices
by Crystal Misenheimer
Today’s chiropractors face many career opportunities. However, not all opportunities are created equal. Before signing an associate contract with a non-compete or a lease to start your own practice, consider acquiring an existing clinic. After all, in recent years, student loan balances, startup costs, and business competition have all grown exponentially. While associate pay has also risen, the wage growth still does not offset the astronomical costs of paying off student loans and covering startup costs. Buying an existing clinic provides you with immediate income, mitigates risks, and provides you with an unparalleled opportunity to fast-track your career.
As the Lead Broker and Co-Founder of an industry-leading brokerage specializing in helping chiropractors buy and sell clinics, I know practice sales can be confusing. How to know if a practice is a safe investment, what practices are worth, and how to obtain financing are questions we answer daily. Our team understands—we have helped hundreds of doctors to navigate these processes successfully, and our team has a combined 40-plus years of chiropractic clinic ownership. We have stood in your shoes, and we are here to help. Today, we will focus on why buying a practice is a strong option for chiropractors seeking professional and financial independence.
Lesson 1: Buying a Practice Optimizes Your Chances for Stability and Security
In the ever-changing healthcare landscape, the search for stability reigns supreme. Acquiring an established clinic offers peace of mind and allows you to avoid the high uncertainties and low success rates typical in the early years of launching a new practice. According to the US Bureau of Labor and Statistics, approximately 20% of small businesses fail in the first year, 50% fail by five years, and only 30% remain open after ten years. Buying an existing practice lets you skip past those risky years, protects you from common startup failures, and provides peace of mind.
Beyond providing stability, acquiring an existing practice offers a reliable path to building wealth and will grant you direct control over your finances. This step means you will keep all profits from your practice.
Buying a practice with a professional income lets you fast-track paying off your student loan debts. We have observed that the average chiropractor is graduating with over $250,000 of student loan debt, while the average associate salary now pays $80,000 annually. That means paying off their student loan debt will take the average chiropractor 100 years. Buying a practice that makes two to three times this will cut your loan timeline exponentially.
Buying a practice is also an incredible investment. Often, you can recover the entire purchase price of the clinic within just two years! In contrast, opening a new practice can lead to significant debts without profit. It takes the average business owner over three years to generate enough profit to pay their personal expenses reliably. (Small Business Chron, 2019). Moreover, in today’s market, doctors can buy an existing practice with just 10% down, or in some cases, with $0 down!
Lesson 2: You Can Fast-Track Your Success by Leveraging Prior Accomplishments
Another benefit of practice acquisition is the ease of stepping into a clinic with a proven business model and a network of loyal patients. Beginning your practice journey with a successful business model can provide instant profits and competitive advantages that most doctors typically will not experience in their first several years of practice ownership.
A consistent track record of patient engagement, operational efficiency, and profitability will help you save valuable time and resources and avoid the stress of starting from scratch. Moreover, having a highly trained staff, established patients, and proven marketing all create a rock-solid foundation for the practice buyer. Another advantage of practice acquisition is using historical clinic data and past trends to forecast future growth and profitability.
Lesson 3: There is a Proven Path to Accelerate Your Progress to a High Quality of Life
As stated above, when you buy a practice, you can experience a positive cash flow from day one. This path will save you immeasurable heartache—and add years to your lifespan!—compared to the highly stressful months to years it takes to build a practice from zero patients to consistent profitability.
Additionally, you can utilize the competitive upper hand that comes with stepping into the goodwill and loyal patient base fostered by the previous doctor and take advantage of swift and consistent growth. Because you can sprint towards success without the burden of funding a startup, buying a practice gives you the freedom to focus on sustainably growing your practice.
Buying a practice also saves you precious time. For example, startup buildout typically takes six to eight months of valuable time and can drain your cash reserves before you even get off the ground. When you utilize the tested infrastructure and operational systems of an existing practice, you can focus your energies on what truly matters: the well-being of your patients.
Lesson 4: The Counterintuitive Way to Save Money and Get Top Value
Buying a clinic may initially seem like a “luxury” expense, but in actuality, buying a clinic is often the most financially conservative choice for entering into clinic ownership. When buying a practice, you pay a fraction of the original price for a fully built-out practice with a treasure trove of pre-installed equipment, inventory, office supplies, and pre-trained employees. This yields hundreds of thousands of dollars of savings relative to the cost of the same practice essentials for a startup. This wise investment ensures that your financial resources are put to good use, ultimately enhancing the growth and profitability of your practice. Additionally, clinic ownership provides many tax benefits that will help preserve your earnings compared to protection opportunities for associate wages.
Lesson 5: Do Not Make This Common Mistake
Buying the right chiropractic practice opens the door to a future filled with opportunity, growth potential, and financial gain. This journey offers a unique chance to bypass the challenges of startups, allowing you to embrace stability and success from the get-go. Moreover, practice acquisition allows you to build upon a proven legacy and a loyal customer base, offering rapid growth and efficiency. However, not every practice will be the right fit for every DC. So, how do you make the right choice?
Your number one guidepost is not to do this alone. From the get-go, you want to ensure you benefit from the knowledge of a team of practice sales professionals who have done this hundreds of times before. You need a chiropractic practice sales specialist to value the practice, analyze the practice for inconsistencies that could lead to problems after you take over, help you line up financing (yes, even with that oversized student loan debt!), and help you structure a transition plan to maximize patient retention and success. Professional support will empower you to embrace the right opportunity, secure your legacy, and move into the next chapter of a rewarding and fulfilling career in chiropractic care.
Crystal Misenheimer, founder of Progressive Practice Sales (PPS), leads the industry's fastest-growing chiropractic brokerage. Crystal is the only chiropractic broker certified as a Business Intermediary (CBI) by IBBA and is recognized as an Industry Expert by the Business Brokerage Press. Crystal’s proven track record, experience in clinic management, sharp negotiating skills, and deep industry knowledge make her the go-to expert for practice sales nationwide. Contact PPS at 888.508.9197.
