Overhead is the total of all ongoing costs to operate your practice regardless of how much or how little income you bring in. These expenses directly affect the profitability(net income) of your practice. Overhead will include office rent, EHR, phone, fax, wifi, utilities, website, office supplies, clinic supplies, malpractice insurance, liability insurance, employees, etc. We recommend keeping this low, especially to start. The more money you are paying out to others, the less money ultimately landing in your back pocket to take home or re-invest, and that’s not good. We want you to take home every penny you deserve and re-invest or invest everything else!
When we started our first practice we were very conscientious of overhead. What was the smallest amount we could spend monthly to bring in the income we needed to support our family, without wasting money on unnecessary gadgets or space.
In contrast chiropractors that didn’t make it through the first years of practice, or barely scraped by had gotten themselves in to too much debt or took on too much overhead to get open. It was insurmountable when it came to bringing in the income to survive and thrive. Please don’t make this mistake!
Many of you will opt to become Independent Contractors in order to start with the lowest overhead possible. Want to learn more about becoming an Independent Contractor? Listen to our podcast episode #123. Link to Spotify or iTunes.
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