January 2006

How successful chiropractors think

by Bruce Rhymer

 "Why can't I seem to get ahead?" "There seems to be too much month left at the end of the money." "My practice overhead is too high." "Taxes are killing my chances at creating wealth." "My debt seems unmanageable."

The above scenarios could remind many DCs of their own dilemma. Yet, at the root of comments like these there's always a similar decision‑making process that's brought each one of the doctors ‑‑ regardless of the financial dilemma ‑‑ to his or her present state of affairs.

Just two kinds of chiropractor

It seems there are really only two kinds of chiropractors and just two ways to pursue one's goals.

The first kind of chiropractor enters into a new project with enthusiasm, optimism and energy, but loses interest before the new idea takes form. He digs up the seed he'd planted long before it has the chance to root and sprout. He could very well be on the threshold of victory, only to sit down and wait before he hits pay dirt.

The second kind of DC also enters into the new project with the same enthusiasm energy and optimism, only this chiropractor does several things that are different. Her personality is also quite different. (Remember that a personality is a collection of attitudes habits and philosophies that will either power you up the narrow road to success and prosperity, or send you down a wide paved road to failure and destitution.)

Chiropractor number two spends time researching a new idea. She makes a decision to move forward on the new project, but only if the idea supports her philosophy and goals, which is to say this chiropractor has clearly defined objectives and goals. Before jumping in, this doctor develops a plan, on paper, which gives added reflection and adds objectivity to the new project. The format is quite simple so it's easy to implement. Yet, because of its simplicity and ease of implementation, it's also easy not to implement and is usually overlooked.

An example

Dennis has a practice that collects $435,000 per year and he's looking for ideas that will net him additional profit. He knows he's paying too much in taxes and he has no specific plan for reaching his financial goals. In fact, he doesn't really have any specific goals that define when he'll be debt free, specific objectives for how much to save this year, or a specific plan on how to proceed in his financial life.

How can he be successful?

The first thing Dennis needs to do is to find out how much it's costing to run his practice ‑‑ his practice overhead. Next, he must determine his lifestyle expenses, how much it really costs to run his household. This would include home mortgage, automobiles, food, clothing, entertainment, vacations, kids private school, etc. Then, Dennis needs to subtract the household expenses and practice overhead expenses from the gross collections of $435,000. This gives him a starting point, an essential and mandatory starting point.

Without an understanding of the above figures, Dennis has no chance of ever creating any real wealth for himself and his family. He can plan on working until he's 90, should he be so lucky to be healthy for that long. A statistic to lament but remember is that 97% of all chiropractors will not have any real wealth when they retire. In fact they'll barely be getting by!

Running the numbers

Let's say it costs Dennis $135,000 to run his practice and another $200,000 for lifestyle expenses. This leaves $100,000 available for savings, less taxes. Now there's a second starting point. The new goal and objective is to save $100,000 in the next 12 months.

Creative tax planning as well as a second look at how Dennis has structured his debt will reveal several more opportunities to create additional wealth. It's my experience that most chiropractors who learn to manage their cash flow will save more than $100,000 yearly and can be debt free in five to seven years ‑‑ regardless of the condition they find themselves in today!

(Chirowealth learning systems has developed a personalized wealth coaching process that is affordable to all chiropractors willing to look for new direction and accountability in the wealth building process. Chirowealth learning systems offers a complementary Quantum Wealth Analysis to help any DC determine his or her true wealth potential. For information, call 800‑892‑3107 or visit www.quantumwealth.org)