Last week we discussed part 1 of this two part consideration of how, in our goal of being the best in our science and art of our professional package we are efficient at being safe, giving good service and getting great results BUT chiropractors do not ensure that we thrive in this material world.
There are essentially two forms of strategy that will make a huge difference to your business and private life. Last week we discussed the first strategy is ‘What you get’, today we consider…
What you keep
The second form of strategy is to have a high percentage retention of your earnings at the end of the day, week, month, year and life.
Control and moderation of overheads is a constant challenge, especially for people such as chiropractors who have quite nice cash flow. There is always a temptation to spend on consumer items and even create debt in procuring these consumer trinkets including your cars, residences and other such non-income producing toys.
Creating this form of debt is a sure way to sabotage you and stop you keeping what you earn. This result in you constantly playing ‘catch-up’ to pay for what you enjoyed yesterday.
Throughout the history of mankind the simple practices of forced savings have been taught and implemented by those people who are willing to be disciplined and put appropriate investment plans in place. A simple 10% savings plan (no matter what your income is) where you pay yourself first, if consistently applied will ensure that you develop the seed money necessary to create the investments necessary to multiply throughout the years to offset and ultimately substitute for the income derived from your personal effort.
If every new graduate did this they would be a multi-millionaire after 30-40 years of practice.
Another ‘safety net’ in your financial plan should be to offset your income protection insurance by creating your own fund. This is a savings account of readily accessible cash that allows you to pay your outgoings for up to 6 months if you are incapacitated and there is no income.
The last word on keeping what you get must be to ensure that you have your business structured to protect the assets you have created. Courts and predators can undo all you have created with a few pen strokes so make sure you have the appropriate structuring to make them as bullet proof as possible.
By the way, as way of disclosure it must be noted that we at Quest are qualified to give best practice and business advice we are not qualified to giving financial advice. By all means contact us on any of these matters and at the same time speak with your accountant for their expert advice.
So, the Business End is about making sure that you keep as much of what you make. Having a strong business strategy is an important key to making your practice both enjoyable and productive.
Go forth and prosper.
