ForumsStarting a Business

Dr. Diaz,

Projecting income and expenses are hard for any new business as you are making an estimate of the unknown. If you already have a practice, you should be able to use that information to estimate income items, costs items and their projected amounts. Further, as your business moves forward into the unknown, you will find that you have to modify all of your numbers. Costs may be higher or lower - revenue may take longer to recieve or you could out grow your current cash flow - the market could rebound changing all of your projections or it could worsen. There is just so much beyond your control that it is nearly impossible to accurately predict the future. I would suggest that you do the best that you can - at some point - it will be good enough - and move on with other aspects of the business. But, keep monitoring your financials and make changes as you move along.

Question, Are you going to seek funding - either traditianl bank loan or SBA loan - for this venture? If not, I would not spend a ton of time worrying about a business plan or your financial projections. Do, sketch out the basics - but, you don't need the details of a formal plan.

Have you talked to other providers - others that you would invite into your clinic? I assume that each will run their own practice - thus you would not need to estimate any information on them. If you have not talked to these other providers - now would be a good time. Find out if they are interested. How much they would pay or revenue share or what ever you have in mind. Find out what they need to run their business - this should help you better predict costs and expenses.

If you are seeking equipment for your venture - try a non-bank equipment loan or lease. Banks just are not lending to start-ups. Usually non-bank equipment financiers require much less than banks (no business plan) and are very competitive with rates and terms. Leasing may even be a cheaper option with all the benefits of purchase.

Do contact your local SBDC or SCORE office. They can provide a lot of insight into what you will need or what you should be at least thinking about to make this venture a success.

Just some thoughts - best of luck

Dear bmt,
I was unable to view my reply to your helpful advice. Here goes again. Since my service is only one modality and doesn't include medical,acupuncture,physical therapy, etc., I don't think my numbers generated through my chiropractic practice will extrapolate out and give me projected expense vs income for a multidisciplinary community clinic. The other providers will not be independent but rather part of the non-profit community clinic so they will be paid a percentage of collections for thier services.
I hope to find grant monies to fund the set-up through Obama's healthcare initiatives. Community healthcare clinics are big on his agenda and he has appropriated monies for new and existing clinics. I just don't know how to access. Any suggestions? JD