Weighing the pros and cons of starting a new chiropractic clinic versus buying an existing practice? Here are some compelling reasons to consider a carefully selected existing business as a strategy to minimize risk and maximize cash flow:
- 96% of all startups fail in the first five years- bypass this risky initial phase
- The average start-up also takes up to five years to be profitable. With a well-picked existing practice you get positive cash flow from day one!
- In a start-up, everything is a guess. When you buy an existing practice, the location, procedures and concept are proven to a certain level of known success
- An existing clinic has an existing infrastructure- active patients, trained employees, equipment and systems (often born from hard-won experience) that accomplish the established goals of the clinic, saving you time and money
- Buying a clinic is often less expensive than starting a new one (think purchasing a slightly used car vs a brand new model, and apply this to furnishings, equipment, inventory, etc)
- Financing is often easier to obtain for an existing business due to cash flow and asset value
- You can negotiate great terms with seller and bank financing that would not be possible with setting up a new business
- The historical data for the practice allows you to more accurately forecast future performance, and make strategic decisions about how to be more profitable in the future
- Avoid the tedium of setting up a new business from scratch- buying an already profitable business lets you start by focusing on your areas of expertise to create additional growth
- An existing business has proven itself successful, and as long as you continue to follow the overall strategy, the success should continue. The key to this is asking the right questions and gathering the right information so you know what you need to know. This is where an experienced broker is key for a buyers success. As a buyers agent, our goal is to create a smooth transition to new ownership, and a stable platform for your successful new business for years to come. If you are considering buying a practice, we’d love to give you a free consultation to discuss your needs and how we can help make your practice ownership dreams a reality!
