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Clinical Solutions Blog

Ask the Expert: Should a clinic owner buy their own building?

Posted by Rick Lau on Jan 27, 2016 3:25:55 PM

In my Clinic Accelerator Program where I coach clinic owners to run more efficient, effective businesses, I constantly get asked about negotiating a lease versus buying a clinic building.

This really is an awesome topic to cover. Think about it.

If you own your clinic for 20 years, you really could pay off your mortgage for your clinic - especially if you are in your mid-40s or below. By doing so you’d be building two assets: the business and the commercial property associated with it.

Let’s take McDonald’s as an example. It’s not just their food and fast service that has made the company a massive worldwide success. It’s actually due to their acquisition of real estate as a main component of their business model that has led to their rapid growth and ongoing success over the years.

So, if your lease is coming up and you have an opportunity to buy a commercial space, is it really worth considering?

It could be.

And I’ve got the perfect expert to help go over some of the important aspects to consider - meet Jennifer Hollis.

Jennifer is a partner at Collins Barrow that provides accounting, audit, taxation and general business consultant services. She works with companies both large and small and specializes in the health and fitness and real estate industries, so she can share some powerful insights about exactly what the benefits of leasing vs buying really are.

I got introduced to Jennifer Hollis by Wendy Coombs from Momentum Health in Calgary.  Wendy thought Jennifer could really help contribute some awesome tips that could help clinic owners make better financial decisions.

So let’s turn to Jennifer for some words of wisdom and advice on this popular topic.

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Topics: Clinic Finances

How to Use Your Monthly Financial Statements as a Benchmark for Success

Posted by Rick Lau on Nov 11, 2015 10:27:19 AM

 

What you don’t measure you can’t manage. And yet, when asked, most clinic owners don’t know their most basic financial numbers or benchmarks for successful private practices. 

So how can you effectively grow your clinic?

The truth is, that majority of clinic owners don’t know how to read financial statements at all - are you shaking your head right now?

Perhaps the only time you read them is at the end of the financial year when the tax man requires you to submit it. You’re not alone, it’s very common.

But knowing the state of your financial affairs is very important. If you knew the difference between an income statement, a balance sheet and shareholder equity, you’d understand your net worth and could potentially save ten of thousands of dollars every year.

Not only that, but you’ll be able to know how your clinic is benchmarking compared to other clinics in your industry. And one of the things many clinic owners forget is to build a business you can sell for millions.

After investing weeks or years into your business, you want to end up with an asset that’s worth something to potential buyers in future - financials can help you do that.

So let’s go over some easy tips to mastering your financials and learning clinic benchmarks in your industry..

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Topics: Clinic Finances

How to Selling Your Clinic For Millions

Posted by Rick Lau on Sep 30, 2015 11:41:00 AM

Take a moment to imagine…

Imagine 5 years from now, you’ve worked tirelessly to build your business, many sleepless nights, coffee overdoses, and even the occasional panic attack have occurred in that time. But you’ve worked smart and divided your time by working in the business and on the business.

Your goal is to increase revenue while in the business, and then one day put your chiropractor or physiotherapy clinic for sale at the highest price.

You develop treatment strategies and systems that you can pass onto hired clinicians and staff who can do the hands on work for you. You introduce a whole range of product sales and design systems to upsell them to patients after every treatment. You teach these systems to all your physiotherapists, chiropractors, and massage therapists. Your clinic is going so well that now you don’t work in the business, you only work on the business, so you open another location and implement the whole process again.

After 5 years, maybe 10, you decide to retire, but instead of shutting the doors you have built a valuable asset that is easily passed onto someone else. You have documented systems and processes for all the business functions so that someone can buy the business for top dollar, and continue to run the business successfully from day one.

Now imagine yourself lying back on the Greek Islands, lazing around in the sun and enjoying your comfortable retirement.

Does that sound good to you?

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Topics: Clinic Finances

Ten Fatal Flaws in Negotiating a Lease for Your Rehab Clinic

Posted by Rick Lau on Mar 10, 2015 7:43:00 PM

Ten_Fatal_Flaws_in_Negotiating_a_Lease_for_Your_Rehab_Clinic.jpg

You’ve found the perfect location for your new clinic or perhaps you're renewing an existing lease, now what?

It takes much more than doctor marketing, skilled therapists, and the latest equipment to run a successful clinic - location is everything.

While this is true, the lease terms, rental rate, and various other things (like parking) can all dictate much of your clinic’s success or failure as well.

Don't let the landlord bully you into signing your lease - especially before you've had time to thoroughly evaluate it and ask for what you want and need.

In this article we've got some top tips to help get you prepared for your upcoming lease agreement. Before you sign on the dotted line, here are ten fatal flaws to look out for when negotiating your lease. 

 

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Topics: Clinic Finances

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