It’s never too soon to start planning for the future. If you’re a chiropractic student, you can get ahead of the game by taking a few simple steps that will position you to buy a clinic as soon as you graduate or just a few years after.
Here’s where to start:
At the most basic level, buyers need a credit score above 680 and enough cash saved for a 10-12% down payment. The best thing a chiropractic student can do to prepare themselves to buy a practice is save as much as possible. “We’ve had doctors that have managed to put some of their student loan money away every month, graduated with $35,000 and bought a $300,000 or $400,000 practice right out of school,” says Kevin Misenheimer, a broker with Progressive Practice Sales in Chattanooga, Tennessee. “They had a great start instead of this starvation period of figuring it out and having student loan debt grow.”
Chiropractors who go this route should be aware that they may face a tougher time getting approved for a loan. Some banks look for a few years of associate or intern experience. “The majority of buyers have been interning for 2-3 years and have had an opportunity to get in there and cut their teeth, so to speak,” says Sam Reader, a practice management consultant who works with chiropractors across the country.
Most graduates opt to take an associate job for a few years out of school to continue to save for their down payment and gain some experience in the field. Working with an established chiropractor gives associates the chance to practice procedures in the real world and pick up some business skills.
Mr. Misenheimer cautions graduates who go this route to choose the job wisely, live frugally and put an expiration date on it. He believes the sweet spot for an associateship is 2-3 years, and anything past 5-7 years is time the associate could spend building their own business.
Lastly, students should research and learn as much as they can about the industry while still in school. Check out different practice styles and markets to see what practices look like and how they make money. Learn business management skills by taking a class or through a part-time job. Start to think like a business owner and assess where your knowledge gaps are and work to fill those gaps before you have your diploma and you will be ready to hit the ground running.
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