Q:

My question to you is this: I have an opportunity to go with a 
consulting firm for a practice in which they front the capitol to open 
the practice, and split the profits 50-50 for five yrs.  At the end of 
this five yrs I get the practice for myself. From my understanding 
they want the practice to open 60+ miles from where I live. (I have 
just bought a house in marietta and the possiblity fo moving is not 
really an immediate option.) They intend to invest aprox $20k in the 
practice. They also indicate that I can have little to no input on how 
the practice is run and that i must follow their procedures to the 
tee. Do you feel that this is a good deal?

I feel that I can raise this amount myself and open a practice in my 
town. When I suggested that they open in Atlanta they balked saying 
that it's impossible to open a practice in Atlanta. I don't feel this 
way, I guess while reading this letter as I type it to you I kind of 
made up my mind about what I should do.  but anyway what is your 
opinion on this matter.  

Thank you for you time and quick response.

A:

Thanks for the e-mail. A 5 year commitment is very long .. a lot 
happens in five years and usually the efforts you place into a 
practice will often be yours not anyone else and to be obligated to 
pay 50%  of the profits all this time seems too high. If there was a 
graduated method of payment with a payoff for their services in 
advance if you do very well it may be something to consider.

There are a number of questions:

What is their track record. I would spend time and money calling at 
least three or more of there clients those that have just started and 
those who have been there awhile. Realize that the names given 
would probably be chosen by them but nonetheless .. their tone and 
quick or slow response to your basic questions will alert you to any 
concerns

What will they be asking you to do .. if it is marketing .. is their 
program magic or just they hit you over the head here and there to 
get your butt into the community. If you have the energy and purpose 
to do it yourself .. all the profits will be yours.

If they intend to supply you with equipment .. what is it .. $20,000 
doesn't get you too much .. although it will get you off the ground

Think about this hard .. determine your level of commitment and 
strength of purpose. If you could gather the $20,000 and lease much 
of what you need .. you just need a coach and there are many. Dr. Pete 
Fernadez who I often teach for has a Practice Starters program .. 
also based on what you do if you want him to hold your hand and 
direct you with weekly 45 minute telephone calls and reviewing your 
stats .. this may be the way to go .. and he starts at the beginning .. 
determining where to open and how. You can reach him at 1-800-
882-4476 .. ask about their Practice Starters Program. There are 
weekend seminars and Parkers and DE's to discuss what you need to 
do to keep you on track as well as other mentors and consultants .. 
everyone needs a coach especially today.

Personally .. I am not crazy about a 5 year committment. But if they 
will fund the clinic .. pay all expenses and you be an associate 
(which this is what it sounds like) at 50% then look at it as a 
business and you are their employee .. if you want to go on your own 
.. and you probably can .. just find a mentor and pay them for their 
services

Give this some thought.

Have a Great Day

Dr. M

PS .. As far as moving out of Atlanta .. everyone else is. This city is 
very saturated although you make the practice there are plenty of 
availbale patients .. you just have to introduce yourself to them

I am sending your e-mail to Dr. Pete ..I hope he resplies to you as 
well .. he has great knowledge in these matters