Q:

Dr. M, quick question for you concerning the leasing of an office.  I am

opening up in a town of app. 30,000 residents and app. 15,000 college

students at any given time.(Eastern Kentucky University) I have a dilema. 

I have found two possible office spaces. The first is an older but somewhat

busy office complex on a side road of a busy road. The rent is only 345 per

month and all I pay is utilities.  It is small at only  900-1000 sq ft.and

the layout is somewhat awkward with some wasted space. It has only 1

adjusting room, and 1 therapy room.It has  a small waiting  area.(app 7x7).

 It is next to a Dentist and MD and also has another established

chiropractor on the other end of the street app 1,000 yards away.  It is

nice and clean but small and low cost.  It will require app 2,500 in

renovations which includes a sign. Being of limited funds it seems really

appealing.

	The other spot is on a very busy road in a part of town that is new and

growing and sits on a very visible corner. It is a brand new buliding and

office and the land lord is willing to build it out completely to my

specifications.  The draw back is the price. It is 1032 per month and I am

responsible for the public liability insurance. A policy not less than

100,000/300,000.  My question is since I have limited funds, enough to last

4-5 months without collecting a dime  at the new office and app enough to

last 6-8 months at the older small office, what is your opinion of one

office versus the other.     I have been the sole chiropractor in a

practice owned by someone else for the last 7 months. I have learned quite

a bit about marketing an making a practice grow.  Would the location of the

new office help make up the difference in overhead. Or, should I take the

smaller low cost office to be safe in the

beginning and plan on expanding to a newer more expensive office when I

have more funds. Any advice would be appreciated.


A:
This question comes up a lot. Let me answer by giving you a story for thought. When an 
elephant trainer wishes to condition the boundries of their elephant .. they place a stake in 
the ground and a rope from the stake to the foot of the elephant. The elephant spends his 
many days walking as far as the rope allows and no more .. soon the trainers take the rope 
away and the elephant never goes beyond his boundries (I think it's true .. but ..hell .. it's 
a good story). Nonetheless .. why do you even consider the old and cheaper office that has 
a number of built in boundries and limits. Small reception area .. awkard layout .. no 
ability to grow .. you might as well place a stake around the 7x7 and ready yourself with 
the self imposed limits.

Now .. in saying this .. it is true you can be very creative and develop a fantastic profitable 
clinic there .. even make enough money to build a clinic of your dreams .. but an elephant 
never forgets and often we kick ourselves for making the wrong choice when we were a 
little down and out.

I would recommend you determine the demographics .. the farm from which you will 
gather new patients .. the retail .. residential .. clerical and labor components and if the 
newer and more expensive place has these and you have some marketing skills .. your 
overhead fees will be paid and you'll only have more room to grow without barriers and 
restrictions. Also .. want to be proud of your office and feel at home not in a vice.

Therefore .. look hard at the newer clinic .. sense where the new patients will be coming 
from .. gather your thoughts and concept where the best growth potential is . .not the 
limited funds today .. everyone goes through this phase .. it's the end result that is your 
goal.

Have a Great Day

Dr. M