Q: Dr M, hey quick question for with any advice you might have.  I am getting

ready to open a practice from scratch in Sept.  My question is where is

better to open: 1. A new office center is being built and the builder will

build the office to my specifications at no charge. Build out will cost me

nothing.  The location is good and it is in a setting of other health care

providers, ortho's, m.d.'s, physical therapists etc.  It is a new  complex.

Location is good, build out is good.  Will being in the middle of these

people help or hurt business and secondlt the rent is a little expensive,

around 1000 per month. 

2.  Second choice is a different place in a strip mall. Not a bad location

but not as good as the first but I would have to pay for build out.  It is

not as new but the rent is almost 1/2 the cost of the other place.  500 per

month.  Would I be better off with lower rent?

My funds are around 40,000- 45,000 available cash and  approx.  40,000

available on  low-mediun interest credit cards.  Any advice?????? 

A:
Thanks for your question. There are a number of questions I have to ask you. First off .. 
$1000 a month rent is not bad depending on the size of the office and the efficency of the 
layout. The fact that it is in a medical enviornment really has no bearing .. except parking 
and the location of your office. We chiropractors see patients repeatedly .. nature of the 
physical care we provide .. medical care may be intermittent and parking and some 
inconveince may be tolerated .. but for the DC .. once a patient feels betters they often look 
for excuses to stop care .. a hardship finding parking .. a location that takes some effort 
getting to .. etc .. is all they need. Same is true in a shopping strip where your office may 
be close to a great resturant. Yes .. it brings people to your area .. but it also forces people 
to park in front of the resturant making parking a problem for you.

Therefore .. determine what you are getting for $1000 a month .. location and size .. 
availablity of parking .. (since it is not opened you really have no idea) .. visibility of your 
office .. signage .. or what can you have to market your office from the street.

If you take the lesser location you may be buying into a dead shopping strip where 
maintenace of the property will be a problem .. as well as people visiting your office. At 
this point .. as you penny pinch .. you may not see the trees from the forest .. but the worst 
mistake is to visualize your inability to be successful and have rental fees a small concern .. 
rather than the large one you have now. 

Your assets of $40,000 should be held .. try to use this as collateral when you take out a 
loan .. the interest will be deductible but the principal will be held in case you default. 
Credit card interest is almost 20% .. business laons are almost in half. You need to discuss 
this with your accountant .. if you need one let me know .. same may be true for an 
attorney if negotiations for your office gets tricky.

I would hold onto as much as your funds you have and if you practice booms .. you can 
alays pay it back sooner.

Hope this helps.

On my webpage under cyberconsulting .. is a question concerning starting a new practice .. 
look this over

have a Great Day

Please tell others about these e-mails and if you have a chiropractic only e-mail address list 
.. send it to me and I'll forward them a welcome e-mail

Dr. M