HERE’S HOW YOU QUADRUPLE YOUR MONEY
I almost failed accounting in my last quarter of chiropractic school. I’d never been so panicked as I imagined being held back from graduation because of the 1 “business” course we received at the time. While thankfully I scraped by, I certainly didn’t learn anything.
Decades later, my passion is for adjusting people and guiding them to well-being. Yet, I’ve learned to truly value accounting too. If I went back to school today, I’d be bringing that teacher an apple and be his most committed, curious student. Why?
The average chiropractic overhead is 50%. Which means that you only keep 50% of what you make – and that’s all before taxes.
On the other hand, you keep 100% of what you don’t spend. While you can’t save yourself to riches, you can put a fairly colossal amount into a retirement account if you learn some of the important areas you can save in business overhead.
If you save $3-5,000/month in overhead – that is an additional $36,000 – 60,000/year. In just 20 years of practice, that’s $720,000 – 1.2 million dollars – and that is without interest. With some reasonable financial management, this can easily be 1-2 million sitting in an account just through better admin.
None of this math is perfect, but the principle is clear: you can conceivably make quadruple the money through good accounting as you can through good collections.
Getting control of your overhead is as simple as understanding the right amount to spend as a percent of your monthly income on each key line item expense in your P&L. Some of these key areas are your office lease or mortgage, salaries, marketing, and supplies.
Having opened up well over 100 clinics, the ideal method is to know how to set up your overhead in the beginning. You start banking the cash you’re not spending right away. However, you’re rarely stuck. There are many ways to work backwards and get the overhead under control. It’s worth millions to you to do it!
