Can two start a practice as cheaply as one?

Q: My fiance and I want to write our business plan and set up our chiropractic practice together. How should we do our startup spreadsheets to show this?
A: There are several places in the startup spreadsheets where you can show two people in the practice:

1. In the “personal budget,” most expenses will be the same if you’re living together, but your student loans will be higher and car and some other expenses might be higher.
2. In the “sales projections” sheet, you can figure that two people can work harder and bring in more new patients than one person. You could do an estimate of what one person will bring in each month and double it, but to be conservative you might want to lower that slightly. For example, if you figure 10 new patients from one person in month one, use 15 patients for 2 people instead of 20. It’s completely up to you what you estimate.
3. You might have a larger office with more exam and adjusting rooms for two people. This would show up in the startup expenses.
4. Finally, you will need credit reports for both of the individuals and you may be able to pool your resources for collateral.

And, of course, be sure to protect yourselves (and your relationship!) with an LLC or Partnership and an agreement prepared by an attorney.

I’ve been asked if both husband and wife should take out a loan together. Yes, the bank will ask about credit ratings for both of you anyway. The only time you should not do this is if one of you has a really bad credit rating. Then he/she should sit out the loan process and become an employee.

For more information, buy and read Planning for Practice Success.