#202: Tactical Tuesday: Open your Practice for Less than 20K

OVERVIEW:

Jason A. Duprat, Entrepreneur, Healthcare Practitioner, and Host of the Healthcare Entrepreneur Academy podcast discusses how to open a healthcare practice with low startup and low overhead costs for under 20K. He recommends starting small in terms of space and staff. He also highlights certain services that don’t require expensive equipment to help further reduce costs.  

EPISODE HIGHLIGHTS:

There are four key factors for starting lean when you open your healthcare practice.  First, start small in terms of size. You don’t need a 7000-10,000 square foot space to launch your business. Also, sign a short-term lease for one year. Or consider renting an exam room from another clinician’s office.   Most patients don’t care about the physical size of the practice. They care about the quality of care they’ll get and the results you can provide.   Second, open your practice with you as the sole service provider. Be prepared to wear many hats; be ready to chart and manage administrative tasks. Labor will be one of the highest expenses incurred once you begin hiring clinicians to see and treat patients.  Third, consider alternatives to a physical space such as a mobile, virtual, or home-based practice that allows you to make house calls or provide services at long-term facilities.  Fourth, consider having an aesthetic focus (botox, microneedling, etc.) to help reduce equipment costs. Lower overhead means greater profits. There’s a misperception that healthcare practices are expensive to launch. If you keep overhead low and work lean, you can open for under $20,000.  Reinvest profits to see more growth.  Build your business and build tax deductions. 

3 KEY POINTS:

Start with a small practice or a small clinic.  Start with one or two clinicians. If you want to keep expenses low, be the sole clinician (initially) and then hire a part-time receptionist. Aesthetics services including botox, microneedling, platelet-rich plasma (PRP) therapy, IV therapy, ketamine therapy, and hormone replacement therapy are some services that don’t require a lot of overhead in terms of equipment and supplies. 

TWEETABLE QUOTES:

“We all want overhead to be low because overhead eats into profit.” - Jason Duprat

“There’s a big misconception that all medical practices cost a fortune to get started.” - Jason Duprat

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RESOURCES:

Sign up for one of our free business start-up Masterclasses by heading over to https://healthcareboss.org/masterclass/ Have a healthcare business question? Text me at 386-284-4955, and I’ll add you to my contacts. Occasionally, I’ll share important announcements and answer your questions as well. Do you enjoy our podcast? Leave a rating and review: https://lovethepodcast.com/hea