The Value of Demographic Factors in Opening a Successful Practice: Part I, The Facts
By John Marty, Locus
“Learn from the mistakes of others, you’ll never live long enough to make them all yourself.” –Anon
As a graduate, your journey as a student is now near its end. Your loan indebtedness is nearly $100,000, and to start a practice will require an additional $50,000 to $60,000 for equipment and leasehold improvements. This, no doubt, is why 60 percent of all graduates will decide to seek associateships. Twenty percent will join relatives and friends in practice and only 20 percent will initially start a solo practice. After three years, half of the associates will go into a group or solo practice; therefore, 50 percent, or approximately 800 of all graduates yearly, are seeking a solo or group practice. A significant number of these have come to realize that demographic selection will greatly help them find their dream location.
Three demographic principles have proven significant in this process.
- Eighty percent of all patients are located within a given radius around the practice site. In a suburban setting, it is three to five miles;
- Twenty-five percent of all patients make up 75 percent of the revenue in any given practice;
- Factors such as income, age, gender and PPO/insurance are all significant factors in the ideal 25 percent group.
To put these principles to work, first use the Chiromap to visualize the 3,400 counties in the United States, the population to chiropractor ratio, the stated HMO percentages, and actual county chiropractors count. Then use the ranking CD data file of the county and zip codes. This demonstrates the seven essential factors that are downloaded from the Locus Web site or from your participating chiropractor Infranet.
Use the Chiromap program in the Office of Alumni and Career Services or see http://locusmap.com/ to order studies. For information, our e-mail address is: info@locusmap.com or call (800) 743-6676.
Part II, Choice not Chance – The Locus Map County and Zip Code Ranking CD-ROM
Part III, Chiromap Program – An Overview
Part IV, Eight Essential Chiropractic Factors
Part V, Weighing the Essential Chiropractic Demographic Factors
Part VI, Ask the Right Questions
Part VII, Magnet Communities
Part VIII, Can You Truly ‘Eat the Scenery’?
Part IX, Barriers to Success: Natural and Otherwise
Part X, Expandability
Part XI, Accessibility and Visibility
Part XII, Signage
Part XIII, Capacity
Part XIV, New or Used, Buy or Lease?
Part XV, Putting it All Together – Your Dream Location
Practice Management Tips Archive
Transitioning to Practice Ownership: Assess Yourself and the Practice Opportunity
Five Surefire Ways to Attract Patients and Clients
Do You Have Any Questions?
Goal Setting Is Essential To Your Success
Unique New Patient Ideas
Taking Time for Practice Building Will Enhance Your Practice
SOS Ends with Success
Is Your Practice 'Undeliverable'?
Start from Scratch or Buy a Practice?