Read Part 1 Here

The litmus test for determining whether you have a practice or a business is to ask yourself, “Does my practice make money when I’m not there.” If you only generate revenue when you’re working and generating billable time, then you’ve got a practice. Until you have a system that generates revenue without you being there, you don’t have a business.

Before you email me, let me be clear: this is perfectly okay. Most health care professional operate in this manner, as do many others – lawyers, MD’s, accountants, etc. As discussed yesterday, though, there are some drawbacks to only having a CAM practice. Here are just a few ways to move from professional practice into profitable business:

Get Associates
Traditionally, associates are other practitioners who work in your office. A common arrangement (but not the only one) is for them to pay you a percentage of their billing. Taking a two week vacation? No problem – your associates are still generating revenue for you. (Plus they can see your clients for you while you’re away. Presto! Stress-free vacation!)

Develop Intellectual Property
Books, health protocols, techniques, training methods and formulations are all types of intellectual property that can be protected, sold through resellers, franchised and otherwise make money “while you sleep”. For example, check out this article on physicians developing their own private label products.

Own Real Estate
Owning the building in which you practice (or any building), and renting part or all of the space to CAM practitioners or other tenants generates rental income revenue each month. Add to that the bonus of building equity in your property over time, and real estate is often preferable to renting space for your entire career.

Make a commitment to at least consider your practice as a true business. It may be the last thing on your mind if you’re early in your career, but it’s worth the effort.