Are you thinking about starting your own practice but can’t make up your mind?
Should you, or shouldn’t you?
Starting a practice can be one of the most rewarding moves you’ll make in your career. It’s exciting to think of working for yourself, setting your own schedule, and practicing on your own terms.
However, before diving into business planning, leases, licenses, and other details, it’s essential to pause and ask: Am I truly ready for this?
Many new practice owners underestimate the personal aspect of starting a practice.
But starting a practice, a business, is demanding and can take its toll.
You see, starting a successful practice isn’t just about your clinical expertise…
It’s also about your emotional resilience, the support systems you can fall back on, your willingness to take on risk, and how prepared you are financially. The more of it you have in place and can count on, the better.
Let’s take a closer look at the personal factors that will help or hinder your journey into independent practice.
1. Emotional & Mental Readiness & Resilience
Starting your own practice is demanding. It takes resources, time, and focus to get the business up and running.
And once operational, running your own practice can be stressful from time to time; you can count on it.
You’ll be faced with uncertainty, a myriad of decisions to make, long hours, occasional setbacks, and a variety of problems to solve.
Ask yourself:
- Am I comfortable with taking risks?
- How well do I cope with stress?
- What coping strategies can I tap into?
- How comfortable am I with ongoing decision-making?
- Will I be able to handle the pressure of balancing patient care with business responsibilities?
Being resilient and adaptable is crucial in life, and certainly when starting and operating a business.
Consider the stress-management strategies you already have in place, as well as those you could develop to better manage stress, such as exercise, journaling, meditation, or seeking professional support.
2. Support System
It’s rare for someone to build a business entirely on their own; most have help in some shape or form.
Having support you can count on at home and in your professional network can make a significant difference in establishing a successful practice.
You may want a sounding board to bounce off ideas, need help with making an important decision, or would love a second pair of eyes before moving forward.
Support systems come in different forms. If you have and can count on one, it’s a blessing. It may be:
- Family support: If you live with a spouse or partner, or are close to your siblings, are they on board with the time and financial investment required of you and perhaps, occasionally, of them?
- Professional support: Do you have mentors, peers, or a coach who can provide guidance? Is there someone you can call or talk to if you have questions and need answers?
- Advisors: Do you have access to an accountant, attorney, or business consultant to help you with making decisions so you can avoid costly mistakes down the road?
Building a network early on not only alleviates stress but also creates a safety net when challenges arise.
3. Time Commitment & Lifestyle Considerations
Starting a practice or any business often means putting in long hours, especially in the first year.
It’s easy to underestimate the amount of time, beyond patient visits, that your new practice requires.
You’ll be managing staff, keeping up with compliance, setting up hardware and software systems, overseeing finances, and many other responsibilities that all fall on you.
Consider how this will affect your personal life. If you are in a new relationship, have children, or help with a sick parent…how will you balance this new project with your existing responsibilities?
Do you have time set aside for your family, yourself, and downtime?
Work-life balance doesn’t happen automatically; you’ll need to plan for it.
4. Skills & Knowledge Assessment
As an NP, you already have strong clinical skills.
However, running a business requires additional knowledge. Skills like marketing, bookkeeping, accounting, billing, human resources, and compliance, all skills you probably don’t yet have.
Are you willing to learn new skills? Are you prepared to acquire solid business skills?
Are you clear on which areas of business you need help with?
Should you try to learn various skills or hire someone to bring the tasks in-house? Or would it be better to outsource specific tasks and responsibilities?
While owning a practice doesn’t mean you need to know everything, it’s in your best interest to have a basic understanding of things so you can make informed decisions.
Don’t forget, while you don’t need to know everything, you do need to be willing to take responsibility for everything.
5. Financial Readiness
Opening a practice requires an upfront investment before revenue begins to come in.
Counter to common belief, you don’t need a ton of money to start a small practice. You can start small and grow from there. However, starting a practice, whether small or large, requires an honest assessment of your finances.
Answer the following questions, be honest with yourself…
- Do you have personal debt that will weigh you down? How will your existing debt and possible business loans impact you?
- Have you saved up money for startup costs, which may include rent, insurance, equipment, EHR systems, and marketing?
- Do you have a cushion for unexpected personal and business expenses that you can fall back on?
- Remember, while many practice expenses are tax-deductible, you still need the cash to pay for them upfront.
- Do you have an emergency fund to cover personal living expenses for 3–6 months?
- Can you support yourself if the practice takes months to a year to turn a profit?
- What is the condition of your credit report? Clear up anything negative before applying for a business loan.
If your finances are shaky, your stress levels will likely be high, and you may struggle to obtain any loans. Strong and clean personal finances are a must before starting a practice.
Conclusion
Starting a practice begins with you: your finances, your mindset, your support system, and your readiness to take on new challenges.
Once you’ve taken stock of your current situation with these personal factors and feel confident in your foundation, you’re ready to take the next step.
In Part 2 of this series, we’ll walk through the practical steps of turning your idea into a functioning practice. Until then …
We’d love to hear from you… Join the conversation by leaving a comment or question below.
By Johanna Hofmann, MBA, MAc., EAMP; regular contributor to the NPBusiness blog and author of “Smart Business Planning for Clinicians.”