Unlocking Success: The Ultimate Dilemma - Investing in an Established Health Practice or Launching Your Own?
Considering whether to open your own allied health practice or buy an existing one is a pivotal decision, and it's crucial to evaluate various factors before making a choice. Here are key considerations that should guide your decision-making process:
Motivation Matters:
Understanding your motivation for venturing into business is fundamental. While profit is an extrinsic motivator, it's essential to delve deeper into your specific objectives. Consider the spectrum of extrinsic motivation, ranging from fully profit-driven to less profit-oriented. You can explore different types of motivation that I covered in my research and how it relates to allied health professionals here. However, be mindful that the competitive landscape may be filled with businesses solely driven by profit motives. When demand for services starts to plateau, the market becomes a battleground, transitioning from motivation to survival.
The Challenge of Competition:
In industries like healthcare, where demand often outstrips supply, competition can intensify rapidly. For instance, shortages of professionals like speech pathologists lead to bidding wars for talent, causing salaries to escalate. This phenomenon applies to running your own practice. As you take on financial responsibilities for your team, requests for pay raises may arise, impacting your return on investment. In essence, understanding the dynamics of competition is critical to managing your business effectively.
Team Dynamics and Financial Responsibilities:
Transitioning from managing a team to owning a business brings about significant changes. Financial responsibilities for your team become a crucial aspect of the equation. As your team seeks pay raises to stay competitive in the job market, you must weigh the impact on your business's bottom line. Balancing team satisfaction with the need for a profitable return becomes an ongoing challenge.
The Illusion of Control:
Some therapists express the desire to start their own business to gain more control over their career and financial position. However, it's important to recognize that being a business owner involves decisions that extend beyond patient and staff well-being. Business owners navigate complex parameters such as cash flow, liability concerns, customer relations, and staff management. Every decision has potential consequences that may not be immediately apparent to employees.
Regulatory Compliance:
Navigating the regulatory landscape is critical in healthcare. Ensure you are well-versed in local, state, and federal regulations. This includes licensing requirements, healthcare standards, and compliance with healthcare privacy laws. Failure to adhere to these regulations can result in severe consequences, affecting both reputation and legal standing. Did you know that, as a healthcare professional, APHRA does not permit you to publish customer testimonials on your marketing communications.
Market Analysis:
Conduct a thorough market analysis to understand the demand for your services in the chosen location. Identify your target demographic, analyze competition, and assess the potential for growth. A clear understanding of the market dynamics will inform your business strategy and help you position your practice effectively. A simple way to do this is follow your competitors on Facebook/Instagram. when they start letting everyone know that they have spaces available you know that the market will start to get competitive. also check out their ads on Seek.com, it will tell you what the market rate is for your profession as well as how hard it might be to find someone.
Staffing and Talent Management:
Building a competent and motivated team is key to success. Consider how you'll attract and retain skilled professionals. Develop clear hiring processes, invest in staff training, and create a positive work culture. Employee satisfaction directly impacts patient care and overall practice success. In my experience this is not easy to do when you are trying to run the rest of the business yourself. When you start to employ people you need expert help, especially with all the labour laws changing and significant fines and even jail for non compliance.
Patient-Centric Approach:
Your success is directly tied to patient satisfaction. Prioritize a patient-centric approach, emphasizing quality care and effective communication. Understand patient needs and expectations, and implement strategies to enhance the overall patient experience. Tune in to my podcast collaboration with Speech Pathology Australia here for an insightful overview of the research I conducted in this field.
In summary, the decision to open your own allied health practice or buy an existing one requires a comprehensive understanding of your motivations, a realistic assessment of competition, and an awareness of the challenges associated with managing a team and financial responsibilities. By carefully considering these factors, you can make informed decisions that align with your professional goals and contribute to the success of your venture. If you need help working through these challenges fill out the form for a free 20 minute confidential discussion.