Practice Startup Success

Can Two Practice as cheaply as One?

Q:  My fiance and I want to practice together?  How should we do our startup spreadsheets to show this?
A:  There are several places in the startup spreadsheets where you can show two people in the practice:

1.  In the "personal budget," most expenses will be the same if you're living together, but your student loans will be higher and car and some other expenses might be higher. 
2.  In the "sales projections" sheet, you can figure that two people can work harder and bring in more new patients than one person.  You could do an estimate of what one person will bring in each month and double it, but to be conservative you might want to lower that slightly.  For example, if you figure 10 new patients from one person in month one, use 15 patients for 2 people instead of 20.  It's completely up to you what you estimate.
3.  You might have a larger office with more exam and adjusting rooms for two people.  This would show up in the startup expenses.
4.  Finally, you will need credit reports for both of the individuals and you may be able to pool your resources for collateral. 

And, of course, be sure to protect yourselves (and your relationship!) with an LLC or Partnership and an agreement prepared by an attorney.

How do I fix mistakes on my credit report?

You just got your credit report and looked over it and saw errors.  Or you saw an old negative that you believe is hurting your credit and should be removed.  What do you do?

The key is the "three D's"  - dispute, document, and be diligent.
First, dispute.  The credit reporting bureaus are required by federal law to investigate claims within 30 days.  If the creditor doesn't verify that the claim is accurate, it must be removed. The best way to file a claim is to use the claim form that each bureau includes with the credit report.  If a creditor still has an old negative on your credit report, write to that creditor and ask that they allow this to be removed.  When the negative or mistake is removed, the bureau is supposed to send you a new report showing that information has been removed.  If the information is on all three reports, you'll have to request that it be removed from all three; don't wait for each one to pick up the removal - that might take years.

Second, document.  Keep records of everything you do.  If you talk on the phone with someone, request that they verify in writing what they have agreed to do.  You also should write to that person stating your understanding of the discussion.  When talking with someone, request their name, so you can verify later who you talked with. 

Finally, be diligent.  It may be difficult to get people to talk with you, and more difficult to get action.  Remain calm and professional, but keep working on this.  It may take months, but it will be worth it in the end.

Each of the three credit reporting bureaus has an online dispute resolution process. 

Here is the link: for Equifax's online dispute resolution process. 

Here is the link for Transunion's online process.

Here is the link for the Experian credit dispute process.

No credit? Good credit?

What if you have no credit?  Is that good or bad?  I looked at a credit report today in which someone had student loans plus a couple of store credit cards that had not been used in years.  That's all.  He wondered if he had good credit.  The answer is YES.

A credit counselor told me that having few credit cards and no debt is good.  His credit rating could be as high as 800.  The only thing that would improve his credit would be to get a credit card and pay off the entire balance every month.

Check Planning for Practice Success  for more information on preparing yourself financially for practice.