Chapter 1
From ADA Wiki
ADA Cookbook Chapter 1, How to Start a Private Practice: Is Private Practice Right for Me?
Original Author: Mary Anne Larkin, MS, CCC-A
Owning a business is the dream of many Americans. Starting that business converts your dream into a reality. But, there is a gap between your dream and reality that can only be filled with careful planning. The field of Audiology today is rapidly changing and evolving. Many believe that the future growth and visibility of our profession lies within the private sector. If you are considering practice, and you have stars in your eyes-good. But make sure they don’t blind you, that you know where you’re going.
First, you will need to identify your reasons of why you might want to own your own practice. Are you longing for freedom from the 9-5 daily work routine? Does being your own boss and doing what you want when you want to do it sound desirable? Are you bored with your present job? Would you like to improve your standard of living? It’s important to analyze all the advantages and disadvantages of owning your own audiology practice.
Advantages
- Personal achievement
- Sense of responsibility
- Greater career potential
- Feeling of flexibility/control
- Opportunity for wealth
Disadvantages
- Loss of personal time
- Fear of failure
- Loss of job security
- Loss of money
- Loss of position of promotion
As a prospective entrepreneur, you need to weigh these pros and cons. If you feel the disadvantages are looming out of proportion, private practice may not be for you.
Next, you need to do an objective self analysis. Do you have what it takes to open your own practice? Not everyone does. The personal characteristics of the prospective entrepreneur are not found in everyone. Entrepreneurs have special strengths upon which to draw for their adventure into business.
The following are 12 traits of successful entrepreneurs:
- Motivated – Want to reach you goal more than anything else
- Action Oriented –Invest time in working toward your goal, not in daydreaming or useless activities
- Healthy – Keep yourself in your best possible physical and mental condition
- Independent – Able to work alone, if necessary, on every task toward your goal.
- Flexible – Accept and adapt to changing conditions
- Determined – Don’t give up on a good idea because of temporary problems or lack of faith from others
- Decisive –Make the best choice available with the information you have, then go on to the next task
- Self-Sufficient – Realize you are responsible for every step of your success
- Convincing – Use your belief and enthusiasm to persuade others
- Confident – Believe in yourself and your ideas
- Thrifty – Spend money only where necessary for the success of your practice until profits can support frills
- Informed – Know what’s going on and how it affects your audiology business
In your early planning stages, it is important to find your niche and determine the feasibility of your idea. Before you invest time, effort and money, you will want to separate sound ideas from those bearing a high potential for failure. Identify and describe the practice you plan to start. What are the products or services you plan to sell? Will you dispense aids? Are you going to offer ABR and ENG Testing? Will your products or services satisfy an unfilled need? Make sure you know your competition and know you market. Identify your own strengths and weaknesses as they relate to managing your own private practice. Be sure to start out with enough capital. Two of the biggest reasons for the demise of a small business are failure to plan and not enough money to fund your venture.
Remember, owning and running your own private practice is a continuous learning process. Research your idea and don’t hesitate to seek help from people who can tell you what you need to know. ADA, AAA and regional audiology meetings are wonderful places to network with your colleagues who are already in established private practices. SCORE (Service Corps of Retires Executives, a nationwide volunteer organization of retired business executives and professionals) is also another good place to start. Information and assistance is also available from your local Chamber of Commerce, community colleges and universities and Small Business Development Centers.
