When chiropractors decide to go into business for themselves, they often face a critical decision: Should they start a new practice from scratch, or should they purchase an existing chiropractic business? Each approach has its advantages and challenges, and making the right choice can mean the difference between long-term success and financial struggles. In this article, we’ll explore the key differences, the statistical likelihood of success, and why purchasing an existing practice can significantly reduce the risk of failure.
The Appeal of Starting a Chiropractic Practice from Scratch
Starting fresh comes with undeniable advantages, especially for chiropractors who have a clear vision of how they want their practice to operate. Some benefits of launching a new practice include:
- Full Creative Control – You can build your clinic exactly as you envision, from branding to patient experience and operational procedures.
- Flexibility in Location and Setup – You get to choose the perfect location based on demographics, competition, and growth potential.
- Gradual Growth – Some practitioners prefer the ability to scale at their own pace rather than inheriting an existing patient load.
However, despite these appealing aspects, the challenges are considerable:
- High Initial Costs – Between leasing space, buying equipment, hiring staff, and marketing, new practices require a significant upfront investment.
- Longer Time to Profitability – Without an existing patient base, chiropractors must invest heavily in marketing and community outreach to build awareness and trust.
- Greater Risk of Failure – According to the U.S. Bureau of Labor Statistics, about 20% of new businesses fail within the first year, and nearly 50% fail within five years. In contrast, purchasing an existing business often provides a much higher chance of success.
The Advantages of Buying an Existing Chiropractic Business
Purchasing an existing practice offers a more secure and often faster path to profitability. Some key advantages include:
- Immediate Cash Flow – One of the most significant benefits of acquiring an established practice is that you inherit an existing patient base, meaning cash flow starts on day one.
- Established Reputation and Marketing Presence – An existing clinic already has brand recognition, patient referrals, and local credibility.
- Proven Business Model – The practice has already demonstrated it can generate revenue and sustain itself, reducing guesswork and risk.
- Staff and Systems in Place – You acquire a trained team and operational workflows, allowing you to focus on patient care rather than administrative setup.
Comparing Success Rates: Startups vs. Existing Businesses
The statistics paint a clear picture—businesses with a proven track record have a significantly higher chance of long-term success. According to the Small Business Administration (SBA):
- Startups: Only 50% of new businesses survive beyond five years, and the road to profitability can take several years.
- Existing Businesses: When a business is purchased, success rates increase to nearly 80%, as the practice has already demonstrated its viability in the market.
For chiropractors, this means that purchasing an existing business is often a smarter financial decision, particularly for those who want to reduce the risk of failure and begin earning income sooner rather than later.
Key Considerations When Purchasing a Chiropractic Practice
If you decide that acquiring a practice is the right path for you, there are several factors to evaluate:
- Financial Health – Review the practice’s financial records, patient retention rates, and revenue trends to ensure profitability.
- Location and Market Demand – Consider whether the area has sufficient demand and growth potential for continued success.
- Reputation and Patient Base – Assess patient satisfaction, reviews, and overall brand reputation to understand retention potential.
- Staff and Transition Plan – Determine whether the existing staff will stay and how smoothly the transition can be handled.
When Does Starting a Practice from Scratch Make Sense?
While purchasing an existing practice is generally the lower-risk option, there are circumstances where starting from scratch may be preferable:
- You have a niche specialty or unique service model that isn’t currently available in the area.
- You’re opening in a location where no viable chiropractic practices are for sale.
- You have an established referral base and strong local connections to generate an initial patient flow quickly.
- You prefer the challenge and excitement of building something from the ground up, even with the increased risk involved.
Making the Right Choice for Your Future
Ultimately, the decision between starting fresh and buying an existing practice depends on your risk tolerance, financial position, and career goals. If you want to mitigate risk and start with a steady patient base and cash flow, purchasing a well-established chiropractic practice is likely the smarter move. However, if you have a strong entrepreneurial drive, a unique vision, and the financial runway to support a slower startup phase, building from the ground up may be worth the challenge.
At WellBiz360, we help chiropractors evaluate their best path forward, whether launching a new practice or acquiring an existing one. If you’re considering either option, reach out to learn how we can support your journey to building a thriving chiropractic business!