Too many people focus on just one business or practice. They get tied up and engulfed in this one business. Usually, entrepreneurs with one business are going to be more stressed than the entrepreneur who has 3-4 businesses. This is because the person with 3-4 part-time businesses knows that if one fails, they have the others as back up. If you want stress and uncertainty in your life, stop reading this article.
I advocate having multiple part-time businesses for this reason. It is a hedge against uncertainty. What are the chances of 3-4 businesses closing at once versus just one? Practically zero. Therefore, focus on multiple side hustles. It is foundational to the Elite Nurse Practitioner Model.
The nurse practitioner who owns multiple side businesses is one that is financially diverse. This nurse practitioner is not scared of what the future holds, because they know they always have multiple income streams coming in. How many people in this country can say that? Very few.
You are likely asking yourself “Dude, I don’t even have one business and you are telling me to open 3 or 4 of them?!” YES! I am telling you to start 3-4 part-time businesses. But you are going to create one at a time over a period of 2-3 years while working your job to cover living expenses. This is a core principle of the Elite Nurse Practitioner model.
If you started all these businesses at once, it would fail. You must learn from your first business. This is where you are going to make many mistakes so that by the time you start business number 3 you will be able to do so with ease and confidence.
I started my telemedicine practice in 1 month. We started seeing patients by week 6 of its inception. It was on autopilot after 3 months. I now spend 1-2 hours a week on it because I have outsourced much of the work to other nurse practitioners. It is great, but that would have been impossible if it had been my first business.
To get started, build that first business and perfect it. It takes time to build a business. You can expect at least 12 months to go by before that business is running smoothly. That is the time you start another niche side business. Now, use your profits from business number 1 to fund business number 2. You should spend no personal money on your businesses EVER after your first one. Then after another 6-12 months while business 1 is on autopilot, and business number 2 switches to autopilot, start business number 3 with the profits of the first 2 businesses!
Business number 3 now can be more upscale because your other 2 businesses are overflowing with cash. A VERY GOOD PROBLEM TO HAVE. Business number 3 is when you hire other people to do the work. You just sit back and “manage” it.
It is at this point when you decide to either stop working your full-time job and focus on all 3 businesses or let them be stagnant and enjoy the side money. If the side money is enough to cover your living expenses and you are happy, then quit your full-time job and enjoy the money and free time. If your goal is to retire early though, you will need to drop from full-time work to part-time work to cover living expenses while investing all your side business profits into your retirement. You could potentially retire in 10 years.
Maintaining a part-time job as a nurse practitioner while having multiple side businesses is the most optimal strategy in my opinion. You should be making anywhere from $60,000-$90,000 a year with a part-time job, which will afford you a very secure and nice lifestyle. Ensure that this job is something that can be done in a couple 12 hour shifts a week such as the emergency department or an urgent care. That way you can spend the other days out of the week working on your business.
When you have a part-time job to live off of, it decreases the amount of stress associated with your business significantly. If it fails, oh well… You’re not declaring bankruptcy and stressing about how you’re going to pay your personal bills. It also allows you to take more risks and venture into more niche markets.
When you have multiple part-time businesses generating monthly revenue, it allows them to cover a lot of your expenses which then increases your personal savings 2-fold. You might not be paying yourself a salary from one of your side businesses, but that 1 business pays for your company car, cell phone and 2-3 “business” trip/vacations a year, while your other business allows you to invest $50,000 a year into a self-directed 401k. See where I am going with this? You are using pre-tax business revenue to legally enhance your life. The legal tax advantages are numerous. You must understand how to save on taxes utilizing your business.
You would never be able to take advantage of the tax savings working a standard W2 position like you can when you own your own business. Especially when you own 3! So, continue working a full-time to part-time job, pay your taxes and personal expenses through your job, and then enjoy the multitude of benefits those side hustles produce!
22 Responses
Excellent post. What about risk? In terms of malpractice? How do you address that potential scenario?
Thanks
The risk is what you make it. In general though, a part time practice should be a low risk item. So all you need is a comprehensive personal professional malpractice policy that covers you with whatever you do. I have 1 policy and it covers me for everything I do including my full time job and side businesses. It is a well spent $1500 a year.
Would the insurance be a tax deductible item?
Absolutely!
Have a job that requires that I do not moonlight. So you think that includes owning my own business? It states any income earned would have to be paid to them….
You can own your own business. It is none of their concern if you have a side business or not. You do not personally earn income, your business does that pays for your company vehicle, cell phone bill, and CME vacations. That is the mentality you need to have with this.
I was thinking of an advise when I ran into this article.
I have registered a primary care practice, found a location with another clinic within a mile radius. I am scared to sign the lease which will push me into starting my practice.
The only way to do it is to DO IT. Sign the lease, lock your self in. This will force you to start the business. Overcome your anxiety, it will pay off tremendously.
I am looking to start a practice with a chiropractor. She is offering me space. I will pay 35% of my AR to her a month and no more than 500. I live in Ohio therefore I need a collaborating physician and have no idea what to pay him. Also I don’t even know where to start. I joined a NP entrepreneurial site and wondering if I should pay the 495 to take the course. I also don’t know if I even want to deal with insurances or just take cash. I want to do this so badly but I think I am making it more work than it should be. I need a step by step list to start.
1.llc? Or Pllc?
2. Cash it ins. And primary care or something specialized. I want to do weight management and total wellness preventative health. I just don’t know if this area will be the right place.
3. Credentialing. Don’t know if I should pay or do myself.
4. Drowning in 89900 debt and I’m old. Lol 53.
Sorry for the long post. Appreciate some advice.
1. LLC
2. Cash
3. Screw insurance.
4. Pay your debt off as fast as possible. DO NOT USE DEBT TO START THIS BUSINESS.
Do you really need this chiropractor? What are they going to do for you exactly? Answer yourself this “Is paying this chiropractor %35 of what I make worth me being in their office?” I DOUBT IT. I never advise partnering with anyone. It is a recipe for drama and bullshit.
$495 for a course on how to start a business? I could get you on the right footing in 1 hour. Sounds like a bunch of fluff in my opinion.
Hi! If you so choose to get credentialed I would recommend paying someone. I am almost finished credentialing myself and I wish I never would have done it myself. It’s doable but the amount of time and stress was not worth it to me.
Agreed, if I was to open an insurance practice, I would just pay someone $1,500 to do it for me.
Hi, I work full-time and already have a part-time LLC business as an NP Independent Contractor, and with a home office. I want to start a second business theme separate from my current biz, and it will have its own commercial site/office. Question please: Do you usually start your new additional biz with a new name/SCC and EIN number? Or, do you conduct all your side businesses under one parent company?
Thanks!
Every business is under a separate entity. Different LLC and FEIN numbers. Then have those owned by a holding group LLC. It just provides an additional layer of protection.
I’m a serial entrepreneur as an RN. Now looking to monetize my NP but getting a supervising MD in SC without working at a FQHC first has been daunting. I know very few MD’s as I have been a traveler and business owner for years.
I’m thinking of getting licensed in DC or Arizona where no MD is needed and starting there. Any words of caution- ideas. By the way, I like how you cut to the chase with the subscribers here looking at all the options out there ( or lack thereof).
Obviously if you live in SC and decide to practice in DC or AZ it will need to be done via telemedicine. Just make sure you operate under a LLC and treat it as any other type of business/practice. Otherwise, it is relatively straight forward and simple.
Do you have to form different LLC for multiple businesses?
I personally would to separate out the liabilities but you don’t have to.
Justin,
Thanks for all your tips. I have a physical office space and an extra room I am looking at renting out to a massage therapist vs paying them a commission per pt they see. Do you have a recommendation? I like the idea of paying a commission but don’t want to end up paying more overall by having to pay taxes, workman’s comp, malpractice insurance, etc.
Thanks
Ya, if you want to keep this simple, just pay a flat rate and call it a day. I think a 300-500 a month is reasonable. It depends on local market rates.
What side hustles do you suggest? Iam currently self employed but looking to make more revenue?
Read this, it goes over the most profitable niche practices. And then do some market research in your area to figure out what the need is! The Most Profitable Niche Practices for the Nurse Practitioner