Doctors, physician assistants and nurse practitioners become so focused on creating a medical business that they forget there is an infinite amount of possibilities out there for other businesses that are outside of medicine.
Practicing medicine is what we do as a nurse practitioner. It is what we know thus creating a medical oriented business is easier for us to do. But is it always the right decision?
Maybe or maybe not. It depends on the medical service and niche you want to perform. If you are the only med spa or house call service in a regional area, then go for it! But these things are overdone and the market tends to be saturated. So if you want to create a medical practice, you better be aware of your competition and ensure your service is needed before diving in.
Creating a business outside of a medical practice can be very fulfilling and it diversifies your financial life. It also protects you because you are exploring outside of medicine thus decreasing your overall risk. If you have just 1 part time medical practice and it fails, that is it. But if you diversify outside of medicine and also own a few small overnight rentals, you will be generating long term revenue with low risk potential.
There are numerous options for part time businesses that nurse practitioners can pursue. Here are some examples:
- Real estate: This is something everyone needs to be involved with. Real estate is a fantastic hedge against uncertain economies. Property holds its value as long as you don’t purchase it during a boom like we are currently seeing in many parts of the country. There are two ways to make money with real estate. Flipping and rentals.
- Rental properties can generate a nice side income as well as building your personal wealth by having the tenant pay off your mortgage. Rule of thumb is a 3 bedroom 2 bath family home. The rent should be 1% of the purchase price. So a $120,000 home should rent for $1,200. If you cannot make those numbers work, then keep waiting for that right deal.
- Flipping a house can generate a significant one time profit. Remember, you make money on real estate at the time you buy it, not when you sell it. Ensure you walk away with positive equity at the time you buy it.
- Small service businesses: Do you realize how easy it is to start a small house cleaning business? It can be done practically all on Craigslist. You hire off craigslist and advertise on craigslist. Pay the maids a percentage and you sit back and “manage” it a few hours a week. You can easily generate a few thousand dollars a month doing this. Other options include landscaping, car detailing, window cleaning and dog walking. These types of businesses have low overhead and are easy to manage. While they are not earth shattering profit generating businesses, they could easily generate enough to pay your mortgage.
- Tutoring: You are an advanced practicing nurse after all. There are countless struggling RN and NP students that need assistance with school. If you have a knack for teaching, this could easily result in a small stress free side income.
Obviously there are many more side businesses you can pursue but hopefully these will help you generate some ideas to think about.
Every nurse practitioner should have their own medical practice. No question about it. It is what we do. But really consider having another side business outside of medicine to diversify your financial life. You will be happier for it. I promise.