The Value of a Niche Side Practice

Running a side practice is a key tenet of the Elite NP Model. Operating multiple businesses is an ideal way to diversify your revenue stream, grow your patient base, and venture into high-demand medical markets. Here, Elite NP founder Justin Allan explains how a niche side practice can help nurse practitioners discover their greatest passions and achieve financial prosperity.

What is a niche side business?

I define a ‘niche’ practice as a small business that provides a specialized product or service to a targeted market. This business model is designed to generate profit with less than 12 hours of work per week for nurse practitioners. If you want to build a life of professional and financial independence as a nurse practitioner, I strongly urge you to establish a small niche side practice. There are multiple benefits to this career model, including:

  • Advanced wealth generation that outweighs revenue of part-time staff jobs
  • Numerous and substantial small business tax perks
  • Enormous amounts of personal satisfaction and pride

How does a side practice make money?

If you are a nurse practitioner picking up extra PRN shifts, doing Medicare home assessments, or working a part time job, then chances are you are not being compensated as well as you could be through a small business. Why is this? First, you will generate far more revenue through business ownership. I frequently perform 20 medical cannabis evaluations on a Friday morning and make $2,500 within four hours. There is simply no staff job that will pay an NP $450 per hour!

You will also save a tremendous amount of money through the tax deductions available to small business owners. It typically is impossible to write off a cell phone bill, car payment, car insurance, business dinners, laptops, internet bill, or business trips through a standard W2-based position. But as a business owner, things are much different.

My tax bill decreased significantly after I started my own businesses. I recommend finding a good accountant who understands tax law or consult with a tax attorney. I generated over $500,000 last year through my part-time urgent care job and my businesses last year. My legal tax rate was around 15%. You can’t beat that working a standard W2 position.

Lastly, the amount of pride and personal satisfaction that comes with owning a successful business is indescribable. I reached a level of self-actualization I never thought possible after becoming a business owner. Before owning my businesses, I hated the fact that I was making my employer rich. It robbed me of confidence and passion. If you are reading this, you may feel the same way as well.

How do you create a niche side practice?

A successful side practice typically consists of these three components:

  1. It provides an in-demand service or product to a specific market.
  2. It is profitable within three to six months.
  3. It does not require more than 12 hours per week to operate/maintain.

The goal is to put in the least amount of work hours possible to generate a profit. More freedom in your life should be the goal. Freedom requires time, which requires easy money. This can be obtained with the right strategies. There is a great article about how to find your practice’s niche here. I invite you to read this and understand the core concepts.

A niche side practice should also be profitable within a few months. If you are struggling to make a profit by month six, it’s time to seriously consider closing the practice and pursuing something else. Maybe the niche is to “niched” and there is not a market for your idea, or you aren’t spending enough on marketing. Remember, marketing should be the number one expense in your business.

Finding the right clients

It is crucial for you to provide a niche service that interests a specific subset of individuals. Finding a specific market is the first step in business development. This allows you to tailor your practice and marketing strategies to secure their business. My men’s health and testosterone clinic typically caters to a ’boutique’ market of affluent male patients. My medical cannabis clinic targets baby boomers and individuals interested in alternative treatment options.

Here are some other in-demand niches:

Sometimes, people specialize their service or product too deeply. There is a point where a niche is to “niched” for your region. For example, you cannot open a transgender wellness clinic in a conservative midwestern town of 5,000 people. The target population for your services is simply not there.

Budgeting your time

This niche side practice must be something that you can do on a very part-time basis. You do not want to give yourself a second job. That will decrease your freedom, not enhance it. It will take a lot of work to get the practice up and running, but after that, it should work for you, not the other way around. To avoid this, ensure that this side practice can be operated and maintained on 12 hours or less per week.

Every nurse practitioner reading this can easily generate an extra $5000 to $10,000 per month with one niche side practice. This small side practice can be the catalyst in the snowball effect of business growth. Usually, it takes one small business to become successful. For those who are hesitant about taking this pivotal leap and pinpointing their specialty areas, these courses may help.

Your first side practice will be the most important one you start, make it count!

24 Responses

  1. Thank you for this. I never thought about starting a small practice that tailors to a niche market.

  2. Looks like a developing niche might be telemedicine sick visits! People are scared to venture out to normal clinics any more. Thoughts?

  3. Hi there! What about when your current employer already manages your NPI number? My NPI is associated with their address/practice. It seems this would present challenges with using my NPI for my side business. Is this the case? Is there a way to work around this?

    1. If you accept insurance, then yes you will need to obtain another NPI. If it is a cash practice, don’t worry about it.

      1. Thank you for responding so quickly! I will not be accepting insurance. So I can use the same NPI for e-prescribing/labs? Any risk of my employer receiving any type of notifications about my activity on my NPI with my side practice?

        1. Yes, you can just use your personal NPI. Every once in a while your primary place of employment might get a letter for a lab bill or a request for a refill from your other practice, that has happened to me a HANDFUL of times at the urgent care I work at. Otherwise, there is no reason to have another NPI.

  4. Let’s say you have 3 to 4 target niche business ideas. Do you recommend spreading them out into different telemedicine practices? (For example all different company names, LLC’s, websites, etc? I hope that makes sense.

    1. If they are complimentary to each other, then it can be under the same practice. If they are totally opposite, then I would function under different LLCs

  5. One more question, so when you talk about making 2,500 for 4 hours of work, depending on taxes in your state, what you are actually making is significantly less than that, correct?

  6. I apologize, I don’t think my first question was posted. Operating a concierge business, do you have patients who feel as though you should either “prescribe” what they want or feel you should be at their beck and call? How do you deal with these individuals if this does happen>

    1. As long as you are charging enough to justify the “beck and call”, then so be it. What is your time worth? That is up to you to decide.

  7. I am new to this post. But my question is: how can a NP with her own NPI can prescribe meds without a MD collaboration?

    1. You can only do that in a full practice authority state. If you are in a restricted state, then you need a collaborator if you want to start your own business or do telemedicine in an independent state if you have a license there!

      1. HI Justin!

        I’m thrilled to have found your website! I can’t wait to take your PMHNP course. I’m still in grad school for PMHNP and have been racking my brain to figure out the best course of action once practicing. In my opionopn, telepsych is were it’s at; however, I live in PA-restricted. If I have a brick and mortor and obtain a license in PA and MD, saw patients there once or twice a week, could I do another day or two virtually from PA? Do you think this would take up too much time and therefore not be a part time business?

        I’m super excited to navigate all your material! NIce work!

  8. Do you have any advice/direction for a RN starting a new Mobile Vitamin Hydration and Injection business. I will also bring doing weight loss injections.

  9. Hi Justin,
    After reading multiple articles on your website regarding side niches, I think I came up with a side niche but I would like your input.
    I am thinking of creating a men’s wellness clinic which only focus on weight loss which can be done via tele visit. Once the business picks up, I will add other services such as TRT/ED. What do you think?

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