Econologics Financial Advisors LLC blog

How Should Veterinary Practice Owners Align Their Practice and Personal Finances?

Econologics — Wed, 29 Jul 2026 16:53:58 GMT

As a veterinary practice owner, you have personal finances and practice finances. Your practice is generating substantial revenue, but is your personal net worth reflecting that success? You’re not alone. It can be difficult to know how to connect the dots between practice and personal financial success, especially if this is your first time owning a business.

Many veterinary practice owners experience a disconnect between their thriving business and personal financial security. Veterinary practice owners often consider the needs of everyone around them and struggle to know when the business should give them more.

Econologics Financial Advisors specializes in helping veterinary practice owners bridge this gap through integrated financial planning that helps you determine the best way to build long-term financial security from your practice's success.

This guide walks you through the Econologics Financial Advisors framework for aligning your practice and personal finances into a single coordinated system. You will learn how to channel practice profits into household stability, optimize your tax position, fund retirement aggressively, protect your assets, set your family up for long-term success, and prepare for an eventual practice transition.

The best part? You’ll get peace of mind that your entire financial life is in order. You spend a lot of time caring for others: family, employees, and your practice. Econologics Financial Advisors is here to care for you and help you breathe a “ahhhh” sigh of relief, knowing you have a plan that gives you the flexibility to retire and the security that your family needs.

The path requires intention, structure, and the right guidance. And Econologics Financial Advisors is uniquely qualified to help veterinary practice owners because, well, it’s all we do.

Key Takeaways: How to Align Practice and Personal Finances

Your practice is your largest asset, but it often gets excluded from traditional financial planning conversations.
Integrating cash flow from practice with household finances creates a predictable system for building wealth and stability.
Tax optimization strategies can reduce your liability by thousands annually when applied year-round.
Econologics Financial Advisors, the specialized veterinary practice manager advisors, connects practice profitability to personal financial goals through monthly advisory.
Exit planning should begin years before your actual transition to maximize practice value and personal proceeds.

Why Traditional Financial Planning Falls Short for Veterinary Practice Owners

Most financial advisors focus on investment portfolios and retirement accounts. They meet with you once or twice a year to review returns. This approach ignores the elephant in the room: your veterinary practice.

Your practice likely represents your largest and riskiest asset. It generates your income. It holds significant transferable value. It creates tax liabilities and opportunities. Yet traditional financial planning leaves it out of the conversation entirely.

This oversight has tangible consequences for veterinary practice owners:

Veterinary practice owners often underpay themselves.
They underfund retirement accounts.
Unnecessary investment risks are taken elsewhere.
They rely on a single income source without building additional revenue streams.

What Does Integrated Financial Planning Mean for Veterinary Practices?

Integrated financial planning connects every financial decision in your practice to outcomes in your household. It recognizes that your business and personal finances are inseparable. This connecting of the financial dots is where most veterinary practice owners have a blind spot and where major personal financial improvements can happen.

When you increase practice profitability, you have more capital to invest personally. When you reduce practice overhead, you can pay yourself more. When you structure your business entity correctly, you protect personal assets from liability. These connections are what create an integrated approach.

The Econologics Roadmap structures this process through nine core planning areas: written financial plan, policies and procedures, business viability, income assurance, debt elimination, estate planning, tax optimization, asset protection, and investment planning. Each area supports the others.

How to Assess Your Current Veterinary Practice-to-Personal Financial Connection

Before building an integrated plan, you need clarity on your starting point. Ask yourself these diagnostic questions:

Are you confident you will meet your retirement goals?
Do you know which metrics indicate whether your veterinary practice operates at peak efficiency?
Does your household receive consistent distributions from your veterinary practice?
Do you have an advisor who meets with you frequently enough to keep you accountable?

If you answered "no" to any of these, there are gaps in your current planning approach. Identifying them is the first step toward closing them.

Key Metrics to Track in Your Veterinary Practice

Financial success requires measurement. Track your profit margin monthly, targeting a minimum of 25% with a plan to grow it over time. Monitor your collection rate and overhead percentages, and evaluate them for opportunities to improve. Review your accounts receivable aging report weekly.

On the personal side of your financial life, track your net worth quarterly. Know your savings rate as a percentage of practice gross income, and target a distribution of at least 10% of practice gross income to personal savings consistently.

The Econologics Financial Advisors team will help you understand how to do this without creating financial discomfort for the business.

How to Channel Veterinary Practice Profits Into Personal Stability

Generating profit in your practice means nothing if that profit stays trapped in the business. You need a system for moving money from practice to household in a disciplined, tax-efficient manner.

Start by paying yourself a reasonable salary. Many practice owners underpay themselves to minimize payroll taxes, then take irregular distributions. This creates cash flow unpredictability at home and makes planning difficult. The Econologics Financial Advisors can help guide you on how to adapt your mindset about practice financials to make sure you’re receiving the financial wins that you deserve as the leader of your veterinary practice.

Beyond salary, establish regular profit distributions on a quarterly or monthly schedule. Treat these distributions as non-negotiable. Your practice exists to support your household financial goals, not the other way around. See? This is what connecting the dots looks like. One, unified financial life where wins in practice mean wins at home.

Building Multiple Income Streams Beyond Veterinary Practice Revenue

Relying solely on practice income creates vulnerability. If patient volume drops, reimbursement rates decline, or you face a health challenge, your household feels the impact immediately.

Diversify by building income sources outside your practice. Real estate investments can generate passive rental income. Dividend-paying investments create quarterly cash flow. Annuities with guaranteed income benefits offer predictable retirement distributions.

Econologics Financial Advisors helps practice owners build multiple income streams through investment management and insurance-based products that align with their overall financial roadmap.

Tax Optimization Strategies for Veterinary Practice Owners

Taxes represent one of your largest annual expenses. Veterinary practice owners often pay 25-40% of their gross production to federal, state, and local taxes. Reducing this burden puts more money in your pocket for saving and investing.

Tax optimization works best as a year-round strategy, not a December scramble. Review your tax position quarterly with your advisor and accountant. Look for opportunities to accelerate deductions, appropriately defer income, and maximize retirement contributions.

Entity Structure and Its Tax Implications

Your business entity structure directly affects your tax liability. S corporations, for example, allow you to split income between salary and distributions, potentially reducing self-employment taxes.

The optimal structure depends on your income level, state regulations, and personal circumstances. Your accountant can help you review your entity structure annually to confirm it still serves your goals as tax laws change.

Retirement Plan Contributions as a Tax Strategy

Retirement plan contributions offer one of the most powerful tax reduction tools available. Traditional 401(k) contributions reduce your taxable income dollar for dollar up to annual limits.

If you want to contribute more, consider adding a cash balance plan to your retirement strategy. Cash balance plans allow practice owners to contribute significantly more than traditional retirement plans alone permit. Contributions to a cash balance plan are tax-deductible and can dramatically accelerate retirement savings while reducing current-year tax liability.

How to Build a Retirement Plan That Reflects Your Veterinary Practice Success

Retirement planning for veterinary practice owners requires different thinking than for employed professionals. Your veterinary practice transition will likely be the largest financial event of your life. Planning must account for both ongoing retirement contributions and the eventual proceeds from selling your practice.

Start by calculating your retirement income needs. What annual income do you need to maintain your desired lifestyle? Work backward from that number to determine how much you need in retirement assets. If you’ve never done this planning exercise before, don’t worry, the Econologics Financial Advisors team can help you determine what you’ll need to maintain your lifestyle in retirement.

Combining Retirement Accounts and Veterinary Practice Transition Proceeds

Your total retirement funding will come from multiple sources: retirement accounts, investment portfolios, income-producing assets, and proceeds from the veterinary practice sale. Model various scenarios that account for different practice valuations and sale timelines.

The Econologics Roadmap includes future income analysis that removes guesswork from retirement planning. This analysis projects income from all sources and identifies gaps that need to be addressed before you reach your target retirement date.

Avoiding Common Retirement Planning Mistakes

Veterinary practice owners often make several retirement-planning errors.

They delay starting contributions, thinking they will catch up later.
They invest too aggressively or too conservatively for their time horizon.
They fail to account for inflation in their income projections.
They assume the veterinary practice sale will fully fund retirement. Market conditions, buyer availability, and practice-specific factors all affect valuations. Build your retirement plan to succeed even if practice sale proceeds disappoint.
They think it’s too late to make a plan. Spoiler alert: It’s not too late! Wherever you are starting is workable; don’t fall into the mindset of thinking it’s too late.

Get started with our self-assessment quiz to get your financial baseline score.
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Protecting Your Assets From Risk and Liability

You work hard to build a profitable practice. Asset protection ensures a lawsuit or unexpected event does not wipe out years of accumulation.

Veterinary practice owners face elevated liability risk. Veterinary professional liability claims, employment disputes, and premises liability all pose threats. Creditors can target personal assets if business assets prove insufficient.

Insurance as the Foundation of Asset Protection

Proper veterinary insurance coverage forms your first line of defense. Carry adequate veterinary professional liability insurance with appropriate limits. Maintain commercial general liability coverage for your veterinary practice location. Consider an umbrella policy that extends coverage across multiple areas.

Review your coverage annually. As your net worth grows, your coverage limits should grow accordingly.

Entity Structuring for Liability Separation

Business entity structure can help separate personal assets from veterinary practice liabilities. Operating your veterinary practice through an appropriate legal entity may limit your personal exposure in certain situations.

Consult with qualified legal and financial advisors about entity structuring strategies. The optimal approach varies by state, practice type, and individual circumstances. Econologics Financial Advisors includes asset protection planning as a core component of every client engagement.

Debt Management: Eliminating Destructive Debt While Using Productive Debt

Not all debt is equal. Destructive debt drains resources and impedes wealth building. Productive debt can accelerate growth when used strategically.

Destructive debt includes high-interest consumer debt, credit card balances, and loans that do not generate returns exceeding their cost. Eliminating this debt should be a priority.

Creating a Debt Elimination Schedule

List all your debts with their balances, interest rates, and monthly payments. Prioritize paying off high-interest destructive debt first. Create a specific schedule showing when each debt will reach zero balance.

Maintain your debt elimination schedule even when cash flow improves. The temptation to slow down payments when things are going well undermines long-term progress.

When Debt Makes Strategic Sense

Productive debt generates returns that exceed the borrowing cost. For example, a loan to purchase equipment that increases practice capacity or create a new stream of revenue can make sense (think x-ray machines, laser therapy, shockwave therapy, ultrasound, MRI, etc.). Financing for real estate that generates rental income may strengthen your portfolio.

Evaluate each borrowing decision against your overall financial plan. Does this debt move you closer to your goals or further away? The answer should guide your decision. The Econologics Financial Advisors can provide a tool that helps you keep a pulse on debt monitoring so that you’re prioritizing debt elimination where it makes the most sense.

How to Maximize Your Veterinary Practice Value Before Transitioning

Your veterinary practice transition represents the largest financial event of your career driving personal wealth and preparing you for the future. Getting ready for it requires years of intentional effort, not last-minute scrambling.

Veterinary practice value depends on multiple factors: revenue trends, profitability, patient demographics, facility condition, staff stability, and operational systems. Addressing weaknesses in any area increases your eventual sale price.

When to Start Veterinary Practice Exit Planning

Exit planning should begin at least five years before your target transition date. Earlier is better. This timeline allows you to address problems, implement improvements, and demonstrate results to potential buyers.

Even if you have no immediate plans to sell, understanding what drives practice value helps you make better operational decisions today. Every improvement you make now shows up in your future valuation.

The Practice MaxValue Approach

Maximizing veterinary practice value requires a systematic approach. Document all operational procedures. Reduce owner dependence by developing strong associate and staff teams. Improve facility appearance and equipment condition. Demonstrate consistent revenue growth over multiple years.

The Econologics system includes a Practice MaxValue Checklist that guides owners through preparation steps at every stage of ownership. Following this checklist positions you for the strongest possible transition outcome.

Building Your Financial Planning Team

No single advisor has expertise in every area you need. Building an effective team requires assembling professionals with complementary skills.

Your team should include a financial advisor who understands veterinary practice ownership, a CPA experienced with veterinary businesses, an attorney for legal matters, and insurance professionals for risk management. And here’s the most important part: These advisors must communicate with each other and coordinate their recommendations. This is where many veterinary practice owners have a gap. They’ve got a handful of great financial team members, but they’re not coordinated. This is where Econologics Financial Advisors can help.

Why Veterinary Practice-Specific Financial Expertise Matters

Advisors who work primarily with veterinary practice owners understand your unique circumstances. They know the industry dynamics, regulatory requirements, and common challenges you face. Also, they’ve helped other veterinary practice owners at every stage of practice, so they’ve got a playbook to help you, no matter where you’re starting.

A generalist advisor may miss opportunities specific to veterinary practice ownership, as the nuances of animal health are different from those in other industries. They may not understand how cash flow from a veterinary practice connects to household finances. They will likely not know the metrics that indicate the health of veterinary practices. Financial benchmarks in animal health differ from those in human healthcare because the healthcare model is fundamentally different.

Econologics Financial Advisors focuses exclusively on veterinary practice owners. This specialization means every recommendation accounts for both your business and personal financial realities based on a long history of experience.

Implementing Your Integrated Financial Plan

A financial plan only creates value when implemented. Many veterinary practice owners receive planning documents that sit in drawers, never acted upon.

Implementation requires ongoing accountability. Meeting with your advisor monthly rather than annually keeps you on track. Regular check-ins identify when you drift from your plan and allow course corrections before small deviations become major problems.

Common Mistakes Veterinary Practice Owners Make With Their Finances

Learning from others' mistakes helps you avoid making them yourself. Several patterns appear repeatedly among practice owners who fail to achieve their financial potential.

Waiting to start is among the most damaging. Every year of delay costs compound growth. Starting now, regardless of your current situation, gives time the opportunity to work in your favor.

Financial Blind Spots to Address

Veterinary practice owners often have blind spots that undermine their financial progress. They may not know their true profit margin. They may underpay themselves relative to industry benchmarks. They may ignore practice value until they want to sell.

Download our Top Veterinary Practice Owner Financial Blind Spots Guide
Get the Guide

Identifying and addressing these blind spots accelerates progress. An outside perspective from a qualified advisor often spots issues you have normalized through familiarity.

How Econologics Financial Advisors Supports Integrated Planning

Econologics Financial Advisors has guided veterinary practice owners toward financial security for over 17 years. The firm's approach differs from traditional advisory in several important ways:

Specialization in your business, veterinary practice ownership.
Proprietary system designed specifically for veterinary practice owners.
Ongoing monthly advising to make financial planning part of the fabric of your life, not an afterthought.
Support and empathy. We know that taking the first step in financial planning can be uncomfortable. Our team is here to provide education and support to make sure you’re comfortable with the plan and to provide you with the peace of mind you deserve.

As a registered investment advisory firm and national insurance agency, Econologics maintains a fiduciary responsibility to every client. This means recommendations must serve your interests above all else.

Taking the First Step Toward Financial Alignment

The gap between veterinary practice success and personal financial security does not close itself. Intentional action bridges that gap.

Start by assessing your current situation honestly. Identify where your practice and personal finances disconnect. Recognize the cost of leaving that disconnect unaddressed.

Then take action. A complimentary consultation with Econologics Financial Advisors can help you identify your primary financial challenges and outline initial steps toward solving them.

Your veterinary practice can create lasting wealth for your household. The question is whether you will harness that power or let it dissipate through unfocused effort. The choice, and the outcome, is yours.

Schedule a Call

FAQs About Aligning Veterinary Practice and Personal Finances

What is integrated financial planning for veterinary practice owners?

Integrated financial planning connects your veterinary practice and household finances into one coordinated system. Econologics Financial Advisors specializes in this approach, helping you responsibly channel practice profits into personal stability and wealth through structured planning and monthly accountability.

How often should I meet with my financial advisor as a veterinary practice owner?

Veterinary practice owners benefit from monthly advisory meetings rather than the typical once-a-year review. Frequent contact keeps you accountable and allows adjustments before small issues become significant problems.

When should I start planning for my veterinary practice exit?

Begin exit planning at least five years before your target transition date. Econologics Financial Advisors includes exit preparation in planning from day one because every operational improvement you make increases eventual practice value.

How can I reduce my tax burden as a veterinary practice owner?

Tax optimization requires year-round attention. Strategies include maximizing retirement plan contributions, structuring your business entity appropriately, and timing income and deductions strategically. Work with advisors who understand practice-specific tax opportunities.

What percentage of veterinary practice income should I save personally?

Target channeling at least 10% of your veterinary practice's gross income to personal savings consistently. This benchmark is based on studying what financially successful practice owners achieve over time.

How does Econologics Financial Advisors differ from other advisors?

Econologics focuses exclusively on veterinary practice owners and provides monthly advisory rather than annual reviews. As a fiduciary firm, all recommendations must serve your interests. The proprietary Econometry Analytics system tracks your progress with measurable metrics.

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eric.miller@econologics.com (Eric S. Miller, RFC®) — Thu, 12 Jun 2025 18:19:33 GMT

10 Reasons Why Practice Owners Are in a Financial Crisis - Econologics Financial Advisors

Diane Hart — Tue, 17 Sep 2019 20:53:40 GMT

Most practice owners are in a financial crisis.

Crisis is a strong word. It is defined as a “time of intense difficulty, trouble, or danger.” Examples of this would be a drug crisis, a drought crisis, a food crisis, or some kind of health crisis. It is a word that elicits fear, uneasiness, and anxiety. It is a situation that most people would not want to confront. So when I say that most private practice owners are in a financial crisis, I am not embellishing or trying to create a problem that doesn’t exist. I have been on the front lines and this problem is real.

For the last 10 years I have personally worked with hundreds of private practice owners which include veterinarians, physical therapists, optometrists, dentists, and chiropractic specialists. I have had over 10,000 conversations with owners on the subject of money. I have seen, observed, and witnessed almost every financial scenario that a private practice owner will face. Everything from purchasing a new practice to selling a practice and everything in-between such as: buying equipment, refinancing to a buy a new building, remodeling their current space, negotiating lease agreements, hiring associates, paying taxes, and on it goes (and that’s just the positive list). There is nothing that a practice owner could bring to me that I have not seen 10 times over.

I have made it my personal mission and the mission of our financial planning firm to help practice owners improve their financial condition so they can actually recognize the fruits of their labor. My vision is to show owners that financial freedom is attainable, but it starts with financial IMPROVEMENT. With that said, I can tell you that there is a REAL financial crisis happening amongst private practice owners. I have seen the household and business financial statements of enough private practice owners to say with confidence that the vast majority of owners are only a few steps away from financial ruin, but they are also not far from financial abundance either.

Let me start there. There are 2 ends of the financial spectrum that one could achieve financially. The first would be financial abundance. This could be defined as a financial condition in the household where one has:

An abundance of cash flow coming into the household from multiple sources
Where there is no bad debt
Where the business is profitable, sustainable, and transferable
Practically all assets are shielded from loss
And one has time to pursue all of their life purposes

The other end of the spectrum would be financial ruin. This could be defined as a financial condition in the household where one has:

A scarcity of cash flow (typically coming from only one or two sources)
Has suffered large losses of income, investment value, and assets
Over-leveraged finances with burdensome debt
Has few to no advisors or solutions apparent
And has lost all hope that the current financial condition can be rehabilitated

In my experience, most private practice owners are MUCH closer to financial ruin than they are financial abundance. As a matter of fact, the majority of practice owners:

Have less than $10,000 in their business checking accounts
Do not have enough in reserves to cover more than 1 payroll
Have over $1,000,000 in personal and business debt combined
Have had someone in their organization steal or embezzle money
Have a profit margin of less than 10%
Save less than $10,000 a year towards building future wealth

Although this financial crisis amongst practice owners is vast and for many varied reasons, allow me to name a few based on my experience:

Crisis Reason #1:

Practice Owners have never identified what Financial Zone and corresponding financial status they are actually in compared to the zone above or below where they fall.
I’ve outlined 7 different Financial Zones a practice owner can be in with corresponding financial status characteristics: Zone 0 – Trapped, Zone 1 – Scarcity, Zone 2 – Insecure, Zone 3 – Content, Zone 4 – Expansion, Zone 5 – Abundance, Zone 6 – Power, Zone 7 – Indestructible Wealth.

It’s important to identify where you are, however most practice owners have never examined their actual financial condition compared to an optimum one. This then leads to why they are not applying correct actions steps to help get out of the lower financial condition which typically then leads to stalled progress or worse. It’s understandable—comparing oneself to the Joneses is not a correct tool of measurement.

Crisis Reason #2:

Practice Owners have no comprehensive financial plan specifically designed for them.
This sounds fairly rudimentary, but the importance of a good financial plan cannot be understated. I am not talking about a sales pitch disguised as a financial plan. I am talking about an actual written plan that aligns the exact financial goals of the household, assigns an income target needed for the practice to produce, utilizes correct financial statistics to measure the progress, provides specific action steps needed to correct any non-optimum condition, and is built on gradual steps allowing for the practice owner to see financial “wins” and celebrate them along the journey.

Crisis Reason #3:

Practice Owners listen to OPOs (Other People’s Opinions) about financial matters.
Everyone always wants to put their 2 cents in when it comes to other people’s financial situation. Unfortunately, 2 cents is about all the opinions are actually worth. One of the most difficult tasks in my job as a financial advisor has been handling the opinions of “other” advisors, friends, colleagues, insurance guys, brokers, local financial advisors, accountants, uncles, parents, and the list goes on.

Unfortunately, practice owners will listen to what I’ll call “traditional financial advice” of gurus or people they think are financial experts for whatever reason. These “experts” speak to the masses and although they may have knowledge about insurance, investments, or tax preparation independently, the majority HAVE NO IDEA what exact steps will help bring a private practice owner’s household into a higher and more abundant financial condition. Here’s how you know: look at your current financial condition. Do you like it? If not, then stop following the advice of these advisors. I’m not saying they don’t mean well, but good intentions don’t always bring about a positive change in one’s financial situation. Correct financial advice (specific for a practice owner family) and correct application done in the correct sequence will bring about financial results.

Crisis Reason #4:

Practice Owners assign the financial responsibility of the practice to someone other than a direct or indirect owner of the business.

As a private practice owner, nothing is more important than the financial solvency of your practice. NOTHING. Solvency means there is MORE money coming in than what is going out. In my experience, most practice owners simply don’t want the burden of “doing the books” or they say “my accountant handles that” or worse “my office manager handles my finances.” This is not an indictment of anyone, and there is certainly nothing wrong with having someone handle paying bills and entering financial data into QuickBooks. But when a practice owner gives over control of the financial condition of the business to a third party, then huge trouble is on the horizon for that owner.

This is important—you should ALWAYS have access to all bank accounts. You should ALWAYS know your balances in your checking and savings accounts. You should have weekly finance meetings with your team. AND MOST IMPORTANTLY…you should NEVER give someone the ability to write checks on your behalf unless you have a dual sign or approval process. There is a long line of private practice owners who have lost $50k, $80k, $100, $200k, and more in revenue because they gave over the financial responsibility to someone else and took their eye off the books.

Crisis Reason #5:

Practice Owners take on too much debt.

Number one on everyone’s financial goal list is to be debt free. Yet most practice owners have no problem carrying over $1,000,000 of personal and practice debt combined. Let me be clear: debt itself is not the problem. Bad debt is the problem. Bad debt is defined as credit cards, car payments, house mortgages, or anything that doesn’t provide any cash flow or doesn’t appreciate in value. However, bad debt can be tricky and be disguised as good debt. Huh? You might be wondering what that looks like. I have seen many practice owners borrow HUGE amounts of money “claiming” it was good debt. Unfortunately, they borrowed the money when they were not in an optimum financial condition, either in the practice or personally, and the business didn’t make enough money to cover the new debt service so they constantly struggled financially because of it. In addition, I’ve seen examples of practice owners buying bigger homes, second homes, and better cars without actually having the cash to do so. The effect is almost always leaving the household in a declining financial condition or subject to foreclosure if the business has a bad stretch.

Crisis Reason #6:

Practice Owners do not understand the tax system.

The second largest expense of most private practice owners is taxes. It is the most predictable expense and yet it is the one most owners have trouble paying. Because most practice owners are set up as an S Corporation or LLC taxed as an S Corp, the PROFIT of the business passes through to their personal returns and they are liable for the tax. The issue with this is most practice owners either spend the profit somewhere else or the business eats it up in expenses which are not deductible. As a result within the owners I’ve consulted with, 80% have had issues paying their tax bill at the end of the year. In fact, many need to borrow more money or take from their personal reserves to pay their tax.
In addition, many practice owners will listen to their accountant’s advice and NOT take certain tax deductions for fear of “being audited” as if the IRS has a “red flag” book hiding somewhere. Here’s the truth: the price you pay for your accountant being able to sleep at night can cost you tens of thousands to hundreds of thousands of dollars.

Crisis Reason #7:

Practice Owners underestimate the amount of income the practice needs to produce to be solvent and expand.

The number one expense of a private practice is the money they never made and should have. The primary cause for this is simply never determining how much the practice actually needs to make every month for the practice to grow and serve the financial needs of the household. Most practice owners never grasp that their practice will try and spend every dollar that it makes and then some. The only way to pay for basic expenses, taxes, expansion, and other investments is to factor in ALL of these items when determining what amount of income is actually needed to operate the business to be solvent and expand.

Crisis Reason #8:

Practice Owners have not discovered and/or disconnected from “Financial Foes.”
When I really took a step back and looked at the financial condition of those practice owners that (despite all efforts) could never get ahead, were always broke, had onerous debt, and could never accumulate any reserves or buffers—I always found that there was someone in the business actively trying to do them harm. This is so true no matter how hard it is to find. It could be as subtle as not pushing a needed service, not rescheduling someone, not filing the correct claims for insurance reimbursements. Or it could be as savage as hiding checks, ordering unauthorized products and services, embezzling money from the accounts or poisoning the staff with toxic rumors.

Most practice owners simply don’t want to confront the obvious—that a staff member in a line of production is actively blocking income to the practice or is being irresponsible with spending the practice funds. Either way, this inability to spot and disconnect these individuals is a primary cause of financial hardship and ruin of a private practice.

Crisis Reason #9:

Practice Owners do not have someone holding them accountable to their financial condition and actions to attain their goals.

In business, there is no nobility in going it alone. Especially when it comes to making financial decisions without any training in the subject of money. In my experience, a practice owner needs someone to help them plan, set correct targets, and hold them accountable for their financial actions. Otherwise they tend to make decisions on what they “think” they need now or what someone else tells them they need without any premise or proven results. In the DIY (Do It Yourself) scenario, there is no sound strategy, no step-by-step plan, and no experienced advisor to bounce ideas off of. Having a trusted, financial coach to hold you accountable—one who really understands the direction, goals, and purposes of a practice owner—can literally save hundreds of thousands of dollars in bad decision-making, mal-investments, and lost opportunities. This is not a go-it-alone venture—your family, staff and community are depending on you to survive.

Crisis Reason #10- Practice Owners have a poor attitude about money.

Most people were brought up with the idea that “You shouldn’t talk about money” or that “It’s impolite to boast about money” or other such restrictive notions regarding money. This leads to the single biggest issue regarding money that most people have—money is scarce. Having an abundance of money is simply not a realistic concept to most people. Financial freedom to most people is a myth. I’ve heard: “No one can be trusted regarding money,” “My financial future is uncertain,” “Life has taken away all of my wealth.” False! These statements are all poor money attitudes. If you walk around all day with these destructive attitudes towards money, then you will most likely always be broke. We create our own self-fulfilling prophecy.

EVERY practice owner needs a financial advisor who understands how important their business is to their household, stands by them when they have a bad week, holds them accountable, and guides them towards financial success.

We want to be your guide. It’s what we do for practice owners like you! Let us guide and advise you on your financial journey—no matter what phase of ownership you are in. Our goal is to empower you to make the best financial decisions which will lead to financial success, and we are experts in what we do.

Schedule an appointment today to learn more about how we can create a road map for you.

Do Well, Owners!
Eric Miller

Advisory Services offered through Econologics Financial Advisors, LLC., A Federally Registered Investment Advisor.

I Have a Secret to Tell You - Econologics Financial Advisors

Econologics — Wed, 20 Mar 2019 13:16:08 GMT

I have a secret to tell you about making more money.

First, I want to tell you why we are having this discussion.

I did a Google search on ways to make more money and was surprised to find that most of the answers had nothing to do with production or work. The suggestions ranged from renting your house on Airbnb to flipping items on Craigslist. There were a few suggestions about starting a new business, but not one mention of improving your skills and value in your given field to increase your ability to produce!

And now I will tell you the secret: YOU are your greatest asset. Your skills and abilities as a practitioner, executive and owner determine your success. You are the key to making more money.

Ayn Rand once said, “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” I am pretty sure you already knew that. It’s not really a secret. But YOU might be a secret to your public. Does your community know who you are and what you do? Do you promote yourself, your company and your products and services?

As a practice owner you have the ability to maximize the value of your practice by simply making yourself and the value of your services known. This is key to expansion and financial stability for a practice. Having a financial plan that helps you understand your income needs is also key. Otherwise how do you know where you are going financially and how will you get there?

A Private Practice Millionaire knows how to make more money and get a return on his or her investment and sees the importance of having and following a personal financial plan.

Are you a Private Practice Millionaire?

Pass the Wine, Please… - Econologics Financial Advisors

Econologics — Fri, 04 Dec 2015 16:04:39 GMT

I recently took a trip to France and had the opportunity to tour some wineries. Fascinating business, making wine. Did you know winemakers use satellites to monitor their vineyards? Some of them even have their land divided into grids so that they can monitor the soil and plants in each grid. Then there is the factor of time when discussing the wine-making process. A grapevine planted today is an investment for the winery for the next 50 to 60 years! The vine isn’t even considered mature until it is at least 15 years old. Talk about patience and planning ahead!

So what does this have to do with you?

Well, your business is like a grapevine. In the beginning, the business gets established and there is not much reward for the equity and hard work put in day after day. The business needs time to grow and has to be nurtured and cultivated to make it a success. And the right technology has to be applied for that success to occur. Doing so results in a business that, like a fine wine, can produce excellent returns for the owner.

A business owner who is in the process of becoming a Private Practice Millionaire or who has already achieved this status knows the importance of having and applying the right technology and knows the importance of aligning with professionals who provide necessary services to keep the Private Practice Millionaire on track. They avail themselves of the Private Practice Millionaire Academy to stay educated on financial principles and truths that help them improve their financial condition. And they partner with professionals who specialize in working with private practice owners to help them nurture and cultivate their business.

Are you a Private Practice Millionaire?

How to Turn 49 Cents into $2.86 Million - Econologics Financial Advisors

Econologics — Sat, 06 Jun 2015 18:07:36 GMT

Remember the McDonald’s hot coffee fiasco? A lady bought a cup of coffee, spilled it on her lap and sued. McDonalds was found liable and damages were assessed in the millions. It doesn’t take much to consider that McDonalds has “deep pockets.”

Have you considered that Private Practice owners are perceived to have “deep pockets” and are therefore prime targets for getting sued? Did you know that the attorney for someone who is suing you will actually do a cost benefit analysis on you to see if you are a “deep pockets” case? If your assets are not properly protected it can be easy to find out what assets you have by performing a public records check.

There are professionals that do this for a living for law firms. They have no problem invading your privacy. Luckily there is a way to handle this: asset protection. Asset protection is a powerful tool for privacy, which is your first line of defense against a legal opponent. If the investigating party cannot find assets tied to you, then you look less attractive to them. If the opponent persists, then you have your second line of defense of having your assets defended well, which will make them difficult to obtain; mitigating your overall loss of time and money.

Private Practice Millionaires know potential litigation is part of the game of being a practice owner. They know the perceptions that are out there and have no qualms about protecting the assets they have worked hard to acquire. Understanding the tools of asset protection are extremely key to being successful.

A Private Practice Millionaire knows this and takes the time to learn about these tools and implement the ones that will ensure privacy and protection personally and professionally. They attend the Private Practice Millionaire Academy to stay educated on these tools and partner with professionals who can properly advise and assist them with their asset protection. Are you a Private Practice Millionaire?

Protect Your Assets From the Enemy - Econologics Financial Advisors

Diane Hart — Sun, 19 Apr 2015 02:47:19 GMT

Asset protection is an often overlooked, yet vital part of obtaining the Optimum Financial Condition. It also has many different meanings and applications. Most of us tend to think of asset protection in the scope of what happens if there is some kind of a lawsuit levied against us. Other very important questions you should consider that are often overlooked are as follows:
How protected are my reserves from the stock market?
How protected are my income sources from taxes?
How protected are my assets from inflation or deflation?

Our responsibility is to ensure you are looking at every possible risk which could impact the value of your assets and to come up with a plan to make certain you are taking some action to lessen the risks.

Asset Protection Enemy #1:
The Stock Market
The world’s largest casino is at it again with record highs in the Dow and S&P 500 and glorious double-digit returns in most mutual fund accounts. What could possibly go wrong? PLENTY! If you have been lucky enough to recoup some of your losses in your mutual fund and stock market accounts, its high time you protect those assets from potential loss. It never ceases to amaze me why people would put a substantial amount of savings in a system where you put up ALL the capital, take ALL the risk, and have a portion of your accounts skimmed every year with absolutely no guarantees of return of your investment. That IS the Mutual Fund and Brokerage industry. How do your protect these assets? Simple. You transfer these accounts to institutions and financial products which guarantee your principal AND promise you the possibility of a guaranteed income stream. Life Insurance and annuity companies can make these promises and take the risk for you. The first annuity was created around 222-225 AD, during the Roman Empire. Do you know of any mutual funds that have been around that long?

Asset Protection Enemy #2: Taxes
It is vital that you have some idea of the tax ramifications of your income sources as you get closer to retirement. Many of you have been taught to “defer” taxes until some time down the line by putting the majority of your reserves in qualified accounts such as 401ks and IRAs. If you have been utilizing the Econologics system for any length of time, you know we have a fundamental disagreement that you will be in a lower tax bracket and therefore you should look towards “alternative” types of investment vehicles to building your wealth. These include primarily cash value life insurance, non-qualified annuities, and mutual funds that are passively managed, tax efficient, and have low trading costs.

Asset Protection Enemy #3: Inflation/Deflation
Inflation is an increase in the money supply which then creates a disparity between products available and the amount of money in circulation. This generally causes market prices to increase. Deflation is simply a decrease in the money supply which then creates a disparity between products available and the amount of money in circulation causing market prices to fall.

The way to successfully handle both inflation and deflation is to have multiple income sources which are feeding you a lot of income now and in retirement. Some ideas of sources you should consider include: investing in things which pay dividends or cash flow, having a portion of your reserves in guaranteed income sources, owning some commodities, and staying out of consumer debt.

Don’t make the mistake of thinking that asset protection is only about handling a lawsuit or only for “the wealthy.” It’s about making sure you have a solid plan to protect your assets from the real wolves so you keep what you have spent a lifetime accumulating. We can help.

What makes you so special? - Econologics Financial Advisors

Econologics — Thu, 15 May 2014 22:52:19 GMT

You are special because, unlike the average person, you are a private practice owner. Owning your own practice makes you special when it comes to financial planning because your practice is a key contributor to you household finances. Therefore your practice must necessarily be included in your personal financial plan in order to truly have a real and valid plan that relates to your household.

Look at the current condition of your household finances. What do you see? Are you making enough income to meet your needs? Are you putting away enough of that income to meet your future needs? Are you getting the maximum potential out of your practice financially now and for your future? These are key questions and each one is directly related to the viability of your practice and how well that viability is translating to your household finances.

Now let’s look specifically at your future plans regarding your practice. Are you going to sell it? Die with your boots on? Bring on a partner? Each one of these options carries with it a financial consequence. That consequence directly relates to your household bottom line financially. And now we confront the elephant in the room… Will you confidently be able to transition out of your practice the way you intend it to happen without the slightest bit of concern? Not sure?

Don’t worry. Econologics Financial Advisors now has the tools to address your plan for transitioning out of your practice, including measuring your Household Wealth Gap, which is a key measurement of the shortfall amount of assets needed to pay for your essential lifestyle expenses in the future in comparison to your current financial scene. The solution is here! Say goodbye to Mr. Elephant and hello to your transition plan!