Business Strategies for Acupuncturists

By Carrie Craddock, LAc

Whether your acupuncture business is brand new or you have been open for many years, a review of your business strategies is a means to build your business now and for the future. Many acupuncturists do not have expertise in the field of business, and the thought of stepping into this role may bring feelings of fear and frustration.

After graduating from acupuncture school, many acupuncturists are excited about opening their own business. Armed with strong skills as an acupuncturist, they feel confident that they will succeed in obtaining their goals, but they may forget that a large part of the success equation includes understanding basic business concepts. Many statistics are available regarding the failure of small businesses in the United States, but no one is sure just how many fail (go through bankruptcy) versus how many businesses are closed because they are unable to produce a reasonable living for the owner. In business school, I was taught that as many as 80% of all new businesses are closed within the first five years of operation. Understanding this statistic gives you the ability to realize the importance of exerting effort and time into learning about business skills.

The all important business plan

When you decided to open an acupuncture business, I hope that you took the time to write a business plan. Most of you wrote a business plan while attending acupuncture school, so you probably know some basics already. A business plan is a look into the future with your best estimate of how your business will operate. If you have not written a business plan, or have not updated your plan in the last couple of years, take the time to do so. This is an investment in your future. Many free or inexpensive options are available to assist you in writing your plan. Visit the U.S. Small Business Association’s website at www.sba.gov. The SBA offers online help in writing a plan and also offers free consultations in your local area. Although I have a business background, I took my plan to the local SBA office and received valuable ideas about my business. For example, the SBA officer suggested contacts in the local community who would be interested in learning about acupuncture as a treatment option for BWC claims.

As part of your business planning, remember to gather a group of trusted advisors to help you with your business. Ideally, your trusted advisors can be a family member, a friend, a colleague, and another business owner. Each of these individuals can give you insight into your business that you may not be able to see because you are too involved in the business. While I was in acupuncture school, I spoke to my mother who is in her 70s although she never owned her own business. I asked her many questions about the needs of senior citizens and how I could attract this segment of the population to my clinic. My mother is one of my many trusted advisors.

The marketing plan and market analysis

As you are developing your business plan, a part of this should be a marketing plan. A marketing plan details the actions to achieve your business results by defining who your customers are, what will they buy, and what specific actions you or your business need to take to achieve your goals. A marketing plan is, once again, an estimate that can be updated each year as you gain a deeper understanding of your customers. There are many books and Internet sites available to help you write a marketing plan.

One of the most important segments of your marketing plan will be the market analysis. Frequently, acupuncturists open the doors to their business without looking at their community or performing a market analysis. Go to your local Chamber of Commerce or search for information on the Internet about your community. Who is the average resident, what is their age, their occupation? If you want a successful practice in your community, you must adhere to their needs, not your needs, in the development of your business. Define your market first by understanding the people who live and work in your local area. By doing this, you will begin to understand the motivation and expectations of your patients as well as the obstacles that you must overcome to build a successful business.

As you continue to understand your customers, begin to look deeper at their social beliefs, opinions, and values. The décor of your clinic, the hours of operation, and how you dress should be dictated by the social beliefs, opinions, and values of your community. Every region and city has some of the same, yet some very different, obstacles in building a new business. Your goal in creating a business and marketing plan is to drill down to the essential elements necessary to build your business while overcoming any obstacles. Some of these exercises are truly easy to complete, but some will make even the most business savvy acupuncturist squirm.

As I began to write this article, I read in Columbus Business First about the Ohio State Chiropractic Association’s (OSCA) marketing to reposition the public’s opinion of chiropractors. OSCA is taking a hard look at their market to try to overcome some huge obstacles that they realized through a market analysis. A study showed that the public used words such as creepy, bogus, and quacky to describe chiropractors. The general public’s perception is that chiropractors are distrustful, and there is a general disbelief that chiropractic actually works. The OSCA understands that way to overcome this obstacle is to change the behavior of their practitioners to match the needs of the public, which will eventually change the public’s opinion. Their model is being reviewed by chiropractic organizations all over the country because there is a public core belief system needing to be changed in order for all chiropractors to succeed long term. Performing a market analysis led the association to understand this huge obstacle in developing viable long term success for chiropractors. I was thrilled to read this article because it is difficult as well to listen, understand, and then act to overcome the obstacles in our own market.

In completing your market analysis, ask for direct feedback as the OSCA asked about chiropractic, even if it might be difficult for you to hear. Once I build a relationship with a patient, I ask the patient the opinion of their family and friends about acupuncture and acupuncturists. The sad reality is that the general public’s perception of acupuncturists in Ohio is no different from the perception of chiropractors. My patients do not offer this information easily, and your patients may not have shared the thoughts of their family or friends with you. The family and friends of your patient are potential clients, so developing a strategy to dispel these beliefs will help your business blossom. I speak to every new patient about my training, the fact that my needles are disposable, and that my license is from the state medical board. I provide this information so my patient can educate their circle of influence, their family, and their friends who are all potential patients.

After reading this information, are you overwhelmed? As an acupuncturist, I personally know the level of difficulty in graduating from acupuncture school and passing your board exams, so I know that each of you can also complete a business and marketing plan. Develop a list of achievable results for yourself and schedule time in your calendar to work on your plans. Spend a few hours each week dedicated to the future of your business, and the results will pay off for you.

Carrie Craddock, LAac maintains an acupuncture practice in Delaware, Ohio. Prior to attending acupuncture school, she obtained bachelor and master degrees in business. She worked for sixteen years in sales and marketing in the financial services industry specializing in new product development.

“State’s chiropractors write themselves a script to mend ailing brand,” Columbus Business First, Carrie Ghose, June 27, 2008