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STARTING YOUR
OWN PRACTICE
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STARTING YOUR
OWN PRACTICE
THE INDEPENDENCE GUIDE
FOR PROFESSIONAL
SERVICE PROVIDERS
ROBERT FRAGASSO
John Wiley & Sons, Inc.
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Copyright © 2005 by Robert Fragasso. All rights reserved. ∞
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have
used their best efforts in preparing this book, they make no representations or war-
ranties with respect to the accuracy or completeness of the contents of this book
and specifically disclaim any implied warranties of merchantability or fitness for a
particular purpose. No warranty may be created or extended by sales representa-
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Library of Congress Cataloging-in-Publication Data:
Fragasso, Robert, 1945–
Starting your own practice : the independence guide for
professional service providers / Robert Fragasso.
p. cm.
ISBN-13 978-0-471-73305-8 (cloth)
ISBN-10 0-471-73305-9 (cloth)
1. Financial planners. 2. Investment advisors. 3. New business
enterprises—Planning. I. Title
HG179.5.F73 2005
332.6'068'1—dc 2005004694
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To my children, Christine, Kathleen, and Vicki; their
husbands, Brian and Mike; and my grandchildren, Kaitlyn,
Bailey, and Connor, who provide the reason to continually
improve our business and also to my business associates
and clients who make it fun.
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CONTENTS
Foreword xi
Preface xiii
Acknowledgments xv
Chapter One: Is It Your Time to Move to
Independence?
1
The Financial Benefits 3
Risk 8
The Entrepreneur’s Test 11
Chapter Two: What Does It Mean to Be in
Business For Yourself, and Who Does
It Well?
15
Time 15
People Make the Difference 16
Chapter Three:Creating Your Business
19
Choosing Your Market Niche 20
Structuring Your Business to Serve Your Market Niche 23
Creating Your Organizational Model 33
Chapter Four:Staffing and Compensation
39
Filling Positions in Your Model with the
Right People 51
Your Fringe Benefit Package as a Recruitment,
Retention, and Productivity Tool 52
vii
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viii CONTENTS
Fringe Benefits Summary 58
Managing Workforce Growth 59
Chapter Five: Leaving Your Current Employer
61
Preparing for the D-Day Invasion 61
Protecting Your Confidentiality 65
Chapter Six:Choosing Your Business Space
69
Interior Design 69
Office Location and Image 71
Finding the Right Building 72
Negotiating for Space 73
Chapter Seven:Equipment and Supplies
77
The Rubber Band Phenomenon 77
Chapter Eight:Financing
79
Chapter Nine: Legal Format and Protecting
Your Investment
83
Incorporate or Not? 83
Protecting Your Business Investment 85
Chapter Ten: Ask What Your Government Can
Do For You
89
Federal Government 89
State Government 90
Local Government 91
Other Not-for-Profit Resources 91
Chapter Eleven: Converting Existing Clients
or Customers to Your New Business
93
Chapter Twelve:Gaining New Clients and
Customers—The Right Way
99
“Man Must Sit in Chair with Mouth Open for Very
Long Time before Roast Duck Fly in” 99
Advertising 100
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CONTENTS ix
Public Relations 102
Create Your Own Public Relations through
Newsletters and E-Newsletters 104
Direct Mail 106
Networking: The Natural Way to Gain New Clients 114
Educational Seminars 118
Teaching the Seminars 124
Referrals 127
Chapter Thirteen:Managing Your Business
133
The Pugil Stick Effect 133
Manage Your Business or It Will Manage You 135
Time Management 135
Activities Management 136
Putting Your Goals into Action 141
It Is as Easy as A-B-C 148
Techniques of Activities Management 149
Summary 153
People Management 154
Talk, Talk, Talk, and Talk 156
Creating Your Organization’s Employee Structure 157
Evaluate Results but Manage Activities 162
Creating and Implementing Your Business’s
Strategic Plan 164
Appreciate and Validate or The Duck Sauce Factor 165
Which Clients or Customers Do You Want? 166
Managing Your Clients and Customers 168
Treating Clients as People 174
Managing during Tough Times 175
Chapter Fourteen: Your Exit Strategy
179
Price 179
Who Will Buy or Receive Your Business? 180
How to Receive Payment for Your Business 181
Special Considerations in Selling to Family Members 182
Retirement Planning 183
The End of the Rainbow 183
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x CONTENTS
Appendix A: Reading List
185
Appendix B:Newsletter and E-News
Examples
191
Index 203
About the Author 217
