Chiropractic + Naturopathic Doctor

Business Talk: Active effort, passive income

Anthony Lombardi   

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Four ways to generate more residual funds

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We’ve heard the term “passive income” many times, but do we really know what it means? Passive income is generating money from a concept or organization that does not require our direct presence. Residual income calculates how much money we have left over after we pay all our expenses.

By learning how to implement efficient methods of passive income, we can generate more residual income over time.

Earning money with omnipresence
In practice I make it a habit of mine to be everywhere (omnipresent) without having to isolate myself to one room at one time by using my Exstore assessment system and electro-acupuncture. Using specific functional assessment allows me to do focused orthopedic exams, allowing me to use electro-acupuncture interventions. In many instances, I will have patients in three or four rooms receiving electro-acupuncture while assessing, adjusting, or performing soft tissue work in another. Instead of seeing four patients an hour, I am able to see six or more. Granted this is not a high volume practice, but I believe I can provide the highest quality level of care using this philosophy.


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Purchase real estate
For a chiropractor, investing in real estate offers a tremendous opportunity to create wealth. As with all investments, some due diligence needs to be performed to help put the probabilities for success on your side. Here are some of the advantages of buying real estate out of which to run your practice.

In his award-winning book The Wealthy Barber, David Chilton said “pay yourself first.” When you own real estate you are paying your mortgage instead of paying someone else’s mortgage. People need a place to operate a business. There are plenty of health professionals looking to operate their businesses who need a space to rent.

Naturally, there are operating expenses in owning a piece of property such as mortgages, maintenance and utilities. However, the more health professionals you have paying rent the less your operating costs become. This is where multidisciplinary practices become very enticing since patients enjoy the luxury of one-stop shopping, and property owners enjoy the financial windfall of passive income.

Getting incorporated
An un-incorporated practice is generally called a sole proprietor. If a sole proprietor makes $100,000 in a year after expenses, the government will take about $29,000 in taxes, leaving $71,000 for the chiropractor to take home. A professionally incorporated chiropractor who made $100,000 after expenses would be able to pay themselves a salary of $50,000 from which they would take home about $37,000 after taxes. The remaining $50,000 would stay in the professional corporation where it would be taxed at the lower rate. This means the corporation would pay $7,500 in taxes, leaving $42,500 in the corporation. When you add $37,000 and $42,500 it totals $79,500 – over $8,000 more than the sole proprietor.

For some reason, many chiropractors receive advice from accountants who discourage them from incorporating their practice by saying that they “do not make enough yet.” I don’t believe this is true. Being incorporated is worth it, even if you are just starting out. In my first year in practice I was incorporated and I made $50,000. I chose to keep the majority of the money in the corporation, and at the end of the year I paid $6,000 less in taxes versus sole proprietorship. It is worth your while to incorporate if you plan to be successful.

Becoming royalty
Not everyone is going to get the chance to marry a prince or princess – but all of us have the opportunity and the ability to help others through creative works.

Many chiropractors use their position of authority to develop books, systems, protocols and equipment, which help the general public, our patients, or other chiropractors make their lives better. If you have an idea or gift you think you will help the world, then do your best to share it. As chiropractors we are more than healers – we are educators, mentors, and teachers.

The passive financial payback (royalty) in this equation is achieved once consumers acquire your product or idea over an extended time period.

Dr. Anthony Lombardi has presided over 103,000 patient visits in 14 years of practice at Hamilton Back Clinic ( Educational Materials are available at and

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