Crafting a Business Plan for Your Private Counseling Practice
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Are you wondering how to make 6 figures as a private practice therapist? You can't build your practice overnight. It takes smart business planning. The idea of positioning your mental health practice as a business can feel uncomfortable for some therapists. However, the fact remains that being able to bring your services to the community you serve takes time, money, and resources. You need something to help you plan for these things. That's why you need to have a counseling private practice business plan.
Of course, your plan for starting a business in mental health won't look the same as the plan used by the yoga studio or ice cream shop down the street. Your plan needs to integrate tact, ethics, and relevancy. Here are some tips to help you craft a business plan for counseling private practice.
1. Remove Your Therapist Hat for a Moment
Your credentials and clinical experience make you an effective counselor. However, you'll need to slip into the role of chief operating officer when choosing the business direction of your practice. Your counselor and CEO personas don't need to be at odds! It's important to realize that your goal as a business owner is to sustain and grow your practice. That's a very different mindset compared to being a counselor who is employed by an institution. The first step to crafting a business plan for your private therapy practice is to get in the headspace of being a decision maker.
2. Establish Your Practice's Mission
Your mission statement is a guiding light to help you make decisions for your practice. It also communicates your practice’s purpose. This statement should cover:
Who your practice serves
The guiding principles of the work that's being done
The specific skills or attributes you possess that make you qualified to fulfill your mission
The specific struggles your practice helps clients to overcome
This should be customized for your specific practice and approach. You can also include your values and goals, as well.
3. Create a Business Description
You’ll need to describe your business and highlight your services. Who are your ideal clients? What services do you offer? If you're unsure about how to uniquely position or brand your new practice, consider working with a mental health marketing agency to research the therapy market to find your "niche." From there, you can tailor your business description and services to meet your intended market. Some points to hit in your research include:
Specialties of Competitors: Make sure you're not targeting the same demographics or specializing in the same niche that other therapists are serving in a local market that's already flooded.
Underserved Communities: Consider where your skills and training can be used to serve clients who currently don't have access to the specific types of therapy they need. While narrowing your practice's focus can feel counterproductive as you try to grow, establishing a specialty can be both lucrative and satisfying.
Pricing: What are other practices in the area charging? Look specifically at the rates of therapists with comparable credentials and experience within the same specialty. While looking at competitor rates is a good way to get an idea of how much you should charge per session, you should also use your desired income and the cost of operating a new practice when setting rates.
4. Set Tangible Goals
You don't need to take a "pie in the sky" approach to your business plan. This isn't about wishful thinking. It's about putting actionable steps in place to reach specific business goals. I encourage any private practice owner starting a business plan to use specific numbers as benchmarks. Numbers to select include the number of desired clients you'd like to see per week, desired monthly income, and desired annual income.
5. Create a Financial Plan
Start by making a working budget. Assess startup costs. What costs are associated with getting your practice up and running? You'll need to legally establish and register your business under the title of sole proprietor, partnership, or corporation. You may also need to apply for a local business permit in your town or city. In most cases, there will be fees associated with these things.
Next, you’ll want to determine your ongoing costs. Compare your operating expenses against your revenue projections using the number of clients you intend to see on a weekly basis. For this portion, you'll also need to subtract ongoing costs related to insurance, office space, accounting, and supplies/technology from your budget.
6. Prioritize Marketing
This portion of your counseling private practice business plan will drive your ability to meet revenue projections. One angle to start with for marketing is your practice's competitive advantage. What credentials or niche specializations do you possess that make your practice uniquely positioned to serve your target clients? Your competitive advantage could be your sliding-scale pricing and easy payment options or flexible hours and weekend availability. Once you've chosen a marketing position, it's important to have a plan for boosting your practice's visibility. Options include:
Hosting a grand opening event that invites the community to learn about your mental health services
Having a professional website created
Maintaining engagement through social media and digital advertising
Creating dynamic, SEO-friendly therapist profiles on popular therapist directories
Hiring a mental health marketing expert
In conclusion, a business plan is necessary for any mental health practice, no matter the size. Your business plan is what guides your practice. It is also what helps ensure it’s success. Following the simple tips above will help you develop a solid counseling private practice business plan.
