In this episode of the Practice of Therapy Podcast, Gordon talks about some business basics and being able to navigate the business side of private practice. There are several places to focus when going into or growing your private practice. Gordon breaks these different focus area down into: mindset, planning, managing, marketing, re-investing, and sustaining. Ultimately, having a private practice as a therapist or counselor is being in business to “sell” your time and expertise. People want and need to come to us for our services. Knowing the business side of this assures success.
Business…
[biz-nis]
Noun
- an occupation, profession, or trade:His business is poultry farming.
- the purchase and sale of goods in an attempt to make a profit.
- a person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern.
Private Practice Mindset
Being employed is not the same as being self-employed…
Employed
- FICA, Social Security, Medicare – deducted from pay
- Benefits- Retirement & Insurance
- Fixed Salary
- Only Standard Deductions for taxes
- Paid by paycheck
- Money is personal money
Self-Employed
- Self-employment taxes paid quarterly
- Retirement & Insurance are an expense
- Salary based on your “draw”
- Business expenses are deductions
- What you can pay yourself is based on business equity
- Business money is separate from personal money
Having a Business Plan
If you don’t know where you are going, how are you going to get there…
Financial Goals
- What sort of “salary” do you want to have?
- How much money do you need to maintain the lifestyle you want?
- How many sessions per week/month do you need to have to reach your financial goals?
- What do you want your net worth to be?
Time Goals
- How many days a week do you want to work?
- How much time-off do you want and need?
- Will your time-off be something that is paid for?
- How much time do you need to spend seeing clients to reach both your financial & time goals?
Managing Your Private Practice
Keeping things running like a well-oiled machine…
Clinical Side
- Intake
- Documentation
- Record Keeping
- Follow-up with clients and ancillary people
Business Side
- Client payments
- Insurance payments (and claims!)
- Accounting – Tracking income, expenses and cash flows
- Referral generation & development
Marketing Your Practice
You can’t just build it… You have to build it then tell them about it…
Connecting With Potential Clients
- Creating a niche
- Website
- Social Media
- Blogging
- Advertising
- Being known in the community
Connecting With Potential Referers
- Professional connections
- Networking in the community
- Insurance & EAP Panels
- Previous Clients
- Reputation in the community
Re-Investing For Growth
Fertilize it and it will grow…
Time Investment
- Bootstrapping in the early stages
- Learning the business side of things
- Learning how to market
- Polishing the clinical skills
- Developing a niche
Money Investment
- Learning what will give you a good ROI
- Outsourcing things that do not bring you money directly
- As you grow, invest in things that will “double” your efforts
- Invest in things that will diversify your income streams
Keeping It Sustainable
Be in it for the long haul…
- Being consistent with your efforts
- Thinking long-term
- Learning from others
- Finding a mentor and/or coaches
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Gordon is the person behind The Practice of Therapy Podcast & Blog.He is also President and Founder of Kingsport Counseling Associates, PLLC. He is a therapist, consultant, business mentor, trainer and writer. PLEASE Subscribe to The Practice of Therapy Podcast on Apple Podcasts, Stitcher and Google Play. Follow us on Twitter @therapistlearn and Pinterest “Like” us on Facebook.