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Mental Health Private Practice Business Plan PDF Template

Courtney Gardner, MSW

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Turning Your Passion Into a Business: Creating a Counseling Private Practice Business Plan

As a therapist, you have already gained a wealth of experience and knowledge in helping people overcome their mental health challenges. Opening your private practice is the next logical step in your career progression. However, being your own boss means that you will have to manage various aspects of your practice, such as finances, marketing, and administration. You must have a well-structured business plan to ensure that your practice thrives and you can provide the best possible care for your clients. This article will help you identify your goals , target market, and strategies for growth and enable you to make informed decisions on how to run your practice sustainably and successfully.

What is a Private Practice Business Plan and Why do You Need One?

Owning your practice is attractive for many reasons. However, developing a solid business plan is essential before taking the plunge. A business plan for a therapy practice outlines your vision for the practice and how you plan to achieve it. It helps to ensure that you have  considered all necessary details  and are ready for any challenges. Without a comprehensive business plan, you could quickly become overwhelmed, underfunded, and struggle to keep your practice running.

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A well-crafted business plan will guide you through obstacles and help ensure the success of your private practice. Although it requires a lot of effort upfront, it provides you with a roadmap to follow and the assurance that you are ready for this new venture. With passion, planning, and persistence, you'll be on the right track to turning your vision into reality.

Creating a Compelling Business Description and Service Offerings

Your business description and services are vital for attracting clients. Make sure to explain precisely what you do in a simple yet engaging way. When highlighting your services, focus on the key elements defining your practice while appealing to your ideal clients. Being authentic and letting your passion for the work shine through is indispensable. Remember, your business description is your chance to connect with potential clients, so speak with empathy, warmth, and care directly to them.

Finding Funding Sources and Estimating Costs for Your Mental Health Private Practice

Funding a new private practice can be challenging , but options are available if you do your research. As a therapist, your passion is to help people rather than to handle numbers and finances. However, to turn your passion into a sustainable business, you must consider the costs of starting and keeping your practice running.

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A solid business plan should include a financial plan that estimates your expenses. Some costs to account for include:

• Rent for office space. Get estimates from commercial realtors on average rates in your area—factor in additional expenses like utilities.
• Equipment like a desk, chairs, a laptop, and a phone system. Price out options to determine a budget.
• Marketing materials include a website, business cards, and advertising. Estimate costs for an essential website and 500 business cards to start.
• Licenses and insurance. Research the fees in your state for business licenses, liability insurance, and malpractice insurance.
• Employees. Calculate their salary and benefits costs if hiring other therapists or support staff.
• Miscellaneous. Leave room in your budget for unforeseen costs like office supplies, accounting services, and legal fees.

With those estimates in hand, you should explore various funding options. You may finance costs, take out a small business loan, get a line of credit, crowdfund, or search for grants available for therapists and counselors. It is crucial to compare rates and terms from different sources to find the best solution for your needs.

A financial plan and securing funding are two essential steps in turning your passion into a sustainable private practice. You should do your homework, get multiple estimates, build a buffer for unexpected costs, and explore all options for financing your dream. With a thoughtful budget and funding, you will be ready to confidently open your doors and start helping your clients from day one.

Increase your practice's revenue and reduce therapist burnout

Critical elements of a successful counseling private practice business plan.

You should include the following crucial elements to create a successful business plan for a mental healthcare private practice:

Mission Statement

A mission statement is essential to defining the purpose and values underpinning your practice. It is a powerful tool to articulate your vision and communicate your practice's core beliefs to your stakeholders. A well-crafted mission statement can help you stay focused on your goals and guide you toward making decisions that align with your values.

For example, your mission statement could be:

• To provide empathetic counseling and therapy services for individuals and families in our community.
• To offer compassionate, client-centered mental health services to help individuals live their happiest, healthiest lives.
• To deliver comprehensive mental health services to help clients overcome life's challenges and thrive.

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Business description.

The business description section is vital to your website or marketing materials. It concisely summarizes your practice, target clients, and your services. This is your chance to highlight your experience, qualifications, and what makes your business unique. It's essential to mention all the different services and approaches you offer to provide potential clients with a clear understanding of what you can provide. You should also specify the type of therapy or counseling you provide, such as individual, couples, family, or group therapy.

For instance:

• I offer counseling and therapy services to adults, teenagers, and children struggling with anxiety and depression. My integrative approach combines cognitive behavioral therapy, mindfulness practices, and a holistic view of wellness.
• I specialize in helping busy professionals and parents navigate life's stresses and reconnect with their purpose and priorities.

Financial Plan

Your financial plan will detail your startup costs, operating expenses, revenue projections, and how you'll finance your business. Estimate costs for insurance, marketing, and supplies. Project potential income from clients at your desired caseload and fee. Look into small business loans, crowdfunding, personal savings, or investor funding.

Operational Details

Include business logistics, including your business structure (LLC, corporation), location, equipment, marketing plans, partnerships, employees, and licensing/certification needs.

Market Analysis

Before starting your therapy practice, conducting a market analysis to determine your fees is essential. You can research your target market and competitors to assess demand and determine competitive advantages. Additionally, you can investigate what other local therapists are charging to set your fees at a reasonable and competitive level.

Competitive Advantage

In your business plan, it is essential to include a section that outlines your competitive advantage. This will help you identify what distinguishes you from other therapists. In this section, describe what makes you unique, such as your experience, credentials, treatment approach, or niche.

For example:

• Utilizing an innovative, trauma-informed methodology, I have helped clients overcome trauma for over ten years.
• I have a master's in social work, am a licensed clinical social worker, and have twenty years of experience helping clients using a mindfulness-based, solution-focused approach.
• My goal is to provide a safe, compassionate space where you can gain insight into yourself and your relationships, reduce symptoms of anxiety and depression, set healthy boundaries, improve communication, and find greater peace and fulfillment.

Financial Projections

To plan for the next three to five years, you should create financial documents such as income statements, balance sheets, and cash flow statements. Consider using key metrics and ratios to track your business's performance. Remember to factor in costs like rent, insurance, marketing, and your salary. If your revenue initially falls short, you should explore options like small business loans or lines of credit to help fund your business.

Avoiding Common Mistakes and Ensuring a Competitive Advantage

Creating a business plan that avoids common errors and establishes a competitive edge is imperative to develop a thriving private practice. You can accomplish this with careful planning and preparation. By anticipating potential obstacles and planning for lasting expansion, you can position your business for sustainable success.

Some of the significant mistakes to avoid include:

• Not having a business plan at all . Without a roadmap for your business, you'll struggle to secure funding or make critical strategic decisions. Sit down and create a comprehensive plan, even if you have to start small. You can always revise it later.
• Underestimating costs . It's easy to overlook expenses when you're passionate about your work. Do thorough research on the costs of renting office space, insurance, marketing, and other necessities. Build financial projections that account for both fixed and variable costs.
• Lacking a competitive advantage . What makes your practice unique? Maybe you specialize in a niche treatment area or offer flexible hours and payment options. Identify what sets you apart and makes you the best choice for clients. Promote this advantage in your marketing.
• Neglecting marketing . Don't expect clients to appear magically. You must actively market your services through a professional website, social media, networking, advertising, and more. Build marketing into your business plan and budget.
• Not planning for growth . A good business plan considers your initial startup and strategies for long-term growth. For example, you may eventually want to hire associate therapists, move to a larger office space, or expand into new treatment areas. Plan how you will fund and manage this growth.

Legal Requirements for Opening a Private Practice

Establishing a private practice requires meeting all the necessary legal requirements. These requirements may vary depending on your location and the type of practice you plan to run. Researching and understanding the legal obligations is crucial to ensure that your private practice starts on solid ground.

The most common legal requirements for opening a private practice include the following:

It is crucial to ensure that you meet your state's requirements for practicing, which typically include holding a master's or doctoral degree, obtaining supervised clinical hours, and passing your state's licensing exam.

Malpractice Insurance

Therapists must carry malpractice insurance to protect against lawsuits. Shopping around for coverage that meets your needs and budget is necessary.

Business Registration

To legally establish your business, you must register it as a sole proprietor, partnership, or corporation. Check with your local government to see if you require a business license or permit to operate in your city or county. Additionally, registering your business means you may need an Employer Identification Number (EIN) from the IRS, similar to a Social Security number. You'll use your EIN when filing business taxes and other financial transactions.

HIPAA Compliance

As a healthcare provider, it is crucial to comply with the Health Insurance Portability and Accountability Act (HIPAA). This means establishing privacy policies, using secure electronic records systems, and training staff on HIPAA guidelines. Ensuring that your practice is configured to safeguard client information appropriately is essential.

These essential legal steps ensure your private practice opens on the right foot. Dotting your I's and crossing your T's from the beginning will allow you to focus on building your business with confidence. If you feel overwhelmed, don't hesitate to consult a lawyer specializing in healthcare practices. Their guidance can help set you up for success.

Your Own Comprehensive Business Plan Checklist

To ensure you're on the right track,  ask yourself the following questions :

• Have you defined your mission statement and business goals?
• Have you researched your target market and competitors?  Identify client demographics, unmet needs, and similar businesses in your area.
• Have you created a financial plan with realistic projections?  Test your assumptions and get feedback from experts.
• Do you have a marketing plan to attract clients?  Consider your online presence, referral sources, and networking opportunities.
• Have you outlined operating expenses like rent, supplies, insurance, and technology?  Estimate high to be on the safe side.
• Have you developed a business entity like an LLC and obtained the necessary licenses?  Check with your state's requirements for mental health professionals.
• Have you created professional branding materials like logos, websites, and business cards?  Consistency builds credibility and awareness.
• Have you secured an office location that is professional, comfortable, and HIPAA-compliant?  Look for space that fits your budget.
• Do you plan to address unexpected challenges and adapt your business model based on results?  Be flexible and willing to change aspects that are not working.

Mental Health Private Practice Business Plan Template

This Mental Health Private Practice Business Plan PDF Template offers a comprehensive and structured framework for launching and managing a successful mental health clinic. It covers essential aspects such as market analysis, services offered, financial planning, and operational strategies. Ideal for therapists and psychologists, it's an invaluable tool for creating a tailored business plan that addresses the unique challenges of the mental health sector.

You have the passion, skills, and determination to establish your private practice. It's time to take action and turn your dream into a reality. Building a solid business plan may seem daunting, but it's the key to setting yourself up for success. With a roadmap, you'll have a clear direction and avoid costly mistakes. You are responsible for doing this right to yourself and your future clients. So, get started! Put on some music, roll up your sleeves, and begin working towards opening the doors of your private practice.

Are you looking for a way to simplify your progress note-writing and administrative tasks? Consider  Mentalyc ! Our HIPAA-compliant , AI-powered progress note generator uses audio recordings to create detailed progress notes quickly and easily. And with  our team plan , you can ensure that everyone on your team is on the same page. Sign up today and experience the benefits of Mentalyc for yourself!

After creating a business plan, you may still have questions about how to implement it. Here are some frequently asked questions about private practice business plans.

How often should I review and revise my business plan?

Reviewing and updating your business plan every 6-12 months is recommended to ensure it aligns with your current goals. As things change, it is critical to ensure your plan is up-to-date. Evaluate what strategies are working and what are not, and make necessary adjustments accordingly.

How do I get funding for my private practice?

There are a few options for funding a private practice:

• Personal savings : Therapists typically fund their practice using their savings. It is recommended to save enough money to cover initial costs such as office space, equipment, marketing, and operating expenses for at least 6-12 months.
• Business loan:  You can obtain a small business loan from a bank by providing financial projections, tax returns, and personal and business financial statements. Interest rates will vary based on your credit score.
• Crowdfunding : Websites such as Kickstarter, Indiegogo, and GoFundMe enable you to raise funds from individual donors while providing rewards in exchange and generating excitement for your new practice.
• Business credit card : If you plan on going this route, using a credit card specifically for business expenses is a good idea. Look for cards that offer rewards like cash back, travel points, or office supply credits, and be sure to pay the balance in full each month.
• Angel investors : Wealthy individuals may invest in small businesses in exchange for equity, but be wary as it may result in losing control and direction. Consider this option only as a last resort.

What are the keys to a successful business plan?

The keys to a successful private practice business plan are:

• A clear mission and vision.
• Realistic and well-researched financial projections.
• A marketing plan targeting your ideal clients.
• Competitive positioning.
• Planning for challenges and obstacles.

Review and revise as needed to keep your plan up-to-date and aligned with your goals. With hard work and persistence, you'll be on your way to opening a successful practice.

How do I price my services?

Pricing plays a critical role in your business plan. Research comparable mental health practices and align your costs and revenue goals to determine a competitive price. Factors that affect pricing include:

• Your credentials, experience, and specialty
• The complexity of treatment and time spent with clients
• Local market rates
• Cost of your office space, supplies, and other expenses
• Desired income

Begin by calculating your minimum hourly rate to cover expenses. Then, add a profit margin to achieve your income target. You may provide discounts for long-term clients, package deals, or sliding scales for low-income clients.

What insurance plans should I accept?

When  deciding which insurance plans to accept , research the most common designs in your area and consider accepting those with reimbursement rates that you can expect for your target client demographic.

Consider accepting:

• Medicaid (if eligible)
• Commercial PPO and HMO plans from major carriers

It's fundamental to become credentialed with each plan you want to join, understand their requirements, paperwork, billing procedures, and claims processing timelines, and only accept plans that will provide adequate reimbursement for your services.

How do I market my private practice?

Effective marketing strategies for a private practice include:

• Building an online presence with a professional website and active social media profiles
• Reaching out to local healthcare providers, community organizations, and businesses for referrals
• Advertising in relevant online directories and local print/radio sources
• Creating brochures, flyers, and business cards to distribute locally
• Joining professional associations for networking opportunities and credibility
• Offering free consultations and workshops to generate interest
• Asking satisfied clients for referrals and testimonials

Start with the basics and build your marketing efforts over time as your practice grows. Focus on consistency, delivering excellent client service, and using metrics to track your progress.

• Bassi, B. (2023, March 27).   Starting a Private Practice? Don't Make These Common Mistakes in Private Practice!  TelepsychHealth.  https://www.telepsychhealth.com/blog/common-mistakes-to-avoid-private-practice/
• Bhatla, A. (2022, October 28).   Start Your Psychiatry Private Practice pt.1: 4 Questions to Ask Yourself Before You Take The Leap . Osmind.  https://www.osmind.org/blog/4-questions-to-ask-yourself-when-opening-your-private-psychiatry-practice
• DeGrossa, B. (2022, May 30).   How To Develop A Private Practice Business Plan . CounselingWise.  https://www.counselingwise.com/key-parts-of-a-successful-business-plan/
• GoodTherapy. (2019, September 23).   How to Create a Solid Business Plan for Your Private Therapy Practice .  https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/how-to-create-a-solid-business-plan-for-your-private-therapy-practice
• GoodTherapy. (2020, January 8).   Your Checklist for Starting a Private Practice in Counseling .  https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/your-checklist-for-starting-a-private-practice-in-counseling
• Griffin, M. (2016, November 1).   Starting a Private Practice: Part One . CAMFT | California Association of Marriage and Family Therapists.  https://www.camft.org/Resources/Legal-Articles/Chronological-Article-List/starting-a-private-practice-part-one
• Lavinsky, D. (2023, December 26).   Mental Health Private Practice Business Plan Template . Growthink.  https://www.growthink.com/businessplan/help-center/mental-health-private-practice-business-plan

All examples of mental health documentation are fictional and for informational purposes only.

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Counseling Private Practice Business Plan Template

Written by Dave Lavinsky

Counseling Private Practice Business Plan

You’ve come to the right place to create your Counseling Private Practice business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Counseling Private Practices.

Below is a template to help you create each section of your Counseling Private Practice business plan.

Executive Summary

Business overview.

Peaceful Minds is a private counseling clinic that provides family and marriage counseling to residents living in or near Tigard, Oregon. The clinic primarily services couples and families with a variety of concerns, such as communication problems, mental illness, major life transitions, and affairs. The clinic employs highly-experienced counselors to assist clients with their mental health, help them navigate life challenges, and improve their quality of life. Counseling sessions can be conducted in-person or remotely, and an affordable sliding scale fee system is offered to families earning below the local median salary.

Peaceful Minds is led by Lydia White, who has been a marriage and family therapist for ten years. She has worked in other private practices around the community and has sustained a very positive reputation. Lydia is trained in Imago Relationship Therapy (IRT) and will use that as her primary means of helping clients. However, she will employ other therapists who provide other forms of relationship and family therapy.

Product Offering

Below is a list of the counseling services that Peaceful Minds will offer to its clients:

• Marriage counseling: This service helps married clients to overcome challenges in their marriage/relationship. Marriage counselors can help married clients with communication problems, issues with intimacy, resolving major conflicts, and more.
• Family counseling: This service helps families work through their challenges and conflicts as a whole. Some example issues include integrating blended families, healing from divorce, and working through grief.
• Individual counseling: By request, clients who are part of family or couples sessions can have one-on-one sessions with the therapist to work further on their concerns. In these sessions, therapists help clients work through their emotions and thoughts concerning their marriage/family problems. Therapists can also help clients treat and cope with any mental health challenges they live with.

Clients will also receive a complimentary initial intake to ensure they find a therapist that can help them with their goals. All sessions are offered in-person or remotely, depending on the client’s request.

Customer Focus

Peaceful Minds will primarily serve residents that live in Tigard, Oregon and the surrounding areas. Tigard is one of Oregon’s largest cities and has a large population of families, married couples, and divorced couples. The city also has a very high median salary, which means that many residents have the disposable income to invest in counseling. The demographics of Tigard show that there is an enormous target customer base that will benefit from our services.

Management Team

Peaceful Minds is led by Lydia White, who has been a marriage and family counselor for ten years. She primarily utilizes the Imago Relationship Therapy (IRT) technique to help her clients with their marriage or relationship concerns.

While Lydia has never run a private counseling practice herself, she has worked in private clinics for the duration of her career. She began her counseling career in 2013 shortly after completing her Master’s degree from Portland State University and obtaining her counseling license.

Success Factors

Peaceful Minds will be able to achieve success by offering the following competitive advantages:

• Affordable sliding scale fee: Counseling is an expensive investment for many clients. That’s why Peaceful Minds offers an affordable sliding scale fee structure to families who make less than the local median income.
• Remote or in-person sessions: Some people are eager to meet their counselors in person again, while others feel more comfortable connecting remotely. We allow clients to determine what form they want their sessions to take. We will only override this policy if another pandemic or public health concern occurs.
• Specialization in marriage and family matters: Very few clinics in town specialize in marriage and family counseling. Peaceful Minds will focus primarily on these matters, attracting this clientele from our competitors.

Financial Highlights

Peaceful Minds is currently seeking $300,000 to launch. The funding will be dedicated towards securing the office space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:

• Clinic interior build out and design: $50,000
• Office equipment, supplies, and materials: $20,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $30,000

The following graph below outlines the pro forma financial projections for Peaceful Minds.

Company Overview

Who is peaceful minds, peaceful minds history.

After surveying the local client base and finding a potential clinic location, Lydia White incorporated Peaceful Minds as an S-Corporation on February 1st, 2023.

Currently, the business is being run remotely out of Lydia’s home office, but once a lease on the office location is finalized, all operations will run from there.

Since incorporation, Peaceful Minds has achieved the following milestones:

• Found a potential commercial space and signed a Letter of Intent to lease it
• Developed the clinic’s name, logo, social media accounts, and website
• Determined space design and required equipment
• Hired a virtual assistant to help with bookings and schedules

Peaceful Minds Services

Industry analysis.

The past few years have seen a revolution in the counseling industry. The importance of mental health and the benefits of talking with a counselor to cope with life’s challenges is on the rise. More than ever before, people are eager to work with a therapist as they navigate their challenges and improve their quality of life. This is creating a greater demand for therapists and counselors all around the nation.

There have also been some major shifts in marriage and divorce rates over the past few years. Divorces escalated during the pandemic, and marriages have been in decline for decades. We have also seen the rise of diverse families, such as families with same-sex parents and blended families. All of these changes create family, relationship, and marriage challenges that are far more diverse than decades past. Luckily, the stigma around therapy is dissolving, so more people than ever before are looking to counseling for help with their relationship or family matters.

Another recent change in the industry is the transition to remote services. Many people get their counseling sessions online through phone or video chat therapy, and this trend is expected to continue. However, now that the pandemic is over, more people want to go back to in-person sessions. Clinics that provide both options will have more resilience in the future.

A significant challenge that private practices face is major online therapeutic services. These services connect clients with therapists online from anywhere in the world. These essentially are “gig” opportunities for therapists and have gained popularity for several years for their affordable cost and convenience.

However, there has been significant pushback against these services due to the lack of quality counseling received and shady payment practices. As a result, many clients are returning to private practices to find therapists they can develop a true relationship with.

Customer Analysis

Demographic profile of target market.

Peaceful Minds will serve the residents of Tigard, Oregon and its surrounding area. Peaceful Minds will primarily target clients who are married and have families. The community of Tigard has a large population of married couples, so there are many clients that could utilize our services. The community also has a significant proportion of affluent and middle-class residents that will be willing to pay for quality services.

The demographics for Tigard, Oregon are as follows:

Customer Segmentation

Peaceful Minds will primarily target the following customer profiles:

• Married couples
• Millennials

Competitive Analysis

Direct and indirect competitors.

Peaceful Minds will face competition from other companies with similar business profiles. A description of each competitor company is below.

Riverside Therapy Center

Riverside Therapy Center has been a popular therapeutic clinic in town since 1988. It is a larger clinic, employing dozens of therapists, all with different backgrounds and areas of expertise. They offer counseling for individuals, couples, and families and have psychiatrists who can help with medication management. Clients who go to Riverside can get help coping with a diagnosis, navigating a major life transition, or working through conflict with their partners or family.

Tigard Mental Health And Wellness

Tigard Mental Health And Wellness was established in 2002 to address the mental health concerns of the community. Like Riverside, it is a larger clinic with many therapists to choose from. These therapists come from many backgrounds and offer a variety of treatments and counseling for many disorders and situations.

Portland State University Counseling Services

Portland State University offers affordable therapy offered by Portland State University. It is run by students who are training to become licensed therapists but do not have a license yet. They are supervised by their professors, who are trained, experienced, and licensed therapists. Because licensed professionals do not conduct the services, they are offered at an affordable rate and only to clients who are in the lowest economic brackets of the community.

Competitive Advantage

Peaceful Minds will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Peaceful Minds will offer the unique value proposition to its clientele:

• Convenient location
• Qualified and highly trained team of counselors and therapists
• Diversity of counselor team and clientele
• Comfortable, relaxing atmosphere
• Sliding scale for low-income families
• Option for remote or in-person sessions

Promotions Strategy

The promotions strategy for Peaceful Minds is as follows:

Website/SEO

Peaceful Minds will develop a professional website that showcases pictures of the clinic and the services we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media

Lydia White will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.

Doctor’s Offices

Lydia will visit multiple doctors and primary care offices to ask them to refer our clinic to any patients looking for services. We will ask them to keep a handful of our brochures on hand and hand them out to whoever requests a counseling clinic or is in need of one.

Ongoing Customer Communications

Peaceful Minds will maintain a website and publish a monthly email newsletter to provide tips on common marriage and family challenges.

Peaceful Minds’s pricing will be moderate so clients feel they receive great value when utilizing our services. We will bill our clients’ insurance companies first and then charge our clients directly for whatever their plans don’t cover.

Operations Plan

The following will be the operations plan for Peaceful Minds.

Operation Functions:

• Lydia White will be the Owner of Peaceful Minds and oversee the general operations of the company. She will also provide therapy services to her initial client base.
• Lydia recently hired a virtual assistant named Sanuye Grant. She will help with scheduling appointments, basic marketing tasks, and other general administrative duties.
• As the company’s clientbase increases, Lydia will hire several other counselors with diverse counseling techniques and backgrounds to meet her clients’ needs.

Milestones:

Peaceful Minds will have the following milestones completed in the next six months.

• 07/202X Finalize lease agreement
• 08/202X Design and build out Peaceful Minds
• 09/202X Hire and train initial staff
• 10/202X Kickoff of promotional campaign
• 11/202X Launch Peaceful Minds
• 12/202X Reach break-even

Financial Plan

Key revenue & costs.

Peaceful Minds’s revenues will come primarily from therapy services. The company will bill the patient’s insurance for services provided, and the remainder will be billed to the patient. In cases where insurance is not accepted, the entire service will be billed to the patient.

The major cost drivers for the company’s operation will consist of salaries, supplies, equipment, the lease, taxes, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Year 4: 100
• Year 5: 150
• Annual rent: $100,000
• Average counseling session cost: $150

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Counseling Private Practice Business Plan FAQs

What is a counseling private practice business plan.

A counseling private practice business plan is a plan to start and/or grow your counseling private practice business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Counseling Private Practice business plan using our Counseling Private Practice Business Plan Template here .

What are the Main Types of Counseling Private Practice Businesses?

There are a number of different kinds of counseling private practice businesses , some examples include: Clinical psychology, Industrial-organizational psychology, Marriage and family therapy, and Social work.

How Do You Get Funding for Your Counseling Private Practice Business Plan?

Counseling Private Practice businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Counseling Private Practice?

Starting a counseling private practice business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Counseling Private Practice Business Plan - The first step in starting a business is to create a detailed counseling private practice business plan that outlines all aspects of the venture. A solid private practice business plan should include market research on the counseling industry, potential market size and target customers, your mission statement, information about the services or products you will offer, marketing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your counseling private practice business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your counseling private practice business is in compliance with local laws.

3. Register Your Counseling Private Practice Business - Once you have chosen a legal structure, the next step is to register your counseling private practice business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your counseling private practice business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Counseling Private Practice Equipment & Supplies - In order to start your counseling private practice business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your counseling private practice business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to open a successful private practice :

• How to Open a Counseling Private Practice Business

Counseling Private Practice Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2C Sector

Are you about starting a counseling private practice? If YES, here is a complete sample psychological counseling private practice business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a counseling private practice. We also took it further by analyzing and drafting a sample counseling private practice marketing plan template backed up by actionable guerrilla marketing ideas for counseling private practice companies. So let’s proceed to the business planning section.

Are you a Psychologist, Social Worker or a Marriage Counselor? Do you know that you can make money from a thriving industry by going into private practice as any of the above practitioner?

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Yes indeed, the Psychologists, Social Workers and Marriage Counselors industry is one pretty large and profitable industry in the united states that is open for aspiring entrepreneurs who are qualified and competent to come in as a private practitioner and rake in huge revenue.

This is true because, reliable statistics has it that the Psychologists, Social Workers and Marriage Counselors industry in the United States of America generates roughly $15 billion annually. If you are qualified and well positioned, you can get your own fair share of the available market in the industry and smile to the bank on a regular basis.

If you want to partake in this thriving industry, you would need to obtain all the necessary licenses and certifications and then launch your own counseling private practice business. The truth is that, the market is still pretty much open for new practitioners to come in.

Although there are competitions at various levels in the industry, but if you are able to come up with a good business strategy, you are sure of getting your own fair share of the available market in the industry.

So, if you have decided to start a counseling private practice business in the United States, then you should make sure that you carry out thorough feasibility studies and also market survey. Below is a sample counseling private practice business plan template that will help you successfully write yours without much stress;

A Sample Counseling Private Practice Business Plan Template

1. industry overview.

The Psychologists, Social Workers and Marriage Counselors industry of which professionals who are into counseling (private practice belongs to) is composed of mental health practitioners who diagnose and treat mental, emotional and behavioral disorders brought about by mental illness, substance abuse or physical and emotional trauma.

These practitioners consist of psychologists, social workers and marriage counselors. It is important to state that the industry mental health professionals who have a Doctor of Medicine (MD) degree or a Doctor of Osteopathy (DO) degree are not included in this industry.

A close study of the Psychologists, Social Workers and Marriage Counselors industry shows that in the last half a decade, the industry has grown consistently. Private counseling services are needed regardless of economic conditions, which insulate the industry from economic fluctuations.

Going forward, as people continue to be employed and regain a steady income, private health insurance will become more affordable, prompting consumers to seek private counseling services when needed.

A recent report published by IBISWORLD shows that the Psychologists, Social Workers and Marriage Counselors industry has a low level of concentration, with the majority of firms employing less than five people and no industry firm accounting for more than 1.0 percent of total industry revenue.

The practices and theories of psychology are highly fragmented. For instance, cognitive and behavioral psychologies have developed in isolation from each other. This makes it difficult to create large practices that dominate any particular area.

The report further stated that, the benefits to achieving scale in the industry are minimal because fixed costs are low. Group practices are increasing in number, but these are not large operations either. One major benefit of group practices is the ability to spread administrative costs across several practitioners

The Psychologists, Social Workers and Marriage Counselors industry is a thriving sector of the economy of the United States of America and they generate a whopping sum of well over $15 billion annually from more than 141,495 registered and licensed Psychologists, Social Workers and Marriage Counselors scattered all around the United States of America.

The industry is responsible for the employment of well over 231,393people. Experts project the industry to grow at a 3.4 percent annual rate within 2011 and 2016. It is important to state that there is no single organization that has a lion share of the available market in the Psychologists, Social Workers and Marriage Counselors industry.

It can’t be over emphasized that the demand for the services offered by the private counselors grows when public confidence declines and people’s ability to handle the issues on their own wanes. When the housing bubble burst and the US economy fell into a recession, consumer confidence plummeted.

This decline, coupled with high unemployment, falling incomes and bleak outlooks, caused Americans to seek out the assistance of professional psychologists and counselors, benefiting the industry.

However, as the economy slowly continues to recover and consumer confidence returns, demand for their services is expected to diminish. Going forward, clients and potential clients alike will likely require less guidance, high-income households will serve as the primary vehicle of growth for the industry

Lastly, as a private counselor, the key attributes needed to be able to make good success from the trade is patience, enthusiasm, passion about the specific area to be handled, and constant positivity. You are also expected to be highly proactive; you would need to be good at planning, preparation, and certain other organizational skills.

It is one thing to have a skill and it is another thing to know how to counsel people into becoming successful; which is why you must constantly get feedbacks from your clients to be able to measure their progress and your performance.

2. Executive Summary

Safe Refuge Private Counselors®, LLP is a professional and licensed counseling (private practice) firm that is specialized in helping her clients overcome their challenges and achieve their personal goals and improving their competence, capacity and productivity.

The scope of our business offerings cover areas such as clinical psychology, industrial-organizational psychology, all other psychology, mental health social work, marriage and family therapy, child, family and school social workers, online counseling Services and retailing of self – help books and materials et al.

Our business will be located in – between a well – populated residential estate and a business district in Smethport – Pennsylvania, United States of America.

Safe Refuge Private Counselors®, LLP is a client-focused and result driven private counseling organization that provides broad-based counseling, learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will ensure that we work hard to meet and surpass all our clients’ expectations as it relates to their career and personal goals whenever they hire our services. At Safe Refuge Private Counselors®, LLP, our clients’ overall best interest would always come first, and everything we do is guided by our values and professional ethics.

We will ensure that we hire professional and certified psychologists, social workers and counselors with various skills set who are well experienced and passionate in helping our clients achieve their personal goals within record time.

Safe Refuge Private Counselors®, LLP will at all times demonstrates her commitment to sustainability, both individually and as a private counseling organization, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our overall business goal is to position our private counseling organization to become the leading private counseling brand in the psychologists, social workers and marriage counselors industry in the whole of Smethport – Pennsylvania, United States of America, and also to be amongst the top 10 private counseling business in the United States of America within the first 5 years of operations.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Smethport is the right place to launch our private counseling business.

Safe Refuge Private Counselors®, LLP is founded by Dr. Boston Smith and he will run the business with his business partner for many years Dr. Becky Allison. Dr. Boston Smith is a certified and renowned psychologist and marriage counselor.

He has well over 20 years of experience working with top government officials, corporate executives, celebrities and sports people both in the United States of America and Canada.

3. Our Products and Services

Safe Refuge Private Counselors®, LLP is going to offer varieties of psychology and counseling services within the scope of the psychologists, social workers and marriage counselors industry in the United States of America.

Our intention of starting our private counseling business is to help our clients overcome their challenges, achieve their personal goals and improving their competence, capacity and productivity and of course to also make profits from the psychologists, social workers and marriage counselors industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.

Our service offerings are listed below;

• Clinical psychology
• Industrial-organizational psychology
• All other psychology
• Mental health social work
• Marriage and family therapy
• Child, family and school social workers
• Online counseling services
• Retailing of self – help books and materials

4. Our Mission and Vision Statement

• Our vision is to build a highly competitive and effective private counseling business that will become the number one choice for both individuals and corporate organizations in Smethport – Pennsylvania and the whole of the United States of America.
• Our mission is to provide affordable, professional and highly effective private counseling services to a wide range of clients that cuts across different divides. We want to position Safe Refuge Private Counselors®, LLP to become one of the leading private counseling brands in the industry in the whole of Smethport – Pennsylvania, and also to be amongst the top 10 private counseling firms in the United States of America within the first 5 years of operations.

Our Business Structure

Safe Refuge Private Counselors®, LLP, is a private counseling firm that intend starting small in Smethport – Pennsylvania, but hope to grow big in order to compete favorably with leading firms in the psychologists, social workers and marriage counselors industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Safe Refuge Private Counselors®, LLP, we will ensure that we hire people that are qualified, hardworking, creative, passionate, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff / partners and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.

In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Principal Partner / Chief Executive Officer
• Psychologists, Social Workers and Marriage Counselors

Office Administrator

• Marketing Executives

Client Service Executive

5. Job Roles and Responsibilities

Principal Partner / Chief Executive Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Psychologist, Social Worker and Marriage Counselor

• In charge of clinical psychology services
• Responsible for handling industrial-organizational psychology services
• Handles all other psychology services
• Handles mental health social work
• Provides marriage and family therapy
• Handles child, family and school social works
• In charge of online private counseling services
• Retails of self – help books and materials
• Handles any other duty as assigned by the Principal Partner / CEO.
• Responsible for overseeing the smooth running of HR and administrative tasks for Safe Refuge Private Counselors®, LLP
• Designs job descriptions with KPI to drive performance management for psychologists, social workers and marriage counselors
• Regularly hold meetings with key stakeholders to review the effectiveness of the organizations’ Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily activities of Safe Refuge Private Counselors®, LLP.

Marketing Executive

• Identifies, prioritizes, and reaches out to new students, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents Safe Refuge Private Counselors®, LLP in strategic meetings
• Helps to increase sales and growth for Safe Refuge Private Counselors®, LLP
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Safe Refuge Private Counselors®, LLP
• Serves as internal auditor for Safe Refuge Private Counselors®, LLP.
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the principal partners in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives parcels / documents for Safe Refuge Private Counselors®, LLP

6. SWOT Analysis

Safe Refuge Private Counselors®, LLP engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured private counseling business that can favorably compete in the highly competitive psychologists, social workers and marriage counselors industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Safe Refuge Private Counselors®, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Safe Refuge Private Counselors®, LLP;

Our core strength lies in the power of our team; our workforce. We have a team that are considered experts in the industry, a team with excellent qualifications and experience in private counseling practice.

Aside from the synergy that exist in our carefully selected team members and our strong online presence, Safe Refuge Private Counselors®, LLP is well positioned in a community with the right demography and we know we will attract loads of corporate and individual clients from the first day we open our doors for business.

As a new private counseling organization in Smethport – Pennsylvania, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated psychologists, social workers and marriage counselors industry; that is perhaps our major weakness.

• Opportunities:

No doubt, the opportunities in the psychologists, social workers and marriage counselors  industry is massive considering the number of individuals and corporate organizations who would want to overcome their challenges and achieve their goals and to perform excellently well in their jobs and personal life. As a standard private counseling organization, we are ready to take advantage of any opportunity that comes our way.

Every business faces a threat or challenge at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the business.

Some of the threats that we are likely going to face as a private counseling organization operating in the United States of America are unfavorable government policies that might affect business such as ours, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The trend in the psychologists, social workers and marriage counselors industry shows that in the last half a decade, the industry has grown consistently. Private counseling services are needed regardless of economic conditions, which insulate the industry from economic fluctuations.

One thing is certain, the trend in the psychologists, social workers and marriage counselors industry is such that if you want to be ahead of your competitors, you should be able to acquire as much certifications as possible and you should be able to have loads of testimonies from your clients.

The truth is that, if your clients experienced huge difference in their life as a result of hiring the services of your organization, then they will be compelled to help promote your organization.

Another notable trend in this industry is the influence of technology; the advent of technology is responsible for the increase in income generated by private counselors all over the world. With technology, it is no easier for private counselors to counsel their clients that are thousands of kilometers away from them.

Tools like video calling / Skype, YouTube, live chat and Webcast et al are being used by private counselors to counsel clients in different parts of the world.

8. Our Target Market

The target market for private counseling firms is all encompassing. Safe Refuge Private Counselors®, LLP is a professional and licensed private counseling firm that is specialized in helping her clients over life challenges, achieve their personal goals and improving their competence, capacity and productivity.

As a standard private counseling organization, Safe Refuge Private Counselors®, LLP offers a wide range of services hence we are well trained and equipped to services a wide range of clients (public figures, celebrities and non – celebrities alike).

Our target market as a private counseling firm cuts across people of different class and people from all walks of life. We are coming into the psychologists, social workers and marriage counselors industry with a business concept and company’s profile that will enable us work with the clients from different background and different status. Below is a list of the clients that we have specifically design our private counseling services for;

• About to wed couples
• Married couples
• Religious organizations
• Working class adults / corporate executives
• Politicians
• Business people / entrepreneurs
• Government officials
• Celebrities
• Public figures
• Applicants / school Leavers
• Sports men and women
• College students
• People with undergoing depression
• People with mental challenges

Our competitive advantage

No doubt, the psychologists, social workers and marriage counselors industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can successfully help them overcome their challenges, and achieve their personal goals.

It is the practice for private counselors to acquire as much certifications as it relates to their area of specialization; it is part of what will make them stay competitive in the industry

We are quite aware that to be highly competitive in the psychologists, social workers and marriage counselors industry means that you should be able to deliver consistent quality service, your clients should be able to experience remarkable difference and improvement and you should be able to meet the expectations of your clients at all times.

Safe Refuge Private Counselors®, LLP might be a new private counseling firm in Smethport – Pennsylvania, but the management team and the owner of the business are considered gurus in the industry.

They are people who are core professionals, licensed and highly qualified psychologists and marriage counselors that can successfully help her clients overcome their challenges and achieve their personal goal within a short period of time. These are part of what will count as a competitive advantage for us.

Aside from our robust experience and expertise of our psychologists, social workers and marriage counselors, we have a very strong online presence that will enable us counsel clients in different parts of the world from our online portals.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups private counseling businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Safe Refuge Private Counselors®, LLP is established with the aim of maximizing profits in the psychologists, social workers and marriage counselors industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Safe Refuge Private Counselors®, LLP will generate income by offering the following private counseling services;

10. Sales Forecast

One thing is certain, there would always be corporate organization and individual who would need the services of psychologists, social workers and marriage counselors in other for them to overcome their challenges and achieve their personal goals and also to enable them become peak performer in the career and in their family life.

This is the major reason why the services of private counseling firms will always be needed. We are well positioned to take on the available market in Smethport – Pennsylvania and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our private counseling business and our clientele base.

We have been able to critically examine the private counseling market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Smethport – Pennsylvania.

Below are the sales projections for Safe Refuge Private Counselors®, LLP, it is based on the location of our personal training and coaching company and of course the wide range of trainings that we will be offering;

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competitions amongst private counseling firms in the United States of America; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Safe Refuge Private Counselors®, LLP.

We will also ensure that our clients’ overcome their challenges in record time; we want to build a standard and first – class private counseling business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow Safe Refuge Private Counselors®, LLP to become one of the top 10 private counseling organization in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Smethport – Pennsylvania but also in other cities in the United States of America.

Safe Refuge Private Counselors®, LLP is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our private counseling firm by sending introductory letters alongside our brochure to corporate organizations, religious organizations, households and key stake holders in Smethport – Pennsylvania.
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our private counseling firm
• Post information about our private counseling firm on bulletin boards in places like schools, libraries, and local coffee shops.
• Placing a small or classified advertisement in the newspaper, or local publication about our private counseling firm
• Advertise our private counseling firm in relevant educational magazines, newspapers, TV stations, and radio station.
• Attend relevant educational expos, seminars, and business fairs et al
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and private clients in the whole of Smethport – Pennsylvania which is why we have made provisions for effective publicity and advertisement of our business. Below are the platforms we intend to leverage on to promote and advertise Safe Refuge Private Counselors®, LLP;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
• Install our BillBoards on strategic locations all around Smethport – Pennsylvania.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Safe Refuge Private Counselors®, LLP and the services we offer
• List our private counseling firm in local directories / yellow pages
• Advertise our life private counseling firm in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Generally counseling and consulting services are billed on per hour billing rate and flat fees on a weekly or monthly basis as it applies. As a result of this, Safe Refuge Private Counselors®, LLP will charge our clients flat fees except for few occasions where there will be need for us to charge special clients on hourly basis.

At Safe Refuge Private Counselors®, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our clients at regular intervals.

We are aware that there are some clients that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

The payment policy adopted by Safe Refuge Private Counselors®, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Safe Refuge Private Counselors®, LLP will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for private counseling services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

In setting up a personal training and life coaching business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are well taken care of.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The start – up capital for a home based private counseling business without any overhead might fall between $500 and $2,000, while that of a medium and large scale would definitely be higher.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a standard private counseling firm with a handful of employees; it might differ in other countries due to the value of their money.

However, this is what it would cost us to start our own standard and world class private counseling firm in the United States of America;

• Business incorporation fees in the United States of America will cost – $750.
• The budget for liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate the number of employees we intend employing for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
• Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• The cost for accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 ).
• Launching an official website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
• Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a medium scale but standard private counseling firm in the United States of America. Please note that the salary for the payment of staff members for the first 3 months is included.

Generating Funds / Startup Capital for Safe Refuge Private Counselors®, LLP

Safe Refuge Private Counselors®, LLP is a partnership business that will be owned by Dr. Boston Smith and he will run the business with his business partner for many years Dr. Becky Allison. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $50,000 ( Personal savings $35,000 and soft loan from family members $15,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Safe Refuge Private Counselors®, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our private counseling services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Safe Refuge Private Counselors®, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Leasing a standard office facility in a good location plus reconstruction: In progress
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the school: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating awareness for the business in Smethport – Pennsylvania: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

Counseling Private Practice Business Plan Template [Updated 2024]

Counseling Private Practice Business Plan Template

If you want to start a counseling private practice or expand your current counseling practice, you need a business plan.

The following Counseling Private Practice business plan template gives you the key elements to include in a winning business plan. It can be used for a mental health practice, therapy practice, marriage counseling or family therapy.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Sample Business Plan for a Counseling Private Practice

Below are links to each of the key sections of a successful private practice business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Counseling Private Practice Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

How To Write a Business Plan for Counseling in 9 Steps: Checklist

By henry sheykin, counseling bundle.

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Are you considering starting your own counseling business? With the growing demand for mental health services, now is a great time to enter the industry. In fact, according to the American Psychological Association, the number of individuals seeking counseling services has steadily increased over the past decade, with an average annual growth rate of 3.8% .

If you're ready to take the next step and write a business plan for your counseling practice, we've got you covered. In this blog post, we'll guide you through the 9 essential steps to help you create a comprehensive plan that sets you up for success.

First, it's crucial to research the counseling industry to understand the current trends and challenges. By gathering information about the market, you'll be better equipped to make informed decisions for your business.

Next, you'll need to identify your target market and competition . Understanding who your potential clients are and how you can differentiate yourself from other counselors will be key to attracting and retaining clients.

Once you have defined your target market, it's important to define your unique selling proposition . What makes your counseling services stand out? Clearly articulating your unique approach or specialization will help you attract clients who resonate with your approach.

Before diving too deep into your business plan, it's important to conduct a feasibility study . This will help you determine if your business idea is viable and if there is enough demand for your services in your chosen location.

Now that you have a better understanding of your market and the viability of your business, it's time to determine the legal structure of your business . Consult with a professional to ensure you select the most suitable legal structure and comply with all necessary legal requirements.

One important aspect of any business plan is the pricing strategy . Consider factors such as your level of expertise, market rates, and any additional services or perks you may offer to determine a competitive pricing structure.

No business can thrive without effective marketing, so it's vital to create a marketing plan that outlines how you will promote your counseling services to your target market. Consider online and traditional marketing methods to reach your audience.

Next, outline your counseling services . Clearly define the services you will offer, including any specializations or niche areas. This will help potential clients understand what to expect and how your services can benefit them.

Finally, it's time to project your financials . This step involves estimating your expenses, revenue, and projected profits. It's essential to have a clear understanding of your finances to ensure the sustainability of your business.

By following these 9 steps and creating a well-thought-out business plan, you'll be on your way to building a successful counseling practice. Keep in mind that writing a business plan is an ongoing process, so be open to refining and adapting as your business grows.

Research The Counseling Industry

Before starting a counseling business, it's essential to thoroughly research the counseling industry to gain a comprehensive understanding of the field. This research will help you identify trends, challenges, and opportunities within the industry that can influence your business plan.

To effectively research the counseling industry, consider the following:

• Explore the different types of counseling services available, such as individual counseling, couples counseling, family therapy, or specialized counseling for specific populations.
• Examine the demand for counseling services in your target market. Are there any gaps or unmet needs that your business can fill?
• Identify the typical target audience for counseling services. Are there specific demographics or populations that make up a significant portion of the market?
• Research the licensing and certification requirements for counselors in your area to ensure compliance with legal regulations.
• Stay updated on industry news, advancements, and emerging trends that may impact your business.
• Attend industry conferences and workshops to connect with professionals and gain insights into the counseling field.
• Join professional associations and networks to stay informed about industry updates and connect with potential clients and colleagues.
• Consider conducting surveys or interviews with potential clients to gather firsthand knowledge about their needs and preferences.

By thoroughly researching the counseling industry, you'll be better equipped to develop a business plan that aligns with the market demand, sets your business apart from competitors, and ensures legal compliance. This step lays the foundation for success in the counseling business.

Identify Your Target Market And Competition

Identifying your target market and understanding the competition is crucial when developing a business plan for counseling. By knowing who your ideal clients are and analyzing the existing competition, you can tailor your services and marketing strategies to meet the needs of your target market.

To begin, conduct thorough research to determine the demographics and characteristics of your target market. Consider factors such as age, gender, location, income level, and specific counseling needs. This information will guide your decision-making process throughout the business planning stage.

Here are some essential steps to identify your target market and competition:

• Research demographics: Use market research tools and surveys to gather data on the demographics of individuals seeking counseling services. This information will help you understand who your potential clients are and what they require.
• Evaluate client preferences: Understand the preferences, needs, and expectations of your target market. Consider their motivations for seeking counseling and any specific requirements they may have.
• Assess competition: Identify existing counseling practices in your area that offer similar services. Analyze their strengths, weaknesses, target market, pricing, and marketing strategies. This analysis will help you identify gaps in the market and opportunities for differentiation.
• Niche down: Consider specializing in a particular area of counseling, such as marriage counseling, addiction recovery, or trauma therapy. This will help you capture a specific segment of the market and position yourself as an expert in that field.
• Engage with potential clients and professionals in the counseling industry to gain insights into their needs and expectations.
• Utilize online forums and social media platforms to gather valuable feedback and identify market trends.
• Consider conducting focus groups or surveys to gather direct feedback from your target market.
• Regularly monitor your competition to stay updated on their offerings and strategies.

By thoroughly understanding your target market and competition, you can tailor your counseling services, marketing efforts, and pricing strategies to meet the specific needs of your clients. This will help you differentiate yourself from the competition and position your counseling business for success.

Define Your Unique Selling Proposition

Defining your unique selling proposition (USP) is crucial in setting your counseling business apart from the competition. It is what makes your services stand out and attract potential clients. By identifying what makes you different, you can effectively market your counseling services and capture the attention of your target market.

Here are some key points to consider when defining your USP:

• Identify your strengths: Reflect on your skills, experience, and personal qualities that make you an exceptional counselor. Consider the specific counseling techniques or approaches you specialize in, your areas of expertise, and any unique insights or perspectives you bring to the table.
• Understand your target market: Research and analyze your ideal clients. Gain a deep understanding of their needs, preferences, and pain points. This knowledge will help you tailor your USP to address their specific concerns and establish a strong connection.
• Highlight your value proposition: Clearly communicate the unique benefits and value that clients can expect from working with you. Focus on how you can help them achieve their goals, overcome challenges, and improve their overall well-being. Create a compelling message that resonates with your target market.
• Offer a niche service or specialization: Consider narrowing down your counseling services to a specific niche or target audience. By becoming an expert in a particular area, you can differentiate yourself from generalist counselors and attract clients seeking specialized support.
• Emphasize your approach: Showcase your counseling approach or methodology that sets you apart from others in the industry. Whether you incorporate innovative techniques, alternative therapies, or a unique blend of traditional and holistic practices, emphasize how your approach can provide the best outcomes for clients.
• Showcase testimonials and success stories: Highlight positive feedback and success stories from previous clients. Testimonials provide social proof and build trust, demonstrating the effectiveness of your counseling services. Share real-life experiences that showcase the positive impact you have made on your clients' lives.
• Be authentic and genuine. Reflect your personality and values in your USP to attract clients who resonate with your style.
• Stay updated on industry trends and incorporate them into your USP. Keeping abreast of the latest research and developments shows your commitment to providing cutting-edge counseling services.
• Continuously refine and evolve your USP as you gain more experience and expertise. Stay adaptable and open to feedback to ensure your USP remains relevant and compelling.

Conduct A Feasibility Study

Before diving headfirst into starting a counseling business, it is crucial to conduct a feasibility study to assess the viability of your idea. This study will help you determine if there is a demand for your services, evaluate potential challenges, and identify market opportunities.

Here are the key steps to conducting a feasibility study for your counseling business:

• Define your objectives: Clearly identify the goals of your feasibility study. What do you hope to achieve through this analysis?
• Research the market: Gather data on the counseling industry in your target area. Understand the size of the market, the demand for counseling services, and trends within the industry.
• Analyze the competition: Identify existing counseling practices and evaluate their strengths, weaknesses, and pricing strategies. This will help you determine how you can differentiate your business.
• Assess target market needs: Understand the specific needs of your target market. Conduct surveys or interviews to gather insights on what potential clients are looking for in counseling services.
• Evaluate regulatory requirements: Research and understand the legal and regulatory requirements for starting a counseling business in your area. Determine what licenses or certifications you might need.
• Consider operational considerations: Assess the resources, infrastructure, and technology necessary to run your counseling practice efficiently. Determine if you have access to the required facilities and equipment.
• Estimate costs and financial projections: Develop a thorough understanding of the costs associated with starting and running your counseling business. Create financial projections to assess the potential profitability of your venture.

Feasibility Study Tips:

• Take the time to thoroughly research your target market and competition. Understanding the existing demand and competition will help you tailor your services and pricing accordingly.
• Connect with professionals in the counseling industry to gain insights and advice. Their experiences can provide valuable guidance during your feasibility study.
• Consider partnering with other professionals or organizations to leverage resources and expand your reach. Collaborations can help enhance your credibility and tap into new client networks.
• Regularly review and update your feasibility study as market conditions and industry trends evolve. This will ensure you stay informed and adaptable to changes.

By conducting a comprehensive feasibility study, you will gain critical insights into the potential success of your counseling business. This analysis will guide your decision-making process, helping you make informed choices as you move forward with your business plan.

Determine The Legal Structure Of Your Business

When starting a counseling business, it is crucial to determine the legal structure of your business. This decision will have implications on various aspects such as taxation, personal liability, and operational flexibility. Here are a few options to consider:

• Sole Proprietorship: This is the simplest and most common legal structure for small businesses. As a sole proprietor, you will have complete control over your counseling practice, but you will also bear all the legal and financial liability.
• Partnership: If you plan to start the counseling business with another individual, forming a partnership might be suitable. It is important to establish a partnership agreement that outlines responsibilities, profit sharing, and decision-making processes.
• Limited Liability Company (LLC): An LLC offers personal liability protection similar to a corporation but with less administrative burden. It is a popular choice among small business owners, including counselors, as it provides flexibility and limits personal liability.
• Professional Corporation (PC): Some states allow counselors to form a professional corporation, which provides liability protection for the owners while maintaining the professional nature of the business.
• Nonprofit Organization: If your counseling practice aims to serve the community or a specific group, establishing a nonprofit organization might be appropriate. However, forming a nonprofit involves specific legal requirements and ongoing compliance.
• Consult with an attorney or a qualified professional to guide you in choosing the appropriate legal structure for your counseling business.
• Consider factors such as personal liability, tax implications, and flexibility before making a decision.
• Research and comply with the legal and regulatory requirements for your chosen legal structure.
• Take into account the long-term goals and growth plans of your counseling business when determining the legal structure.

Determining the legal structure of your counseling business is a critical step that should not be overlooked. It can have a significant impact on your operations, financials, and legal obligations. By carefully considering your options and seeking professional advice, you can choose the structure that best aligns with your goals and protects your interests.

Develop A Pricing Strategy

Developing a pricing strategy is crucial for the success of your counseling business. It involves determining the right balance between setting a price that reflects the value you provide and one that your target market can afford. Here are some important steps to consider:

• Research your competition: Start by researching the fees charged by other counselors in your area. This will help you gain an understanding of the market rates and ensure that your pricing is competitive.
• Consider your expertise and experience: Take into account your level of expertise and experience as you determine your pricing. If you have specialized knowledge or advanced training, you may be able to charge a higher rate. However, if you are starting out or entering a saturated market, it may be more prudent to set a lower rate to attract clients.
• Calculate your costs: Determine your costs, including overhead expenses such as rent, insurance, and supplies. Factoring in these costs will help you set a price that covers your expenses and ensures a reasonable profit margin.
• Assess the market demand: Look at the demand for counseling services in your area. Consider the number of potential clients and their ability to pay for your services. If there is a high demand but limited competition, you may have more flexibility in setting your prices.
• Consider offering different pricing options: Think about offering different packages or pricing options to cater to a variety of client needs. For example, you could offer discounted rates for multiple sessions or create a membership program for regular clients.

Tips for developing a pricing strategy:

• Research your target market's willingness to pay and adjust your prices accordingly.
• Consider offering a sliding scale or payment plans for clients who may have financial constraints.
• Regularly evaluate and adjust your pricing strategy based on market conditions and feedback from clients.
• Communicate the value of your services to clients to justify your pricing.
• Offer discounts or promotions to attract new clients or during slower periods.

Remember, developing a pricing strategy is an ongoing process. It is important to regularly evaluate and adjust your prices to ensure they remain competitive and aligned with the value you provide. By carefully considering market conditions, your costs, and the needs of your target market, you can develop a pricing strategy that supports the growth and success of your counseling business.

Create A Marketing Plan

Once you have defined your target market and identified your unique selling proposition, it's time to create a comprehensive marketing plan to promote your counseling business. A well-designed marketing plan will help you reach and attract potential clients while effectively communicating the value and benefits of your counseling services.

Here are some essential steps to include in your marketing plan:

• Identify your marketing goals: Start by clearly defining your marketing objectives. Are you aiming to increase brand awareness, gain new clients, or expand your services? Setting specific goals will help you focus your efforts and measure your success.
• Know your target audience: Develop a deep understanding of your target market's demographics, preferences, and needs. This knowledge will enable you to tailor your marketing messages and strategies accordingly, ensuring they resonate with your ideal clients.
• Create a compelling brand identity: Your brand should be consistent, memorable, and aligned with your counseling services. Develop a compelling logo, design cohesive visuals, and establish a consistent tone of voice that reflects the essence of your practice.
• Build an online presence: In today's digital age, having a strong online presence is critical. Create a professional website that showcases your counseling services, credentials, and testimonials. Leverage social media platforms to engage with potential clients, share valuable content, and establish yourself as an authoritative figure in the field.
• Utilize search engine optimization (SEO): Optimize your website and online content to rank high in search engine results. Conduct keyword research to understand what potential clients are searching for, and integrate relevant keywords naturally into your website copy, blog posts, and other content.
• Implement targeted advertising: Consider using digital advertising platforms, such as Google Ads or social media ads, to reach your target audience effectively. By targeting specific demographics, interests, or geographic locations, you can maximize the visibility of your counseling services and increase the likelihood of reaching potential clients.
• Establish strategic partnerships: Collaborate with local organizations, healthcare providers, or complementary businesses to expand your reach. Consider offering joint workshops or referral programs to establish mutually beneficial partnerships and gain access to a broader client base.

Marketing Plan Tips:

• Regularly evaluate and adjust your marketing strategies based on their effectiveness. Monitor key performance indicators, such as website traffic, conversion rates, or client acquisition, to assess your marketing efforts' impact.
• Utilize customer relationship management (CRM) software to manage and track client interactions effectively. This can help you personalize your marketing messages and maintain strong relationships with your clients.
• Stay up to date with industry trends and leverage them in your marketing strategies. This demonstrates your commitment to ongoing professional development and positions you as a trusted and knowledgeable counselor.

By following these steps and continuously refining your marketing plan, you can effectively promote your counseling services and attract a steady stream of clients. Remember to stay consistent, authentic, and empathetic in all your marketing efforts, as these qualities are highly valued in the counseling industry.

Outline Your Counseling Services

When outlining your counseling services, it is important to clearly define what you offer and how you can meet the needs of your target market. This will not only help potential clients understand the value you provide, but also differentiate yourself from competitors in the industry.

Start by identifying the specific areas of counseling you are qualified and experienced in. This could include individual counseling, couples therapy, family counseling, or specialized areas such as addiction counseling or grief counseling. Clearly outline each service you offer and briefly describe how you can help clients in these areas.

Next, consider the modalities and techniques you utilize in your counseling practice. For example, you may incorporate cognitive-behavioral therapy, psychodynamic therapy, or solution-focused brief therapy. Highlighting your preferred approaches can help potential clients understand the type of counseling experience they can expect from you.

Furthermore, it is important to address any special populations or specific client needs you are equipped to address. This could include working with children, adolescents, LGBTQ+ individuals, veterans, or individuals with specific mental health conditions. Clearly communicating your ability to meet the unique needs of these populations can attract clients who are seeking specialized support.

Consider including a list of services that you provide, along with a brief description of each. This could include individual counseling sessions, couples therapy, group therapy, workshops, or any other additional services you offer. Including this information can help potential clients understand the range of support they can access through your practice.

• Be specific and concise when outlining your counseling services, focusing on the benefits clients can expect to receive.
• Consider the needs of your target market and tailor your services accordingly. This can help you attract clients who are seeking specialized support.
• Highlight any additional qualifications or certifications you possess that set you apart from competitors.
• Regularly review and update your counseling services to ensure they align with industry trends and client needs.

Project Your Financials

Creating a solid financial projection is crucial for the success of your counseling business. It allows you to forecast your revenues, expenses, and potential profitability. Here are the key steps to project your financials:

• Estimate your revenue: Start by estimating the number of clients you expect to have and the average fee you will charge per session. Multiply these figures to estimate your monthly and yearly revenue.
• Factor in expenses: Consider all the expenses you will incur in running your counseling business. This may include rent for your office space, utilities, insurance, licensing fees, marketing costs, and administrative expenses. Be realistic and research the average costs in your area to get more accurate estimates.
• Calculate your net income: Subtract your expenses from your revenue to determine your net income. This will give you an idea of the profitability of your business.
• Consider growth potential: Anticipate the growth of your counseling business over time. Factor in the potential increase in clients, rates, and additional services you may offer. This will help you visualize the long-term financial outlook of your business.

Tips for Projecting Your Financials:

• Be conservative in your estimations to avoid overestimating revenue and underestimating expenses.
• Conduct market research to understand the average fees charged by other counselors in your area.
• Consult with an accountant or financial advisor to ensure your projections are accurate and realistic.
• Regularly revisit and update your financial projections as your business evolves and new information becomes available.

In conclusion, writing a business plan for a counseling business is essential for success. By following the nine steps outlined in this checklist, you can ensure that you have thoroughly researched the counseling industry, identified your target market, and developed a unique selling proposition. Conducting a feasibility study and determining the legal structure of your business will further solidify your plan.

Developing a pricing strategy, creating a marketing plan, and outlining your counseling services will help you attract and retain clients. Finally, projecting your financials will give you an idea of the profitability and sustainability of your business.

Stay focused on your goal and utilize the checklist as a guide to ensure that all crucial elements are covered in your business plan. With careful planning and execution, your counseling business can thrive and make a positive impact on the lives of your clients.

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Table of contents, creating an impactful counseling business plan.

• 1 April, 2024

Starting a Counseling Business: An Overview

When embarking on the journey of starting a counseling business, it is important to have a clear understanding of the process and set professional goals to guide your path. By setting professional goals, counselors can stay focused and motivated, ensuring long-term success in their practice.

The Importance of Setting Professional Goals

Setting professional goals is essential for counselors as it provides a roadmap for their career development and growth. By having clear objectives, counselors can continually strive for improvement, stay on track, and make informed decisions to shape their counseling practice. Regularly logging and reviewing these goals can help counselors stay accountable and maintain their commitment to career growth ( TealHQ ).

Types of Career Goals for Counselors

When setting professional goals, counselors are encouraged to consider various aspects of their practice. Here are some types of career goals recommended for counselors:

Professional Competency Goals: These goals focus on enhancing clinical skills, staying up to date with the latest research and best practices, and pursuing professional certifications or advanced degrees. It includes continuous learning and skill development to provide the highest level of care to clients.

Client Impact and Outreach Goals: These goals revolve around making a positive impact on clients’ lives, increasing outreach efforts to reach a broader population, and improving client outcomes. It may involve developing specialized counseling expertise, implementing evidence-based practices, and measuring client progress effectively.

Professional Network and Collaboration Goals: Building a strong professional network is crucial for counselors. Goals in this area may include attending conferences, joining professional organizations, and seeking opportunities for collaboration and consultation with other professionals. A robust network can provide support, learning opportunities, and potential referrals.

Personal Development and Self-Care Goals: Counselors need to prioritize their own well-being and personal growth. Goals in this category can include practicing self-care strategies, nurturing work-life balance, and seeking personal development opportunities to enhance overall well-being.

Leadership and Advocacy Goals: Counselors can strive to become leaders in their field and advocate for the profession. This may involve taking on leadership roles within professional organizations, participating in advocacy efforts, and contributing to the advancement of the counseling profession.

When setting career goals, it is important to ensure they align with the counselor’s values and meet certain criteria, such as a client-centered focus, commitment to continuous learning, ethical integrity and professionalism, and a focus on self-care and personal development ( TealHQ ). Regularly logging wins and progress towards these goals can help counselors stay motivated and track their professional growth ( TealHQ ).

By setting professional goals and continuously working towards them, counselors can create a solid foundation for their counseling business and strive for excellence in their practice.

Developing a Counseling Business Plan

When starting a counseling business, it is essential to create a well-thought-out business plan that outlines the various aspects of your practice. This section will explore the considerations for pricing strategies, conducting market research, and creating a marketing plan to help you develop a comprehensive counseling business plan.

Considerations for Pricing Strategies

Setting appropriate prices for your counseling services is crucial for the sustainability and profitability of your business. When developing a counseling business plan, it is essential to consider various pricing factors such as the cost of delivering services, taxes, licensing fees, rent, utilities, and more. Integrating these costs into your pricing strategy will ensure that your business remains profitable ( Practice Solutions ).

To establish a competitive pricing strategy, therapists should conduct market research and assess the pricing models of competitors. Understanding the market rates for counseling services is crucial for setting prices that are attractive to clients while ensuring the business remains sustainable. By analyzing market trends and studying the pricing strategies of other therapists in your area, you can make informed decisions about pricing your services ( Practice Solutions ).

Therapists should also consider implementing value-based pricing, which focuses on the perceived value of services by clients rather than just the cost of providing the service. This approach allows therapists to align their prices with the benefits and outcomes clients receive from counseling sessions. By emphasizing the value clients receive from your services, you can establish a pricing strategy that reflects the impact you have on their lives ( Practice Solutions ).

Additionally, offering tiered pricing options for counseling services, such as packages or subscriptions, can attract clients looking for flexibility and customization in their treatment plans. This pricing strategy allows therapists to cater to different client needs while maximizing revenue potential. By providing options at various price points, you can accommodate a wider range of clients and increase your chances of client retention ( Practice Solutions ).

Conducting Market Research

Market research is an essential component of developing a counseling business plan. It involves gathering information about your target market, including demographics, competition, and market trends. By conducting thorough market research, you can gain insights into the needs and preferences of your potential clients, identify opportunities for growth, and develop effective marketing strategies ( Practice of the Practice ).

To conduct market research for your counseling business plan, start by gathering demographic information about the specific area you plan to target. This includes population growth, income levels, marital status, employment status, and age ranges. Analyzing these demographics will help you understand the potential demand for counseling services in your target market ( Practice of the Practice ).

It is also important to study market trends by analyzing data on the number of psychiatrists, psychologists, social workers, and marriage and family therapists per capita in your target area. This information can provide insights into the level of competition and help you position your counseling services effectively ( Practice of the Practice ).

Creating a Marketing Plan

A well-developed marketing plan is essential for attracting clients and growing your counseling business. When creating a counseling business plan, it is important to outline your marketing strategies and tactics to reach your target audience effectively.

Your marketing plan should include strategies for both online and offline marketing channels. Utilizing social media platforms, search engine optimization (SEO), and a professional website can help you reach potential clients efficiently. Online marketing strategies can also include content marketing, email marketing, and online advertising to increase your visibility and attract clients to your practice.

Networking and community engagement are also valuable strategies for growing your counseling business. Building a strong professional network with other healthcare providers, therapists, and community organizations can lead to referrals and collaborative opportunities. By attending industry events, joining professional associations, and participating in community initiatives, you can establish yourself as a trusted and reputable counselor in your area.

Remember to track and analyze the effectiveness of your marketing efforts to make informed decisions. Regularly review and update your marketing plan to adapt to changes in the market and ensure your strategies remain relevant and effective.

By considering pricing strategies, conducting market research, and creating a marketing plan, you can develop a comprehensive counseling business plan that sets the foundation for a successful practice. Take the time to thoroughly analyze your target market, understand the competitive landscape, and develop strategic marketing initiatives to position your counseling business for growth and success.

Setting Prices for Counseling Services

Determining the right pricing strategy for counseling services is essential for the success of your counseling business. In this section, we will explore factors to consider in pricing, value-based pricing, and tiered pricing options.

Factors to Consider in Pricing

When setting prices for counseling services, it’s important to consider various factors to ensure a fair and competitive pricing structure. Some key factors to consider include:

Market Rates : Conducting market research and assessing the pricing models of competitors can help you understand the prevailing market rates for counseling services. This knowledge will help you set prices that are attractive to clients while ensuring your business remains sustainable.

Perceived Value : Value-based pricing is a strategy that focuses on the perceived value of services by clients rather than just the cost of providing the service. By aligning your prices with the benefits and outcomes clients receive from counseling sessions, you can effectively communicate the value of your services.

Target Audience : Consider the demographics and financial capabilities of your target audience. Adjust your pricing accordingly to ensure accessibility to clients who may have varying financial capacities.

Experience and Expertise : Your level of experience and expertise in the field can influence your pricing. Clients may be willing to pay a premium for services provided by highly qualified and experienced counselors.

Overhead Costs : Take into account the overhead costs associated with running your counseling business. This includes rent, utilities, insurance, licensing fees, and other operational expenses. Ensure that your pricing allows for covering these costs while maintaining profitability.

Value-Based Pricing

Implementing value-based pricing allows you to align your prices with the perceived value that clients receive from counseling services. This approach focuses on the outcomes and benefits clients experience rather than solely considering the cost of providing the service.

By understanding the unique value proposition of your counseling services and effectively communicating this value to clients, you can justify higher pricing. Emphasize the positive impact your counseling can have on clients’ lives and the long-term benefits they can expect to gain from your services.

Tiered Pricing Options

Offering tiered pricing options for counseling services can be an effective strategy to attract clients looking for flexibility and customization in their treatment plans. This approach allows you to cater to different client needs while maximizing revenue potential.

Consider offering packages or subscriptions that provide a certain number of sessions or additional services at different price points. This enables clients to choose the option that best suits their needs and budget. Tiered pricing options also encourage client retention and foster long-term relationships.

Figures courtesy Practice Solutions

By considering these factors and implementing value-based pricing or tiered pricing options, you can establish a competitive pricing strategy that attracts clients while ensuring the sustainability and profitability of your counseling business. Remember to regularly evaluate and adjust your pricing to remain competitive in the market and meet the evolving needs of your target audience.

Communicating Pricing and Value

When it comes to running a successful counseling business, effective communication of pricing and value is paramount. Clear and transparent pricing not only helps clients understand the cost of services but also builds trust and sets clear expectations. In this section, we will explore the importance of transparency in pricing, establishing a pricing policy, and the role of effective communication.

Transparency in Pricing

Transparency in pricing is a fundamental aspect of any counseling business. By clearly outlining the cost of services, therapists can help clients make informed decisions and understand the value they will receive in return. Transparent pricing demonstrates honesty and integrity, fostering trust between the therapist and the client.

To ensure transparency, it’s essential to provide detailed information about the pricing structure. This includes clearly stating the fees for individual sessions, as well as any additional charges for assessments, reports, or specialized services. By being upfront about the costs, clients can better plan and budget for their counseling needs.

Establishing a Pricing Policy

Establishing a pricing policy is crucial for maintaining consistency and accountability in a counseling practice. By setting clear guidelines and standards for pricing, therapists can avoid confusion and ensure fairness in their fee structure. A pricing policy communicates to clients the investment required for their services and holds the therapist accountable to the desired pricing.

When establishing a pricing policy, therapists may consider factors such as their expertise, experience, and the local market rates. It’s important to strike a balance between charging a fair and competitive price while also considering the value provided to clients. Some therapists may choose to offer sliding scale options or very affordable fees to accommodate clients with limited financial resources or to accumulate clinical hours for licensure.

The Importance of Effective Communication

Effective communication plays a crucial role in conveying the value of counseling services to clients. Beyond simply stating the price, therapists should highlight the benefits and outcomes clients can expect to achieve through their counseling journey. This can be done through clear and concise explanations of the therapeutic approach, the therapist’s expertise, and the positive impact counseling can have on clients’ lives.

Therapists should also take the time to address any questions or concerns clients may have regarding pricing. This demonstrates a commitment to open and honest communication, fostering trust and building a strong therapeutic relationship. By effectively communicating the value clients will receive and the positive outcomes they can expect, therapists can attract and retain clients who are invested in their own personal growth and well-being.

Remember, effective communication goes beyond verbal interactions. It also includes the use of clear and informative written materials, such as brochures or website content, that outline the pricing structure and the value of counseling services. By providing comprehensive and accessible information, therapists can empower clients to make informed decisions about their mental health and well-being.

In conclusion, transparent pricing, establishing a pricing policy, and effective communication are essential components of a successful counseling business. By being transparent in pricing, therapists build trust and set clear expectations. Establishing a pricing policy ensures consistency and fairness. Effective communication of pricing and value conveys the benefits of counseling services and fosters strong relationships with clients. By prioritizing these aspects, therapists can create a positive and impactful counseling experience for their clients.

Growing Your Counseling Business

Once you have established your counseling business, it’s essential to focus on strategies to grow and expand your practice. In this section, we will explore three key areas for business growth: building a strong professional network, leveraging online marketing strategies, and networking and community engagement.

Building a Strong Professional Network

Networking with other healthcare professionals and building relationships with referral sources can be a valuable strategy for growing your counseling business and increasing client referrals ( Redd Strategy ). By connecting with professionals such as physicians, psychiatrists, social workers, and other therapists, you can establish a network of trusted professionals who can refer clients to your practice.

To build a strong professional network, consider attending industry conferences, seminars, and workshops where you can connect with colleagues and potential referral sources. Joining professional organizations and participating in local networking events can also provide opportunities to meet professionals in related fields.

Leveraging Online Marketing Strategies

In today’s digital age, leveraging online marketing strategies is crucial for reaching a larger audience and attracting new clients to your counseling business. Utilizing search engine optimization (SEO) techniques can help improve your website’s visibility in search engine results, making it easier for potential clients to find you ( Redd Strategy ). Implementing a well-designed website that provides valuable content and showcases your expertise can also help establish your online presence and build credibility.

Social media platforms offer an excellent opportunity to engage with your target audience and share valuable information. By creating educational content, posting relevant articles, and engaging in conversations with your followers, you can establish yourself as a trusted resource in the field of counseling. Consider utilizing platforms such as Facebook, Instagram, LinkedIn, and Twitter to connect with potential clients and share valuable insights.

Networking and Community Engagement

In addition to building professional networks, networking within your local community can be a powerful strategy for growing your counseling business. Connecting with community organizations, schools, and local businesses can open doors to potential partnerships and referral sources. Consider offering educational workshops or seminars on mental health topics to demonstrate your expertise and establish yourself as a valuable resource in the community.

Engaging in community events and volunteering opportunities can also help raise awareness about your counseling services. By actively participating in local initiatives, you can build relationships with community members and foster trust in your services.

Remember to always maintain a professional and ethical approach when networking and engaging with the community. By building strong connections and establishing yourself as an expert in your field, you can position your counseling business for long-term growth and success.

As your counseling business grows, it’s important to continually evaluate and adjust your strategies to align with the changing needs of your target audience. By focusing on building a strong professional network, leveraging online marketing strategies, and engaging with your local community, you can create a solid foundation for the future growth and success of your counseling business.

Customer Acquisition and Retention Strategies

In order to build a successful counseling business, it is essential to implement effective customer acquisition and retention strategies. These strategies not only help attract new clients but also foster long-term relationships, loyalty, and advocacy. Here are some key strategies to consider:

Identifying the Ideal Customer Profile

To effectively acquire and retain customers, it is important to identify your ideal customer profile. This involves understanding the demographics, psychographics, and specific needs of your target audience. By defining your ideal customer, you can tailor your marketing efforts and services to better meet their unique requirements. This targeted approach helps attract the right clients who are more likely to benefit from your counseling services.

Utilizing Online and Offline Marketing Channels

A mix of online and offline marketing channels can significantly enhance the acquisition of new counseling clients. Leveraging online platforms such as search engine optimization (SEO), social media, content marketing, and targeted advertising can maximize reach and engagement with potential customers ( LinkedIn – Customer Acquisition and Retention Strategies ). It is important to have a professional website that showcases your services, expertise, and contact information. Offline strategies like attending industry events, partnering with local healthcare professionals, and distributing informative brochures can also help establish your presence in the community.

Implementing Customer Referral Programs

Implementing customer referral programs can be an effective way to acquire new clients and promote customer loyalty. By incentivizing existing clients to refer your counseling services to their network, you can tap into their trust and extend your reach to potential customers ( LinkedIn – Customer Acquisition and Retention Strategies ). Consider offering discounts, rewards, or other incentives to clients who refer new customers. This not only encourages referrals but also strengthens relationships with your existing clients.

Personalization and Customer Engagement

Personalization plays a critical role in customer acquisition and retention. Leveraging data and analytics to personalize customer experiences, including messaging, recommendations, and offers, can enhance customer engagement and conversion rates ( LinkedIn – Customer Acquisition and Retention Strategies ). Tailor your communications to address individual client needs and concerns, and regularly follow up to ensure their satisfaction. Building strong relationships with clients through exceptional service, personalized support, and proactive communication can cultivate loyalty and advocacy for your counseling business.

By implementing these customer acquisition and retention strategies, you can attract new clients while fostering long-term relationships with existing clients. Remember, building a successful counseling business requires a commitment to understanding and meeting the unique needs of your target audience.

Brand Positioning for Counseling Businesses

To successfully establish a counseling business and stand out in a competitive market, it is crucial to focus on brand positioning. Brand positioning involves differentiating your practice from competitors, creating a unique selling proposition (USP), developing a strong visual identity, and implementing effective content marketing strategies.

Differentiating Your Practice

When it comes to brand positioning, it’s important to identify what sets your counseling practice apart from others. Consider your specialization, unique approach, or specific expertise that distinguishes you from competitors. Highlighting this differentiation can help attract clients who resonate with your unique offerings. By clearly communicating what makes your practice special, you establish a distinct position in the market.

Creating a Unique Selling Proposition (USP)

Crafting a compelling Unique Selling Proposition (USP) is vital for brand positioning. Your USP should clearly and concisely communicate the value and benefits your counseling services provide to clients. It should answer the question, “Why should clients choose your practice over others?” Understanding your target audience’s pain points and addressing them through your USP can help differentiate your practice and attract the right clients.

Visual Elements and Brand Identity

Visual elements play a significant role in brand positioning. Revamping your practice’s visual identity, such as logos and website designs, can help establish a strong brand identity and resonate with your target audience. Consider updating colors, design elements, and overall aesthetics to better reflect your brand values and appeal to your audience. A professional and visually appealing website can make a positive first impression and position your business as a top choice in the industry.

Content Marketing and Brand Differentiation

Implementing content marketing strategies can further differentiate your counseling business. By creating valuable and informative content, such as newsletters and articles, you can engage with your target audience and showcase your expertise. Highlight unique approaches, benefits, and insights through your content to set your practice apart from competitors. Selecting imagery that aligns with your brand values also strengthens your brand positioning.

By focusing on brand positioning, differentiating your practice, creating a compelling USP, developing a strong visual identity, and implementing effective content marketing strategies, you can establish a unique and impactful presence in the counseling industry. This positioning will help attract clients who resonate with your brand, ultimately leading to the success and growth of your counseling business.

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Business Plan Template for Counselors

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting and managing a counseling practice can be a challenging journey, but with the right tools, you can set yourself up for success. That's where ClickUp's Business Plan Template for Counselors comes in handy!

Our business plan template is specifically designed for counseling professionals like therapists or private practice owners. With this template, you can:

• Outline your goals, strategies, and financial forecasts to create a solid foundation for your practice
• Identify your target audience and develop effective marketing strategies to attract new clients
• Track your progress and make data-driven decisions to ensure the growth and profitability of your counseling practice

Don't let the complexities of starting a counseling practice overwhelm you. Get started with ClickUp's Business Plan Template for Counselors and take your counseling career to new heights!

Business Plan Template for Counselors Benefits

Creating a business plan as a counselor can provide numerous benefits for your practice, including:

• Setting clear goals and objectives for your counseling practice
• Identifying your target audience and developing effective marketing strategies
• Planning your financial forecasts and budgeting for expenses
• Outlining your services and pricing structure to attract clients
• Establishing a roadmap for growth and expansion
• Securing funding or investment opportunities for your counseling practice
• Evaluating the feasibility and profitability of your counseling business
• Tracking your progress and making adjustments as needed to achieve success in your counseling practice.

Main Elements of Counselors Business Plan Template

As a counseling professional, creating and managing a business plan is crucial for the success of your practice. With ClickUp's Business Plan Template for Counselors, you'll have all the tools you need to streamline the process and stay organized. Here are the main elements of this template:

• Custom Statuses: Track the progress of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Use custom fields such as Reference, Approved, and Section to add important details and categorize each section of your business plan.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to easily navigate and work on specific aspects of your business plan.

With ClickUp's Business Plan Template for Counselors, you can focus on your counseling practice while staying organized and on track with your business goals.

How To Use Business Plan Template for Counselors

If you're a counselor looking to create a business plan, our Business Plan Template for Counselors can help guide you through the process. Just follow these five steps:

1. Define your counseling services

Start by clearly defining the counseling services you plan to offer. This could include individual therapy, group therapy, couples counseling, or specialized counseling for specific populations or issues. Be sure to outline your unique approach and any certifications or specializations you have.

Use the Docs feature in ClickUp to create a detailed description of your counseling services.

2. Identify your target market

Next, identify your target market. Consider the specific demographics, needs, and challenges of the clients you aim to serve. This will help you tailor your marketing efforts and ensure your services are aligned with your target audience.

Use custom fields in ClickUp to track key information about your target market, such as age range, location, and specific challenges they may be facing.

3. Develop a marketing strategy

A solid marketing strategy is essential to attract clients and grow your counseling business. Identify the channels and tactics you will use to reach your target market, such as online advertising, social media, networking events, or partnerships with other professionals or organizations.

Use the Calendar view in ClickUp to plan and schedule your marketing activities, ensuring you stay consistent and organized.

4. Set financial goals

Determine your financial goals and projections for your counseling business. This includes estimating your revenue, expenses, and profit margins. Consider factors such as session rates, estimated number of clients, and any additional revenue streams you plan to incorporate, such as workshops or online courses.

Use the Goals feature in ClickUp to set and track your financial goals, ensuring you stay on track and make adjustments as needed.

5. Create an operations plan

Outline the day-to-day operations of your counseling business. This includes scheduling, client intake processes, record-keeping, and any administrative tasks. Consider how you will manage client appointments, handle billing and payments, and maintain confidentiality and data security.

Use the Tasks feature in ClickUp to create a checklist of operational tasks and assign responsibilities to yourself or your team members.

By following these five steps and utilizing the Business Plan Template for Counselors in ClickUp, you'll be well on your way to creating a comprehensive and effective business plan for your counseling practice. Good luck!

Get Started with ClickUp’s Business Plan Template for Counselors

Counseling professionals can use the Business Plan Template for Counselors in ClickUp to effectively plan and manage their counseling practice.

To get started, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to outline and organize different sections of your business plan, such as mission statement, target market, and marketing strategies
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan
• Use the Business Plan View to get a holistic overview of your entire plan and easily navigate between different sections
• The Getting Started Guide View will provide step-by-step instructions on how to use the template and complete your business plan
• Customize the Reference, Approved, and Section custom fields to add additional information and track important details
• Update statuses and custom fields as you work through your business plan to keep track of progress and ensure everything is on track
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Your Checklist for Starting a Private Practice in Counseling

If you’ve already finished school and are licensed in your state, this checklist can help you open a thriving private practice. If you’re new to the world of therapy and looking for help becoming a therapist, review this guide instead.

Understand the Challenges of Running a Practice

Working for yourself might seem like a dream come true, especially if you already love being a therapist. But private practice requires a hefty dose of business acumen and adds myriad new responsibilities to your daily life. So talk to other therapists in private practice to get a better understanding of what they like and what they don’t. Some important considerations include:

• The expenses of private practice. You will likely face higher taxes if you are a business owner or self-employed. You’ll also have to plan for retirement and fund your own health insurance. If you hire employees, you’ll need to pay payroll taxes, offer benefits, and provide a competitive salary. Office space, phones, internet, and other costs can further eat into your budget.
• Work style. When you’re in private practice, no one else tells you what to do. You’ll have to manage your own time, which can be both a blessing and a curse. Time management and organization skills, as well as significant motivation, are key here.
• The endless paperwork. You’ll need to seek insurance reimbursement, ensure you comply with state, local, and federal laws, provide your clients with the right forms, and keep track of therapy notes. Plan to spend at least an hour or two of each day managing the business side of your work.

Understand Various Legal Requirements

Every state and municipality has its own regulations governing businesses. Plan to consult with a business lawyer so you can follow the laws in your area. Some important considerations include:

• State and local zoning laws that may limit where you can practice.
• Whether or not you need a business license.
• How best to incorporate your business as a separate entity.
• Malpractice and professional liability insurance.
• Scope of practice concerns.

Formulate a Business Plan

If you seek a loan to start your business, you’ll likely have to provide a detailed business plan . Even if you’re funding everything out of pocket, a business plan can help you succeed as early as possible. This should be an evolving document that changes as you learn and do more. 

Some things to include in your plan include:

• How much money you need to make each year to keep practicing.
• How much you need to bring in each year to earn a decent living.
• Financial goals, such as earning enough to hire a second therapist.
• Your marketing plan.
• Goals for the first months, first year, and first 5 years. This enables you to track your progress and assess whether your plans are realistic as you hit various benchmarks.
• A loan repayment plan, if you need a loan.
• Funding options. For example, do you have savings that can help fund your marketing costs?

Make Decisions About Office Space and Logistics

To run a successful business, you must have a safe and inviting space to see clients. That doesn’t mean you have to invest in a fancy office. Some therapists cordon off a room in their home to use as a home office. Others share office space with another therapist. No matter what you choose, you’ll need to ensure you’ve budgeted for all of the following:

• A secure, confidential space to meet clients.
• Office furniture and decorations.
• Office technology, such as a phone or answering service, and internet access.
• Security concerns. Depending on the client population you counsel and where you see clients, you may need to consider security issues. Some therapists may need to install a panic button or ensure their office is only accessible with the right security code.

Decide Whether to Hire Help

An office administrator can save you time, and possibly money, by answering the phone, managing paperwork, tracking down payments, and performing other key duties. If you pay an administrator half of what you make hourly, for example, the time the administrator frees up is time you can spend earning money on paying clients rather than dealing with administrative hassles.

Of course, hiring help also presents some additional expenses: salaries, benefits, payroll taxes, and more. Spend some time weighing the costs and benefits of employees such as a receptionist, office manager, or even a second therapist.

Join Insurance Provider Panels

Joining insurance provider panels can help you find more clients since you’ll be listed as part of the insurer’s provider network. Joining a provider panel allows you to receive payments directly from insurers. This makes therapy more accessible and affordable and may expand the network of clients to whom you can provide therapy. Start by applying to the largest providers in your area. You can usually find an application and information about joining the provider panel on the insurer’s web page.

Network with Other Therapists

Networking is free marketing. Other therapists can offer tips for running a business, refer clients to you, and serve as a sounding board when you need advice. But networking is about more than just letting someone know you’re opening an office. Networking should be a reciprocal relationship built on mutual trust, not name-dropping. So get to know other therapists. Invest in their work and businesses. Find ways to partner on projects together. Gaining the respect of your colleagues takes time, but it is well worth the effort.

Market Your Business

There are dozens of ways to market your business and not all require a significant financial investment. You’ll need a quality website, since many clients find a therapist by searching online. Others search for specific problems or questions, then choose their therapist when they find a therapist who offers a quality, compassionate answer. So a website full of useful information and inviting language is a potent marketing tool.

Some other affordable strategies for marketing your business include:

• Posting useful, helpful content on other websites. Writing blog posts and web articles raises your profile and displays your knowledge.
• Attending professional seminars where you can network with other therapists.
• Answering mental health questions on online forums and message boards.

Providing quality care remains the single most important thing you can do to market yourself, so don’t spend too much time focusing on marketing gimmicks. Establishing a niche can help you do the best possible work, since clients who know you’re experienced at treating a particular issue may recommend you to friends and family.

Other strategies for marketing your business include:

• Creating a social media following.
• Investing in social media or Google ads.
• Getting quality, professional-looking business cards.
• Investing in a professional headshot to post on your website and use in bios for professional events.

Set Clear Policies

Clear policies help you better manage your practice while ensuring clients know what to expect. Some considerations include:

• What types of payment are you willing to accept?
• What will you charge per session? Can you offer discounts, such as sliding-scale fees or multiple session discounts?
• What is your appointment cancellation policy?
• What specific steps will you take to protect client privacy and comply with laws such as HIPAA ?
• What will you do if a client is a danger to themselves or to others?
• Under what circumstances will you refer a client to another treatment provider?

It’s important to memorialize these policies in clearly worded forms. But don’t assume that clients will read through these forms. During your first session, discuss your policies with clients. This fosters a sense of mutual trust and ensures clients understand what they can and can’t expect when they choose you as their therapist.

Assemble the Right Forms

Building forms might seem like a pain, but over time, they can streamline the process of running your practice. Some forms to consider include:

• A client intake form to gather basic information that can inform treatment.
• Client disclosure forms that outline your office policies, privacy policies, and other important guidelines.
• An informed consent document authorizing treatment.
• A referral form for clients whom you refer to other therapists.
• Insurance reimbursement forms built to comply with the guidelines you must follow for each provider panel you join.
• Client information forms that ensure all basic client information is in one place.

Do Excellent Work

Ultimately, the most important marketing strategy is to do good work for clients whom you are qualified to treat. When you make a meaningful difference in someone’s life, they are more likely to recommend you to a friend. Supporting a person as they change their life for the better can be immensely fulfilling, making it easier to juggle the many roles you must fill in private practice.

GoodTherapy offers many resources, including a directory to help you market your business, continuing education seminars to help you sharpen your skills and become a better manager, and a wide range of articles about best practices in the field of mental health. Become a member today so you can begin growing your business.

References:

• DeAngelis, T. (n.d.). Are you really ready for private practice? Retrieved from https://www.apa.org/gradpsych/2011/11/private-practice
• Establishing a private practice. (2019, March 22). Retrieved from https://ct.counseling.org/2019/03/establishing-a-private-practice
• Getting on insurance panels: Preparing for the process. (2012, December 17). Retrieved from https://www.counseling.org/news/aca-blogs/aca-member-blogs/aca-member-blogs/2012/12/17/getting-on-insurance-panels-preparing-for-the-process

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How to Start a Private Practice in Counseling

Free Counseling Private Practice Business Plan Template

13 Min Read

If you ever wish to make a difference by providing counseling services, then starting a private practice could be your ideal path.

There are many people across the country struggling with mental health issues, relationship problems, major life changes, and more. Yet access to quality mental health services can be limited. You could fill that need by offering compassionate counseling support.

Starting a counseling private practice does require proper licensure, education, training, and experience, but you don’t need to break the bank. Just an appropriate office space, your counseling expertise, and a passion for making a difference in people’s lives.

So if you’re a licensed counselor looking to be your own boss, this guide is your map to private practice success. We’ll show you everything, from launching your business to making it thrive. You’ll learn the ins and outs of launching your business legally and ethically.

Let’s get started and first learn about the things you should know before starting a private practice.

Considerations before starting a private practice in Counseling

Before jumping straight into opening your private therapy practice, take time to reflect on the big picture of this career move. Here are some key considerations:

Proper Credentials

First and foremost, you need to ensure you meet all the certification and licensure requirements in your state to legally operate. This typically means having at least a master’s degree in counseling or clinical social work.

Clinical Experience

While licensure allows private practice, most therapists find it extremely valuable to first gain 3-5 years of experience working in agencies, hospitals, or group practices. The clinical hours and mentorship better prepare you.

Business Acumen

You may be an excellent counselor, but running a private practice means wearing many other hats too – marketing, billing, scheduling, accounting, HR if you have staff, etc. Brushing up on entrepreneurial skills is wise.

Financial Resilience

It can easily take 12-18 months to build up enough of a steady client base for your income to feel stable. Having a financial runway of savings or supplemental income during that ramp-up phase is crucial.

Work/Life Balance

Private therapy practice is incredibly demanding, especially when just starting out. Be honest about your ability to maintain self-care, relationships, and general life responsibilities with such a workload.

If you take the time to diligently prepare yourself in each of those areas, you’ll be setting your counseling private practice up for long-term success. Going in half-ready tends to lead to burnout before you can really get started.

Now let us get to the point.

How to start a private practice in counseling

• Determine your counseling niche
• Create a detailed business plan
• Register your private practice
• Open a business bank account
• Obtain necessary licenses and permits
• Setting up your office space
• Get a business insurance
• Get your finances in order
• Marketing your counseling practice

1. Determine your counseling niche

One of the most critical early decisions for your private practice is defining your counseling niche. This specialty area will not only shape your professional identity, but also streamline your marketing efforts and attract the types of clients best suited for your talents.

Perhaps you want to focus on a particular demographic like teens, new mothers, or any other community. Or maybe you’ll zone in on specific mental health issues that ignite your passion – grief counseling, addiction recovery, couples therapy, etc.

The key is zeroing in on that intersection of YOUR interests and experience, mixed with an underserved market demand.

As business owner and therapist Meaghan Rice says, “Choosing a niche is everything.” Clients gravitate toward specialists who deeply understand their specific needs and lived experiences.

So ask yourself: “Who do I most want to help, and what clientele aligns with my background?” That guiding question will illuminate the path for intentionally cultivating your expertise in a focused area over time.

While picking a niche may feel limiting initially, the opposite is true. Becoming a recognized expert within that specialty niche allows you to attract more of your potential clients through targeted marketing. It shapes your entire practice environment and burnishes your reputation.

Determine the niche that energizes you most, then lean in fully. That intentional focus and client alignment sets you up for the greatest clinical impact – and business success.

2. Create a detailed business plan

Before starting, you absolutely must develop a private counseling business plan to guide your new endeavor. This living document will serve as your operational roadmap and help secure any needed financing.

Start by articulating a crystal clear vision for your practice’s overarching goals and specialties. Follow that with a mission statement that encapsulates why you’re launching this business and who you aim to serve.

From there, dive deep into mapping out all the tactical details:

• Executive summary of your business
• Market analysis of your local competition and target demographic
• Service offerings, treatment specialties, and fees
• Startup costs and financial projections for at least 3 years
• Marketing strategies across channels like social media, SEO, networking
• Technological needs like EHR systems and telehealth capabilities
• Operational logistics like office location, suppliers, permits, and regulatory requirements

As a business owner, be meticulous in thinking through every minor component. Outline worst-case scenarios and contingency plans. The most successful private practices are born from astoundingly thorough preparation and planning. You can get help from a business planning app that guides you through the entire process.

Crafting this master plan takes hard work, but it will enforce clarity while stress-testing your viability before opening the doors.

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3. Register your private practice

Officially registering your private therapy practice is a major milestone – you’re establishing the legal bedrock to support your professional vision long-term. It’s about far more than just hanging a shingle. Here’s how to lay that sturdy foundation:

Choose Your Structure Strategically

Selecting the right business entity is a cornerstone decision. For many private practitioners, the Limited Liability Company (LLC) offers an ideal balance of personal asset protection and attractive tax benefits akin to a sole proprietorship.

However, LLC isn’t always permitted for licensed psychologists based on state regulations. In those cases, a Professional Limited Liability Company (PLLC) designed specifically for licensed professionals could be your optimal route, functioning similarly but complying with applicable rules.

The S corporation (S corp) is another option worth considering, shielding personal assets while allowing you to file business profits/losses separately.

Get legal affairs organized

After you’ve decided on your structure, it’s time to do the remaining legal paperwork. Register your official business name and obtain all required local/federal tax ID numbers – the core building blocks of your legal identity.

Then ensure you’ve satisfied every relevant state licensing requirement for your field based on a careful review of regulations in your area.

Secure Qualified Legal Support

Don’t go it alone – enlist an experienced business lawyer to provide invaluable guidance on entity selection and confirm you’ve checked every compliance box from day one.

Registering your practice is more than just paperwork; it’s an important investment in credibility and sustainability. By making informed structural decisions, handling paperwork diligently, and leveraging legal expertise, you’re establishing an unshakable foundation to build lasting success.

4. Open a business bank account

Separating your business and personal finances by opening a dedicated bank account for your counseling practice is absolutely essential. This proper accounting step protects your personal assets and simplifies bookkeeping.

When first opening the account, you’ll need to provide your business registration documents and IRS Employer Identification Number (EIN). Shop around for a bank that offers small business-friendly checking and savings accounts.

You’ll also want to apply for a business credit card to keep all practice expenses completely separate from personal charges. Many business cards offer lucrative cash back or rewards programs tailored for entrepreneurial spending.

Just be diligent about paying those balances in full monthly to avoid running up interest fees or debt. Using credit cards as a financing mechanism is extremely risky if not disciplined.

With dedicated business banking and credit accounts, you’ll experience far fewer financial headaches and liabilities. Establishing this proper money management foundation sets you up for an organized, stress-free operation from day one.

5. Obtain necessary licenses and permits

One of the most vital steps in launching your private therapy practice is making sure you have all the proper licenses and permits squared away. It is vital to address every legal requirement and follow every regulatory detail from the start.

First up, you’ll need to get an Employee Identification Number (EIN) from the IRS. Think of it as a social security number for your business. You’ll use it for tax purposes, opening a business bank account, hiring employees or contractors, and more.

Next, you must obtain a National Provider Identifier (NPI) which is required for working within the healthcare system and submitting information electronically.

If you’ve been employed in healthcare before, you likely already have an NPI, but if not, you’ll have to apply through the National Plan and Provider Enumeration System.

Finally, ensure you understand and follow all licensing requirements for your state and locality when operating a counseling business. This includes staying compliant with HIPAA laws to protect client privacy and keeping up with any mandated continuing education.

Handling all these boxes may seem tedious, but it lays the groundwork for a legitimate, above-board practice.

6. Setting up your office space

Creating an optimal counseling environment demands careful planning around client comfort, privacy, and professionalism – whether you opt for a physical office or virtual space.

For Physical Offices:

Location is critical. Seek an accessible spot with ample parking that signals convenience. The office itself should have soundproofed spaces for sessions and a warm, inviting waiting area or reception. Don’t skimp on secure record storage either.

For Virtual Setups:

Identify a dedicated, quiet room with optimized lighting, professional backdrops, and acoustics for glitch-free video conferencing. Invest in high-quality webcams and microphones. Virtual waiting room software can also enhance the experience.

Most importantly for any telehealth component, only use HIPAA-compliant platforms and communication tools to protect client privacy and records. Cybersecurity is non-negotiable.

While virtual spaces are often more cost-effective initially, intentional design and amenities are still paramount. Your office environment shapes crucial first impressions and the overall client experience.

Whether physical or virtual, thoughtful planning around location, technology, and therapeutic ambiance paves the way for your practice’s success. Prioritize these factors from the start.

7. Get a business insurance

Obtaining proper insurance is vital when starting a private practice. As a counselor, you need insurance to protect your business and clients if problems arise. Two essential policies are professional liability insurance and general liability insurance.

Professional Liability Insurance

Also called malpractice insurance, covers insurance claims of negligence or malpractice during counseling sessions. It pays for legal fees and damages should a client sue you.

General Liability Insurance

General liability insurance covers injuries or accidents that happen on your property like a client slipping and falling. It pays for clients’ medical bills and other costs.

Cyber Liability and Business Owners Insurance

For full protection, also consider cyber liability insurance and business owners’ insurance. Cyber policies cover data breaches and privacy violations. Business owners’ policies bundle general liability, property damage coverage, loss of income coverage, and more.

Work with experienced insurance agents to find the right policies for your private therapy practice. Make sure you understand what each covers, along with their coverage limits and deductibles.

Prioritizing comprehensive insurance gives peace of mind when seeing clients, knowing you have financial protection. It also shows clients you take your practice seriously by having appropriate business safeguards in place.

8. Get your finances in order

Getting your finances squared away should be job one when starting a private counseling practice. Whether you’re setting up shop downtown or in a suburban office park, the money side of things needs to be airtight from day one.

The first step is securing startup funds. How much will you need?

That depends on overhead costs like rent, utilities, insurance, marketing, and any hired help. Your funding options include personal savings, loans from friends/family, small business loans, investors, or certain grants. Just be careful not to overextend yourself financially right out of the gate.

Next, put together a detailed budget projecting your income and expenses for at least the first year. Having a financial roadmap lets you set competitive rates for counseling services while still covering your costs. It also highlights areas where you may need to rein in spending.

You’ll also need to decide if you want to accept insurance, private pay only, or a combination. Many therapists start out private pay to avoid insurance hassles, then add insurance panels as their practice grows. Make sure this decision aligns with your target clientele and financial goals.

The good news is that starting a private therapy practice has relatively low financial barriers to entry compared to some other businesses, especially with the rise of online therapy.

Typical startup costs include LLC filing fees around $100, free EIN and NPI numbers, $40-60 /month for practice management software, $20-40/month for website hosting, $200-1000+/month for office rent, and an optional $400-1500 one-time fee for a website template.

Carefully forecasting and planning for costs lays the groundwork for your practice’s financial health and sustainability long-term. With smart money management from day one, you’re setting yourself up for success in this exciting new venture.

9. Marketing your counseling practice

Getting the word out about your new private practice is crucial. You’ll want to craft a marketing message that clicks with the clients you hope to serve and find effective ways to spread that message. Here are some key strategies to market your counseling business:

Build Your Brand

Branding helps your practice stand out from the crowd. This includes visuals like your logo and color scheme, but also the overall vibe and personality you present.

Consistency is key across all your marketing channels to build client familiarity and trust over time. Consider hiring pros of using online tools to develop branding elements.

These days, a strong online presence is non-negotiable. Your website acts as a virtual front door to your practice, providing info about services, credentials, and more. Make sure it reflects your brand identity and offers helpful resources like blogs or online scheduling.

Social media is also a must for connecting with prospective clients where they’re already hanging out online. Research which platforms your target clients use most, then focus your efforts there with engaging, shareable content.

Network Away

Online marketing is powerful, but don’t overlook tried-and-true in-person networking too. Attend events, conferences, and meetups related to counseling to build connections and potential referral sources. Getting involved with local community groups is another way to expand your reach.

Put these marketing techniques into practice, and you’ll be well on your way to attracting a steady stream of clients excited about the unique services you offer. Stay flexible, keep refining your approach, and watch your private practice thrive!

Launching your own private counseling practice provides meaningful independence and financial upside for mental health professionals. However, achieving success requires a private counseling business plan , passion, and hard work.

Follow the steps in this guide to create a practice you enjoy while providing meaningful care to your community. The journey will stretch you, inspire you, and allow you to reach your greatest potential as a counselor.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

Do i need a business license for a private practice in california.

Absolutely – launching a private practice in California requires obtaining the proper business licenses and permits. While specifics vary across cities and counties, you’ll generally need a business license, fictitious business name filing, plus any additional local permits mandated for businesses in your area. Thoroughly research the precise licensing steps and requirements for your city or county.

Is it hard to start a private practice?

Starting a private practice definitely presents its fair share of challenges. Building a client base from scratch, managing finances effectively, marketing your services, and staying on top of administrative duties all come with steep learning curves initially. 

However, with a genuine passion for the work and diligent preparation, starting a thriving private practice is an eminently achievable goal. To make things easier, you can get help from a business planning app that guides you through the entire process.

What business structure should I choose?

Most therapists opt to register their private practice as either a sole proprietorship or a limited liability company (LLC). Sole proprietors file business taxes under their personal tax ID, while an LLC allows you to file separately and offers legal protection by shielding personal assets – though with somewhat more administrative paperwork involved.

How much does it cost to start a private practice?

Upfront costs can vary significantly based on location, office size, insurance needs, and other expenses. Most experts estimate initial startup costs of around $10,000 to $15,000 or higher for licensing, office space, furnishings, liability insurance, marketing, legal/accounting support, and capital to sustain operations until building a client base. Ensure a substantial financial runway for the first year.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

How to Start a Counseling Center

A counseling center can consist of one counselor in private practice or multiple counselors involved in the same practice. It assists the members of the community by offering mental health services to those who want to lead better lives. Typically, all counselors will share similar educational backgrounds, as well as philosophies regarding the best course of treatment. Therapy may be given to people of all ages, including young children for a variety of behavioral problems. Clients may include those who seek out the services themselves, or those who are mandated to receive therapy by the court system.

Learn how to start your own Counseling Center and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a counseling center by following these 10 steps:

• Plan your Counseling Center
• Form your Counseling Center into a Legal Entity
• Register your Counseling Center for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Counseling Center
• Get the Necessary Permits & Licenses for your Counseling Center
• Get Counseling Center Insurance
• Define your Counseling Center Brand
• Create your Counseling Center Website
• Set up your Business Phone System

We have put together this simple guide to starting your counseling center. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Counseling Center Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your counseling center?

Business name generator, what are the costs involved in opening a counseling center.

Generally, therapists need only a waiting room and an office with a couch or comfortable chair to begin their work. Should you get an office, you will need a Certificate of Occupancy that states you’ve complied with all zoning and building standards. Costs for this will be dependent on the neighborhood you choose for the business. Counseling centers with just one or two people in the practice can sometimes be run out of a home, which can save you a considerable amount of overhead. In this case, you’ll need to visit your local authorities to ensure that your home meets the safety regulations of the area.

What are the ongoing expenses for a counseling center?

Owners should budget in the following expenses:

• Rent/license renewals
• Administration supplies
• Commercial insurance
• Office equipment replacement
• Website costs

Who is the target market?

There are few people who won’t benefit from seeing a counselor. The unbiased advice and opinions can be priceless to people who can’t see past their next move in life. Persons who are wrestling with depression, anxiety, anger issues, or other emotional or interpersonal problems can all get relief from regular counseling. However, there is still a stigma when it comes to counseling services in certain areas of the country. The target market is composed of those who are open to the idea of getting outside help for self-improvement, parents who hope to stem behavioral issues when kids are young, or those who were mandated by the courts to receive counseling.

How does a counseling center make money?

Counselors make money by charging for their time. All entrepreneurs need to set their fees based on the therapist’s experience, as well as the overhead costs of the business.

Therapists can charge anywhere from $20 to $120 or more for a one-hour session. The amount is generally based on experience, education level, and the demand for services. Beware of charging too low for services. Offering a sliding scale for those with low incomes typically devalues the work done, and can sometimes give people an excuse to skip their sessions.

How much profit can a counseling center make?

Because therapists primarily pay for the therapist's time rather than fancy offices or equipment, profit can be considerable. Charging $60 an hour with a $10 overhead can lead to a $300 day of pure profit.

How can you make your business more profitable?

Expanding your services to include online sessions can be a smart move for any counseling center. Should you choose to do so, you’ll need to ensure that your computer software follows HIPAA rules. Consider giving sessions to current patients before branching out to strangers over the virtual space.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your counseling center is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a counseling center business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

In addition, to be able to practice as a counselor, you need to obtain a relevant academic degree from an accredited university or college. 

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A counseling center business is generally run out of an office building. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a counseling center business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your counseling center business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Counseling Center needs and how much it will cost you by reading our guide Business Insurance for Counseling Center.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a counseling center

Professionals will tell you that you’re going to get the most business from referrals rather than expensive advertising. However, you’ll still need a way to drum up clients at the very beginning. Focus on creating a professional website or passing out flyers that clearly detail how your practice runs and who you service.

How to keep customers coming back

Ideally, you don’t want your clients to need your services forever, but they will likely need to see someone for multiple weeks (or even years.) The best way to generate word of mouth is to establish a rapport and relationship with the client, and to promote progress whenever and wherever possible. The more tangible results a person sees from their therapy (e.g., healthier lifestyle, a job promotion, etc), the more they will continue to want to see a therapist.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is good for those who enjoy helping others discover their best selves. Navigating relationships, jobs, and life decisions can be overwhelming, but therapists can make the path that much clearer for those they serve. The best possible people for this job are those who find order in their own lives by helping others find order in theirs.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a counseling center?

A typical day for an owner will involve the following:

• Registering patients
• Counseling patients
• Reviewing past treatment plans
• Follow-ups with previous medical professionals
• Advertising the business

What are some skills and experiences that will help you build a successful counseling center?

Those who wish to start this business should have a professional background. All employees will need to have at least a Master’s degree before they can become licensed counselors, and they'll need their Doctorate degree to be considered a licensed psychologist.

Theoretically, an entrepreneur can start the business merely by finding the space and then hiring licensed professionals to do the actual counseling. In that case, a person would need to have the capital, people skills, and drive behind them to attract the clients necessary to attract quality business partners and employees.

What is the growth potential for a counseling center?

While counselors may be more popular in certain neighborhoods, there is still a lot of growth potential for counseling centers regardless of where you live. In addition to traditional offices and private one-on-one therapy, there are a number of other ways that clients can get mental health services. Between group therapy, online counseling, and regular private sessions, counseling centers have a variety of ways to reach their target market.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a counseling center?

Professionals will tell you to consider who you want your patients to be before you get started. You may want to focus solely on those with chemical dependency issues, or those who are dealing with the loss of a loved one. Narrowing down your practice also helps you to create a brand, which can make it easier for the public to remember your demographic. If you’re planning to partner with the courts, you need to know that all of your therapists are comfortable with counseling criminal offenders. You may also want to consider joining professional networks and organizations. These not only keep you informed of new trends in the world of counseling, but can also help you network and expand your business.

How and when to build a team

A counseling center may consist of anywhere from one to 10 or more counselors. For brand new practices, a counselor may want to start on their own out of their home. If there’s a large need for counselors in any given area, then it may make sense to hire a team right away. When you’re hiring, look for professionals who have similar philosophies to your own. Practices that run with a religious slant may not be compatible with a secular counselor. Having a consistent overall mission and brand for your organization will help to attract regular clients.

Useful Links

Industry opportunities.

• American Counseling Association
• American Mental Health Counselors Association

Real World Examples

• Crossroads Counseling
• Oakland Hills Counseling
• ACAS Counseling

Further Reading

• Tips from someone with a successful practice
• Advice on starting online counseling
• Pros & cons to starting this business

Have a Question? Leave a Comment!

How to Open a Counseling Private Practice

Opening a counseling private practice can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful counseling private practice.

Importantly, a critical step in starting a counseling private practice is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

15 Steps To Open a Counseling Private Practice :

• Choose the Name for Your Counseling Private Practice
• Determine the Type of Counseling Private Practice You Will Launch
• Develop Your Counseling Private Practice Business Plan
• Choose the Legal Structure for Your Counseling Private Practice
• Secure Startup Funding for Your Counseling Private Practice (If Needed)
• Secure a Location for Your Business
• Register Your Counseling Private Practice with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Counseling Private Practice
• Buy or Lease the Right Counseling Private Practice Equipment
• Develop Your Counseling Private Practice Marketing Materials
• Purchase and Setup the Software Needed to Run Your Counseling Private Practice
• Open for Business

1. Choose the Name for Your Counseling Private Practice

The first step to opening a counseling private practice is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your counseling private practice:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your counseling private practice.

2. Determine the Type of Counseling Private Practice You Will Launch

The next step is to determine the type of counseling private practice you will launch. The four main types of counseling private practices are:

• Couples Counseling : This type of counseling helps couples to build better relationships, identify and resolve conflicts, and improve communication.
• Individual Counseling : This type of counseling helps individuals to address issues such as depression, anxiety, anger management, trauma, and more.
• Group Counseling : This type of counseling works with multiple people at the same time to address issues like relationships, substance abuse, and more.
• Psychiatric Services : This type of counseling provides mental health assessments and medication management.Once you have decided on the type of counseling private practice you will launch, you can move onto the next step in the process.

3. Develop Your Counseling Private Practice Business Plan

One of the most important steps in opening a counseling private practice is to develop your counseling private practice business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your counseling private practice.
• Company Overview – this section tells the reader about the history of your counseling private practice and what type of counseling private practice you operate. For example, are you a solo practice or do you have a team of counselors? 
• Industry Analysis – here you will document key information about the counseling private practice industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your counseling private practice? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your counseling private practice make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

4. choose the legal structure for your counseling private practice.

Next you need to choose a legal structure for your counseling private practice and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the counseling private practice and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to open a counseling private practice together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a counseling private practice include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a counseling private practice is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your counseling private practice, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

5. Secure Startup Funding for Your Counseling Private Practice (If Needed)

In developing your counseling private practice plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a counseling private practice to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a counseling private practice that they believe has high potential for growth.

6. Secure a Location for Your Business

Having the right space can be important for your counseling private practice, particularly if you’d like to meet clients there. When looking for a location, there are several factors to consider, including how much space is needed, how accessible the space is to clients and how much it will cost.

To find the right space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

7. Register Your Counseling Private Practice with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

8. Open a Business Bank Account

It is important to establish a bank account in your counseling private practice’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

9. Get a Business Credit Card

You should get a business credit card for your counseling private practice to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

10. Get the Required Business Licenses and Permits

The business licenses and permits you need for your counseling private practice will vary depending on the state you operate in. However, there are some general licenses and permits that are typically required for most businesses, including:

Business License : A business license is a permit that is required to operate a business within a certain jurisdiction. In order to get a business license, you typically need to submit an application and pay a fee.

Tax Identification Number (EIN or TIN) : An EIN (or TIN) is a number that the IRS issues to businesses for the purpose of tracking their payroll tax payments. Most banks will require you to have an EIN in order to open up an account.

Sales Tax Permit: A sales tax permit is a permit that allows businesses to collect sales tax from their customers. In order to get a sales tax permit, you typically need to submit an application and pay a fee.

Nearly all states, counties and/or cities also require:

• Zoning Approval : typically at the city or county level, this provides authorization for construction or use of a building or land for a particular purpose
• Health Facility Licensing & Certification : to ensure safe rendering of healthcare services
• Fire Department Approval : a process by which the local fire department reviews and approves the installation of a fire alarm system.

Depending on the type of counseling private practice you launch, you will have to obtain the necessary state, county and/or city licenses.

11. Get Business Insurance for Your Counseling Private Practice

Business insurance is essential for protecting your counseling private practice from potential risks and liabilities. Some of the most common types of business insurance include:

Commercial Property Insurance : This insurance protects your business property from damages, such as fire, theft, and vandalism.

General Liability Insurance : This insurance protects your business from third-party claims, such as injuries or property damage.

Professional Liability Insurance : This insurance protects your business from claims that arise from professional services you provide.

Business Owner’s Policy : A business owner’s policy is a package policy that combines general liability and property insurance into one policy. This can be a helpful option for small businesses who want to simplify their insurance needs.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

12. Buy or Lease the Right Counseling Private Practice Equipment

When starting a counseling private practice, there are a few key pieces of equipment that you will need. This includes:

• A desk and chair for your office
• A computer and printer for your office
• A phone for your office
• Medical supplies, such as bandages, gauze, and tape

You can lease or buy the equipment you need for your counseling private practice. If you have the funds, buying the equipment will save you money in the long run. However, if you don’t have enough funds to purchase the equipment outright, leasing can often be a good option.

13. Develop Your Counseling Private Practice Marketing Materials

Marketing materials will be required to attract and retain customers to your counseling private practice.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your counseling private practice. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional counseling private practice website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your counseling private practice.

14. Purchase and Setup the Software Needed to Run Your Counseling Private Practice

The software you need to run your counseling private practice depends on the type of practice you plan to have. However, some of the most common types of software used in counseling private practices include:

Computer-based billing software : This software allows you to track payments, generate invoices and manage your billing.

Client management software : This software helps you keep track of client information, appointments, treatment plans and more.

E-mail marketing software : This software helps you cultivate customer relationships by sending targeted e-mails about your services.

Research the software that best suits your needs, purchase it, and set it up.

15. Open for Business

You are now ready to open your counseling private practice. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Counseling Private Practice Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Open a Counseling Private Practice FAQs

Is it hard to open a counseling private practice.

Counseling private practice can be a very rewarding career path. 

By following the steps outlined in this article, you can give yourself the best chance of success.

How can I open a counseling private practice with no experience?

If you have no experience in the field of counseling, you may want to consider first working as a counselor's assistant or intern. This will give you the opportunity to learn about the counseling process and how to work with clients.

You may also want to consider taking some courses in counseling theory and techniques. This will help you develop the skills you need to run a successful counseling private practice.

Finally, make sure you are well-organized and have a good business plan in place. This will help you manage your counseling private practice effectively and efficiently.

What type of counseling private practice is most profitable?

Couples counseling private practices tend to be the most profitable, as couples counseling typically involves two people, so it can lead to higher fees than individual counseling. Other types of counseling private practices that are often profitable include substance abuse and addiction counseling, family therapy, mental health counseling, and career and executive coaching.

How much does it cost to open a counseling private practice?

Opening a counseling private practice can be a relatively affordable endeavor. The average start up costs for a counseling private practice vary. These costs include the cost of office space, marketing materials and services, and software. Of course, these costs may vary depending on how large your practice is and how much equipment you need to purchase.

What are the ongoing expenses for a counseling private practice?

The ongoing expenses for a counseling private practice can vary depending on the size and scope of your business. These expenses often include rent or mortgage payments for the office space; internet and phone bills; costs for equipment maintenance and repairs; marketing materials; insurance premiums; website hosting fees; professional association membership fees; and taxes.

How does a counseling private practice make money?

A counseling private practice can make money in a number of ways. The most common methods include charging clients by the hour, charging for sessions in advance, and offering package deals. Counselors can also charge for phone consultations, provide consulting services, or offer workshops and training seminars.

Is owning a counseling private practice profitable?

Yes, owning a counseling private practice can be very profitable. However, the profitability of a counseling private practice will vary depending on the specific industry and services offered.  

Some of the key things you can do to make your counseling private practice more profitable include:

• Offering a variety of services
• Charging a fair price
• Investing in marketing and advertising
• Maintaining a high level of professionalism
• Optimizing your website for SEO to increase online visibility
• Providing outstanding client service

Why do counseling private practices fail?

One of the main reasons that counseling private practices fail is a lack of planning. This can include not having a detailed business plan, not doing research on the industry, and not targeting the right customers.

Another reason is a lack of marketing and sales skills. This can include not creating a sales process and not have a clear and strong value proposition.

The last main reason is a lack of financial management skills. This can include not having a realistic budget, not tracking expenses, and not investing in the business.

Who are key players in the counseling private practice market?

The counseling private practice market is made up of a variety of different players, including small businesses, large enterprises, and even individuals.

Some of the key players in the market include:

• BetterHelp  
• TherapyAppointment
• Insight Counseling Centers
• National Institutes of Health

However, there are many other players in your specific target market, and it is important to research the market to identify the key players that may have the most direct influence on the success of your business.

How much should I charge for my counseling private practice services?

Counseling private practice fees can vary depending on the type of counseling private practice services being offered, as well as the size and scope of the project.

However, some common counseling private practice fees include:

• Hourly rate – $75 - $150
• Flat rate – $350 - $1,000
• Retainer/Monthly Agreement – $800 -$2,500

The best way to determine the right fee for your counseling private practice services is to research the rates of similar businesses in your industry, and to also consider the value that you will be providing to the client.

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Create a Business Plan for Private Practice in Counseling

If I’m in private practice, do I need a business plan?

…YES!

Just like any business, it’s important that you create a business plan for private practice  before you spend a dime .

Sound daunting? Don’t worry, I’ve started private practice in three different cities and have fine-tuned my process over the years. And I’m going to share it with you!

Why you Need a Business Plan in Private Practice

Is a business plan really necessary? Can’t you just rent an office, stick a couch in it, and be on your way with your counseling practice?

Well, you can try that, but you will likely find yourself sitting in an empty office waiting for clients to show up while your money drains from your bank account.

Think of a business plan as a treatment plan for your business. If your clinical training experience was at all like mine, then treatment planning has been drilled into your head.

Why do we create treatment plans for our clients? They act as a guide to help us serve our clients based on their specific needs. They give us a compass to guide the therapy process, though we can always modify the treatment plan to adapt to a client’s changing needs.

A business plan serves the same purpose. We need to do a bit of an assessment of ourselves and where we are situated to create a set of steps and goals for where we are headed. It sets us up for success as we use our business plan as a guiding compass.

Five Steps to Create a Business Plan

Here are five tools to help you get started in creating a business plan for private practice in psychology.

1. Do Market Research

Before you start anything else in your business plan, it’s important to know what other local therapists are out there in private practice and what they’re up to. Explore the Psychology Today Find a Therapist Directory , do some Google searches, and see who’s around as well as what they specialize in.

Market research helps you know what kind of supply there is for the product you’re selling in your business. This information informs the rest of the steps for creating a business plan.

2. Determine Your Product

You might be thinking:  um, Marie, my product is psychotherapy, duh!

It is true that your product is your counseling services, but there is so much nuance to what psychotherapy looks like in practice.

It’s important to look at your market research from step one and see how you fare amongst local therapists. Are you the only therapist in a 10-mile radius? Then maybe your product is more broad.

If you live in an area like me where you’re one of hundreds of therapists just within your zip code, you want to think about what your niche is and maybe even double- or triple- niching so that you are the only therapist delivering this specific product in your area.

Take some time to write down what your product is more specifically. Here are some sample questions to help you get the ball rolling:

• What are examples of success stories you’d like future clients to tell?
• How do you want clients to feel when they sit with you in your office?
• What kind of psychotherapy services will you offer? What’s your area of specialty? What theoretical orientations do you utilize?
• How would you like to be known in your local community? What kind of broader influence do you want to have?
• Who is likely to refer clients to you?

If you’d like to learn more about finding your niche, you might find it helpful to watch my video about Finding Your Niche in Private Practice .

3. Get Advice from Other Therapists in Your Niche

I know this sounds completely counterintuitive. Naturally, we don’t want to go to our “competition” for advice.

Let me get this idea in your head: other therapists in your niche are not your competition, they are your friends, colleagues, consultation resources, and referral sources.

The reality is other therapists in your area of specialty are likely to be one of your primary referral sources!

There are nuanced differences amongst those of us who have similar areas of specialty. Maybe you specialize in GAD in young adults. Then therapists who specialize in GAD in teens and older adults might be indispensable resources to you. You can make referrals to each other when a potential client doesn’t quite fit within your niche, and you can consult with each other when you feel stuck.

These are the people you will be leaning on once you begin private practice, so it’s worth seeking them out before you even start.

How to Find Local Therapists

Some easy ways to find these therapists is through market research from step one, as well as through social media and networking events in your area. Lately tons of therapists have been flocking to Instagram with professional accounts, making it easy to find local therapists in your area. Give it a try! If you need some help, you might like to watch my video about How to Network with People in Private Practice .

Therapists love giving advice and helping people! So when you chat or meet up with colleagues, be sure to ask them for their best tips and advice in private practice. What worked for them? What investments totally flopped? Ask around from a few people because private practice is not a one-size-fits-all endeavor, so you might want to pick and choose what fits best for you.

This is a double-whammy tip because not only does connecting with local therapists help you with future marketing but you also don’t have to reinvent the wheel as you develop your business plan.

4. Determine how much You’re Willing to Give to Private Practice

Time and money are such precious resources, and you need both to get things started with private practice. Ask yourself how much of each of these you’re able and willing to give.

Make a plan together with your loved ones so you have the same expectations for how this will unfold. Ask questions like:

• How much budget are you willing to give to this?
• How much time are you willing to give?
• Are you going to go part-time at your current job to do this or are you going to pick a day on the weekend or evenings to do it?

Determine the answers to these questions in advance and know what you’re willing to expend towards your goal. You may also want to invite trusted friends to share their concerns with you, as our friends have a way of knowing what we need to ask better than we do sometimes!

5: Create an Exit Plan

Before you start it’s important to keep the worst case scenario in mind: what if private practice doesn’t succeed?

Ack! We don’t want to think about that!

I remember when I first decided to go from part-time to full-time private practice, I didn’t have an exit plan. Full-time private practice was THE plan. My husband ended up being the voice of reason. He asked me, “When will you quit if this doesn’t start turning a profit?”

My response? “Uhhhh…I don’t know.”

So we sat down and made a plan for how long I would give this a go before bailing. We created a five month plan, complete with expense spreadsheets so we knew how much money we were willing to sink into private practice if I wasn’t profitable.

It’s not fun to think about failure, but planning for the worst is actually a reassuring measure. You can feel more confident getting started knowing you have a way out if it doesn’t work. Ask yourself questions like:

• How long am I willing to work at private practice before I start turning a profit?
• Is there a certain profit margin I’m expecting to achieve? When do I need to achieve that margin by before bailing?
• Do I have a back-up plan for what I will fall back on if I end the private practice venture?

Think about these things in advance and talk them over with your loved ones. It will save you time and heartache down the road if you need it.

Creating a business plan for private practice can seem overwhelming, but I hope you find these tips make the process a bit smoother for you!

Further Resources

Are you wondering if private practice is right for you? Check out my post: Starting a Private Practice in Counseling: Is it Right for You?

I know the process of starting a private practice can seem daunting and overwhelming, even amidst the excitement that might be there. If that is you, be sure to sign up for the email list to get free information about how to start and grow your private practice. I share tools that I’ve learned the hard way about starting private practice so that hopefully it doesn’t have to be so hard for you.

Until next time, from one therapist to another: I wish you well!

Next Step: What’s the Best Website Builder for Therapists? 

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Reader Interactions

February 26, 2022 at 2:39 pm

I resonate with the point regarding exit plan or “what to do if this endeavour isn’t turning out as expected.” I am currently working full time at an agency, and have just recently decided to start my private practise on the side, though low key, I also want my time and effort to bear some fruit. This article is a great reminder of my motive and what I need to keep in mind.

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The Practice of Therapy

Resources, tips and advice for success private practice.

• PsychCraft LLC
• Starting Phase
• Growth Phase
• Scaling Phase
• Money Matters In Private Practice | The Course
• G-Suite for Therapists E-Course
• Accounting Templates for Google Sheets
• Love the Work, Hate the Job | The Course
• Paperwork Packet
• Session Note Helper 2.5
• The “Works”
• Profit First Resources
• The Full Focus Planner™
• Private Practice Office Set-Up
• Private Practice Start-Up Guide
• Start Your Website
• Podcast Notes
• Starting Up
• Creating Websites
• Productivity
• Facebook Live
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• More Resources…
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In private practice you have to wear a “business hat”…

When starting or building a counseling private practice you not only have to wear a “therapist hat” but also have to wear a “business hat”. Because in reality, a private therapy practice is a business! Even if it is a non-profit organization, you have to know something about business models and have some basic business knowledge to make it successful.

In this article, I want to outline some basic “business models” for running a private therapy practice (not business plans; I hope to cover that later). First of all, what is a business model and how does it differ from a business plan? One definition of a business model is simply the design or plan for making money. It is how you identify where the money comes from and how it flows in the private practice. It also defines who runs the business and provides the services. A business plan differs in that it is more specific. It lays out specific financial goals and how you will reach them.

To put all this in counseling or therapy jargon:

Business model = treatment approach/model, business plan = treatment plan.

Let’s look at some examples business models for private practice as a therapist. What I will focus on is how the money “flows” or comes from in these examples which ultimately determines your salary as therapist.

Business Models

(download your free copy of this infographic), sole proprietor model.

This is essentially the simplest model and what most people tend to think of when they go into private practice as a counselor. In this model you are responsible for generating your own referrals, record keeping and paying yourself from your own business account. Clients contact you and simply pay you directly for your time. You are also responsible for paying your overhead or the cost of doing business (rent, electric, phone, advertising, and other office expenses, etc.). Your net profit (take home pay) is the money you have left after paying the bills. As mentioned already, it is the simplest way to do business.

Another, sub-category of this model would be if you decided to take third-party or insurance payments. This adds another layer of overhead in that you would have to make insurance claims or hire someone to do this for you. There are several pros and cons of accepting third-party payments. Pros would be that it does tend to increase the number of referrals you get. It also can be more convenient for clients who want to use their health insurance benefits. The cons are that you will have to settle for what the insurance companies say they will pay you (lower rates) and that extra layer of overhead I mentioned.

Co-op or Shared Practice Model

In this business model you essentially operate as a sole proprietor but with the benefit of sharing overhead costs with a partner or other therapist. Each person involved in the private practice operates independently. You would still be responsible for generating your own referrals, record keeping and paying yourself. The difference though is being able to split or share the cost of running an office with someone else that is a therapist.

Many times people that partner like this will also take the step of forming an LLC or other legal partnership, like a corporation, to protect themselves legally and have a way to handle the accounting and tax implications. It does require that you form a legal entity which can be done easily with a service like  Swyft Filings * or other attorney services. Also check with an accountant about possible tax implications in forming an LLC or other business entity. It is an extra step and expense. But do seek the advice of a professionals on this (attorney, CPA, etc.).

*In the spirit of full disclosure, this is an affiliate link which simply means we receive a commission at no extra cost to you if you use this link to purchase. Thanks in advance for using the link!

Contract Counseling Models

With this type of business model there are two sides of the equation to consider. One side of this would be the private practice owner that is “hiring” a contract counselor to provide therapy services for the practice. The other side of this would be from the perspective of the therapist that was being contracted. Usually with this model the fee contract counselor receives is either on a per case flat rate or as a “split fee”. With a “split fee” the private practice owner would give the contract counselor a percentage of the total fee collected for the practice. Typical fee splits are 60/40 or 70/30. For example, with a 60/40 split, the therapist that provides the session keeps 60% of the total fee collected and the practice keeps 40%. A flat rate is just a set per session fee the practice would pay the therapist for seeing that client at their practice regardless of what is collected from the client.

Contract Counseling “PRN” Practice Model

In this business model, the private practice is still operating as a sole proprietor or business entity, but is essentially “free lancing” or offering to provide their services as a therapist to other established practices. It may or may not be a group practice. This is often referred to as “PRN” or “as needed” work or. It might be that an established practice has a waiting list and they need to get clients in to see a counselor before the clients decide to go somewhere else. The practice would contract with a therapist to see those clients for set fee or split fee. Another example would be if a private practice therapist were to go on vacation and needed another therapist to be on-call or see clients for them while they were gone.

With the contract counseling models of private practice, the therapists you have “hired” are not employees and they will need to bill you for their services to keep the IRS happy. At the end of the year you will need to complete a 1099 form with the IRS showing what you paid them during the year. If a person is working as contract therapist, they are responsible for paying their own withholding and income taxes. If you are working as contract therapist it might be to your advantage to pay quarterly, prepaid taxes. Again, consult professionals on this!

Group Practice Models

Group practice business models can vary quite a bit. Typically, they use one of the previous mentioned shared practice or contract counseling models or a combination of them with the counselors working within the group.

Independent Group Member Model

In this sub-model of group practice, each person that is part of the group is considered in private practice on their own, but are simply using the “brand” of the group to promote their own individual practice. It might be that the group practice does all of the advertising and referral generation as part of what they provide in return for the fee split. Any number of fee arrangements could be made as part of this type of business arrangement. Usually with a group practice like this, there is one or two “owners’ of the practice and it is usually set up as a legal entity. Essentially, all of the members of the group are contracted by the practice to provide services. Some or all of the group members might own a part of the practice.

Employer Group Model

The other thing a group practice might do is simply employ therapists for a set salary or hourly rate. Unless it is a large practice, hiring therapists as employees has some disadvantages. Number one is that, as an employer, you have to provide benefits such as disability insurance and health care for those people employed by the practice. All of this adds to the overhead expense and somewhat to your liability. You also have to abide by the employment laws of your state and pay for workman’s compensation insurance. You have to track and pay withholding taxes for employees. Needless to say, as the owner of this type of private practice you will be managing employees and be responsible for much more paperwork. This, of course, affects your bottom line. Of course for therapists working for a private practice that has employed them you are technically not in their own private practice. They are an employee of that private practice.

There is not one counseling private practice business model that is necessarily better than another. It all depends on your individual needs and financial goals. For most therapists in private practice, they start as a sole proprietor and build from there. And there are some that simply start as a contract counselor for an already established practice. Regardless of how you start or grow your private practice as a counselor, educate yourself and just do it!

Meet Gordon Brewer, MEd, LMFT

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Psychological Health Center Business Plan

Start your own psychological health center business plan

Amesbury Psychological Center

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Amesbury Psychological Center (the Center) is a multidisciplinary behavioral health care practice that offers mental health and substance abuse services to the communities of the Merrimack Valley. Our focus is to provide cost-effective, quality treatment. Our mission is to create, promote, and maintain a positive customer relationship with our clients, Anna Jaques Hospital (AJH), payors, associates and staff, and our community.

The market for behavioral health services is healthy, as will be shown by the growth the existing Center has experienced during the past two and a half years. Massachusetts has recently passed a mental health parity bill that will become effective in month one. The bill requires insurance companies to develop benefits for biologically based behavioral health disorders similar to those provided for health disorders. This should help sustain the anticipated projected growth. Currently, the Outpatient Psychiatric Center is referring approximately four phone calls a day to other providers.

The key to success for this turnkey project includes:

• An ability to transfer existing hospital behavioral health contracts to the Center.
• Credentialing clinicians in a timely manner.
• Obtaining initial working capital.
• Contracting with clinicians using reasonable rates.
• Developing and implementing a successful billing and collection system.
• Listening to all customers and attempting to meet their needs.
• Obtaining a medicaid provider number.

The business plan provides a map for sustaining growth, improving revenue collections, and increasing our bottom line to produce a profit.

1.1 Objectives

Goal 1: To continuously develop, strengthen, and improve services offered by the Center.

• Strengthen the current payor mix by developing and maintaining strategic alliances with five major behavioral health managed care companies.
• Identify and develop strategic alliances with three community human service and addiction agencies.
• Identify and foster strategic alliances and networks with eight community medical group practices.
• Transfer and/or hire 80% of staff two months before starting date.
• Identify and implement a billing system two months before starting date.
• Improve the expected receipts rate by 40% over the previous year.
• Increase all  services offered through the Center by 80% over the previous year.
• Arrange working capital for the initial phase of the turnkey venture.

Goal 2: To strengthen the Center’s commitment to excellence.

• Enhance customer service by offering three in-service trainings related to client satisfaction with treatment, accessibility, and staff-client interactions.
• Continuously assess referral base satisfaction through the use of a referral base satisfaction survey.
• Continuously assess client satisfaction from three perspectives: accessibility, environmental factors, and treatment-related factors.

1.2 Mission

To promote the well-being of the individuals and families in the Merrimack Valley community by providing accessible, quality mental health and substance abuse/addiction care for children, adolescents, adults, and their families, utilizing a service system that emphasizes trust, respect, confidentiality, and compassion. We are committed to quality mental health care that is provided in a collaborative effort with consumers’ overall health strategies and an array of medical services. We are further committed to the philosophy that we exist for the customer/client.

1.3 Keys to Success

• Secure working capital by start of project.
• Be profitable on a forward basis by the seventh month of the first fiscal year.
• Be cash flow positive by the seventh month of operation.
• Being affiliated with a well-respected community acute-care hospital.
• Managed Care friendliness through cooperation, accessibility, and clinical focus.
• Community awareness of services provided by the Center.
• Ascertain a medicaid provider number and developing an interim plan to function during the application phase.
• Staff commitment to excellence as evidenced by the Center’s growth and customer satisfaction.
• Accessibility and responsiveness to the needs of the Center’s customers.
• Functioning as an organization that is fluid, responsive, and willing to change in order to meet the frequent shifts of the behavioral health industry.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The Amesbury Psychological Center is a for-profit behavioral health company located in Amesbury, Massachusetts. It was founded by the privatization of an existing mental health center that was a part of the Anna Jaques Hospital psychiatry program. The transfer of clients to the Center from the Outpatient Mental Health and Addiction Center was an effort to provide for uninterrupted, continued quality services to its present consumers, and expand its network of providers to ensure further growth. The transition to a privatized center enables the residents of the Merrimack Valley area to have continued access to a quality, accessible mental health center.

Although the Center is a new company, it is taking over the operation of an existing full-service mental health center. Prior to the privatization of the Outpatient Mental Health and Addictions Center, the Center was part of Anna Jaques Hospital’s Psychiatric Services Program. This program offered an array of behavioral health services which included both inpatient and outpatient services. Currently, there are approximately 565 active cases. There are another 233 inactive cases that use the Center’s services on an as-needed basis. The Center is located at the Amesbury Health Center, a facility owned by Anna Jaques Hospital. The Amesbury Health Center, formerly a city-owned community hospital, is a four-story brick building. It has been modified to accommodate a child inpatient unit and medical office spaces, including the mental health center.

The outpatient center began as a psychopharmacology center at Anna Jaques Hospital. During 1995, the psychopharmacology center moved to the Amesbury Health Center. At that time, the center expanded to include an Addictions Program.

In 1998, the Center further expanded to offer psychotherapy services. The psychotherapy component consisted of individual, couple, family therapies, and specialized groups. The composition of staff was multidisciplinary and included independently licensed/certified mental health centerians and certified addiction treatment specialists. During this time, the Center was licensed by the Department of Public Health to offer specialized addiction services that included a Second Offenders Program, an Addiction Counseling program, and an Intensive Outpatient Program. The licensing enables the Center to collaborate with other state and community agencies working with substance abuse/addiction populations, resulting in further growth for this program.

Since 1996 the number of visits/procedures has continued to grow to its present day tallies. The total number of visits for 1996 was 1,471, in 1997 it was 1,869, in 1998 it was 3,399, and in 1999 it was 6,158. The projected number of units of service for 2000 is 5,700. Although units of service have increased by 45% over the past two years, the net revenue has decreased per unit of service. As volume has increased, expenses per unit of service has fallen from $88 in 1996 to $52 in 1999. Since 1998, operating expenses have been under control and reasonably proportionate to units of service provided.

2.1 Company Ownership

The Center is a privately-owned sub-chapter S corporation formed to privatize, manage, and offer mental health and substance abuse services to the community of the Merrimack Valley. It is solely owned by its principal operator, John Nestor, Ph.D., M.P.A. It has been chartered and the name has been reserved with the Secretary of State’s office.

2.2 Company Locations and Facilities

The Center is located in Amesbury, Massachusetts, and has been in the same location since 1996. The location is excellent because the Center is easily accessible by automobile or public transportation, and has ample parking. The psychological center has its own entrance on the south side of the building, ensuring moderate privacy and confidentiality. The Center has been recently refurbished by the hospital and there is space available for growth. Leasing arrangements are yet to be negotiated, though $10-$12 dollars a square foot is the customary rate as quoted by local realtors. The Center will ask the hospital to subsidize rent for the first two years of operation, representing their support to ensure the success of this project.

The Center occupies approximately 2,200 square feet. It has nine clinical offices and group rooms. There is a larger reception area that is separated by a divider, allowing for a child and adult reception area. Included in the square footage is a small staff kitchen, a staff bathroom, and a business/intake office. The offices are handicapped accessible. There is a public unisex, handicapped-accessible bathroom within close proximity to the Center, and one within the building.

Leasing arrangements are in process. Based upon a financial analysis and financial projections, the hospital will need to subsidize rent for the first two years if the project is to succeed. It is our goal to obtain a three-year lease from the Anna Jaques Hospital with an option to renew a second three-year lease. The present location is not critical to the success of the business. After three years we will review our rental options, the need for additional space, and other available facilities in the geographical area prior to renewing the contract.

The Center provides an array of quality mental health and substance abuse/addiction services to individuals, couples, and families. The service population includes people of all age ranges. Specifically, services include psychopharmacology, psychotherapy, substance abuse programs, and contracted mental health services. A multidisciplinary staff provides quality treatment of mood disorders, anxiety disorders, attention deficit hyperactivity disorders, behavioral disorders, post traumatic stress disorders, stress management, substance abuse disorders, and gambling addiction disorders.

3.1 Service Description

There are four components of the Center that interact closely with each other, and also with the consumer’s primary care physician, when appropriate. The philosophy of treatment recognizes the totality of the individual in his or her life situation. This includes the interconnection of multiple dimensions from biomedical to spiritual, as well as external relationships of the individual to the family and larger social groups.

• Psychopharmacology: This service is provided by licensed and board certified psychiatrists (MD/DO) and certified nurse specialists (RNCNS). Persons utilizing this service may or may not be in therapy, but need medication to stabilize the presenting symptoms and to facilitate a return to the person’s previous level of functioning. All age groups are treated. The average number of sessions is ten per year. Treatment is tailored to the needs of the individual and guided by an individualized treatment plan based on a comprehensive biopsychosocial assessment of the individual and their family, if appropriate. Rates are contracted.
• Psychotherapy: This intervention is provided by independently licensed certified nurse specialists, psychologists, licensed mental health counselors, and licensed, independent social workers. The format of these services are individual, couple, family, and/or group sessions. All age groups are treated. The average number of sessions is eight per year. Treatment is tailored to the needs of the individual and is guided by an individualized treatment plan based on a comprehensive biopsychosocial assessment of the individual and his/her family, if appropriate. Rates are contracted.
• Substance Abuse/Addiction: Substance Abuse and Addiction treatment centerians provide professionally-directed evaluation, treatment, and recovery services to persons with substance related disorders. Interventions are provided by licensed independent practitioners and/or certified alcohol and addiction counselors. These services are provided through individual and group modalities. The program consists of a four-week program that meets nine contact hours per week. Services are designed to treat the individual’s level of illness severity and to achieve significant changes in an individual’s addictive behavior. Treatment is tailored to the needs of the individual and guided by an individualized treatment plan based on a comprehensive biopsychosocial assessment of the individual and his/her family, if appropriate. Rates are contracted.
• Contracted Services: Services provided to consumers within this category are generally provided off-site at another facility. The services are provided with associated staff and billed via the Center at contracted rates. Services include: consultation, psychotherapy, psychopharmacology, and addiction services.

3.2 Competitive Comparison

The Center provides quality, accessible service. The key to differentiation is to promote and evidence the mission of the Center to our customers in a meaningful and understandable manner. It is clear that we will not be able to compete doing “business as usual.” Our approach will be customer directed. Our customers will be able to discern our intangible, as well as our tangible, benefits. Our dedicated focus on all our customers will place us ahead of our competitors. When compared with its competitors, the Center stands out in several respects:

• Environment. The Center is managed-care friendly; we provide prompt and accurate information as well as good communication. The Center has a shared treatment philosophy. Our services are accessible and cost effective.
• Marketability. When marketing our services to managed-care companies and preferred provider organizations, we take into consideration their needs. For example: group vs. individual treatment, family vs. individual treatment, after-hours accessibility, access on weekends, use and tracking of outcome measures, and customer satisfaction.
• Value-added Customer Contact. The Center provides free phone or face-to-face contact with therapists prior to treatment as a means of initiating a therapeutic relationship.
• Location and Ease of Access to Facility. The Center is easily accessible by both automobile and public transportation. It has a private entrance which provides confidentiality. It is accessible to the physically challenged and there is ample free parking.
• Promotion. Our customer-first philosophy will help attract new customers and maintain existing ones.
• Self-Assessment. A major thrust of the Center is to continuously self-assess our mode of operating in order to evaluate how user friendly the Center is for clients, referral sources, payor, staff and associates, and others.
• Integrated Delivery System. The Center has familiarity, understanding, and willingness to work closely with other health care providers. We are affiliated with an integrated health and behavioral health care system encompassing inpatient, partial, and outpatient services.

3.3 Sales Literature

At the time of this writing, our logo, brochure, business cards, and advertising are in the process of being developed. Our focus will be on selling the Center’s perceived qualities and intangibles.

3.4 Fulfillment

The key of fulfillment will be provided by the philosophy and principals of the business. The core values are customer focus, quality treatment, and professional expertise, as is evidenced by associates and staff performance, compassion, trust, and hard work.

3.5 Future Services

Market analysis summary how to do a market analysis for your business plan.">.

In this age of health care reform and increased use of contracts with health maintenance organizations (HMOs), preferred provider organizations (PPOs), and other groups, the demand for behavior health care providers continues to decline. This phenomenon, being driven by behavioral health “carve outs,” has created a competitive clinical market, resulting in customer service being a critical factor. From this particular perspective, the customer identified as payor is: self-payor, medicare, medicaid, and managed care companies. They clearly drive the large percentage of referrals within the industry.

The Center has identified several behavioral health payors who have a strong foothold in the Merrimack Valley area. They include: Tufts HMO and Tufts Affiliated Health Programs, Harvard/Pilgrim Health Care, Medicare, Medicaid/MBHP, Magellan/MBC, Magellan Lucent, United Behavioral Health, Behavior Health Network, managed care company (MCC)/Cigna, US Health Care, and Health Care Value Management (indemnity products). Consumers participating in these programs are drawn from the communities of the Merrimack Valley and Southern New Hampshire area. Within this service area it is estimated that HMOs provide insurance for approximately 51% of the population.

It should be noted that there is an abundant supply of behavioral health providers/institutions within the Merrimack Valley and Southern New Hampshire. They include: psychiatric hospitals, residential facilities, outpatient group practices that vary from public to private organizations, and solo practitioners. Customer service, then becomes an even more critical factor. To obtain and maintain a foothold in the behavioral health market will necessitate the provision of optimal, accessible, quality customer service.

The Center has four primary customers, each with their own specific needs. These include:

4.1 Target Market Segment Strategy

If the Center is going to survive and grow, we must market our services aggressively. As previously noted, our referral base is primarily driven by managed care companies, medicare and medicaid, indemnity products and self-payors. Within the Merrimack Valley geographical area, HMOs have approximately 51% of the covered lives. Focusing on and identifying the needs of these five referral sources is critical for our growth.

4.1.1 Market Trends

Trends which began with health care reengineering and the introduction of managed health care will continue during the next decade. There will continue to be change within this industry, but change will be less dramatic than the health care revolution of the 1980s and 1990s. Managed care companies will continue to influence fee structures and restructure the provider network.

With the advent of mental health parity in Massachusetts, utilization rates and reimbursement rates should improve. Under the mental health parity law, insurance companies are not allowed to cap mental health services for biologically based mental health disorders. Co-payments cannot escalate during the course of treatment for these disorders.

Managed care organizations (MCOs) are beginning to review provider compensation packages with the intent of increasing  compensation rates. Rates have been flat for the past ten years.

4.1.2 Market Growth

As noted in a previous section, the growth rate for the Center during the past three years has been significant. There is no identified reason indicating that this will change. We are currently referring out four to five phone calls per day. Within the geographical area, it takes approximately six to eight weeks to get an appointment with a psychiatrist. For psychotherapy, it takes approximately seven to eight days to get an appointment. With the use of additional staff and creative scheduling, some of these challenges can positively impact the bottom line.

Dr. Marc Shay, an adult psychiatrist, has recently become an associate of the Center. He has committed to 12 hours per week, resulting in an increase of services by 48 units per week. His schedule is filled for the next three weeks as of July 10, 2000. He will begin work on July 17, 2000. We are also in the process of negotiating with a clinical nurse specialist to work 12 hours per week. Her specialty is with children and adolescents. Her starting date is estimated to be early September 2000.

4.1.3 Market Needs

Previously, we have identified the significant aspects of services offered by the Center. Of these services, children and adolescent services are in greatest demand by all referral sources. This gives strength to the four segments of our delivery service system which address these needs. Additionally, there is significant population growth in the Merrimack Valley and southern New Hampshire areas, and this growth is projected to continue over the next decade.

4.2 Service Business Analysis

The behavioral health care industry consists of inpatient programs, residential and partial programs, outpatient group practices, and outpatient solo practices. For the purposes of this business plan, we will focus on multidisciplinary group practices, both public and private. Within the geographical area designated as the service area for this business plan, the industry participants include: North Essex Mental Health Center, Arbour/HRI Counseling Services, Harris Street Associates, and Harborside Psychological Center.

4.2.1 Main Competitors

To identify the principal behavioral health competitors within the Merrimack Valley, it is important to have an understanding of the behavioral health industry as it has been transformed by the influence of health care restructuring. There are primarily four types of behavioral health facilities: (1) psychiatric hospitals, (2) residential facilities, (3) outpatient group practices, and (4) solo practices. The primary competitors of the Center fall within the third category, outpatient group practices. These practices can be further categorized as public, not-for-profit facilities, and for-profit private practice facilities that include homogeneous group practices and multidisciplinary group practices.

Not-for-Profit Facility

1. North Essex Mental Health Center

North Essex Mental Health Center, Inc., Newburyport, Massachusetts with a satellite office in Haverhill, Massachusetts. Three years ago, this facility was bought by a subsidiary of Northeast Health Systems of Beverly, Massachusetts. This facility is a community mental health center whose primary consumer is the medicaid population. The center has been providing behavioral health services in the Merrimack Valley area for over 20 years. This center has grown significantly in the last 10 years, culminating in the opening of an Amesbury office. North Essex Mental Health Center is the dominant provider in the Northeast area of Massachusetts. They are the emergency services provider for MBHP and have contracted with the AJH to provide emergency services to their emergency room. Their payor mix is composed of medicare, medicaid, self pay, and some MCOs.

a. Strengths:

• Bureaucratic flexibility
• Affiliations programming
• Availability of home-based and school-based services

b. Weaknesses:

• Size (considered to be arrogant by some area professionals resulting in a negative perception in the community)  
• High staff turnover
• Politically well connected
• Large pool of resources to draw from
• Staff availability to respond to request for proposals (RFPs) and request for quotations (RFQs)

d. Strategies To Thwart Competition:

• Develop reputation for providing quality services
• Respond to the needs of referral sources
• Respond and demonstrate respect to consumer
• Develop niche markets
• Continuum of services available from inpatient, to partial, to intensive outpatient services
• Availability of child/adolescent psychopharmacologist
• Increase visibility of, and procedures offered by, the Center
• Strong referral base from physicians practicing within the AJH health care system

2. Arbour/HRI Counseling

HRI/Arbour Psychological Center is a moderate-size, for-profit mental health center. It is a full-service multidisciplinary center, offering mental health services to children, adolescents, and adults. It was recently procured by Arbour Mental Health Systems. This center has recently invested money to refurbish a facility that houses their geropsychiatry program. Their payor mix is spread among Medicare, Medicaid, self pay, and MCOs

• Good location in downtown Haverhill
• Affiliations
• Programming: geropsychiatry partial hospitalization program
• Community respectability
• Unknown at this time

c. Potential Impact of Strengths:

• Part of a large system
• Strong referral base
• Programming/outreach home-based legal services

d. Strategies to Thwart Competition:

• Develop reputation for providing quality services 
• Continue services available, from inpatient, to partial, to intensive outpatient services
• Increase visibility of, and procedures offered by, the Center

3. Harris Street Associates

Harris Street Associates is a multidisciplinary group practice providing mental health services to the Newburyport and Haverhill communities. It was established over fifteen years ago by several local psychiatrists and psychologists. Their payor mix has been primarily with MCOs, with some indemnity programs. It has had a rocky financial history, culminating in being bought by H.E.S. For the past three years, H.E.S. has attempted to turn around the financial status of the agency without success. It was recently announced that the center is closing on October 30, 2000.

4. Harborside Psychological Center

Harborside Psychological Center is located in Newburyport, Massachusetts. It is a multidisciplinary mental health group practice. Until recently, their service focus has been psychotherapy with children, adolescents and adults. Currently, this center has added pharmacology to their list of services. Their payor mix is composed of MCOs and employee assistance programs (EAPs).

• Location quite good in downtown Newburyport
• Multidisciplinary composition of the Center
• Not close to public transportation
• Not visibly known to the public
• Psychopharmacology time is limited
• Strong referral base with MCOs
• Develop niche markets, especially with children and adolescents

4.3 Market Segmentation

The market segmentation can best be understood from an analysis of the clinical services being offered by the Center. Presently, three services are offered: psychotherapy, pharmacology, and substance abuse/addiction treatment. When the Center commences its operations, a fourth service will be implemented: behavioral health contracts. Contracts are different from the previous three segments in that the services are provided offsite at another facility.

All services are offered to all age groups, with a modality of treatments that include individual, couple, families, and group. Some customers will use only one service at a time, while others will use a mix of the various services simultaneously.

Strategy and Implementation Summary

The Center will focus its market activities on two market areas: the communities of Merrimack Valley, and Southern Hew Hampshire. Services will include psychotherapy, psychopharmacology, and substance abuse/addiction services.

The target customers are the consumers of mental health services (i.e. individuals, couples, families, and groups). The composition breakdown is approximately 50% adults and 50% children, adolescents, and families. The second target customer are the payors. They are an integral piece of this turn key project. The payors are basically the gatekeepers for referrals and authorizations.

5.1 Sales Strategy

The Center’s sales strategy will target potential purchasers and referral sources of our services, from:

• Managed Care Companies (5-6)
• Preferred Provider Organizations (2-3)
• Medical Groups (5)
• Community Agencies (3)
• Consumers/Clients

Wherever possible, our niche marketing approach will be linked to our sales strategies.

5.1.1 Sales Forecast

The following chart and table depict the Center’s forecasted sales. During the first year, we expect a yearly growth rate of approximately 100%  from the previous fiscal year. Since existing associates will remain with the Center, and several associates from a closed center will join us and bring at least sixty percent of their current caseload with them, the forecast is reasonable. The Center is in the process of negotiating with Harbor Schools to provide mental health services, resulting in 3,300 additional units of service. The sales forecast is also based on the assumptions that we meet projected staffing patterns, managed care contracts are transitioned to the Center without difficulty, and a Medicaid provider number is obtained without complications.

Operationally, the Center is prepared to handle growth. Support staff is in place, as are other necessary environmental resources. The immediate problem would be to transfer patients from one center to another. Through a planned transition program being driven by the therapists, it should occur without too much difficulty or confusion.

The chart and table depict a modest 18% growth rate for the second year, and a 23% growth rate for the third year. The second year growth rate will be the result of adding additional therapy hours. The third year growth will be a result of adding therapy contracts. We are in the process of negotiating with Harbor Schools to provide on sight therapy services.

5.2 Value Proposition

If the Center is going to compete effectively, it will need to clearly define its value-added benefits. Our goal is to meet and exceed the needs of our customers: consumers, staff and associates, payors, consultants, and other referral sources. Previously, we discussed the needs of our customer. These needs will drive the value-added philosophy and marketing strategy.

5.3 Competitive Edge

Our competitive edge is our associates and staff affiliations. Our associates and staff spread the company proposition, “our mission is to meet/exceed customer’s expectations.” Our affiliations with the Anna Jaques Hospital and other medical group practices allows us to interface easily with a strong referral base. Hard work, integrity, accessibility, experience, quality service, and customer satisfaction are the factors influencing our competitive edge. When the customers call the Center, they will get a real person, not a voice mail message.

5.4 Marketing Strategy

Target marketing of our services is critical to growth. Strategies will include:

• An emphasis on customer-driven, quality service
• Building a relationship business
• Focusing on five behavioral health payors
• Identify and build a niche market

Marketing tools will include: direct mail, print and audio advertising, public speaking, and relationship building with identified managed care corporations and persons.

5.4.1 Promotion Strategy

Multiple strategies will be used to promote the Center. Throughout the promotional strategy, our focus will be on selling the Center. The types of promotions will include:

• Participation in activities related to treated disorders at the center, e.g., National Depression Screening Day.
• Developing a  brochure, logo, and business cards to promote the Center.
• Networking with various health care providers, community agencies, and state agencies.
• Media advertisement, especially to announce the professional affiliation of a new associate or new program.
• Use of follow-up letters to referral sources.
• Offering informational workshops to the public.
• Networking with the media to facilitate articles about the Center.
• Join small business groups/organizations as a means of increasing public awareness.

5.4.2 Positioning Statement

It is our goal to enhance our image and reputation by being responsive, accessible, and by providing quality treatment. By building relationships, we will cultivate our image with case managers and network managers of identified managed care organizations.

5.4.3 Pricing Strategy

Pricing for the services provided by the Center is market driven. Our fee structure is based upon a survey of existing MCOs and other payors. In order to operate profitably under these prices, it is imperative that the Center monitor and control costs. Behavioral health industry watchers believe that there is at least a 15% range of variation in what certain managed care companies will pay different providers for a given service. Our goal is to obtain the highest price within the competitive range by convincing the payor that we have a service to offer which exceeds that of our competitor. A possible example of this is creative bundling.

5.5 Strategic Alliances

Strategic alliances are critical to the goals of the Center, and include selling more services and strengthening our relationship with all our customers. If we are to meet our strategic goals, we must have a strong, continued alliance with Anna Jaques Hospital. Concurrently, we must strengthen and develop our relationship with our referral networks, especially medical groups within the Anna Jaques System and the surrounding community.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The Center’s organizational structure is based upon a shared services model. The founding president/director of the Center has an accumulated twenty years of administrative, management, and clinical experience in the human service and behavioral health industry. The management philosophy is based upon open-book management, shared responsibility, and mutual respect.

6.1 Organizational Structure

The founding president/director will manage the company. Since the company is organized as a shared service model, relationships will be a key variable in setting the direction of the Center. There will be an advisory board composed of four leaders in the field of behavioral health, managed care, organizational dynamics, and a consumer.

An advisory management group, consisting of the Center’s staff, will meet on a regular basis to review the Center’s financial structure, identify customer relations issues, and develop future goals for growth, marketing, and sales. This group will be assigned the task of developing a plan to implement and integrate a Continuous Quality Improvement (CQI) component and culture into a private practice Shared Service Model (SSM). A customer relations committee will be formed to brainstorm, formulate ideas, plan and implement activities to enhance levels of satisfaction among all customers. The organizational chart follows:

6.2 Management Team

The proposed personnel team includes the individuals listed below. It will involve one to three consultants, a five member advisory board composed of professionals, and a consumer and CQI team composed of associates and staff. Dr. John Nestor will be the president and director. He has an extensive employment history in program start-up, budgeting, and program development. The advisory board includes:

**Names have been removed for confidentiality

6.3 Management Team Gaps

At present, we are in the process of identifying a financial services company and consultants for several other areas.

6.4 Personnel Plan

The personnel plan reflects the needs of a shared service model for a multidisciplinary behavioral health center. It should be noted that benefits are provided to those personnel designated as salaried or hourly employees who work more than 30 hours per week. Associates will be paid a predetermined percentage of their collectible fees. Employees will be paid every two weeks. Associates will be able to draw the first paycheck and reconcile the second paycheck each month.

Human resources, legal, fiscal billing, and marketing/sales will be out sourced. We are in the process of identifying a human resource company and a billing/collection company. The billing company will be paid a percent of fees collected with a goal of collecting at least 93% of that billed. Thought will be given to other risk variables to be included in the contract. The costs for the Human Resource services are not determined as of this writing.

The president/director’s compensation will be a combined package that includes 75% administrative salary and 25% from clinical work.

Financial Plan investor-ready personnel plan .">

The financial plan for this turn key project is presented in detail in the following sections. There are three important factors in the financial plan:

• Reducing the days in receivables and improving the quality of receivables,
• Improving cash flow, and 
• Significant growth the first year and modest growth the second and third year.

7.1 Important Assumptions

There are several assumptions related to this turn key project.

• The economy continues at its present rate, without major recession.
• Expected receipts will improve dramatically by out sourcing billing and collections.
• The current climate for these services will continue.
• Behavioral health contracts will be transferred to the Center without difficulty.
• Center clinical associates will be credentialed in a timely manner, or the Center will be able to credential by “job description.”
• Our staffing patterns and facilities will be able to handle the projected growth.
• The average days of receivable will be 67 or less.
• Unlike inpatient behavioral health services, managed care manages the services but has not attempted to cap them. It is assumed that this trend will continue. There are also signs that managed care companies are moving away from micromanaging these services.
• A mutually-agreed upon plan will be devised to prepare for the transition of medicaid clients to the Center.

The following table summarizes the general financial assumptions.

7.2 Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the first three years of operation. We see significant growth during fiscal year 2001, as compared to the previous fiscal  year. Units of service are projected to increase by approximately 75%. The growth during fiscal year 2001 is reasonable in that the existing pharmacology will continue with the pharmacology and three pharmacology/therapists will transfer to the pharmacology with their clients from a center that is closing in the community. A recent medical graduate psychiatrist will join our Center as of July 2000. We will recruit one to two pharmacology nurse specialists during the fiscal year 2001. The Center will double in size during its first fiscal year, as compared to its previous level of operation. During the second fiscal year the growth rate will be approximately 18%. During the third year of operation it will grow at a rate of 23%. This growth will be a result of securing contracts with local human service agencies. Although the rate of expected receipts remains the same during the next two years, it is expected to improve during the third year with new contracts, and experience and familiarity with the new billing system. A financial goal is to be debt-free by the end of the fourth year of operation.

Similiarly, collection days remains the same during the next three years. However, efforts will be made to improve this variable with the use of electronic billing.

As sales of services increase, operating costs will rise as well. Every effort will be made to contain these costs proportionately. There are no actual or projected significant increases evident. The variable costs will increase during the third year as we need to hire new staff for the projected contracts. The hiring will not be concluded until the contracts are signed so as to avoid any unnecessary spending.

7.3 Break-even Analysis

The following chart and table summarize the Center’s Break-even Analysis. These figures and assumptions are fairly well represented since they are based upon actual historical data. Cost control and production improvement will ensure profitability.

7.4 Projected Profit and Loss

The following table shows the projected profit and loss statement. Projected sales increased from approximately $530,000 the first year of operation to more than $637,000 the second year and more than $842,000 the third year. The third year growth is a result of additional units of service gained through a contract with a local residential program.

7.5 Projected Cash Flow

The following chart and table summarize the Center’s cash flow. The projections are a combination of short-term borrowing and Center receipts. Cash flow is obviously critical to the Center’s success. The monthly cash flow, as shown in the table, generally improves from month to month. The chart and table reveal a positive cash flow as operations move beyond the seventh month and steadily continues thereafter. 

7.6 Projected Balance Sheet

The following table shows the projected balance sheet. The monthly estimates are included in the appendix.

7.7 Business Ratios

The following table shows the projected business ratios as determined by the Standard Industry Classification (SIC) Index code 8063 for the mental health center industry.

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How To Develop A Private Practice Business Plan

• May 30, 2022
• Becky DeGrossa

Last week, Howard Baumgarten of Smart Practice Central joined me to share his expertise with the CounselingWise community. In the webinar, he talked about the importance of having a private practice business plan for counseling, as well as what goes into creating one.

One of the things I took away from his presentation was to be successful, you need to be prepared, and you need to have a plan.

As the owner of a small business myself, I know that having a solid plan in place has been a vital aspect of CounselingWise’s growth and success. I’ve found that having a plan is what drives a business forward to achieve its goals . Without a plan, as Howard mentions, you are less successful.

During the webinar, Howard talked about the 11 different parts (or “modules”) of a business plan . Each part is equally important and pieces together an organized view of any business. Today, I am going to highlight five parts of Howard’s business plan. To learn about the other six (equally as important) parts, be sure to check out the webinar replay here .

Before we dive into the different parts of a successful business plan, I want to lead you with something to think about. During the webinar, Howard advised, “ Think about your business plan as a matter of survival in your professional life . It’s an opportunity for you to really organize yourself and appraise what is going on in your business.”

5 Key Parts of a Successful Business Plan

1. the four c’s of your vision.

If you are familiar with the SWOT technique (a planning method use to evaluate your strengths, weaknesses, opportunities, and threats), then the 4 C’s will be something you relate to . 

Because he didn’t want to focus on a person’s weaknesses or threats, Howard viewed this planning method through a different colored lens.

The 4 C’s stand for:

• What Are Your Capabilities? (your strengths)
• What Are Your Challenges? (your weaknesses)
• What Are Your Chances? (opportunities)
• What Are Your Concerns? (threats)

This piece of the counseling business plan is key to evaluating your practice from a personal and professional level. 

Take out a pen and paper and jot down all of the above as they apply to you.  Get a piece of paper and breaking it into four columns. In each column, write down your professional and personal capabilities, challenges, chances and concerns. One thing to keep in mind—it’s okay to have the same thing in multiple categories.

By having your capabilities, challenges, chances, and concerns outlined on paper, you can better plan for the future of your practice and your personal life .

It forces you to take what’s kind of hazy and abstract in your head and makes it a tangible reality. That way then you know where you stand and how to move forward with your vision for your practice. 

2. Your Mission Statement

The next part of the private practice counseling business plan I want to highlight is your mission statement. In Howard’s presentation, he said to ask yourself… 

“What is my purpose? What was I born to do? What do I really want to do? How do I want to affect the populations I am working with? What am I empowered to do?”

By answering the above questions, and really digging down into the meat of the reason you get up every morning , you will develop a wholehearted mission statement for your practice.

But what does developing a mission statement look like in practice? 

For his therapy practice, Howard’s mission statement is, “ Build something new in order to change something old in order to grow .”

One thing to keep in mind when writing your own mission statement… 

Make sure you are writing the statement in lay terms , and not professional/clinical terms. Try to stay away from words like “depression,” “anxiety,” etc. You are writing this not only for yourself, but also for your clients.

3. Your Services

This is the who , what , when , where and why of your services as a private practitioner. 

This part of the private practice business plan is key to giving you the clarity you need in terms of the services you provide , and the services you may want to offer in the future.

• Who? Who are you working with? Who are the populations you treat? Do you work with couples, adults, children (what age children?), teens? What kind of couples do you work with? For example: high conflict, couples about to get married, etc. Really dig deep into the “who” of your services to determine what clients you have and what clients you want.
• What? What are the issues you want to focus on? If the “who” is couples, what type of couples issues do you want to work with? Howard’s example was that he likes to work with couples that have a high degree of conflict and are tired of fighting with each other.
• When? When are you providing your services? When you are first starting out, as Howard mentioned, it could be Fridays and Saturday mornings. When you build your practice more, you can shift your hours more and more. Determine when you want to practice and include it in your plan.
• Where? Where do you want to practice? Maybe you want to do a day in a doctor’s office. Maybe you want to offer therapy out in the community, or in the wilderness. Think creatively about where you want to practice. It will maximize the benefits of your services.
• Why? For the why, you will want to see your mission statement. The why is all about your passion and purpose.
• How? How do you treat your patients? This is all about your treatment intervention style (EFT, mind-body-connection, EMDR, etc). What are your technique leanings?

This part of the plan is powerful. It helps move you in terms of defining yourself and who you are. You will also draw from this part as your quick “this is what I do.”

As you are completing this part of your business plan, keep in mind that you will probably have three or four different sub-sections under each of these .

Answer each question for each service you offer or want to offer. Eventually, this will all be useful information that you’ll want to include on your website. 

If you’re thinking ahead and want to use this exercise to generate content for your website, check out how to write informative specialty pages .

4. Personal Growth

To grow professionally, it’s important to take care of yourself so you can grow personally. 

In order to have a healthy work-life balance, you will want to focus on 4 main areas :

• Nutrition: Are you eating a healthy, well-balanced diet?
• Sleep: Are you getting enough sleep?
• Exercise: Are you moving your body?
• Spirituality: Are you expressing yourself spiritually? This could look like anything, such as a religious practices, time in nature, yoga , etc.

Think of things that are important to you on a personal level and write them down. Personal growth is a key piece of your business plan.

Because if you don’t grow yourself, how can you expect to grow your private practice? It all works in concert, together. 

5. Administration

The Administration part of the private practice business plan can be hard, especially if you are used to being a one-person show. 

And  if you think you can run the show without any professional support throughout your entire career, you will be spread very thin .

As part of your counseling business plan, you need to create an administration plan to ensure you have the support you need to build a successful practice—and keep your sanity. 

Think about the people who you currently have supporting your practice professionally. Then think about the people you may want to include in your group of practice professional support.

Naturally, some people may not be ready for this, so think about this part of your private practice counseling business plan when you are ready. 

You know you’re ready when you say to yourself, “I am getting really sick and tired of doing this admin task, and I am now in a place where I can afford to hire someone to do it for me.”

By getting support, you free up emotional space so you can pursue things that drive your interests and passions . This is a vital piece to your professional growth.

Administrative support includes but is not limited to… 

• a medical biller (if you accept insurance),
• a bookkeeper,
• an accountant for tax purposes,
• a financial manager/adviser,
• an investment banker,
• a corporate attorney,
• an insurance agent,
• a commercial real estate broker (rent or buy)
• and a virtual/actual assistant.

Each part of the counseling business plan that I discussed today is vital to a successful practice. Your business plan, however, really isn’t complete without the remaining six. To learn about all 11 parts, and to learn more from Howard about a successful business plan, watch the webinar replay here .

You can also download the Business Plan Template here .

One last tip : Don’t just write your plan and forget about it. Howard recommends going back every six or so months to revisit the plan and stick to your goals.

You can also watch my interview with Howard Baumgarten, founder of Smart Practice Central, below. 

Enjoy the replay!

Animal-Assisted Therapy Throughout the US

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What Private Practices Can Learn From Google’s Leak (And What To Do About It)

In light of Google’s recent leak—which has been interesting to say the least—we’ve learned a lot, particularly how Private Practices can take advantage of what’s been revealed to refine their sites and improve their rankings.  Happy for us, 90% of the leak confirmed what we already do. (Previously we had to base our strategy on experiment

AI in Search: Google’s Latest Update and Its Impact on Private Practices

On May 15, 2024, Google integrated AI into their search results for everybody. What this means is, if you head to Google and search for something like “anxiety,” you may now see an AI overview at the top of the results, which for me just defines the term. We’ve known this integration was coming for

It’s Not Just You: GBP Verification Sucks

Google Business Profile (GBP) verification can be an extremely frustrating process, and it’s likely to become more frustrating, especially since Google is increasingly relying on video verification. And not just for Private Practices. No matter the industry, Google is a pain. Even businesses that have been around for years are being forced to reverify their

235 – Making a Counselling Business Plan

235 – Making a Counselling Business Plan

Introjected values – carl jung’s theories on ego and self.

In Episode 235 of the Counselling Tutor Podcast, your hosts Rory Lees-Oakes and Ken Kelly are back with this week’s three topics:

• Firstly in ‘Theory in Practice’, we look at introjected values.
• Then in ‘Practice Partner’, Rory and Ken discuss making a counselling business plan.
• And lastly in ‘Practice Matters’, Rory speaks with Dr. Jessica Bockler about Carl Gustav Jung’s theories on ego and self.

Introjected Values [starts at 02:40 mins]

This episode of counselling tutor podcast is sponsored by, webhealer.net.

• WebHealer are the go-to provider of websites for private practitioners in the UK.
• Established over 20 years, WebHealer offers a non-technical and fully supported service to help therapists grow their private practice.
• Just one customer from your website each year pays for their service.

Go to  WebHealer.net   and use coupon CT100 for £100 off their "Do it for me" service.

We start today with Rory and Ken discussing introjected values, and how these may present themselves in the therapy room.

The key points of this discussion include:

• Introjected values are views we adopt from our caregivers and society.
• Some people struggle when they find themselves having a view through their own experience that opposes these values.
• Introjected views are unseen to the person who holds the value – to them, it is a ‘truth’.
• In therapy, you have to treat disarming these ‘truths’ carefully.
• A sign of introjected values may be that the client recognises that their beliefs are different from the values they know .
• When people ‘find themselves’ this is an example of recognising and stepping away from these introjected values in order to find your own.
• It is important to remember that these introjected values don’t exist solely within the client, they exist within us too.

Theory to Practice is sponsored by

Counselling Skills Academy

Learn counselling techniques by seeing  counselling skills used in real sessions by qualified therapists . Real sessions – real-life presentations – real skills.

Making a Counselling Business Plan [starts at 21:01 mins]

In a discussion that will be continued in next week’s podcast, Rory and Ken list a few things that you might want to think about when making a business plan for your counselling service.

The main aspects of this discussion include:

• A business plan is a layout of what your business will look like – complete with your motivations for starting your own private practice.
• Consider things like where your sessions will take place – will they take place in your home? Online? Will you rent a space or go to the clients’ house? What considerations are necessary due to this choice?
• Think about the cost of set up and what you might need e.g. comfy seating, stable internet, a work email, lockable filing cabinet, a clock, tissues, you may even consider a card reader.
• Consider accessibility to clients who may use a wheelchair or have other mobility issues.
• Part of making a counselling business plan is thinking about how you will advertise your business.
• Take into account costs to yourself (such as possible travel costs) when deciding how much you’ll charge.
• When making a counselling business plan, consider too whether you’ll set up as a sole trader or a limited company – research the differences and decide which is a better fit for you.

Get on-demand Certified CPD that is implementable in your practice

Counsellor cpd library.

• Over 150 hours of on-demand CPD lectures to help you stay current with your CPD ethical requirements
• Support, and be supported , by thousands of other counsellors as a member of the exclusive online community.
• Access your learning anytime you want ... anywhere you choose ... using any device type — desktop or mobile.

Carl Jung’s Theories on Ego and Self [starts at 40:47 mins]

In this week’s ‘Practice Matters’, Rory speaks with Dr. Jessica Bockler about the theories of Carl Gustav Jung including the collective unconscious and archetypes.

• The collective unconscious is something primal and that we are unaware of.
• We embody archetypes that can be seen throughout history in art and literature – things like heroes, sages, rebels etc.
• When working with archetypes you will encounter what is called the shadow – this is a place where all the traits we’ve been told are bad about ourselves are kept e.g. maybe a young boy has been consistently told that boys don’t cry, and this will create an adult man who holds back from showing such emotion.
• We are able to see qualities in other people that we don’t like within ourselves (projection) – it takes looking within and taking ownership over these traits to fully explore this.
• Carl Gustav Jung also looked at dreams vs active imagination. He decided that dreams where the conscious mind is not in charge is good for free flowing engagement with deeper materials, but it is active imagination that is a more powerful route to engage with unconscious contents – you have more control to frame and challenge the ego.
• By beginning to write down your dreams your recall will improve, and you may begin to spot themes.

The National Counselling Society is proud to sponsor Practice Matters.

NCS are really excited to have launched their Children and Young People Therapist Register for counsellors working with the younger age group.

Free Handout Download

Introjected Values

Links and Resources

Advanced Certificate in Counselling Supervision

Basic Counselling Skills: A Student Guide

Counsellor CPD

Counselling Study Resource

Counselling Theory in Practice: A Student Guide

Counselling Tutor Shop

Facebook group

Online and Telephone Counselling: A Practitioner’s Guide

Online and Telephone Counselling Course

Spotted out-of-date info or broken links? Kindly let us know the page where you found them. Email: [email protected]

Sample Counseling Private Practice Business Plan

Private counseling practice business plan sample.

Counselling practice is a business which belongs to the psychologists, social workers, and marriage counsellor’s industry. The business basically consists of mental health practitioners who particularly focus in diagnosing and treating emotional and behavioural disorders, mental disorders, etc.

If you are very interested in starting up a counselling practice business, and are at the point of writing a business plan for your business, then you must keep reading this article.

In this article, you will find a counselling business plan sample which you would find beneficial towards helping you write a simple business plan for your counselling business.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

Here is a sample business plan for starting a mental health business.

BUSINESS NAME:  The Real Deal Private Counsellors, LLP

• Executive Summary
• Our Products and Services
• Vision Statement
• Mission Statement
• Business Structure
• Market Analysis
• Sales and Marketing Strategy
• Financial Plan
• Sales Forecast

EXECUTIVE SUMMARY

The Real Deal Private Counsellors, LLP is a duly registered and licensed counselling practice business which will do everything under the laws of the United States to operate in Las Vegas, United States. We will be very interested in providing our customers with a number of our amazing products and services which will include clinical psychology, marriage and family therapy, mental health social work, online counselling services, etc.

The Real Deal Private Counsellors, LLP will be owned and managed by Peter Baker, who will also be the CEO of the business. So far, Peter Bakers has been able to raise half of the startup budget which amounts to $100,000. The other half will be obtained as soft loan from the owner’s bank to complete a total of $200,000.

OUR PRODUCTS AND SERVICES

The Real Deal Private Counsellors, LLP will be offering psychology and counselling services within the scope of the industry to clients in the United States. The following are our product and service offerings which we will be providing our clients:

• Clinical psychology
• Every other psychology
• Marriage and family therapy
• Mental health social work
• Online counselling services
• Child, family and school social workers
• Sales of self-help materials such as books, CDs, etc

VISION STATEMENT

Our vision is to establish a private counselling practice business which will become very competitive in the industry, and be renowned as the leader in the industry not just in Las Vegas, but in all of the United States.

MISSION STATEMENT

Our mission is to be a private counselling practice business which will particularly provide professional, quality, and affordable services to clients from all walks of life. We are very concerned with building a counselling business which will become the number one choice for clients in all of the United States before our 10th year anniversary.

BUSINESS STRUCTURE

Our plan for The Real Deal Private Counsellors, LLP is to start it small and grow it big into the counselling practice business that we envisage, before we hit our 10th year anniversary. We well know how important building a strong business structure is to every business. This is why we will take out time to select only employees that meet our standard selection criteria of experience, commitment, hard work, honesty, amongst other things. The following are the positions we will employee qualified candidates to fill in our business structure.

• Chief Executive Officer / Principal Partner
• Office Administrator
• Psychologists, Social Workers and Marriage Counsellors
• Accountant / Cashier
• Client Service Executive
• Sales and Marketing Executive

MARKET ANALYSIS

Market Trend

One of the trends in the industry is that the industry has seen a steady growth in the last five years in the United States. Regardless of the economic status of the United States, the industry is one whose services are always needed at all times.

Target Market

The following groups are what we have considered to make up our target market in the industry:

• Couples about to wed
• Married couples
• Corporate Executives
• Religious Organizations
• Business People
• Politicians
• Celebrities
• Government Officials
• Public figures
• College students
• Sports People
• All people of all sorts, including those undergoing mental challenges and depression

SALES AND MARKETING STRATEGY

We know for a fact that there is stiff competition in the industry in the United States; hence, we will leave no stone unturned in our quest to promoting our business and setting it in its rightful position in the industry. We have been able to consult experts and we have come up with several sales and marketing strategies which we will do well to implement:

• We will introduce our counselling practice business to various groups which make up our target market by sending them our introductory letters, and our business brochure.
• We will make sure to drop our business fliers and handbills and give out at strategic locations all around the United States.
• We will make sure to place adverts on newspapers, magazines, radio stations, as well as on TV stations so as to promote our business.
• We will not forget to create an online presence for our business to be able to reach a larger audience.

FINANCIAL PLAN Source of Startup Budget

Starting up our counselling practice business in Las Vegas would require a total of $200,000. This startup budget would be sourced from the owner, and from his bank. The owner, Peter Baker has been able to raise $100,000 while the other $100,000 will be sourced as soft loan from the owner’s bank.

SALES FORECAST

First Fiscal Year                   $200,000 Second Fiscal Year               $400,000 Third Fiscal Year                  $800,000

Above is a sales projection for our counselling practice business which will be located in Las Vegas, United States.

This sales projection is only a calculated reflection of what we aim to achieve in our first three years of doing business after startup. This projection has not taken into consideration any negative future impact in the industry.

CONCLUSION This article contains a counselling practice business plan sample which bears the name, ‘The Real Deal Private Counsellors, LLP’. This business will be located in Las Vegas, United States, and it will be focused on offering a number of counselling services to its customers all over the United States. The business will be owned by Peter Baker, who will also be the Chairman Executive Officer of the business.

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• Business Plans Handbook
• Business Plans - Volume 09
• Counseling Center Business Plan

Counseling Center

BUSINESS PLAN     JUNIPER COUNSELING CENTER (JCC)

1600 West Main Street Ann Arbor, Michigan 48106

The Juniper Counseling Center (JCC) is a mental and health counseling/education center focusing on teen mothers, troubled children/youth, and senior citizens with mental/health issues. The business plan was developed for the purpose of a start-up business loan in the amount of $20,935.

EXECUTIVE SUMMARY

Company summary, market analysis summary, strategy & implementation summary, management summary, financial plan.

The Juniper Counseling Center (JCC) is a mental and health counseling/education center focusing on teen mothers, troubled children/youth, and senior citizens with mental/health issues. JCC is located at 1600 West Main Street in Ann Arbor, Michigan. The business plan was developed for the purpose of a start-up business loan in the amount of $20,935. The total amount needed to open JCC is $26,935. The owner's investment is $6,000.

Our projected sales for 2002 is over $290,000 and our first year projected net profits are well over $40,000.

Juniper's keys to success include: marketing, service quality, growth potential, implementing an effective cash flow plan, achieving efficiency, running our counseling center professionally, and maintaining a serious business discipline in everything we do.

Mental and health counseling and educational training services, as shown in our plan, have an excellent profitability level and growth rate. Our competitive edge along with new counseling techniques put JCC in the forefront of counseling and educational services. We are living in an age where new techniques for mental and health counseling are in great demand. Our center will differ from the traditional counseling services because of our added personal touch.

Our objectives are to:

• Provide counseling to individuals, couples, and families.
• Provide various therapeutic group sessions (i.e., bereavement, divorce, teen parenting, senior citizens' health issues, troubled children/youth).
• Provide health prevention and maintenance groups.
• Provide various disease-focused therapeutic groups.

JCC's mission is to empower disadvantaged and disenfranchised individuals, families, and youths to take control of their destiny and function productively by providing them with the necessary skills to realize their dreams, through counseling, education, social skills training, motivation, and participating in the treatment of abnormal behaviors to become successful.

Keys to Success

JCC's cash flow plan is to:

• Maintain enough money on hand each month to pay the cash obligations the following month.
• Identify and eliminate deficiencies or surpluses in cash.
• Alter business financial plans to provide more cash if deficiencies are found.
• Invest any revealed excess cash in an accessible, interest-bearing, low-risk account such as a savings account or short-term CD or T-bill.
• Clearly understand the mental health education market and competition while continually adjusting accordingly.
• Keep enough cash, as needed cushion for security, on hand to cover expenses.
• Reduce accountant expenses by producing our own summary statistics and projections via accounting software Therapist Helper.

Our vision is to move Washtenaw County's disenfranchised population to a condition of empowerment and self-determination, by enabling them to employ innovative strategies to produce desirable actions that lead to healthy results. JCC is dedicated to the community it serves. Through seminars, therapeutic groups, individual, couples, and family counseling, the center strives to raise public awareness to the needs of at-risk residents within our community. Services are designed to strengthen and increase self-esteem, self-respect, and respect for others in society, promote health, and to address issues relating to improving the quality of their lives.

Company Ownership

The founder and owner is Rolanda K. Walker, R.N., MSW, Ph.D. It is a privately owned corporation.

Company Location and Facilities

JCC will be located at 1600 West Main Street, Ann Arbor, Michigan.

Business Operations

The process of the JCC business operations is as follows:

• Counseling hours will be 9:00 A.M. until 5:00 P.M., Monday through Friday with flexible weekend and evening hours.
• Clients will come for services via physicians and school referrals, court orders, and by word-of-mouth. Per request, some clients with special needs will receive home visits.
• A client's first visit will be called in to the client's insurance company for approval of services.
• The client must have prior permission from the insurance company before they can receive services.
• On the day of the initial in-take, the client is assessed and a treatment plan is sent to the insurance company.
• The insurance will return payment for services in about 14 days.

Start-up Summary

Our total start-up costs are $26,935, which is mostly for furniture, equipment, working capital, and expenses associated with opening our first office. Direct owner investment will be $6,000. JCC will seek a commercial loan for the remaining $20,935 needed to start up the business. The assumptions are shown in the following table.

Services offered include education, training, and counseling to empower and implement a change in a person's behavior and thinking.

JCC will also provide the following services to individuals, families, couples, and youth:

• Violence/Conflict Resolutions
• Positive growth
• Bereavement
• Families in Crisis
• Grandparents Parenting
• Teen Parenting
• Relationship Problems
• Out-of-Control children and teen youths
• Health Services Utilization
• Alcohol/Substance Abuse
• Employment Difficulties
• Home Visits Available

JCC will be focusing on providing education and counseling services to teen mothers, out-of-control children/youth, individuals with mental health disorders, and senior citizens with mental and health issues.

• According to the National Campaign to Prevent Teen Pregnancy 1996 Michigan Report, a total of 29,840 15 to 19-year-olds gave birth.
• About 20 percent of U.S. children and adolescents (15 million), ages 9 to 17, have diagnosable psychiatric disorders (MECA, 1996, the Surgeon General, 1999)
• Chronic disease, memory impairment, and depressive symptoms affect large numbers of older people, and the risk of such problems often increases with age. In 1995, almost 60 percent of people age 70 and older report having arthritis, up slightly from the proportion reporting arthritis in 1984. The prevalence of arthritis and other chronic diseases, such as hypertension, heart disease, cancer, diabetes, and stroke are also reported, and vary by race and ethnicity. Increases in memory impairment and depressive symptoms occur with advancing age: one third or more of men and women age 85 and older have moderate or severe memory impairment and 23 percent of this group experience severe depressive symptoms.

Target Market Segment Strategy

The U.S Census Bureau County Population report of 1998 states that there are approximately 436,084 people living in Washtenaw County. Any of these individuals is a possible client for JCC.

JCC knows we cannot survive just waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offering. Focusing on targeted segments is the key to our future. Therefore, we will focus our marketing message and our service offerings. We will develop our message, communicate it to our referral partners, and make good on it.

Teen Mothers

Nearly one million teen girls get pregnant each year. More than four out of 10 young women get pregnant at least once before they turn 20. Each year the federal government alone spends about $40 billion to help families that began with a teenage birth.

In Michigan, 11,350 15 to 17-year-olds gave birth, and 18,490 18 to 19-year-olds gave birth. Michigan ranks 24 (Rank of 1=largest decrease) for teen pregnancy rate with 87 pregnancies per 1,000 girls. Teen pregnancies were down in all age groups ranging from girls aged 14 and younger to girls aged 15 to 19-year-olds. Twenty-two percent of births in Michigan are to teens who have already had a birth.

Hispanic/Latina girls were the highest in birth rates among different racial/ethnic groups with African Americans being the second highest and White (non-Hispanic) being the third highest. From 1991-1998 African American girls has had the highest decrease in births with a 35% decrease. White (non-Hispanic) came in second with a 22% decrease and Hispanic/Latina with a 3% decrease in births. Asian/Pacific Islanders had an increase of 7% in teen births. JCC will continue this fight against teen pregnancy through our educational and counseling programs for teens.

Troubled Children/Youth

On January 17, 2001 David Satcher, M.D., Surgeon General of the United States of America unveiled a compelling report on youth violence to the frontline caregivers of our nation. The report was commissioned after the now infamous 1999 Columbine event that focused America's attention on children's behavior and their sometimes inability to cope with stress. In the report, Dr. Satcher invites families, school personnel, and public health communities to take a proactive role in the prevention of youth violence. "This is no time to let down our guard on youth violence," said Dr. Satcher.

Dr. Satcher's public health perspective identifies behavioral, environmental, and biological factors associated with youth violence. The report goes on to encourage our nation to take steps in educating individuals, communities, and primary care physicians to protect themselves from these risks. Dr. Satcher's public health approach offers a practical, goal-oriented, and community-based strategy for promoting and maintaining health. "The most urgent need now is a national resolve to confront the problem of youth violence systematically using researchbased approaches and to correct damaging myths and stereotypes that interfere with the risk at hand," said Satcher.

According to the American Academy of Child and Adolescent Psychiatry (AACAP) the needs and voice of child and adolescent psychiatry have been buried under the sweeping forces of federal mandates and national medical organizations' consensus on the oversupply of specialists. They have failed to recognize the continuing critical shortage of child and adolescent psychiatrists. There is a danger of becoming marginalized when the profession cannot provide needed services and contribute to society. The serious undersupply of practitioners has resulted in children receiving inadequate care from mental health professionals who lack the necessary training.

Report of the Surgeon General's Conference on Children's Mental Health: A National Action Agenda released the following information on January 3, 2001. From this information a report was developed and is the culmination of nearly a year of significant activities that were launched with the March 22, 2000, White House Meeting on Children's Mental Health. The report emphasizes the magnitude of the problem facing us in the United States. One in 10 children and adolescents suffers from a mental illness severe enough to cause some level of impairment. The report also emphasizes that it is estimated that fewer than 1 in 5 of these children receive needed treatment in any given year.

As stated in the foreword to the report, "The burden of suffering experienced by children with mental health needs and their families has created a health crisis in this country. Growing numbers of children are suffering needlessly because their emotional, behavioral, and developmental needs are not being met…… It is time that we as a Nation took seriously the taskof preventing mental health problems and treating mental illnesses in youth."

Prevalence and Magnitude of Child and Adolescent Psychiatric Problems

• The Center for Mental Health Services (1998) estimated that 9 to 13 percent of U.S. children and adolescents, ages 9 to 17, meet the definition of "serious emotional disturbance" and 5 to 9 percent of U.S. children and adolescents, "extreme functional impairment."
• Only about 20 percent of emotionally disturbed children and adolescents receive some kind of mental health services (the Surgeon General, 1999), and only a small fraction of them receive evaluation and treatment by child and adolescent psychiatrists.
• The demand for the services of child and adolescent psychiatry is projected to increase by 100 percent by 2020. (U.S. Bureau of Health Professions, DHHS, 2000).
• The population of children and adolescents under age 18 is projected to grow by more than 40 percent in the next 50 years from the current 70 million to more than 100 million by 2050 (U.S. Bureau of the Census, 1999).

Senior Citizens Health Status

Older Americans are living longer and living better than ever before. But many of those age 65 and older face disability, chronic health conditions, or economic stress according to a new federal indicators report that describes the status of the nation's older population.

Population:

The number and proportion of older people in the U.S. population has grown and generally will continue to grow at a very rapid pace. Aging in the twenty-first century will be characterized by a steep rise in the population age 85 and older and increased racial and ethnic diversity.

• The number of older people in the U.S. has increased tenfold since 1900. Today, an estimated 35 million people, 13 percent of the population, are age 65 and older. By 2030, 20 percent of Americans, about 70 million, will have passed their sixty-fifth birthday. The population age 85 and above is currently the fastest-growing segment of the older population; its growth is particularly important for anticipating health care and assistance needs, because these individuals tend to be in poorer health and require more services than people below age 85.
• The racial and ethnic makeup of the U.S. is changing, and the older population is no exception. In 2000, an estimated 84 percent of the population age 65 and older is non-Hispanic white, 8 percent non-Hispanic black, 6 percent Hispanic, 2 percent non-Hispanic Asian and Pacific Islander, and less than 1 percent non-Hispanic American Indian and Alaska Native. By 2050, those proportions are projected to be substantially different: 64 percent of the older population is expected to be non-Hispanic white, 16 percent Hispanic, 12 percent non-Hispanic black, and 7 percent non-Hispanic Asian and Pacific Islander, with the non-Hispanic American Indian and Alaska Native populations remaining at less than 1 percent.
• Today's older Americans are better educated than their counterparts 50 years ago, a factor that can positively influence socioeconomic status and health. In 1998, a high school diploma was held by some 67 percent of older Americans, compared with just 18 percent in 1950. About 15 percent of older Americans had earned at least a bachelor's degree in 1998, increasing from 4 percent in 1950.

Health Status:

Older Americans are living longer and feeling better. An overwhelming majority rate their health as good or excellent. Men and women report comparable levels of well-being. Disability rates are declining as well. But large numbers of older people find their health threatened by memory impairments, depression, chronic conditions, and disability, especially at very advanced ages, which can substantially diminish quality of life.

• Americans born at the beginning of the twenty-first century are expected to live almost 30 years longer than those born at the turn of the twentieth century. In 1997, a newborn baby girl could expect to live 79 years and a boy 74 years, compared to 51 years for a girl and 48 years for a boy born in 1900. Life expectancy varies by race, however. The average life expectancy for a white baby born in 1997 was 6 years higher than for a black baby born in the same year.
• Despite the prevalence of illness or chronic conditions, the proportion of Medicare beneficiaries age 65 and older with a chronic disability was 21 percent in 1994, down from 24 percent in 1982. During this time period, the older population grew significantly, and the number of older people estimated to have functional limitations increased by 600,000. This was considerably fewer, however, than the 1.5 million increase projected had disability rates not declined.

Industry Analysis and Trends

Overall teen pregnancies have decreased but they are still too high. The overall U.S. teenage pregnancy rate declined 17 percent between 1990 and 1996 (the most recent year available), from 117 pregnancies per 1,000 women aged 15-19 to 97 per 1,000. The national teen birth rate declined 3 percent between 1998 and 1999, reaching a rate of 49.6 births per 1,000 women ages 15-19—the lowest rate ever recorded. Since 1991, the teen birth rate has declined 20 percent. Nearly one million teen girls get pregnant each year. More than four out of 10 young women get pregnant at least once before they turn 20. Each year the federal government alone spends about $40 billion to help families that began with a teenage birth. Yet, much work is needed to be done in order to keep teen pregnancy down, such as more educational and counseling programs.

About 20 percent of U.S. children and adolescents (15 million), ages 9 to 17, have diagnosable psychiatric disorders (MECA, 1996, the Surgeon General, 1999). "There is a dearth of child psychiatrists…… Furthermore, many barriers remain that prevent children, teenagers, and theirparents from seeking help from the small number of specially trained professionals…… Thisplaces a burden on pediatricians, family physicians, and other gatekeepers to identify children for referral and treatment decisions." (Mental Health: A Report of the Surgeon General, 1999). The population of children and adolescents under age 18 is projected to grow by more than 40 percent in the next 50 years from the current 70 million to more than 100 million by 2050 (U.S. Bureau of the Census, 1999).

The number of older people in the U.S. has increased tenfold since 1900. Today, an estimated 35 million people, 13 percent of the population, are age 65 and older. By 2030, 20 percent of Americans, about 70 million, will have passed their sixty-fifth birthday. The population age 85 and above is currently the fastest growing segment of the older population; its growth is particularly important for anticipating health care and assistance needs, because these individuals tend to be in poorer health and require more services than people below age 85.

The global population is aging at a rate unprecedented in history. In the U.S., the population age 65 and older is expected to double by 2030. The Forum developed the report "Older Americans 2000: Key Indicators of Well-Being" to regularly track trends as society and individuals look for ways to address the aging boom. Today's report, which brings together information from more than a dozen national data sources for the first time, will serve as a baseline for future updates.

Americans age 65 and older are an important and growing segment of our population. While many federal agencies provide data on this diverse population, it is sometimes difficult to understand how this group is faring. For the first time, the federal statistical system has come together to provide a unified picture of the overall health and well-being of older Americans. —Katherine K. Wallman, Chief Statistician, U.S. Office of Management and Budget

Competition

As a Registered Nurse and Health Psychologist, Rolanda K. Walker is equipped with advanced training and information about the interaction of psychological and medical conditions (or psychomedical disorders). This includes information about psychological difficulties that can be caused by medical conditions, as well as psychological factors which can complicate or delay recovery from medical conditions. This is the kind of expertise that will stimulate further thought about the assessment and treatment of patients with psychomedical disorders. This is the expertise that will give Juniper Counseling Center a cutting edge over their competition.

JCC will focus on servicing Washtenaw County and the surrounding areas. The three population segments will be individuals, families, and couples. The target customer is usually a person or persons with some type of behavioral dysfunction.

Competitive Edge

We start with a critical competitive edge: there is no competitor we know of that can claim anywhere near as much specific expertise on the problems and opportunities of psychological treatment as JCC. Our positioning on this point is very hard to match, so we must maintain our focus in our strategy, marketing and business development, and fulfillment. We should be aware that the tendency to dilute this expertise with more generalized counseling work could weaken the importance of our competitive edge.

Also, our potential competitor does not make home visits. Our staff is prepared to take our services to our clients. Older citizens many times are unable to leave their home for reasons such as lack of transportation, limited mobility, fear of driving, and issues of personal safety, to name a few. We will provide a holistic approach to total wellness by including intensive medical education pertaining to all medical diagnosis and treatments.

Price of Service

Prices will vary according to a person's insurance coverage and their ability to pay. Generally the cost of service averages about $75.00 per one-hour session. There will be one group session with 10 clients at $30 per client for the length of 52 weeks.

Sales Strategy

Sales in our business is client service. It is repeat business. One doesn't sell a session, one develops a treatment plan that works for the client.

We expect to see at least 15 clients per day. Dr. Walker will consult with 5 clients at an average of $75 per session, and each of her therapists will consult with 5 clients at an average of $75 per session. There will be at least one ongoing group session per week, averaging 10 clients at $30 per client, running for 52 weeks.

We expect to make enough money to expand the programs that Dr. Walker will implement in order to reach all disenfranchised individuals in the surrounding area.

Sales Forecast

We expect sales to increase as our staff and referral base increase. The following table gives a run-down on forecasted sales.

JCC's staff has an accumulated 75 years plus in the Health Care industry related to experience. All are well versed in the evolution of the Health Care industry and share a vision for the successful positioning of Juniper Counseling Center within the Health Care Industry.

Our professional staff come to you with many years of experience, compassion, sensitivity to cultural values which affect the treatment outcome, and a strong desire to make life the best that it can be for all of its citizens.

Our management team consists of founder Rolanda K. Walker (RN, MSW, ACSW, Ph.D.), who has worked in the Health Care arena for over 20 years as a Registered Nurse/Health Educator and Social Worker for the last 5 years. Dr. Walker is a graduate from Wayne State University as a Health Educator and is also graduate from University of Detroit Mercy's MSW program. She is currently finishing up her Ph.D in Health Psychology from the University of Michigan-Ann Arbor.

Our professional support team will consist of of three registered nurses who will provide health education through medical seminars, groups, and individual counseling.

Personnel Plan

The following table summarizes our personnel expenditures for the first three years. We believe this plan is a compromise between fairness and expedience and meets the commitment of our mission statement. A professional staff of three RNs, 3-4 Therapists, Office Manager, Billing Clerk, Payroll Manager, Accountant, and Cleaning Crew will be assembled. These individuals will provide health education through seminars, groups, and individual counseling.

All the therapists will be paid 50-50. This means that for all counseling services provided, the therapist will be paid one-half of the amount the insurance company pays. For example, if a insurance company pays $75.00 per session, the therapist will be paid $37.50 per session.

The financial plan is for rapid, but controlled growth. Initial capitalization is pegged at 150K with cash streaming in from referrals over a period of six months. We plan to increase our clientele and cashflow through networking.

Break-even Analysis

The following table summarizes our break-even analysis. With approximate fixed cost of $2000 per month at the outset (a bare minimum), we need to bill $4000 to cover our costs. We really don't expect to reach break-even until a few months into the business operation.

Projected Profit and Loss

Our projected profit and loss is shown in the following table, with a net sales of more than $40,000 the first year to more than $60,000 through the third, and profits almost negligible for the start-up phase of this business.

Detailed monthly projections are included in the appendices.