Start-up Funding | |
Start-up Expenses to Fund | $9,000 |
Start-up Assets to Fund | $106,000 |
Total Funding Required | $115,000 |
Assets | |
Non-cash Assets from Start-up | $5,000 |
Cash Requirements from Start-up | $101,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $101,000 |
Total Assets | $106,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $50,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $50,000 |
Capital | |
Planned Investment | |
Direct Owner Investment | $65,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $65,000 |
Loss at Start-up (Start-up Expenses) | ($9,000) |
Total Capital | $56,000 |
Total Capital and Liabilities | $106,000 |
Total Funding | $115,000 |
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.
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.
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:
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.
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.
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:
1. | |
Physicians | Professionalism |
Hospitals | Consultation |
Schools | Correspondence |
Agencies | Accessibility |
2. | |
Individuals | Accessibility |
Couples | Respect |
Families | Compassion |
Groups | Empathy |
3. | |
MCO’s | Clear communication |
Self-pay | Cost-effective care |
Agencies | Easy access for clients |
PPOs | Shared treatment philosophy |
Indemnity Program | Responsiveness and cooperation |
4. | |
Billing/Collectable | Cooperative working relationship |
Legal | Timely payment facility owner |
Human Resource | Respect |
Insurance |
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.
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.
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.
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.
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.
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:
b. Weaknesses:
d. Strategies To Thwart Competition:
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
c. Potential Impact of Strengths:
d. Strategies to Thwart Competition:
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).
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.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Psychotherapy | 6% | 5,784 | 6,793 | 7,374 | 7,846 | 8,348 | 9.61% |
Psychopharmacology | 0% | 3,911 | 5,184 | 6,282 | 6,282 | 6,282 | 12.58% |
IOP | 0% | 898 | 898 | 988 | 988 | 988 | 2.42% |
B H Contracts | 5% | 0 | 0 | 2,000 | 2,000 | 2,000 | 0.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 13.56% | 10,593 | 12,875 | 16,644 | 17,116 | 17,618 | 13.56% |
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.
The Center’s sales strategy will target potential purchasers and referral sources of our services, from:
Wherever possible, our niche marketing approach will be linked to our sales strategies.
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.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Psychotherapy | 5,784 | 6,792 | 7,374 |
Psychopharmacology/MD | 2,520 | 3,264 | 3,950 |
Psychopharmacology/CNS | 1,391 | 1,920 | 2,332 |
Addictions/3 hr IOP | 310 | 310 | 450 |
Addictions/1hr IOP | 588 | 588 | 538 |
Contracts | 0 | 0 | 2,000 |
Other | 0 | 0 | 0 |
Total Unit Sales | 10,593 | 12,874 | 16,644 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Psychotherapy | $59.52 | $59.52 | $59.52 |
Psychopharmacology/MD | $40.92 | $40.92 | $40.92 |
Psychopharmacology/CNS | $32.55 | $32.55 | $32.55 |
Addictions/3 hr IOP | $77.19 | $77.19 | $77.19 |
Addictions/1hr IOP | $22.32 | $22.32 | $22.32 |
Contracts | $0.00 | $0.00 | $59.52 |
Other | $0.00 | $0.00 | $0.00 |
Sales | |||
Psychotherapy | $344,264 | $404,260 | $438,900 |
Psychopharmacology/MD | $103,118 | $133,563 | $161,634 |
Psychopharmacology/CNS | $45,277 | $62,496 | $75,907 |
Addictions/3 hr IOP | $23,929 | $23,929 | $34,736 |
Addictions/1hr IOP | $13,124 | $13,124 | $12,008 |
Contracts | $0 | $0 | $119,040 |
Other | $0 | $0 | $0 |
Total Sales | $529,712 | $637,372 | $842,225 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Psychotherapy | $35.71 | $35.71 | $35.71 |
Psychopharmacology/MD | $28.64 | $28.64 | $28.64 |
Psychopharmacology/CNS | $19.53 | $19.53 | $19.53 |
Addictions/3 hr IOP | $13.12 | $27.02 | $27.02 |
Addictions/1hr IOP | $4.91 | $6.47 | $6.47 |
Contracts | $0.00 | $0.00 | $35.71 |
Other | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||
Psychotherapy | $206,558 | $242,542 | $263,326 |
Psychopharmacology/MD | $72,183 | $93,481 | $113,128 |
Psychopharmacology/CNS | $27,166 | $37,498 | $45,544 |
Addictions/3 hr IOP | $4,068 | $8,376 | $12,159 |
Addictions/1hr IOP | $2,887 | $3,804 | $3,481 |
Contracts | $0 | $0 | $71,420 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $312,863 | $385,701 | $509,057 |
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.
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.
Target marketing of our services is critical to growth. Strategies will include:
Marketing tools will include: direct mail, print and audio advertising, public speaking, and relationship building with identified managed care corporations and persons.
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:
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.
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.
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.
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.
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:
Amesbury Psychological Center |
| |
| Organizational Chart |
|
ADVISORY BOARD | CENTER DIRECTOR | CONSULTANTS |
SUPPORT STAFF | ASSOCIATES | MEDICAL DIRECTOR |
| MEDICAL STAFF |
|
| THERAPISTS |
|
| ADDICTION STAFF |
|
| CONTRACTS STAFF |
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
At present, we are in the process of identifying a financial services company and consultants for several other areas.
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.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Center Director (.75 FTE) | $41,244 | $42,481 | $43,755 |
Client Accounts Coord. (.75 FTE) | $23,244 | $23,941 | $24,659 |
Secretary/Recep (1 FTE) | $24,000 | $24,720 | $25,462 |
Receptionist (.50 FTE) | $11,256 | $11,594 | $12,302 |
Total People | 4 | 4 | 4 |
Total Payroll | $99,744 | $102,736 | $106,178 |
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:
There are several assumptions related to this turn key project.
The following table summarizes the general financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 9.75% | 9.75% | 9.75% |
Long-term Interest Rate | 9.75% | 9.75% | 9.75% |
Tax Rate | 2.50% | 0.00% | 2.50% |
Other | 0 | 0 | 0 |
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.
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.
Break-even Analysis | |
Monthly Units Break-even | 752 |
Monthly Revenue Break-even | $37,618 |
Assumptions: | |
Average Per-Unit Revenue | $50.01 |
Average Per-Unit Variable Cost | $29.53 |
Estimated Monthly Fixed Cost | $15,400 |
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.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $529,712 | $637,372 | $842,225 |
Direct Cost of Sales | $312,863 | $385,701 | $509,057 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $312,863 | $385,701 | $509,057 |
Gross Margin | $216,850 | $251,670 | $333,167 |
Gross Margin % | 40.94% | 39.49% | 39.56% |
Expenses | |||
Payroll | $99,744 | $102,736 | $106,178 |
Marketing/Promotion | $7,700 | $10,500 | $11,100 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $3,000 | $3,000 | $3,500 |
Billing Fees (6% of billed plus 1.5% copays) | $22,951 | $31,869 | $42,111 |
Insurance | $3,500 | $3,600 | $3,600 |
Rent | $10,992 | $11,000 | $26,400 |
Human Resource/HR Logic | $6,000 | $6,000 | $6,000 |
Med Dir.,Multidisc.,RNCS Sup. | $10,000 | $12,000 | $12,000 |
Telephone | $6,000 | $6,500 | $7,000 |
Postage | $1,050 | $1,300 | $1,400 |
Office Supplies | $3,860 | $4,110 | $4,200 |
Payroll Taxes | $0 | $0 | $0 |
Contract/Consultants | $10,000 | $10,000 | $10,000 |
Total Operating Expenses | $184,797 | $202,615 | $233,489 |
Profit Before Interest and Taxes | $32,053 | $49,055 | $99,678 |
EBITDA | $32,053 | $49,055 | $99,678 |
Interest Expense | $4,400 | $3,436 | $2,260 |
Taxes Incurred | $1,103 | $0 | $2,435 |
Net Profit | $26,550 | $45,619 | $94,983 |
Net Profit/Sales | 5.01% | 7.16% | 11.28% |
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.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $52,971 | $63,737 | $84,222 |
Cash from Receivables | $356,266 | $557,202 | $724,642 |
Subtotal Cash from Operations | $409,237 | $620,940 | $808,864 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $409,237 | $620,940 | $808,864 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $99,744 | $102,736 | $106,178 |
Bill Payments | $369,968 | $482,273 | $628,567 |
Subtotal Spent on Operations | $469,712 | $585,010 | $734,744 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $9,000 | $11,515 | $12,620 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $478,712 | $596,525 | $747,364 |
Net Cash Flow | ($69,475) | $24,415 | $61,500 |
Cash Balance | $31,525 | $55,940 | $117,439 |
The following table shows the projected balance sheet. The monthly estimates are included in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $31,525 | $55,940 | $117,439 |
Accounts Receivable | $120,475 | $136,908 | $170,268 |
Other Current Assets | $5,000 | $5,000 | $5,000 |
Total Current Assets | $157,000 | $197,847 | $292,708 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $157,000 | $197,847 | $292,708 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $33,450 | $40,193 | $52,690 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $33,450 | $40,193 | $52,690 |
Long-term Liabilities | $41,000 | $29,485 | $16,865 |
Total Liabilities | $74,450 | $69,678 | $69,555 |
Paid-in Capital | $65,000 | $65,000 | $65,000 |
Retained Earnings | ($9,000) | $17,550 | $63,169 |
Earnings | $26,550 | $45,619 | $94,983 |
Total Capital | $82,550 | $128,169 | $223,153 |
Total Liabilities and Capital | $157,000 | $197,847 | $292,708 |
Net Worth | $82,550 | $128,169 | $223,153 |
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.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 20.32% | 32.14% | 2.30% |
Percent of Total Assets | ||||
Accounts Receivable | 76.74% | 69.20% | 58.17% | 25.20% |
Other Current Assets | 3.18% | 2.53% | 1.71% | 33.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 60.00% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 40.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 21.31% | 20.32% | 18.00% | 23.10% |
Long-term Liabilities | 26.11% | 14.90% | 5.76% | 19.60% |
Total Liabilities | 47.42% | 35.22% | 23.76% | 42.70% |
Net Worth | 52.58% | 64.78% | 76.24% | 57.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 40.94% | 39.49% | 39.56% | 0.00% |
Selling, General & Administrative Expenses | 39.65% | 36.14% | 32.27% | 73.80% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.40% |
Profit Before Interest and Taxes | 6.05% | 7.70% | 11.84% | 8.90% |
Main Ratios | ||||
Current | 4.69 | 4.92 | 5.56 | 2.45 |
Quick | 4.69 | 4.92 | 5.56 | 1.95 |
Total Debt to Total Assets | 47.42% | 35.22% | 23.76% | 42.70% |
Pre-tax Return on Net Worth | 33.50% | 35.59% | 43.66% | 8.10% |
Pre-tax Return on Assets | 17.61% | 23.06% | 33.28% | 14.20% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 5.01% | 7.16% | 11.28% | n.a |
Return on Equity | 32.16% | 35.59% | 42.56% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.96 | 4.19 | 4.45 | n.a |
Collection Days | 83 | 82 | 74 | n.a |
Accounts Payable Turnover | 12.06 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 27 | 26 | n.a |
Total Asset Turnover | 3.37 | 3.22 | 2.88 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.90 | 0.54 | 0.31 | n.a |
Current Liab. to Liab. | 0.45 | 0.58 | 0.76 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $123,550 | $157,654 | $240,018 | n.a |
Interest Coverage | 7.29 | 14.28 | 44.11 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.30 | 0.31 | 0.35 | n.a |
Current Debt/Total Assets | 21% | 20% | 18% | n.a |
Acid Test | 1.09 | 1.52 | 2.32 | n.a |
Sales/Net Worth | 6.42 | 4.97 | 3.77 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Psychotherapy | 0% | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 |
Psychopharmacology/MD | 0% | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 |
Psychopharmacology/CNS | 0% | 86 | 86 | 86 | 86 | 86 | 86 | 146 | 146 | 146 | 146 | 146 | 146 |
Addictions/3 hr IOP | 0% | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 |
Addictions/1hr IOP | 0% | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 |
Contracts | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Unit Sales | 853 | 853 | 853 | 853 | 853 | 853 | 913 | 913 | 913 | 913 | 913 | 913 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Psychotherapy | $64.00 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 |
Psychopharmacology/MD | $44.00 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 |
Psychopharmacology/CNS | $35.00 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 |
Addictions/3 hr IOP | $83.00 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 |
Addictions/1hr IOP | $24.00 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 |
Contracts | $64.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Other | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
Sales | |||||||||||||
Psychotherapy | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | |
Psychopharmacology/MD | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | |
Psychopharmacology/CNS | $2,794 | $2,794 | $2,794 | $2,794 | $2,794 | $2,794 | $4,752 | $4,752 | $4,752 | $4,752 | $4,752 | $4,752 | |
Addictions/3 hr IOP | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | |
Addictions/1hr IOP | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | |
Contracts | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Psychotherapy | 60.00% | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 |
Psychopharmacology/MD | 70.00% | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 |
Psychopharmacology/CNS | 60.00% | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 |
Addictions/3 hr IOP | 17.00% | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 |
Addictions/1hr IOP | 22.00% | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 |
Contracts | 60.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Psychotherapy | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | |
Psychopharmacology/MD | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | |
Psychopharmacology/CNS | $1,676 | $1,676 | $1,676 | $1,676 | $1,676 | $1,676 | $2,851 | $2,851 | $2,851 | $2,851 | $2,851 | $2,851 | |
Addictions/3 hr IOP | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | |
Addictions/1hr IOP | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | |
Contracts | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | |
Long-term Interest Rate | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | |
Tax Rate | 30.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | |
Direct Cost of Sales | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | |
Gross Margin | $17,679 | $17,679 | $17,679 | $17,679 | $17,679 | $17,679 | $18,462 | $18,462 | $18,462 | $18,462 | $18,462 | $18,462 | |
Gross Margin % | 40.96% | 40.96% | 40.96% | 40.96% | 40.96% | 40.96% | 40.92% | 40.92% | 40.92% | 40.92% | 40.92% | 40.92% | |
Expenses | |||||||||||||
Payroll | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | |
Marketing/Promotion | $675 | $675 | $675 | $675 | $675 | $625 | $625 | $625 | $625 | $625 | $625 | $575 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Billing Fees (6% of billed plus 1.5% copays) | $53 | $665 | $1,685 | $2,093 | $2,096 | $2,104 | $2,131 | $2,174 | $2,217 | $2,385 | $2,628 | $2,720 | |
Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $200 | |
Rent | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | |
Human Resource/HR Logic | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Med Dir.,Multidisc.,RNCS Sup. | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
Telephone | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Postage | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $50 | $50 | $50 | |
Office Supplies | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $230 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Contract/Consultants | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $837 | |
Total Operating Expenses | $13,602 | $14,214 | $15,234 | $15,642 | $15,645 | $15,603 | $15,630 | $15,673 | $15,716 | $15,834 | $16,077 | $15,923 | |
Profit Before Interest and Taxes | $4,077 | $3,465 | $2,445 | $2,037 | $2,034 | $2,076 | $2,832 | $2,789 | $2,746 | $2,628 | $2,385 | $2,539 | |
EBITDA | $4,077 | $3,465 | $2,445 | $2,037 | $2,034 | $2,076 | $2,832 | $2,789 | $2,746 | $2,628 | $2,385 | $2,539 | |
Interest Expense | $400 | $394 | $388 | $382 | $376 | $370 | $364 | $358 | $351 | $345 | $339 | $333 | |
Taxes Incurred | $1,103 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | $2,574 | $3,071 | $2,057 | $1,655 | $1,658 | $1,706 | $2,469 | $2,432 | $2,395 | $2,283 | $2,046 | $2,206 | |
Net Profit/Sales | 5.96% | 7.11% | 4.77% | 3.83% | 3.84% | 3.95% | 5.47% | 5.39% | 5.31% | 5.06% | 4.53% | 4.89% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $4,316 | $4,316 | $4,316 | $4,316 | $4,316 | $4,316 | $4,512 | $4,512 | $4,512 | $4,512 | $4,512 | $4,512 | |
Cash from Receivables | $0 | $0 | $1,295 | $38,847 | $38,847 | $38,847 | $38,847 | $38,847 | $38,906 | $40,610 | $40,610 | $40,610 | |
Subtotal Cash from Operations | $4,316 | $4,316 | $5,611 | $43,163 | $43,163 | $43,163 | $43,359 | $43,359 | $43,418 | $45,122 | $45,122 | $45,122 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $4,316 | $4,316 | $5,611 | $43,163 | $43,163 | $43,163 | $43,359 | $43,359 | $43,418 | $45,122 | $45,122 | $45,122 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | |
Bill Payments | $1,076 | $32,261 | $31,815 | $32,808 | $33,196 | $33,192 | $33,185 | $34,343 | $34,379 | $34,419 | $34,535 | $34,759 | |
Subtotal Spent on Operations | $9,388 | $40,573 | $40,127 | $41,120 | $41,508 | $41,504 | $41,497 | $42,655 | $42,691 | $42,731 | $42,847 | $43,071 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $10,138 | $41,323 | $40,877 | $41,870 | $42,258 | $42,254 | $42,247 | $43,405 | $43,441 | $43,481 | $43,597 | $43,821 | |
Net Cash Flow | ($5,822) | ($37,007) | ($35,265) | $1,293 | $905 | $910 | $1,112 | ($45) | ($23) | $1,641 | $1,525 | $1,301 | |
Cash Balance | $95,178 | $58,172 | $22,906 | $24,200 | $25,105 | $26,014 | $27,126 | $27,081 | $27,058 | $28,699 | $30,224 | $31,525 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $101,000 | $95,178 | $58,172 | $22,906 | $24,200 | $25,105 | $26,014 | $27,126 | $27,081 | $27,058 | $28,699 | $30,224 | $31,525 |
Accounts Receivable | $0 | $38,847 | $77,694 | $115,246 | $115,246 | $115,246 | $115,246 | $117,009 | $118,772 | $120,475 | $120,475 | $120,475 | $120,475 |
Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Total Current Assets | $106,000 | $139,026 | $140,866 | $143,153 | $144,446 | $145,351 | $146,261 | $149,135 | $150,853 | $152,533 | $154,174 | $155,699 | $157,000 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $106,000 | $139,026 | $140,866 | $143,153 | $144,446 | $145,351 | $146,261 | $149,135 | $150,853 | $152,533 | $154,174 | $155,699 | $157,000 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $31,202 | $30,721 | $31,701 | $32,090 | $32,087 | $32,041 | $33,197 | $33,232 | $33,268 | $33,376 | $33,605 | $33,450 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $31,202 | $30,721 | $31,701 | $32,090 | $32,087 | $32,041 | $33,197 | $33,232 | $33,268 | $33,376 | $33,605 | $33,450 |
Long-term Liabilities | $50,000 | $49,250 | $48,500 | $47,750 | $47,000 | $46,250 | $45,500 | $44,750 | $44,000 | $43,250 | $42,500 | $41,750 | $41,000 |
Total Liabilities | $50,000 | $80,452 | $79,221 | $79,451 | $79,090 | $78,337 | $77,541 | $77,947 | $77,232 | $76,518 | $75,876 | $75,355 | $74,450 |
Paid-in Capital | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 |
Retained Earnings | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) |
Earnings | $0 | $2,574 | $5,644 | $7,701 | $9,356 | $11,014 | $12,720 | $15,189 | $17,620 | $20,015 | $22,298 | $24,344 | $26,550 |
Total Capital | $56,000 | $58,574 | $61,644 | $63,701 | $65,356 | $67,014 | $68,720 | $71,189 | $73,620 | $76,015 | $78,298 | $80,344 | $82,550 |
Total Liabilities and Capital | $106,000 | $139,026 | $140,866 | $143,153 | $144,446 | $145,351 | $146,261 | $149,135 | $150,853 | $152,533 | $154,174 | $155,699 | $157,000 |
Net Worth | $56,000 | $58,574 | $61,644 | $63,701 | $65,356 | $67,014 | $68,720 | $71,189 | $73,620 | $76,015 | $78,298 | $80,344 | $82,550 |
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Related business ideas, discover your perfect domain, counseling center mini business plan, expected percent margins:, earnings expectations:, actions to hit those numbers:, operations:, management of counselors:, marketing and client acquisition:, quality of service:, cost control:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a counseling center is the right business endeavor, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: naming the business, registering the business, creating a logo, designing a website, step 3: obtain necessary licenses and permits, apply for licenses and permits, obtain professional licenses, maintain licenses and permits, step 4: develop a business plan, outline goals and objectives, estimate startup costs, step 5: secure financing, consider small business loans, explore grants, step 6: find a suitable location, research local regulations, consider the space, look for amenities, step 7: hire employees, step 8: market the business, step 9: monitor business performance, explore more categories, take the next steps.
Private counseling practice business startup guide.
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 STARTUP GUIDE which you would find beneficial towards helping you write a simple business plan for your counselling business.
Here is how to start a mental health business.
BUSINESS NAME: The Real Deal Private Counsellors, LLP
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:
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.
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:
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:
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 STARTUP GUIDE 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 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.
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:
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.
JCC's cash flow plan is to:
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.
The founder and owner is Rolanda K. Walker, R.N., MSW, Ph.D. It is a privately owned corporation.
JCC will be located at 1600 West Main Street, Ann Arbor, Michigan.
The process of the JCC business operations is as follows:
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.
2-Surge Protectors | $60 |
4-Computers | $4,000 |
Copy Machine | $600 |
Laser Printer | $2,000 |
Adding Machine | $30 |
Electric Typewriter | $120 |
Fax Machine | $300 |
12-Clip Boards | $12 |
4-Waste Baskets | $12 |
File Folders | $75 |
4-Desk Organizers | $200 |
4-Floor Mates | $184 |
Hole Punchers | $12 |
Paper | $60 |
4-Wall Clock | $80 |
Pens/Pencils/Markers/Paper Clips/Tacks | $60 |
3-Large Bulletin Boards | $90 |
2-Paper Shredder | $50 |
2-Paper Stand | $30 |
4-File Cabinets | $240 |
1-Supply Cabinet | $200 |
Wall Pictures | $350 |
1-Oval Table | $400 |
12-Chairs | $312 |
4-Desk Lamps | $60 |
1-Standing Lamp | $30 |
2-TV/VCR | $500 |
Entrance Rug | $90 |
Computer Disks | $16 |
Envelopes | $50 |
Labels | $25 |
File Guides | $60 |
Organizer Compartment | $30 |
Laminator | $200 |
Paper/Plastic Cutter | $60 |
Electric Stapler | $70 |
Tape | $8 |
3-Desk Calendars | $18 |
Pencil Sharpeners | $35 |
3-Office Chairs | $130 |
1-Executive Chair | $500 |
3-Desks | $900 |
3-Love Seats | $600 |
3-Guest Chairs | $390 |
3-Book Shelves | $300 |
Childrens' Table & Chairs | $100 |
Childrens' Games | $150 |
Teaching Aids | $200 |
Childrens' Toys | $150 |
Carpeting | $2,000 |
Group Room Furniture | $752 |
Therapist Software Programs | $930 |
Kitchen Furniture | $450 |
3-Staplers | $24 |
Tablets/Rolodex | $30 |
Legal | $1,500 |
Stationery, etc. | $300 |
Brochures | $300 |
Professional Development | $500 |
Other | $0 |
Cash Requirements | $6,000 |
Start-up inventory | $0 |
Other Short-term Assets | $0 |
Long-term Assets | $0 |
Left to finance: | $0 |
Investor 1 | $0 |
Investor 2 | $0 |
Owner's Equity | $6,000 |
Unpaid Expenses | $0 |
Short-term Loans | $20,935 |
Interest-free Short-term Loans | $0 |
Subtotal Short-term Liabilities | $20,935 |
Long-term Liabilities | $0 |
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:
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.
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.
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.
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."
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.
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.
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.
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
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.
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.
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 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.
We expect sales to increase as our staff and referral base increase. The following table gives a run-down on forecasted sales.
Therapist/Counseling Sessions | $292,500 | $292,500 | $292,500 |
Medical/Mental Health Group Sessions | $15,600 | $15,600 | $15,600 |
Therapist/Counseling Sessions | $0 | $0 | $0 |
Medical/Mental Health Group Sessions | $0 | $0 | $0 |
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.
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.
3 Therapists | $146,252 | $146,252 | $146,252 |
3 Nurses | $5,200 | $5,200 | $5,200 |
Office Manager | $21,840 | $21,840 | $21,840 |
Billing Clerk | $3,744 | $3,744 | $3,744 |
Payroll Manager | $4,160 | $4,160 | $4,160 |
Accountant | $2,500 | $2,500 | $2,500 |
Cleaning Person | $1,952 | $1,952 | $1,952 |
Other | $0 | $0 | $0 |
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.
Short-term Interest Rate % | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate % | 10.00% | 10.00% | 10.00% |
Payment Days Estimator | 30 | 30 | 30 |
Collection Days Estimator | 14 | 14 | 14 |
Inventory Turnover Estimator | 6.00 | 6.00 | 6.00 |
Tax Rate % | 25.00% | 25.00% | 25.00% |
Expenses in Cash % | 10.00% | 10.00% | 10.00% |
Sales on Credit % | 75.00% | 75.00% | 75.00% |
Personnel Burden % | 15.00% | 15.00% | 15.00% |
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.
Monthly Units Break-even | 53 |
Monthly Sales Break-even | $4,000 |
Average Per-Unit Revenue | $75.00 |
Average Per-Unit Variable Cost | $37.50 |
Estimated Monthly Fixed Cost | $2,000 |
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.
Sales | $308,100 | $308,100 | $308,100 |
Direct Cost of Sales | $0 | $0 | $0 |
Production Payroll | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Gross Margin | $308,100 | $308,100 | $308,100 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Sales and Marketing Payroll | $0 | $0 | $0 |
Advertising/Promotion | $900 | $450 | $450 |
Miscellaneous | $0 | $0 | $0 |
Sales and Marketing % | 0.00% | 0.00% | 0.00% |
General and Administrative Payroll | $0 | $0 | $0 |
Payroll Expense | $185,648 | $185,648 | $185,648 |
Payroll Burden | $27,847 | $27,847 | $27,847 |
Depreciation | $0 | $0 | $0 |
Utilities | $1,500 | $1,500 | $1,500 |
Insurance | $600 | $600 | $600 |
Rent | $12,000 | $12,000 | $12,000 |
General and Administrative % | 0.00% | 0.00% | 0.00% |
Other Payroll | $0 | $0 | $0 |
Telephone | $1,380 | $1,380 | $1,380 |
Other % | 0.00% | 0.00% | 0.00% |
Profit Before Interest and Taxes | $78,226 | $78,675 | $78,675 |
Interest Expense Short-term | $2,094 | $2,094 | $2,094 |
Interest Expense Long-term | $0 | $0 | $0 |
Taxes Incurred | $19,033 | $19,145 | $19,145 |
Extraordinary Items | $0 | $0 | $0 |
Net Profit | $57,099 | $57,436 | $57,436 |
Net Profit/Sales | 18.53% | 18.64% | 18.64% |
Cash flow projections are the most critical indicator of our business's success. Attainment of the targeted population participation will ensure the accumulation of required cash to execute the running of the organization. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.
Net Profit | $57,099 | $57,436 | $57,436 |
Depreciation | $0 | $0 | $0 |
Change in Accounts Payable | $2,618 | $50 | ($4) |
Current Borrowing (repayment) | $0 | $0 | $0 |
Increase (decrease) Other Liabilities | $0 | $0 | $0 |
Long-term Borrowing (repayment) | $0 | $0 | $0 |
Capital Input | $0 | $0 | $0 |
Change in Accounts Receivable | $8,295 | $0 | $0 |
Change in Inventory | $0 | $0 | $0 |
Change in Other Short-term Assets | $0 | $0 | $0 |
Capital Expenditure | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
The balance sheet in the following chart shows managed but sufficient growth of net worth and a sufficiently healthy financial position. The monthly estimates are included in the appendices.
Cash | $57,422 | $114,908 | $172,340 |
Accounts Receivable | $8,295 | $8,295 | $8,295 |
Inventory | $0 | $0 | $0 |
Other Short-term Assets | $0 | $0 | $0 |
Capital Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Accounts Payable | $2,618 | $2,668 | $2,664 |
Short-term Notes | $20,935 | $20,935 | $20,935 |
Other Short-term Liabilities | $0 | $0 | $0 |
Long-term Liabilities | $0 | $0 | $0 |
Paid in Capital | $6,000 | $6,000 | $6,000 |
Retained Earnings | ($20,935) | $36,164 | $93,600 |
Earnings | $57,099 | $57,436 | $57,436 |
Therapist/Counseling Sessions | $22,500 | $28,125 | $22,500 | $22,500 | $22,500 | $22,500 |
Medical/Mental Health Group Sessions | $1,200 | $1,500 | $1,200 | $1,200 | $1,200 | $1,200 |
Therapist/Counseling Sessions | $0 | $0 | $0 | $0 | $0 | $0 |
Medical/Mental Health Group Sessions | $0 | $0 | $0 | $0 | $0 | $0 |
3 Therapists | $11,250 | $14,063 | $11,250 | $11,250 | $11,250 | $11,250 |
3 Nurses | $400 | $500 | $400 | $400 | $400 | $400 |
Office Manager | $1,680 | $2,100 | $1,680 | $1,680 | $1,680 | $1,680 |
Billing Clerk | $288 | $360 | $288 | $288 | $288 | $288 |
Payroll Manager | $320 | $400 | $320 | $320 | $320 | $320 |
Accountant | $200 | $225 | $200 | $200 | $200 | $200 |
Cleaning Person | $150 | $188 | $150 | $150 | $150 | $150 |
Other | $0 | $0 | $0 | $0 | $0 | $0 |
Short-term Interest Rate % | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate % | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Payment Days Estimator | 30 | 30 | 30 | 30 | 30 | 30 |
Collection Days Estimator | 14 | 14 | 14 | 14 | 14 | 14 |
Inventory Turnover Estimator | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
Tax Rate % | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Expenses in Cash % | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Sales on Credit % | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% |
Personnel Burden % | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% |
$28,125 | $22,500 | $28,125 | $28,125 | $22,500 | $22,500 | $292,500 | $292,500 | $292,500 |
$1,500 | $1,200 | $1,500 | $1,500 | $1,200 | $1,200 | $15,600 | $15,600 | $15,600 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$14,063 | $11,250 | $14,063 | $14,063 | $11,250 | $11,250 | $146,252 | $146,252 | $146,252 |
$500 | $400 | $500 | $500 | $400 | $400 | $5,200 | $5,200 | $5,200 |
$2,100 | $1,680 | $2,100 | $2,100 | $1,680 | $1,680 | $21,840 | $21,840 | $21,840 |
$360 | $288 | $360 | $360 | $288 | $288 | $3,744 | $3,744 | $3,744 |
$400 | $320 | $400 | $400 | $320 | $320 | $4,160 | $4,160 | $4,160 |
$225 | $200 | $225 | $225 | $200 | $200 | $2,500 | $2,500 | $2,500 |
$188 | $150 | $188 | $188 | $150 | $150 | $1,952 | $1,952 | $1,952 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 | 30 |
14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 |
6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% | 75.00% |
15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% |
Sales | $23,700 | $29,625 | $23,700 | $23,700 | $23,700 | $23,700 |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 |
Production Payroll | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 |
Gross Margin | $23,700 | $29,625 | $23,700 | $23,700 | $23,700 | $23,700 |
Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Sales and Marketing Payroll | $0 | $0 | $0 | $0 | $0 | $0 |
Advertising/Promotion | $75 | $75 | $75 | $75 | $75 | $75 |
Miscellaneous | $0 | $0 | $0 | $0 | $0 | $0 |
Sales and Marketing % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
General and Administrative Payroll | $0 | $0 | $0 | $0 | $0 | $0 |
Payroll Expense | $14,288 | $17,835 | $14,288 | $14,288 | $14,288 | $14,288 |
Payroll Burden | $2,143 | $2,675 | $2,143 | $2,143 | $2,143 | $2,143 |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 |
Utilities | $125 | $125 | $125 | $125 | $125 | $125 |
Insurance | $0 | $100 | $0 | $100 | $0 | $100 |
Rent | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
General and Administrative % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 |
Telephone | $115 | $115 | $115 | $115 | $115 | $115 |
Other % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Profit Before Interest and Taxes | $5,954 | $7,700 | $5,954 | $5,854 | $5,954 | $5,854 |
Interest Expense Short-term | $174 | $174 | $174 | $174 | $174 | $174 |
Interest Expense Long-term | $0 | $0 | $0 | $0 | $0 | $0 |
Taxes Incurred | $1,445 | $1,881 | $1,445 | $1,420 | $1,445 | $1,420 |
Extraordinary Items | $0 | $0 | $0 | $0 | $0 | $0 |
Net Profit | $4,335 | $5,644 | $4,335 | $4,260 | $4,335 | $4,260 |
Net Profit/Sales | 18.29% | 19.05% | 18.29% | 17.97% | 18.29% | 17.97% |
$29,625 | $23,700 | $29,625 | $29,625 | $23,700 | $23,700 | $308,100 | $308,100 | $308,100 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$29,625 | $23,700 | $29,625 | $29,625 | $23,700 | $23,700 | $308,100 | $308,100 | $308,100 |
100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$75 | $75 | $75 | $75 | $75 | $75 | $900 | $450 | $450 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$17,836 | $14,288 | $17,836 | $17,836 | $14,288 | $14,288 | $185,648 | $185,648 | $185,648 |
$2,675 | $2,143 | $2,675 | $2,675 | $2,143 | $2,143 | $27,847 | $27,847 | $27,847 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$125 | $125 | $125 | $125 | $125 | $125 | $1,500 | $1,500 | $1,500 |
$0 | $100 | $0 | $100 | $0 | $100 | $600 | $600 | $600 |
$1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $12,000 | $12,000 | $12,000 |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$115 | $115 | $115 | $115 | $115 | $115 | $1,380 | $1,380 | $1,380 |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
$7,799 | $5,854 | $7,799 | $7,699 | $5,954 | $5,854 | $78,226 | $78,675 | $78,675 |
$174 | $174 | $174 | $174 | $174 | $174 | $2,094 | $2,094 | $2,094 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$1,906 | $1,420 | $1,906 | $1,881 | $1,445 | $1,420 | $19,033 | $19,145 | $19,145 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$5,718 | $4,260 | $5,718 | $5,643 | $4,335 | $4,260 | $57,099 | $57,436 | $57,436 |
19.30% | 17.97% | 19.30% | 19.05% | 18.29% | 17.97% | 18.53% | 18.64% | 18.64% |
Net Profit | $4,335 | $5,644 | $4,335 | $4,260 | $4,335 | $4,260 |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 |
Change in Accounts Payable | $2,553 | $467 | ($467) | $65 | ($65) | $65 |
Current Borrowing (repayment) | $0 | $0 | $0 | $0 | $0 | $0 |
Increase (decrease) Other Liabilities | $0 | $0 | $0 | $0 | $0 | $0 |
Long-term Borrowing (repayment) | $0 | $0 | $0 | $0 | $0 | $0 |
Capital Input | $0 | $0 | $0 | $0 | $0 | $0 |
Change in Accounts Receivable | $8,181 | $2,045 | ($2,045) | $114 | $0 | $0 |
Change in Inventory | $0 | $0 | $0 | $0 | $0 | $0 |
Change in Other Short-term Assets | $0 | $0 | $0 | $0 | $0 | $0 |
Capital Expenditure | $0 | $0 | $0 | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 |
Cash | $4,706 | $8,771 | $14,684 | $18,896 | $23,165 | $27,490 |
Accounts Receivable | $8,181 | $10,227 | $8,181 | $8,295 | $8,295 | $8,295 |
Inventory | $0 | $0 | $0 | $0 | $0 | $0 |
Other Short-term Assets | $0 | $0 | $0 | $0 | $0 | $0 |
Capital Assets | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 |
Accounts Payable | $2,553 | $3,020 | $2,553 | $2,618 | $2,553 | $2,618 |
Short-term Notes | $20,935 | $20,935 | $20,935 | $20,935 | $20,935 | $20,935 |
Other Short-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 |
Paid in Capital | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
Retained Earnings | ($20,935) | ($20,935) | ($20,935) | ($20,935) | ($20,935) | ($20,935) |
Earnings | $4,335 | $9,978 | $14,313 | $18,572 | $22,907 | $27,167 |
$5,718 | $4,260 | $5,718 | $5,643 | $4,335 | $4,260 | $57,099 | $57,436 | $57,436 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$336 | ($336) | $336 | $65 | ($466) | $65 | $2,618 | $50 | ($4) |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$2,074 | ($2,074) | $2,074 | $0 | ($2,074) | $0 | $8,295 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$31,470 | $37,467 | $41,448 | $47,156 | $53,098 | $57,422 | $57,422 | $114,908 | $172,340 |
$10,369 | $8,295 | $10,369 | $10,369 | $8,295 | $8,295 | $8,295 | $8,295 | $8,295 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$2,954 | $2,618 | $2,954 | $3,019 | $2,553 | $2,618 | $2,618 | $2,668 | $2,664 |
$20,935 | $20,935 | $20,935 | $20,935 | $20,935 | $20,935 | $20,935 | $20,935 | $20,935 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
$6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
($20,935) | ($20,935) | ($20,935) | ($20,935) | ($20,935) | ($20,935) | ($20,935) | $36,164 | $93,600 |
$32,885 | $37,144 | $42,862 | $48,505 | $52,840 | $57,099 | $57,099 | $57,436 | $57,436 |
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All you need to know about starting and running your business.
In this article
With increased mental health awareness in the UK, more people than ever are engaging in counselling. Counselling is a type of talking therapy performed by a trained professional. The person attending a counselling session will discuss any issues, problems or difficulties they are facing with the counsellor.
Counselling takes place in a safe, confidential environment with the aim to help the individual deal with any emotional or personal issues they are facing and explore their thoughts and feelings. A counsellor often doesn’t give their own opinion or offer direct advice. Instead, they challenge their clients to understand their situation better and identify the root causes of their issues and resolve or reconcile their problems.
If you are considering starting up a counselling business, there are several different ways you can offer counselling sessions.
Individual counselling is where you meet with the client 1:1, without other people present. Individual counselling is better for people who prefer confidentiality and the 1:1 attention of the counsellor. Individual counselling usually encourages a more intimate and trusting counsellor-client relationship and is beneficial for people who have difficulty opening up about their problems.
During group counselling, the counsellor will meet with a group of people at the same time (usually between 4 and 10 people) who are experiencing similar difficulties. The group will usually meet at the same time every week. Group counselling can be beneficial as it offers your clients support from other people in a similar situation, the opportunity to hear about different experiences and different perspectives, and a level of accountability and social interactions. Group counselling is usually less expensive for each client.
Face-to-face counselling is where the counsellor meets with the client in person. Sessions can be conducted from any location, including your office or the clients’ homes. Face-to-face counselling allows you to consider the clients’ body language and other non-verbal communication. Some clients find face-to-face counselling to be more beneficial and are more likely to create a positive line of communication and continue with the sessions.
Telephone counselling still takes place 1:1, in a private, confidential setting between the counsellor and the client. However, the entire session takes place over the telephone, allowing your client to access counselling from their own home. Telephone counselling is usually more affordable and is recommended for people who cannot easily travel to their sessions, for example, if they don’t have the means to travel or experience an anxiety disorder. However, some clients struggle to connect with the counsellor and don’t always commit to their sessions over time.
Online counselling can be done in a variety of ways, including by video chat, email or instant messaging. It may be recommended for those who cannot attend counselling because of scheduling difficulties or location restrictions, or those who feel more comfortable communicating in this way. Online counselling is usually less expensive for the client and requires less time commitment from the counsellor.
Although counselling is available on the NHS, there is often a long wait time (usually around 18 weeks). There is also a limit on how many counselling sessions are available on the NHS, with most NHS regions offering between 6 and 12 sessions. This has resulted in many people turning to private counselling, making now a great time to start up a counselling business.
As part of your counselling business, you will have a variety of day-to-day responsibilities.
These could include:
To operate as a counsellor in the UK, you will need to obtain either a diploma, a bachelor’s degree or a postgraduate qualification in counselling or psychotherapy.
You will also need personal skills such as active listening skills, empathy, sensitivity and patience. You will also need the ability to understand people’s reactions and interpret their non-verbal cues. A non-judgemental approach and the ability to communicate with people from a variety of backgrounds are essential.
Counselling can be a difficult career choice. You will therefore need resilience and the ability to remain calm in stressful situations and be able to work under pressure.
Many counselling businesses opt to target a specific client base. Your client base can depend on several factors:
Counsellors can specialise in a huge range of difficulties or issues, including:
Counselling businesses can operate from a variety of locations.
You can choose to:
Some clients prefer individual sessions rather than group sessions. Some prefer face-to-face counselling whereas others prefer telephone or online counselling. The type of counselling sessions you offer will affect your client base.
Your price per session will impact your typical customer base, as your clients may have a specific budget in mind.
The type of equipment you will need for your counselling business will depend on the type of business you run. Below is a full list of equipment required by different counselling businesses.
Consider the type of business you are going to run when determining your equipment requirements:
Your website will most likely be your most important advertising tool. It will allow potential clients to find your business online, especially if you utilise Search Engine Optimisation (SEO), allowing you to rank higher on search engines. Your website should be designed to reflect your business and your branding. It should also contain important information such as your qualifications and experience, your specialities and services you offer and customer reviews. You may also have your contact information or an online booking form for potential clients to complete.
You will need to set up your own email service using your own domain. Using a public email domain such as @google or @hotmail can look less professional compared to using your own business domain. You will need to make sure your email service is fully secure and encrypted and abides by email security policies in the UK.
Many of the documents you work with will contain highly sensitive information that you will need to store securely at all times. The vast number of documents will likely require you to invest in secure cloud storage. You should ensure the storage you opt for is password protected and encrypted. You should also ensure everything is backed up externally to protect the information in the event of a technological issue. The cost of cloud storage can vary significantly, depending on the amount of storage you need.
Scheduling tools allow you and your clients to make appointments and meetings without needing to waste time trying to find an available date and time. The software links to your calendar and recognises your availability. If a client books a session with you via the software, you will receive an automatic confirmation email and the session will appear in your calendar. Prices can start at as little as £2 per month.
You will need a high-specification, reliable laptop or desktop computer that can handle the amount of time you will be using it each day and all the software you will need to install. If you offer online or video appointments, you will need to ensure your laptop or computer has a reliable camera. A high-spec laptop can cost between £500 and £3,000.
If you run your business remotely, you will need to ensure your Wi-Fi is reliable and high speed. If you offer video or online sessions, you will need to ensure it doesn’t cut out in the middle of a session. Wi-Fi prices usually range from £20-£50 per month depending on your provider and your required speeds.
You will be dealing with confidential information daily and ensuring any confidential paperwork is properly shredded and disposed of is a legal requirement. A shredder can be purchased for as little as £15.
Counselling Office Equipment:
When styling your counselling office, you will need to consider what equipment and furnishings are practical, easy to clean and create a comfortable and calming environment for your clients.
Some equipment your counselling office may require includes:
You want your clients to feel comfortable and calm when attending your office. Your therapy sofa should be made of a material that is easy to clean and looks professional but is still comfortable. Prices can vary but usually start at £500.
You’ll need a desk to sit at when completing any notes or paperwork and when using your computer or laptop. Ensure your desk looks professional and fits the design of your business. It should also be set at a good height to avoid any musculoskeletal issues. You can expect to spend between £200 and £2,000 depending on the quality of the materials and the manufacturer.
You likely won’t sit at your desk chair when talking with your clients as the desk can create a barrier and make you look too formal. It is also recommended that you sit at the same height as your clients to encourage a respectful relationship and ensure you don’t appear intimidating. Keep in mind that you could be spending several hours a day sitting in the chair so you will need it to be supportive and comfortable. You can opt for a chair that matches your sofa or is a similar height. You can expect to spend £200 and above.
To make your office more personable and attractive and a more comfortable environment for your clients, you could choose décor such as:
This can protect your business from potential break-ins and theft. A CCTV system can cost between £300 and £5,000 depending on the specification of the equipment, how many cameras you require, and the installation costs.
In case of an accident or injury, a first aid kit is an essential piece of equipment. A fully stocked first aid kit can be purchased for approximately £15.
Business cards are an important marketing tool and can be given to new or existing clients. They can also be used to record appointment times. Your business cards should include your business name, contact information, location and the types of services you offer. 500 business cards can cost as little as £20.
Some organisational equipment you may require includes:
Some stationery equipment you may require includes:
When setting up your counselling business, an important step is to plan your finances and calculate the approximate costs associated with setting up and running your business. This includes your start-up costs and your monthly, quarterly and annual outgoings.
Some of the typical costs associated with a counselling business are:
If you run your counselling business from your own office or other premises, this will likely be your biggest expenditure. You will need to rent your premises on a monthly or annual basis. Rental prices can vary significantly, depending on the location, the size of the premises and the on-site facilities. City centre locations and newly built premises usually have the highest rental costs. Rental costs are often calculated per square metre. They can range significantly, from £500 to £15,000 per square metre annually.
You will likely need to renovate or refurbish your premises to fit your business aesthetic and make it fit for purpose. Your premises should be a calming, comfortable environment and you may need to redecorate and install furniture to fit this. Renovation costs can vary, depending on the level and scale of work required.
Depending on the type of counselling business you set up, your equipment costs may be relatively low. You will need to invest in the relevant technology and/or furnishings, depending on your business requirements. Equipment costs can range from £500 to £5,000.
Your monthly and annual subscription costs could include your Wi-Fi, website, email service and your secure storage. Depending on which subscriptions you require and the specifications of the ones you choose, expect to pay a minimum of £40 per month, although this could rise as high as £200 per month.
These are the everyday costs associated with running your counselling business. It could include your overhead costs such as electricity, gas, water and council tax. Most of your running costs will be paid monthly, although some may be paid quarterly or annually. Keeping your running costs as low as possible allows you to maximise your profits.
Branding can help you to establish your business’s identity and set you apart from your competition. Branding could include creating your business’s visual identity, a logo, your business name, and creating your business website. You can hire a professional to help you with branding or do some of the work yourself. Branding can cost between £500 and £10,000, depending on the amount of branding you require.
This can help you to grow your business. You may require more advertising and marketing when your business first launches, and you are attempting to grow your client base. It is recommended that you spend between 1% and 3% of your annual revenue on advertising costs; for example, if you make £100,000 per year, you should spend between £1,000 and £3,000 on advertising.
You may initially operate your business independently and then hire more counsellors or secretarial staff as your business grows. If you hire staff permanently, you will need to pay them at least the national minimum wage of £9.50 per hour, although qualified counsellors will expect a significantly higher wage. You will also need to account for other expenses such as holiday pay, sick pay and maternity/paternity pay.
There are several types of insurance coverage you could choose for your counselling business. The cost of your insurance can vary depending on your insurance provider and your level of coverage. Prices typically start at £8 per month.
Some insurance options you could choose are:
Once you have determined your approximate start-up costs and running costs, you can then calculate your pricing.
Counsellors usually charge a fee per session, with fees varying depending on:
Fees can vary from £20 to £150 per session, although on average, counsellors typically charge between £30 and £50 per session.
Safely running your counselling business can help to protect you, your clients and your business. Safe practices can help to protect your clients’ health and well-being, keep you and your employees safe, and protect your business.
Some ways you can safely run your counselling business are:
Registering with a professional body will give you access to resources, knowledge and networks that can help your training and ensure you run your counselling business safely and ethically. It will also give your business professional credibility.
There are several professional bodies you could register with, including:
Ensuring you implement and follow ethical practices at all times is essential. An ethical code helps to protect the well-being of your clients and ensures good practice at all times. An ethical code may be provided by your registered professional body, or you may create your own ethical code.
Also known as a counselling agreement, a counselling contract is a mutual agreement between you and your clients outlining your therapeutic relationship. The contract states your responsibilities towards the client and vice versa. It also ensures your client gives written informed consent and ensures all counselling is conducted in a safe and professional manner.
Although the law does not specifically state which qualifications are required by counsellors, guidelines recommend an appropriate educational course, such as:
The parameters for certain mental health conditions are constantly changing and more research is constantly being done. Counsellors must ensure they keep up to date with changes and updates and ensure they have the skills and knowledge to provide their clients with the best possible service.
Risk assessments are only a legal requirement if your business has five or more employees. If you have fewer employees, risk assessments are recommended to ensure safe practices in your business.
When conducting risk assessments, you should:
Your risk assessments should also cover any additional risks related to individual clients.
If you conduct face-to-face sessions, you must ensure cleaning procedures are followed after each client. This could include cleaning all equipment after use, such as chairs, tables and pens. You should also ensure handwashing procedures are followed.
Threatening or abusive behaviour could come from clients, especially if they are in pain, on medication, are confused or experiencing emotional difficulties. Implement procedures for dealing with threatening behaviour, record any incidents and implement emergency procedures that can be followed in the event of threatening or abusive behaviour.
You may be working with clients who are dealing with mental health difficulties or who are going through a distressing time. In the event of an emotional outburst, ensuring any dangerous objects, such as scissors, are kept out of the client’s reach can help to protect both you and the client.
A firewall helps to protect the information stored on your devices. It prevents any unauthorised access to your device or accounts and sends you an automatic alert if someone attempts to access your information. Some computers and laptops come with a built-in firewall whereas others may need you to install or enable a firewall.
Don’t simply set up your Wi-Fi and use the pre-given password. Choose your own secure password and ensure your Wi-Fi network is encrypted to prevent anyone from accessing or hacking it. This is particularly important if you are using your Wi-Fi network to access client records.
All your personal and business passwords should be set up with two-factor authentication. This means you will need to prove your identity in two ways, such as with your usual password and with a code that is sent to your registered mobile number. This adds an extra layer of security to your accounts.
There are several legal guidelines you will need to adhere to, to ensure your business is operating in full compliance with the law. Failure to comply with legal guidelines can be detrimental to you and your business.
Some legal requirements you should be aware of are:
The Equality Act states that every individual should be treated fairly and equally, regardless of their age, gender, race, religion, physical and mental ability, sexuality and socioeconomic class. You should ensure counselling is accessible to all, you understand different cultural backgrounds and overcome communication obstacles. You should also be aware of any unconscious biases you may hold.
Although counsellors must ensure their clients’ confidentiality, this does not apply if your client discloses information relating to certain illegal activities.
If any of your clients are involved in legal proceedings, a police issue or if they die, you may be asked to surrender your client notes. You should comply with any orders to release your notes and ensure your notes are factual.
You have both a legal and ethical duty to ensure all your client notes are stored safely and securely. The Data Protection Act applies to any client information that is stored on a computer or any physical information, such as in your paper filing system. You must comply with legislation on how you collect, store and use personal information.
You must use your judgement and the clients’ information to determine whether each client has the capacity to give informed consent to the counselling sessions. If you work with children, you must gain informed consent from their parents or guardians.
As you may be working with vulnerable individuals, you and your employees must undergo a criminal record check and obtain a certificate.
The type of check required depends on the country you live in:
Any records should be kept for a minimum of seven years after your clients’ sessions have ended. When destroying records, ensure this is done in line with the policies of your local authority.
If you conduct face-to-face sessions, you must ensure you have appropriate first aid training and have a fully stocked first aid kit. This will allow you to administer medical treatment if necessary.
If you employ any staff, you must ensure you follow employment legislation, including the Employment Rights Act (1996 ) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.
RIDDOR states that you must report all injuries, diseases and dangerous events that occur when your business is operating. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document.
All businesses should have health and safety policies that help to manage health and safety in your business. They protect the health and safety of you, your clients and your business. Your policies and procedures could include fire safety and emergency procedures.
Under these regulations , if your business has five or more employees you must ensure you conduct appropriate risk assessments, minimise any risks and maintain all equipment. You must also make sure high levels of cleanliness are maintained.
You must register your business with HMRC before you begin operating. You can register as a sole trader or as a limited company. You will need to register your business name and any other relevant information.
This allows you to calculate and pay your own taxes each year. You will need to track your finances every month and submit any expenses as part of your tax assessment.
Counselling can be an extremely rewarding career in many ways.
Some of the main pros associated with running a counselling business are:
Running a counselling business can be extremely lucrative. You can charge between £30 and £150 for a counselling session. The more experienced a counsellor you are, the higher prices you can charge. You can also charge higher fees if you specialise in a specific type of counselling. By hiring additional counsellors and expanding your business, this can offer you unlimited income potential.
By undergoing further training and obtaining additional certificates, you can advance your career and further your business. This could allow you to expand your clientele further and offer additional counselling services.
As a counsellor, you can really make a difference in your clients’ lives. Seeing your clients make progress and make breakthroughs can be extremely rewarding. You will likely be seeing clients over a period of time and developing positive client relationships.
As the business owner, you can choose your own working hours and operate a flexible schedule. If you need a day off work, you can choose not to schedule any appointments on that day. You can choose the working hours that work best for you.
As you can run your business from home or from another premises and you can offer telephone or online sessions, which could result in very few start-up costs. This means your business will require a lower investment and will be lower risk.
You can design your counselling business exactly how you want. You can choose the type of counselling you offer, the type of sessions you want to run, your speciality and where you want to operate your business from. Creating your dream business can be both fun and rewarding.
You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, whether you want to grow your business and which hours you want to operate. You can make the best decisions for you and your business.
Once your business is established, you should find your services are constantly in demand. Counselling is becoming more popular as people are more aware of looking after their mental health and well-being. This should mean you never have to worry about your business not making a profit or experiencing a lack of demand.
You will likely have consistent clients with sessions booked in advance. This makes it easier to predict your income and your profits. You will also be able to see how much availability you have and how many more clients you can take on.
You will likely be working with the same clients over extended periods. Not only does this offer you consistent profits, but you may also see client recommendations. Some clients undergo counselling for months or even years, which can be extremely beneficial to your business.
You can choose whether you want to operate alone or as part of a team. You can make the decision based on what is best for you and your business. Your counselling business can be run by you alone, or you can hire other counsellors.
However, there are some negative aspects of being a counsellor you should be aware of, including:
Clients may cancel their appointments with little notice or not attend appointments without first informing you. This could result in a loss of income for you and disruption in your clients’ progress.
You will be dealing with high emotions and stressful situations on a daily basis. You will need to constantly monitor your clients’ emotions and well-being and react to their emotional cues. Dealing with negative emotions and monitoring mental health conditions can be emotionally draining.
Not only will you feel responsible for the well-being of your clients and running sessions effectively, but you also need to consider the day-to-day responsibilities associated with running your business. This can be both time-consuming and demanding. Making your business succeed and ensuring you turn an acceptable profit can also be stressful.
To work as a counsellor, you will need to study for several years to become qualified. You will likely need to gain the necessary experience before you qualify for your study programme, and this can be time-consuming. It often takes up to five years to become a fully qualified counsellor in the UK.
Making your business succeed can be difficult, especially if there are already established counselling businesses operating in your area. Clients may be more likely to choose a counsellor who has been recommended to them or already has a good reputation. This can make it difficult for you to build your client base and make your business succeed.
Because you will be dealing with sensitive issues and people who are facing difficulties, you may occasionally have a patient who self-harms or tries to end their life. In this situation, your counselling services are likely to be highly scrutinised and you may be held liable.
Not only will you be competing with other private counselling businesses, but you also need to consider the competition you will face from NHS counselling services. High competition can make it difficult for your business to succeed.
You will have to ensure your sessions are at a time that is advantageous to your clients. This could mean you are scheduling around their working hours or their family commitments. You may have stretches of time with no appointments and then be busier in the evenings, which could be inconvenient for you.
Although you will be meeting with your clients every day, you may be operating as the only counsellor in your business. Because of confidentiality, you will also be unable to discuss much of your work with your family or friends or with other professionals. This can make counselling a lonely career choice.
The counselling and mental health industries are highly regulated and there are many laws and regulations you will need to abide by. You will need to research your legal requirements and ensure your business is operating in line with the law. Failure to do so could result in a fine, the forced closure of your business or even prosecution.
As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions.
An effective and well-designed business plan is essential to the success of your counselling business. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.
When creating your business plan, ensure it contains information such as:
Some of the factors you will need to consider when planning your counselling business are:
You may choose to work with a variety of different clients or specialise in a particular type of counselling. For example, marriage counselling or sexual identity counselling. Consider your own knowledge, skills and experience, client demand and your local competition when determining what to specialise in.
Will you offer face-to-face or distance counselling? Will you specialise in individual sessions or group sessions? You may opt to offer different types of counselling or specialise in one particular type, for example, only in-person, group sessions.
If your offer in-person counselling, you will need to decide where your sessions will take place. This could be from your own counselling office or from another premises, such as a GP surgery, a school or a community centre.
There are multiple ways you can become a qualified counsellor and you must decide which is the best option for you. Consider the pros and cons of each qualification, for example, by considering the course materials, the length of time your training will take, and which qualifications are likely to be most desirable to your clients. You should also consider whether you need additional training to specialise in a specific type of counselling.
Look at other counselling businesses that operate in your area. What types of counselling sessions do they run? Do they specialise in a specific type of counselling? Where do they operate their businesses? You must ensure there is space in the market for your business and consider ways to make your business stand out.
Consult the list above to determine your equipment requirements. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment and the monthly replenishment costs.
You need to determine your approximate start-up costs and running costs to enable you to calculate your initial investment, determine how you will fund this investment and what your monthly or annual costs will be. Creating a budget is a key part of your business plan. It can also help you to determine whether you can finance the business yourself or whether you require outside investment or a business loan. Consult the list above to help you calculate the approximate costs associated with setting up and running your business.
Your fees will depend on several factors, including your experience and training and the type of counselling you offer. You will likely have different fees for face-to-face sessions, compared to telephone and online sessions, and individual sessions will be more expensive than group sessions.
This will depend on your working hours, the length of your sessions and where you conduct your sessions from. Determining your client capacity can help you determine how much advertising you need to engage in and what your profit forecast is likely to be.
Advertising is key to your business’s success, especially in your first year of operation. Consider how you can appeal to your target clients and how you will ensure they encounter your business.
Your business objectives are crucial for creating a successful business plan. Your business objectives highlight the targets and goals of your counselling business and help you to create a one-year, three-year, and five-year business plan to help you grow your business.
Your business objectives should be SMART:
Consult the list above and ensure you have complied with all legal requirements before opening your counselling business. Failure to comply with the legal requirements could negatively affect your business and your profits.
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By: Author Tony Martins Ajaero
Home » Business Plans » Medical and Healthcare
Are you about starting a mental health counseling firm? If YES, here is a complete sample mental health counseling business plan template & FREE feasibility report.
Mental health counselors work as primary caregivers for their patients. Duties of a mental health counselors include conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals.
Mental health counselors may work for a school, for a government department or an agency, as part of a social outreach agency or for another entity.
To start and run a successful mental health counselling business, you will first have to obtain your college degree in behavioral science (e.g., psychiatrist, psychology, counselling, social work, sociology) with workshops, certificate classes and symposia that fill voids in your areas of expertise like geriatric, pediatric, adolescent and other segments of society with special mental health needs and issues.
Take general business classes if time allows. If you intend starting this business, just make sure you conduct your personal research and acquire licenses required by state, city and/or community mental health agencies and authorities.
Take your time to draft a budget covering start-up expense. Writing a business plan will help you focus your practice’s future direction. Below is a sample mental health counseling business plan template that will help you successfully write yours without much stress.
1. industry overview.
Mental health counselling business is part of the Mental Health and Substance Abuse Centers industry and the industry is made up of organizations that provide long-term residential care and treatment for patients with mental health and substance abuse illnesses.
These establishments offer long-term housing, supervision and counseling services. Please note that this industry does not include hospitals with inpatient and outpatient care or facilities that primarily provide services for adults with intellectual and developmental disabilities.
A close study of the Mental health and substance abuse Centers industry shows that in the last half a decade, the industry has grown consistently. Mental health 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 mental health counseling services when needed.
The Mental Health & Substance Abuse Centers industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 8,658 registered and licensed Mental Health & Substance Abuse Centers and Counselors scattered all around the United States of America.
The industry is responsible for the employment of over 226,576 people. Experts project the industry to grow at a 3.4 percent annual rate within 2014 and 2019. It is important to state that there is no single organization that has a lion share of the market in the Mental Health & Substance Abuse Centers industry.
A recent report published by IBISWorld shows that over the past five years, Mental Health & Substance Abuse Centers in the US has grown by 5.0 percent to reach a revenue of $18 billion in 2019. In the same time – frame, the number of businesses have grown by 3.1 percent and the number of employees have grown by 3.6 percent.
Please note that the requirements to become a mental health counselor in all states in the US, include a master’s degree and a state license. Bachelor’s degree programs can be completed in a variety of fields and usually take 4 years to complete, and master’s degree programs in counseling take 2-3 years.
In order to become successful as a mental health counselor, you should be able to connect with people and constructively discuss their problems and issues. Excellent written and verbal communications skills and an analytical approach will serve you well in mental health counseling industry.
Mind Pro® Mental Health Counseling Firm, LLP is a licensed counseling (private practice) firm that is specialized in helping her clients overcome their mental health challenges.
The scope of our business offerings covers areas such as conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals, online counseling services and retailing of self-help books and materials.
Our business will be located in between a well – populated residential estate and a business district in in Spring Valley – Nevada, United States of America. We are intentional in choosing this location because Nevada has the highest prevalence of mental illness and lowest access to care among youths. 2 out of 3 Nevadan adults with mental illness received no treatment.
According to MHAScreening.org, Nevada had the highest percentage of people who scored in the severe level for depression (33.72 percent). Nevada also had the highest rate of thoughts of self-harm and suicide reported among mental health screeners.
Mind Pro® Mental Health Counseling Firm, LLP is a client-focused and result driven mental health counseling organization that provides broad – based counseling 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 mental health and overall wellbeing whenever they hire our services.
At Mind Pro® Mental Health Counseling Firm, 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 psychiatrist, psychologists, social workers and counselors with various skill sets who are experienced and passionate in helping our clients overcome their mental health challenges within record time.
Mind Pro® Mental Health Counseling Firm, LLP will at all times demonstrate her commitment to sustainability, both individually and as a mental health 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.
Mind Pro® Mental Health Counseling Firm, LLP is founded by Dr. John Lakewood and he will run the business with his business partner Dr. Mercy Williams. Dr. John Lakewood is a certified and renowned psychiatrist and mental health counselor.
He has over 20 years’ experience working with top government officials, corporate executives, celebrities and sports people in the United States of America.
Mind Pro® Mental Health Counseling Firm, LLP is going to offer varieties of mental health counseling services within the scope of the mental health and substance abuse industry in the United States of America.
Our intention of starting our mental health counseling business is to help our clients overcome their challenges, achieve their personal goals and improve their competence, capacity and productivity and of course to also make profits from the 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;
Our Business Structure
Mind Pro® Mental Health Counseling Firm, LLP, is a mental health counseling firm that intends starting small in Spring Valley – Nevada, but hopes to grow big in order to compete favorably with leading firms in the 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 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 operation.
At Mind Pro® Mental Health Counseling Firm, 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 our 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 ten 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;
Office Administrator
Accounting Clerk
Client Service Executive
Principal Partner / Chief Executive Officer:
Psychiatrist and Mental Health Counselor
Marketing Executive
Mind Pro® Mental Health Counseling Firm, 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 mental health counseling business that can favorably compete in the highly competitive industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Mind Pro® Mental Health Counseling Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mind Pro® Mental Health Counseling Firm, LLP;
Our essential strength lies in the power of our team; our workforce. We have a team of experts in the industry, a team with excellent qualifications and experience in mental counseling practice.
Aside from the synergy that exists in our carefully selected team and our strong online presence, Mind Pro® Mental Health Counseling Firm, LLP is well positioned in a community with the right demography of people with mental health challenges and we know we will attract loads of clients from the first day we open our doors for business.
As a new mental health counseling organization in Spring Valley – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive mental health and substance abuse Centers industry; that is perhaps our major weakness.
The mental health and substance abuse industry has grown in response to increased awareness of mental health and substance abuse issues.
So also, expanded federal funding for Medicare and Medicaid has benefited industry operators hence encouraging people with mental health challenges to seek the services of mental health counseling practitioners. As a standard mental health counseling organization, we are ready to take advantage of these opportunities.
Persons seeking treatment for mental health or substance use disorders have several options with regards to types of providers and treatment models.
As a result, mental health counsellors experience external competition from numerous sources, including from short-term inpatient and outpatient service providers in the Mental Health and Substance Abuse Clinics Industry. External competition is anticipated to remain high in 2019, posing a potential threat to operators in the industry.
The latest trend shows that the business opportunities and of course career outlook for mental health counseling is excellent, with the U.S. Bureau of Labor Statistics (BLS) projecting 23 percent growth from 2016 up to 2026. Job growth is expected because people are more willing to seek mental health help, and it is becoming a less expensive form of treatment.
So also, in the United States of America, Federal funding for Medicare and Medicaid has increased during the period as states have expanded Medicaid coverage to a greater number of low-income individuals. An increase in coverage enables more individuals struggling with substance use and mental illness to access industry services.
Currently, an estimated 41.9 percent of industry revenue is derived from Medicaid and Medicare reimbursement payments. In 2019, federal funding for Medicare and Medicaid is expected to increase, presenting a potential opportunity for the industry.
A notable trend in this industry is the influence of technology; the advent of technology is responsible for the increase in income generated by mental health counselors all over the world. With technology, it is now easier for mental health 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 mental health counselors to counsel clients in different parts of the world.
The target market for mental health counseling firms is all encompassing. Mind Pro® Mental Health Counseling Firm, LLP is a professional mental health counseling firm that is specialized in helping her clients with mental health challenges improve their competence, capacity and productivity.
Our target market as a mental health counseling firm cuts across people of different class and people from all walks of life.
We are coming into the mental health and substance abuse Centers industry with a business concept and company’s profile that will enable us work with the clients from different background and status. Below is a list of the clients that we have specifically design our mental health counseling services for;
Our competitive advantage
The mental health and substance abuse Centers industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can help them overcome their mental health challenges, and achieve their personal health goals.
It is the practice for mental health 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
Mind Pro® Mental Health Counseling Firm, LLP might be a new mental health counseling firm in Spring Valley – Nevada, but our management team are licensed and highly qualified psychiatrists, psychologists and mental health counselors that can help our clients overcome their mental health challenges and achieve their personal health 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 the expertise of our psychiatrists, psychologists, social workers and mental health 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 mental health 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.
Mind Pro® Mental Health Counseling Firm, LLP is established with the aim of maximizing profits in the mental health and substance abuse Centers 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.
Mind Pro® Mental Health Counseling Firm, LLP will generate income by offering the following mental health counseling services;
One thing is certain, there would always be corporate organization (schools, rehab centers and clinics) and individuals who would need the services of mental health counselors. This is the major reason why the services of mental health counseling firms will always be needed.
We are well positioned to take on the available market in Spring Valley – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our mental health counseling business and our clientele base.
We have been able to examine the mental health counseling market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Mind Pro® Mental Health Counseling Firm, LLP, it is based on the location of our mental health counseling company and of course the wide range of mental health counseling services that we will be offering;
N.B : This projection was 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 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.
We are mindful of the fact that there are stiffer competitions amongst mental health 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 Mind Pro® Mental Health Counseling Firm, LLP.
We will also ensure that our clients overcome their mental health challenges in record time; we want to build a standard mental health counseling business that will leverage on word of mouth advertisement from satisfied clients.
Our goal is to grow Mind Pro® Mental Health Counseling Firm, LLP to become one of the top 5 mental health counseling organizations in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Spring Valley – Nevada but also in other cities in the United States of America.
Mind Pro® Mental Health Counseling Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;
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 clients in the whole of Spring Valley – Nevada 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 Mind Pro® Mental Health Counseling Firm, LLP;
Generally, counseling and consulting services are billed on per hour billing rate and flat fees on a weekly or monthly basis. As a result of this, Mind Pro® Mental Health Counseling Firm, 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 Mind Pro® Mental Health Counseling Firm, 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.
The payment policy adopted by Mind Pro® Mental Health Counseling Firm, 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 Mind Pro® Mental Health Counseling Firm, LLP will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our client make payment for mental health counseling services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
From our market research and feasibility studies, we were able to come up with the following financial projections and costing as it relates to establishing our mental health counseling business in the United States of America;
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (120,000) U.S. dollars to successfully set up a medium scale but standard mental health counseling firm in the United States of America.
Generating Funds/Startup Capital for Mind Pro® Mental Health Counseling Firm, LLP
Mind Pro® Mental Health Counseling Firm, LLP is a partnership business that will be owned by Dr. John Lakewood and he will run the business with his business partner, Dr. Mercy Williams. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
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 $70,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Mind Pro® Mental Health Counseling Firm, 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 mental health counseling services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Mind Pro® Mental Health Counseling Firm, 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.
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
Dobbies, which is owned by the US investor Ares Management, is working with FTI Partners on proposals which will pave the way for store closures and rent reductions, Sky News learns.
City editor @MarkKleinmanSky
Thursday 29 August 2024 12:41, UK
One of Britain's biggest garden centre operators is plotting a far-reaching financial overhaul which could pave the way for store closures and steep rent cuts.
Sky News has learnt that Dobbies Garden Centres, which is controlled by the major American investor Ares Management, is working with advisers on a restructuring plan - a contentious mechanism which enables its sponsor to impose financial haircuts on its creditors.
City sources said FTI Consulting had been drafted in to work on the restructuring.
A formal court process such as a restructuring plan is typically used by retailers as a way to close underperforming stores and impose rent haircuts on landlords.
It was unclear on Thursday how many of its 77 sites Dobbies planned to close or the potential impact on its 3,700-strong workforce.
If the proposals are not approved by creditors, an insolvency process of some kind is likely.
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The preparation of a restructuring plan comes 18 months after Ares took control through a separate reorganisation of its debt.
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Dobbies had previously been owned by Midlothian Capital Partners, a private equity investor.
Prior to that, it spent almost a decade under the ownership of Tesco, Britain's biggest retailer.
The company was founded by James Dobbie in 1865.
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Dobbies did not respond to a request for comment, while Ares has been contacted for comment and FTI declined to comment.
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4. Private Practice Counselling Business Marketing Plan 5. Risks Analysis: Challenges When Setting Up A Counselling Private Practice 6. Financial Projections to Guide your Counselling Therapy Business 7. Executive summary: Your Counselling Business Plan in a Snapshot 8. Counselling Business Plan Checklist: 16-Question Guide to Writing your Plan ...
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 ...
Consider these possibilities: Commit to spending a certain number of hours each week on marketing strategies. Use those hours to network and meet with potential referral sources, plan new ...
Writing a counseling private practice business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business ...
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 ...
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. Easily complete your Counseling Private Practice business plan! Download ...
A counseling center business plan is a document that outlines the strategies you have developed to start and/or grow your counseling center business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your counseling center business plan also ...
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 ...
Counseling Practice Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their counseling private practices. On this page, we will first give you some background information with regards to the importance of business planning.
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.
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 ...
Create specific plans for how you'll reach clients and grow your business through marketing. Creating a counseling practice business plan won't necessarily be fun, but it is essential. This plan helps you set goals for your practice and think strategically about reaching those goals. It means you're planning, not just wishing for your ...
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.
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.
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 ...
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 ...
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 ...
Executive Summary. 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 ...
Step 2: Naming the Business. When deciding on a name for the counseling center, it is important to choose a name that will be memorable and easy to pronounce. It should also be a name that reflects the services that will be provided. Consider using words that evoke feelings of comfort, safety, and trust.
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.
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.
City centre locations and newly built premises usually have the highest rental costs. Rental costs are often calculated per square metre. They can range significantly, from £500 to £15,000 per square metre annually. ... An effective and well-designed business plan is essential to the success of your counselling business. A business plan can ...
A recent report published by IBISWorld shows that over the past five years, Mental Health & Substance Abuse Centers in the US has grown by 5.0 percent to reach a revenue of $18 billion in 2019. In the same time - frame, the number of businesses have grown by 3.1 percent and the number of employees have grown by 3.6 percent.
Garden centre operator Dobbies digs up plan for rent cuts. Dobbies, which is owned by the US investor Ares Management, is working with FTI Partners on proposals which will pave the way for store ...