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How to Create a Solid Business Plan for Your Private Therapy Practice

Making a plan for your private practice gives you the opportunity to identify important points to consider for any small business, including finances, goals, and potential barriers to success. Considering these factors now can help prevent difficulties, or even business failure, in the future. 

Finding it difficult to start writing a business plan? We can help with that. Here, we go over several essential elements to include and offer some tips to consider as you begin creating your own business plan. 

Key Elements of Your Counseling Private Practice Business Plan

While you’ll likely personalize the structure of your business plan to meet the unique needs of your private practice, all business plans should include certain essential information that outlines a path to success. 

Mission and vision 

Your mission and vision statement communicates the purpose of your private practice. Writing this statement may seem daunting, but all it needs are a few sentences answering at least some of the following questions:

• Why do you practice therapy? 
• How will your private practice assist others?
• Who do you work to help? 
• What concerns do you help them with? 
• What personal values , if any, contribute to your mission to help others? 

Like other components of a business plan, specific mission statements can vary based on your practice’s approach. Just take time to consider exactly how you want to help others and how your background, training, and specific approach can offer benefit—then set this out clearly in writing. 

Business description

The description of your private practice can be a general overview of your business. Include all relevant information about your business, such as:

• Your niche as a therapist
• Therapy approaches you use in your practice
• Areas of specialty
• The age groups or populations you generally work with
• Special skills that enhance your practice (Are you bilingual? Trained to work with special needs children? Have a therapy dog on staff?) 
• How many clients you’ll ideally see in a week
• How many current clients, if any
• How many current staff members, if any

If you intend to use your business plan for anything beyond your own reference (to seek a loan or create a proposal, for example), consider providing some background about yourself and your practice. Keep things professional, but take this opportunity to personalize your description and make yourself more relatable.

Taking time to research the therapy market in your area can help you make important decisions about your niche, office location, and methods of reaching potential clients. 

Researching nearby therapists can provide a clearer picture of a specific location’s needs. If your target area already boasts a number of therapists who practice similar approaches or treat the same issues, consider targeting a slightly different demographic or training in a new specialty. 

For example, instead of saying “I work with children of all ages,” consider “I see clients of all ages but specialize in working with teenagers who have ADHD , learning difficulties , problems in school , or behavioral issues.” Consider your skill set and think about the help you, specifically, can provide. You might worry narrowing your practice’s focus will decrease the number of potential clients, but the reverse is more likely to be true. People seeking a therapist for any of those specific concerns may find you before they find a therapist who doesn’t indicate a specialty. 

When choosing your office location, you’ll also want to make sure potential clients of your demographic can find and reach you easily. Once you’ve found an ideal location, you’ll need to consider marketing strategies, another key component of market research. How will you get word out once you’re ready for clients?

Financial plan

The financial part of a business plan should involve several components. 

First, you’ll want to calculate your operating costs, or expenses. These costs might include:

• Software or technology fees
• Staff salaries
• Office rent
• Office utilities
• Office products (tea, toilet paper, bottled water, and so on)

Once you’ve determined your monthly (or annual) operating costs, you’ll need to calculate the minimum amount of income you need to support yourself and keep your practice in business. Once you have this figure, you can use it to set your therapy fees and create a sliding scale, if you decide to use this fee structure. It may help to consider how many sliding-scale clients you can take on at a time

Deciding whether or not to accept insurance is also an important decision you’ll have to make before beginning to see clients. Some practitioners prefer to avoid working with insurance companies, so it’s important to research the necessary steps and decide whether accepting insurance will meet the needs of your practice. 

If you have independent funding to start, make a note of this. If you’ll need some income to get it started, also note your strategy for obtaining these funds. 

You’ll find it next to impossible to reach many new clients without investing time and effort into both developing your reputation as a mental health professional and putting yourself in front of potential clients. Including ideas for marketing strategies in your business plan can provide focus. 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 marketing strategies, or make yourself available in your community. 
• Build a website (or hire a professional to create one for you). Developing social media pages for your private practice on platforms such as Facebook and Twitter can also help you reach more people. Social media pages can also make it easier for potential clients to contact you, since they can send messages directly from your practice page. 
• Create quality content by blogging about topics related to your practice, including your approach to therapy, self-care and self-help approaches, or strategies for improved wellness. This can help boost your website’s ranking in Google and other search engines. Higher-ranked websites appear sooner in search results, so this can put you in front of more people looking for help. 
• Join a therapist directory. On GoodTherapy’s directory, your profile has space for you to describe your approach to treatment, the types of therapy you practice, and the kinds of clients you’d ideally work with. GoodTherapy members can also write and publish original content related to therapy and mental health issues. Links to your published articles will appear on your profile, as well, encouraging interested clients to learn more about your approach. 

The final (and perhaps most significant) component of your business plan? Your goals for the future. These goals should include a time component, and they should be focused and specific. 

Your primary goal, when starting your therapy practice, is probably to help people. But consider more detailed goals. Exactly how do you want to help? If you want to help young children overcome trauma , your goal may be pursuing continuing education in trauma-focused therapy approaches during the first 6 months of practice. If you want to counsel pregnant teenagers, it might help to have a goal of learning more about the various school, family, or health-related challenges teen parents face. 

Other goals including planning for the growth of your practice. Again, it helps to note specific, achievable milestones along with responses to reaching these milestones. For example, you might mention, “In 2 years, I hope to be seeing 20 clients each week. When I have more than 20 clients for a period of 2 months, I’ll look to add another professional to my practice.”

Certain details may change over time as your business grows and you adapt your practice to meet new needs. You might add more staff, gain new specialties, or become certified in additional therapy approaches. As your circumstances change, so might the needs or goals of your practice. It’s a good idea to revisit your business plan once or twice a year, just to update any information and address any parts that have become less relevant.

References:

• Bavonese, J. (n.d.). A business plan for growing your therapy practice. Psychotherapy Networker . Retrieved from https://www.psychotherapynetworker.org/blog/details/509/a-business-plan-for-growing-your-therapy-practice
• How to create a business plan for your perfect private practice. (2016, October 24). Retrieved from https://www.aperfectpractice.com/blog/2017/1/18/how-to-create-a-business-plan-for-private-practice

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Counseling Private Practice Business Plan

If you are a counselor and thinking about starting or expanding your counseling business, then a business plan is necessary.

A business plan helps you build a roadmap for your business and will help you persuade investors about why they should invest in your firm.

Need help writing a business plan for your counseling private practice business? You’re at the right place. Our counseling private practice business plan template will help you get started.

Free Business Plan Template

Download our free counseling private practice business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
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How to Write A Counseling Private Practice Business Plan?

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 plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of counseling practice you run and the name of it. You may specialize in one of the following counseling practice businesses:

• Individual counseling
• Couples counseling
• Family Counseling
• Group counseling
• Career counseling
• Mental health counseling
• Trauma counseling
• Describe the legal structure of your counseling practice business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your counseling private practice business’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

For instance, adults seeking therapy or families & parenting would be an ideal target audience for a private practice business.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your counseling private practice business from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, the integration of technology or digital tools has a booming market; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your counseling private practice business, such as licensing & certificate, ethical guidelines, privacy & confidentiality, insurance & billing, etc.

Here are a few tips for writing the market analysis section of your counseling practice business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Assessment and evaluation
• Individual therapy
• Couples therapy
• Family therapy
• Group therapy
• Psychoeducation
• Crisis intervention
• Consultation and workshops
• Additional services: Include a separate section to describe your counseling practice’s other services if you provide any, such as workshops, group therapy, crisis intervention, or consultation, in addition to regular counseling.
• Customized approach: Emphasize how dedicated your practice is to providing individualized, client-centered service. Highlight how you customize your services to each client’s unique demands, goals, and preferences. It might include customized interventions, treatment strategies, or therapeutic approaches according to the particular needs of the clients.
• Expertise or specialization: Highlight any areas of specialty your practice has or counselors who have experience with certain disorders (such as trauma, addiction, or anxiety). Mention any specialized training, accreditations, or experience that distinguish your business from others.

In short, this section of your counseling practice plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

For example, a client-centered approach, holistic approach, or personalized treatment plans, could be some of the great USPs for a counseling private practice business.

• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include providing free consultations, offering packages and deals, partnering with businesses, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your counseling private practice business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your counseling practice business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees, trainers, or counselors, needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your counseling private practice business. Your operational processes may include appointment scheduling, counseling sessions, treatment planning, billing & insurance, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your counseling private practice business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your counseling private practice business, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your counseling private practice services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your counseling private practice business’s assets, liabilities, and equity.
• Financing Needs: Calculate costs associated with starting a counseling private practice business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your counseling private practice business plan should only include relevant and important information supporting your plan’s main content.

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

Fill-in-the-blanks and automatic financials make it easy.

This sample counseling private practice business plan will provide an idea for writing a successful counseling private practice plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our counseling private practice business plan pdf .

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Frequently asked questions, why do you need a counseling private practice business plan.

A business plan is an essential tool for anyone looking to start or run a successful counseling private practice business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your counseling private practice business.

How to get funding for your counseling private practice business?

There are several ways to get funding for your counseling private practice business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your counseling private practice business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your counseling private practice business plan and outline your vision as you have in your mind.

What is the easiest way to write your counseling private practice business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any counseling private practice business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Home > Blog > Mental Health Private Practice Business Plan PDF Template

Mental Health Private Practice Business Plan PDF Template

Courtney Gardner, MSW

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

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

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

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

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

Creating a Compelling Business Description and Service Offerings

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

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

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

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

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

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

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

Increase your practice's revenue and reduce therapist burnout

Critical elements of a successful counseling private practice business plan.

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

Mission Statement

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

For example, your mission statement could be:

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

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Business description.

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

For instance:

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

Financial Plan

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

Operational Details

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

Market Analysis

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

Competitive Advantage

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

For example:

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

Financial Projections

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

Avoiding Common Mistakes and Ensuring a Competitive Advantage

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

Some of the significant mistakes to avoid include:

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

Legal Requirements for Opening a Private Practice

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

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

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

Malpractice Insurance

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

Business Registration

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

HIPAA Compliance

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

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

Your Own Comprehensive Business Plan Checklist

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

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

Mental Health Private Practice Business Plan Template

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

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

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

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

How often should I review and revise my business plan?

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

How do I get funding for my private practice?

There are a few options for funding a private practice:

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

What are the keys to a successful business plan?

The keys to a successful private practice business plan are:

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

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

How do I price my services?

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

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

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

What insurance plans should I accept?

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

Consider accepting:

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

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

How do I market my private practice?

Effective marketing strategies for a private practice include:

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

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

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

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

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Developing A Business Plan for Your Mental Health Private Practice

Business plans act as the foundation for any type of business and are important for setting benchmarks to measure success. But how do you write a business plan for a mental health private practice? Valant takes a look at the components of a business plan and translates it into an easy-to-use framework for both mental health professionals looking to start their own private practice and those looking to expand their current practice. Check out our guide to creating an effective private mental health practice business plan below.

Mission Statement / Vision Statement:

As behavioral health providers, you all are in the business of saving lives. But what makes your services unique? What value are you bringing? Make sure when you are drafting your mission statement you answer these four questions:

• What does my practice do?
• How do we do it?
• Whom do we do it for?
• What value does your practice bring?

Description of your Practice and Service:

What is your service delivery model? What kinds of patients do you want to see, including age range and presenting problems? How many hours per week do you wish to work and on what days? What types of services will you provide (e.g. therapy versus medication management)?

Legal Framework:

The three basic choices for your psychiatric business entity are: sole proprietorship, LLC, and S corporation . The choice is based mainly on relative costs, tax implications, and general business liability (rather than professional liability). If you do plan to expand to a group practice, you should probably consider an LLC or S corporation so you have the option of continuing under the same tax ID number, but we recommend consulting with a local accountant and lawyer with experience working for other health care providers before deciding.

Mental Health Practice – Operations Model:

Operating processes can be broken up into four categories: facilities, front office, back office, and insurance.

Facilities refers to your plan for location, furniture, phone, internet, hardware, and any other tangible item or service that enables you to provide your clinical services.

Front-office refers to your plan for handling non-clinical patient facing interactions such as your intake process, administrative phone calls, reception and scheduling, eligibility and verification checking, handling of patient payments, no show and cancellation policies, and prescription management policies and procedures.

Back-office functions are dominated by medical billing but could also include transcription services and handling of documents.

Insurance refers to the package of insurance that you’ll need, including general liability, professional liability, or any other insurance you might want for you or your staff (medical, dental, and long and short term disability).

An electronic health record has the potential to influence and streamline all operation models, so it is important to have the right EHR in place.

Watch our product videos to see how Valant’s EHR and practice management system streamlines operations for mental health private practice

Team refers to internal staff and outside consultants such as a lawyer, accountant, bookkeeper and medical biller. We recommend developing a strategic employee incentive system that addresses benefits, compensation, appreciation, and recognition. One of the most costly expenses your practice can endure is staff turnover. Want to learn more including recruiting tips? Watch our webinar “How to Recruit and Retain Top Talent in your Mental Healthcare Practice”

Get a Personalized Live Demo

We would love to show you how Valant can help your practice.

Starting Your New Practice

Chart a Path to Start a Successful Practice

Developing A Business Plan for Your Mental Health Private Practice continued…

Marketing Strategy / Generating Patient Flow:

Especially for new practices, it’s important to dedicate a certain number of hours each week to marketing your private practice , generating patient flow, and supporting your practice’s capacity goals. Many practitioners find that word-of-mouth marketing and/or referrals are their most effective sources of new patients; in today’s saturated therapeutic market, however, establishing a digital presence may also be necessary.

Building A Website

With that in mind, building a website (or hiring a professional to build one for you) is the natural first step in promoting your practice online. Your website will act as the home base for all of your digital marketing efforts — meaning, every other digital marketing initiative you try should direct traffic back to your website. As the foundational piece of your marketing strategy, your website should be intuitive, attractive, and optimized for search engine visibility.

It will also be important to support your website with new, high-quality content once it is built out and launched. Starting an informative, active blog can be a fantastic way to highlight your expertise, reach engaged audiences, and support your positioning in search engine results.

Referrals & Directories

In most cases, the two most common means for finding new patients are to 1) utilize and nurture a referral network and 2) be on insurance contracts. This makes sense in practice; people trust other people to give honest referrals of a practitioner and their practice. They also want to ensure the provider is on their insurance network before moving forward.

With that in mind, you will need to develop referral sources to generate patient flow and to build the kind of practice that you want. Your referral sources will know your strengths and weaknesses and will refer accordingly.

In the online space, users often look to directories, insurance networks, and review sites to determine whether a provider is a right fit for them. Having active, complete profiles or listings on as many directories as applicable ensures you’re considered in the most relevant patient-provider searches possible. Additionally, directories and review sites act as an opportunity for current patients to leave reviews, providing invaluable feedback to support your practice’s long-term success.

A few examples of relevant, high-traffic directories you could sign up for include Google My Business , Psychology Today , GoodTherapy , or most social media platforms. Depending on the supply and demand characteristics in your area, however, being on insurance contracts and having profiles on insurance networks is sometimes all that is needed. 

Generating Patient Flow:

The two most common means for finding new patients are to utilize and nurture a referral network and to be on insurance contracts. Depending on the supply and demand characteristics in your area, being on insurance contracts is sometimes all that is needed. But, in most cases, you will need to develop referral sources to generate patient flow and to build the kind of practice that you want. Your referral sources will know your strengths and weaknesses and will refer accordingly.

Financial Model:

It is not necessary to have fancy financial projections to start and successfully operate a small psychiatric private practice, but it’s important to have an idea of what your net income will be and to understand the variables. Let’s break down the equation: net income = revenue – expenses.

Revenue Revenue = Average fee per face to face hour x hours worked It’s easy to overestimate this number by overestimating collections rates, fees paid by insurance for a unit of service, show rate, and patient flow. We recommend budgeting for 20% less than whatever you come up with in your plan, at least until you get validation from real revenue.

Expenses Expenses = Facilities + Front Office + Back Office + Insurance

A basic rule of thumb for expenses is that they represent anywhere from 15-30% of total revenue for a solo practice. If you employ staff or outside services for front office and back-office work, they tend to be divided pretty equally between the three. If you do not employ staff, then these expenses are more heavily loaded on facilities. Make no mistake, you are paying for those front office and back-office functions with your time. This is where the concept of opportunity cost applies. The cost of your time is dependent upon either the value you place on your time or the revenue you could generate by seeing patients during that time. However, opportunity cost does not explicitly appear in your financial statements.

If you would like to learn more about these financial metrics, we recommend reading our blog Financial Metrics 101

Behavioral Health Performance Indicators

20 Important KPIs for Private Practices

Private Practice Business Plan Template

Private therapy practice tips:.

• Don’t sweat excessively about location. You will probably move within 2 years. At that point, you’ll better understand your needs. You’ll also better understand the nature of your local market and the level of competitor saturation ; especially in areas where therapy is popular, it’s important to identify your niche and find an area where you can assert yourself as the local expert, rather than offer the same expertise as competitors in your neighborhood. Modern telehealth technology also makes the location of your practice less important. By offering virtual sessions in addition to in-person visits, you can reach a larger network of patients, regardless of their proximity to your practice. Learn more about Valant’s telehealth software .
• Networking always pays off in terms of building the type of practice you want. Start early since that is when you will have the most time.
• Most small business owners overestimate revenue, especially during transitions. Make sure that you have other sources of cash during your ramp up including other part-time work, savings, or a line of credit.
• Understand the opportunity cost. There are many things in life that you love and do well. If you don’t love medical billing, don’t do it. That time could be better spent elsewhere.
• Start with a behavioral health care focused Electronic Health Record. By using an EHR focused on your specialty, you’re eliminating spend on features and functionality that is not going to be pertinent to your practice, plus gaining efficiencies in having technology workflows that are intuitive for your discipline. It’s easier to build it into the fabric of your practice from the beginning rather than switching later.

At Valant, we’re focused on providing great technology — as well as the business knowledge you need — to help your practice run smoothly and profitably. Want to learn more about Valant’s EHR and practice management suite for behavioral health?

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Counseling Private Practice Business Plan Template

Written by Dave Lavinsky

Counseling Private Practice Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

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

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

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

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

Company Overview

Who is peaceful minds, peaceful minds history.

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

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

Since incorporation, Peaceful Minds has achieved the following milestones:

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

Peaceful Minds Services

Industry analysis.

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

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

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

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

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

Customer Analysis

Demographic profile of target market.

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

The demographics for Tigard, Oregon are as follows:

Customer Segmentation

Peaceful Minds will primarily target the following customer profiles:

• Married couples
• Millennials

Competitive Analysis

Direct and indirect competitors.

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

Riverside Therapy Center

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

Tigard Mental Health And Wellness

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

Portland State University Counseling Services

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for Peaceful Minds is as follows:

Website/SEO

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

Social Media

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

Doctor’s Offices

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

Ongoing Customer Communications

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

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

Operations Plan

The following will be the operations plan for Peaceful Minds.

Operation Functions:

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

Milestones:

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

Key assumptions.

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

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

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Counseling Private Practice Business Plan FAQs

What is a counseling private practice business plan.

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

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

What are the Main Types of Counseling Private Practice Businesses?

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

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

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

What are the Steps To Start a Counseling Private Practice?

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

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

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

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

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

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

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

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

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

Learn more about how to open a successful private practice :

• How to Open a Counseling Private Practice Business

Mental Health Private Practice Business Plan Template

Written by Dave Lavinsky

Mental Health Private 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 mental health private practice companies. 

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a mental health private practice business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Mental Health Private Practice Business Plan?

A business plan provides a snapshot of your mental health private practice business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Mental Health Private Practice

If you’re looking to start a mental health private practice business or grow your existing mental health private practice company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your mental health private practice business to improve your chances of success. Your mental health private practice business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Mental Health Private Practice Businesses

With regards to funding, the main sources of funding for a mental health private practice business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for mental health private practice companies.

Finish Your Business Plan Today!

How to write a business plan for a mental health private practice business.

If you want to start a mental health private practice business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your mental health private practice business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of mental health private practice business you are running and the status. For example, are you a startup, do you have a mental health private practice business that you would like to grow, or are you operating a chain of mental health private practice businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the mental health private practice industry. 
• Discuss the type of mental health private practice business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of mental health private practice business you are operating.

For example, you m ight specialize in one of the following types of mental health private practice businesses:

• Cognitive Therapy : Focusing on psychotherapy that challenges negative patterns of thought about oneself and the world, cognitive therapy brings the patient to a better understanding of personal value in the world. 
• Behavioral Therapy: This therapy is one that focuses on retraining one’s reactions to stimuli, thus removing neurotic symptoms.   
• Holistic Therapy: A mental health private practice that centers therapy on a holistic platform is one that treats each individual as a multi-faceted being with all needs seen as equally important and in need of therapeutic healing. 
• Interpersonal Therapy: Treatment of mood disorders and difficult inter-relational issues is the main focus of interpersonal therapy.

In addition to explaining the type of mental health private practice business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of patients served, the number of cases with positive outcomes, reaching X number of clients served, etc.
• What is your legal business structure? Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the mental health private practice industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the mental health private practice industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your mental health private practice business plan:

• How big is the mental health private practice industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your mental health private practice business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mental health private practice business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, couples or families.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of mental health private practice business you operate. Individuals would respond to different marketing promotions versus families, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r mental health private practice businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes psychiatrists, other healthcare providers, or members of the clergy. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of mental health private practice business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for the uninsured?
• Will you offer services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a mental health private practice business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f mental health private practice company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide on-call emergency therapy sessions, client referral incentives, or group behavioral therapy retreats?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the services you offer and their prices.

Place : Place refers to the site of your mental health private practice company. Document where your company is situated and mention how the site will impact your success. For example, is your mental health private practice business located in a quiet neighborhood office, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your mental health private practice marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Speak in community forums or blog as an expert
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your mental health private practice business, including answering calls, planning and providing therapy sessions, billing insurance and/or patients, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth session, or when you hope to reach $X in revenue. It could also be when you expect to expand your mental health private practice business to a new city.

Management Team

To demonstrate your mental health private practice business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing mental health private practice businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a mental health private practice business or successfully running a small therapy clinic.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 patients per day, and/or offer group therapy sessions ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your mental health private practice business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a mental health private practice business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your 5-year office location lease or a list of insurance plans you accept.

Writing a business plan for your mental health private practice business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the mental health private practice industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful mental health private practice business.

Don’t you wish there was a faster, easier way to finish your Mental Health Private Practice business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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Here is a free business plan sample for a psychologist practice.

If you're passionate about helping others and want to establish your own psychology practice, you've come to the right place.

In the following lines, we will introduce you to a comprehensive business plan tailored specifically for psychologists.

As you may already understand, a meticulously developed business plan is crucial for any professional looking to thrive, as it helps you articulate your mission, objectives, and approach for your practice.

To craft a robust plan with clarity and precision, you can utilize our psychologist business plan template. Our specialists are also on hand to provide a free review and offer feedback on your completed plan.

How to draft a great business plan for your psychologist practice?

A good business plan for a psychology practice must reflect the unique aspects of mental health services.

To start, it is crucial to provide a comprehensive overview of the mental health market. This includes current statistics and identifying emerging trends in the field, as illustrated in our psychology practice business plan template .

Then, you should articulate your practice's mission clearly. This encompasses your therapeutic approach, identifying your target demographic (for example, children, adolescents, adults, couples, or families), and the distinctive services your practice offers (cognitive-behavioral therapy, psychoanalysis, mindfulness-based therapy, etc.).

The next section should delve into market analysis. This requires a thorough understanding of local demand, potential referral sources, competitor services, and the needs and preferences of your prospective clients.

For a psychology practice, particular emphasis should be placed on the services you plan to provide. Detail your range of therapeutic modalities, specialized programs (like group therapy, workshops, or online counseling), and explain how they cater to the mental health needs of your target population.

The operational plan is equally important. It should outline the location of your practice, the design of the therapy space, administrative processes, and client management systems.

In a psychology practice, it is vital to highlight the qualifications and credentials of the therapists, confidentiality policies, and adherence to professional ethical standards.

Then, address your marketing and outreach strategy. How will you engage with and expand your client base? Consider networking with other professionals, community outreach, and client retention strategies.

Utilizing digital strategies, such as a professional website, online booking systems, or a social media presence, is also crucial in the modern marketplace.

The financial structure is another fundamental component. This includes the initial investment, projected income, operating expenses, and the point at which the practice will become profitable.

In a psychology practice, it's important to have a clear understanding of billing practices, insurance reimbursements, and private pay structures. For this, you can refer to our financial forecast for a psychology practice .

Compared to other business plans, a psychology practice must pay special attention to client confidentiality, ongoing professional development, and the potential for collaboration with other health professionals.

A well-crafted business plan will not only help you clarify your vision and strategies but also attract investors or secure loans.

Lenders and investors are looking for a solid understanding of the market, realistic financial projections, and a clear plan for the day-to-day operations of a psychology practice.

By presenting a thorough and substantiated plan, you demonstrate your professionalism and dedication to the success of your practice.

To achieve these goals while saving time, you can simply fill out our psychology practice business plan template .

A free example of business plan for a psychologist practice

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a psychologist .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The mental health services market is experiencing a significant growth phase, reflecting the increasing awareness and destigmatization of mental health issues.

Recent estimates suggest that the global market for mental health services could be worth over $200 billion, with expectations for continued growth as more individuals seek psychological support and counseling.

In the United States alone, there are over 100,000 licensed psychologists, contributing to an industry that generates substantial revenue and plays a critical role in the nation's healthcare system.

These figures underscore the vital presence of psychological services in healthcare and their substantial economic impact.

Current trends in the mental health field indicate a move towards more accessible and diverse forms of therapy.

Teletherapy and online counseling services have surged in popularity, particularly in the wake of the COVID-19 pandemic, providing clients with remote access to mental health support.

There is also a growing emphasis on holistic and integrative approaches, combining traditional psychological methods with alternative practices like mindfulness and meditation.

Personalized and precision mental health care, utilizing data and technology to tailor treatments to individual needs, is on the rise.

Moreover, there is an increasing focus on preventative mental health care and the promotion of mental wellness, rather than solely treating mental illness.

These trends highlight the evolving landscape of mental health services as they adapt to meet the diverse and changing needs of the population.

Success Factors

The success factors for a psychology practice are multifaceted and crucial for establishing a reputable and effective service.

First and foremost, the quality of care and the psychologist's expertise are paramount. Clients who receive empathetic, evidence-based treatment are more likely to experience positive outcomes and continue their therapeutic journey.

Innovation in treatment approaches and staying abreast of the latest research in psychology can help a practice stand out and offer cutting-edge services.

The location and accessibility of the practice also play a significant role, as clients prefer convenient and welcoming settings for their sessions.

Exceptional client service, including confidentiality, respect, and understanding, is essential for building trust and a strong therapeutic relationship.

Lastly, effective practice management, including cost efficiency, ethical standards, and adaptability to the evolving landscape of mental health needs, such as offering virtual sessions or group therapy, are key to the long-term success of a psychology practice.

The Project

Project presentation.

Our psychology practice project is designed to address the increasing need for mental health services in a society where awareness and acceptance of mental health issues are on the rise. Situated in a community with a high demand for psychological support or near health centers, this practice will offer a range of services, including individual therapy, couples counseling, group therapy, and specialized treatments for anxiety, depression, and stress management.

The focus will be on providing personalized care, evidence-based treatments, and a supportive environment to foster mental well-being and personal growth.

This psychology practice aspires to become a trusted resource for mental health services, contributing to the improvement of the overall well-being of individuals within the community.

Value Proposition

The value proposition of our psychology practice project is centered on delivering compassionate, confidential, and professional mental health care tailored to the unique needs of each client.

Our commitment to utilizing the latest research-based therapeutic techniques offers effective treatment outcomes, while promoting the mental and emotional health of our clients.

We are dedicated to creating a safe and welcoming space where individuals can explore their thoughts and feelings, and we aim to educate our clients about the importance of mental health and self-care.

Our practice aspires to be a cornerstone of support, offering a meaningful alternative to traditional mental health services and enhancing the quality of life of our clients.

Project Owner

The project owner is a licensed psychologist with a profound commitment to helping individuals navigate life's challenges.

With a background in clinical psychology and a wealth of experience in various therapeutic settings, they are determined to establish a psychology practice that stands out for its dedication to client-centered care, confidentiality, and professional excellence.

With a vision of empowerment and healing, they are resolved to provide top-tier mental health services while contributing to the resilience and well-being of the local community.

Their commitment to ethical practice and their passion for psychology make them the driving force behind this project, aiming to enhance the mental health landscape and provide a sanctuary for those in search of understanding and growth.

The Market Study

Target clientele.

The target clientele for this psychology practice are divided into several categories.

First, there are individuals experiencing mental health challenges such as anxiety, depression, or stress, who require professional support to improve their well-being.

Next, there are people seeking personal growth and self-improvement, who may want to enhance their communication skills, self-esteem, or work-life balance.

The market also includes couples or families looking for relationship counseling or strategies to improve their dynamics and resolve conflicts.

Finally, other health professionals such as psychiatrists, general practitioners, and social workers can be a key segment by referring clients who could benefit from psychological services.

SWOT Analysis

A SWOT analysis of this psychology practice reveals several aspects.

Strengths include specialized training in therapeutic techniques, a commitment to confidentiality and client-centered care, and a growing awareness of the importance of mental health.

Weaknesses could include the challenge of building a client base in a competitive market and the need for continuous professional development to stay current with psychological research and practices.

Opportunities lie in the increasing demand for mental health services, the potential for online therapy sessions, and community outreach to raise awareness about the benefits of psychological support.

Finally, threats could include changes in healthcare policies affecting insurance coverage for therapy sessions and the stigma that still surrounds mental health, which may deter potential clients from seeking help.

Competitor Analysis

Competitor analysis in the psychology sector reveals a diverse range of practitioners.

Among direct competitors are other private practice psychologists, counseling centers, and mental health clinics.

These entities compete to attract clients by offering a range of services, expertise in specific therapeutic modalities, and flexible scheduling options.

Potential competitive advantages include the psychologist's unique specialization, personalized care, strong professional network for referrals, and the ability to offer a safe and welcoming environment for clients.

Understanding competitors' approaches and client satisfaction levels is crucial for carving out a niche and ensuring client retention.

Competitive Advantages

Our psychology practice's dedication to providing evidence-based, personalized therapy is at the core of our service offering.

We specialize in a range of therapeutic approaches to cater to the diverse needs of our clients, ensuring that each individual receives the most effective treatment.

Moreover, our commitment to ongoing education and staying abreast of the latest research in psychology allows us to offer cutting-edge interventions.

We take pride in our empathetic and non-judgmental approach, which fosters a strong therapeutic alliance and supports our clients' journeys toward mental wellness.

You can also read our articles about: - how to establish a psychologist practice: a complete guide - the customer segments of a psychologist practice - the competition study for a psychologist practice

The Strategy

Development plan.

Our three-year development plan for the psychology practice is designed to establish a strong foundation and expand our reach.

In the first year, we will concentrate on building a solid client base by providing exceptional care and establishing trust within the community.

The second year will focus on expanding our services to include workshops and group therapy sessions, as well as forming partnerships with local organizations to offer comprehensive mental health support.

In the third year, we aim to integrate technological advancements into our practice, such as teletherapy options, and explore opportunities for collaborative research to stay at the forefront of psychological developments.

Throughout this period, we will remain dedicated to ethical practice, client-centered care, and continuous professional development to address the evolving needs of our clients and strengthen our presence in the field.

Business Model Canvas

The Business Model Canvas for our psychology practice targets individuals seeking mental health support, including those with specific psychological conditions, as well as people looking to improve their overall well-being.

Our value proposition is centered on personalized care, evidence-based treatments, and a commitment to confidentiality and client empowerment.

We offer our services through in-person sessions at our clinic, home visits, and online platforms, utilizing key resources such as our professional expertise and therapeutic tools.

Key activities include individual therapy, psychological assessments, and community outreach programs.

Our revenue streams are derived from session fees, workshops, and potential collaborations with healthcare providers, while our costs are mainly associated with maintaining the practice and professional development.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy emphasizes the importance of mental health and the effectiveness of seeking professional help.

We aim to educate the community about psychological wellness and destigmatize therapy. Our approach includes community seminars, informative blog posts, and engagement on social media platforms.

We will also establish referral networks with healthcare providers and local businesses to extend our reach.

Additionally, we plan to leverage client testimonials and success stories, with respect for privacy, to build credibility and trust in our practice.

Risk Policy

The risk policy for our psychology practice is designed to mitigate risks associated with confidentiality, professional liability, and client welfare.

We adhere to strict confidentiality protocols and ethical guidelines, ensuring that client information is securely protected.

Regular supervision and peer consultations are conducted to maintain high standards of care. We also have a comprehensive insurance policy to cover professional liability and other potential risks.

Our priority is to provide safe, effective, and ethical psychological services while safeguarding the well-being of our clients and the integrity of our practice.

Why Our Project is Viable

We are committed to establishing a psychology practice that addresses the increasing demand for mental health services.

With our dedication to personalized care, community engagement, and professional excellence, we are confident in our ability to make a positive impact on individual lives and the broader community.

We are prepared to adapt to the changing landscape of mental health care and are excited about the potential to grow a successful and respected practice.

We welcome the opportunity to contribute to the advancement of mental health and look forward to the rewarding journey ahead.

You can also read our articles about: - the Business Model Canvas of a psychologist practice - the marketing strategy for a psychologist practice

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a psychologist and our financial plan for a psychologist .

Initial expenses for our psychology practice include costs associated with securing a therapeutic space that ensures privacy and comfort for clients, furnishing the office with appropriate seating and decor to create a calming environment, obtaining professional liability insurance, and investing in practice management software. Additional costs involve branding, website development, and targeted marketing campaigns to reach potential clients.

Our revenue assumptions are based on a thorough analysis of the local demand for mental health services, taking into account factors such as the prevalence of mental health issues, the number of practicing psychologists in the area, and the general willingness of the population to seek psychological help.

We anticipate a gradual increase in client sessions, starting modestly and growing as the reputation of our psychology practice strengthens.

The projected income statement reflects expected revenues from client sessions, consultation fees, and possible workshops or group therapy sessions, minus the costs of running the practice (rent, utilities, office supplies, marketing, salaries for any administrative staff, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our psychology practice.

The projected balance sheet provides a snapshot of the practice's financial health, including assets such as office furniture and psychological assessment tools, and liabilities like business loans or credit lines.

It offers a comprehensive view of the practice's financial position at the end of each fiscal period.

Our projected cash flow budget outlines the expected inflows from client payments and outflows for expenses, helping us to anticipate cash requirements and maintain a healthy financial state.

The projected financing plan details the sources of funds we intend to use to cover our initial costs, such as personal savings, bank loans, or possible grants for mental health initiatives.

The working capital requirement for our psychology practice will be carefully managed to ensure we have the funds needed to support day-to-day operations, such as office rent, utilities, and any staff salaries.

The break-even point for our practice is the number of client sessions required to cover all operating costs, including initial setup expenses, and to begin generating a profit.

It will signal when the practice becomes financially sustainable.

Performance indicators we will monitor include the average revenue per client session, the client retention rate, the utilization rate of our services, and the return on investment to evaluate the profitability and efficiency of the capital used in our practice.

These metrics will assist us in measuring the financial performance and overall success of our psychology practice.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a psychologist practice .

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The Practice of Therapy

Resources, tips and advice for success private practice.

• PsychCraft LLC
• Starting Phase
• Growth Phase
• Scaling Phase
• Money Matters In Private Practice | The Course
• G-Suite for Therapists E-Course
• Accounting Templates for Google Sheets
• Love the Work, Hate the Job | The Course
• Paperwork Packet
• Session Note Helper 2.5
• The “Works”
• Profit First Resources
• The Full Focus Planner™
• Private Practice Office Set-Up
• Private Practice Start-Up Guide
• Start Your Website
• Podcast Notes
• Starting Up
• Creating Websites
• Productivity
• Facebook Live
• Private Practice Marketing
• Online Therapy
• Office setup
• More Resources…
• FOCUS GROUPS!
• LISTEN TO THE PODCAST!

In that blog post I did last year on the business models in private practice , I talked about the difference between a business model vs. a business plan.  I used a clinical analogy that most of us in the field can relate to:

Business Model = Treatment Approach

Business plan = treatment plan.

A business plan is simply roadmap that outlines how you will grow your practice. B usiness plans are a statement of business goals, reasons they are attainable, and plans for reaching them.  They can be either detailed or more general.  A good practice business plan will help keep you on track and help guide where to put your energy.

The thing to think about in creating a business plan for your practice, is that it really is essentially a map for how you will get to where you are going.  So the first thing to figure out is where you are going, then work backwards from there to create your business plan.  After-all, if you don’t know where you are going, how are you going to get there?!

Think about is where you would like to be with your practice a year from now.  Where would you like to be 5 to 10 years from now?  A place to start is to think about your personal goals and aspirations.  For most, part of this is financial.  Other parts of this are probably more about your personal values and what you see as your mission in life.  In other words your “why”. The first step is to get some clarity about all of this for yourself.

Other than personal goal setting or reaching certain income level, business plans are also often used to get financing for your practice.  And the reason anyone would need financing would be to have the capital and income they needed to help grow their business to a certain level or to be self-sustaining.  Banks and other lenders are going to require a pretty in-depth and comprehensive business plan before they will loan you the money.  Without going into a lot of detail about this, here is a great resource from the Small Business Administration on business plans:   https://www.sba.gov/starting-business/write-your-business-plan

Whether you are going to try and get a small business loan or not, (and I would say avoid doing this if at all possible)  it is still a good idea to have a business plan that you can work from and that will keep you on track.  It is also a good idea to write all of this down.  Here are some steps to take in creating a simple business plan for your private practice.

Create a mission statement and vision for your practice

What are your values and how do you want your potential clients to be treated with they come in the door?  What do you strive for as a person and as a mental health practitioner?  This can also be your “why”.    These will be the guiding principles that will be what grounds you and from which you operate your practice. Write this out.

Financial Plan

Know your KPI’s.  One of the main components for any business plan is to know your financial goals and have some KPI’s, Key Performance Indicators. You would then track your KPI’s to see how you are doing in achieving your financial goals. Usually this is simply having a specific dollar amount you want to achieve.  Other KPI’s might be around the number of sessions held or how you spend your time.  Regardless of what you have as your KPI’s, have a way to track and look at this often.  One of the best ways to figure out your KPI’s is to work backwards from the numbers you have set as your goal.

So for example, if you have set a goal for yourself to be making $100,000.00. We can break this down more.  Working “backwards” from $100,000.00 we can figure out what you would need to do each day in terms of seeing clients and having sessions:

$100,000 ÷ 12 (months)  = $8333.33 a month

$8333.33 ÷ 4 (weeks) = $2083.33 a week

$2083.33 ÷ 5 (days) = $416.66 a day

$416.66 ÷ $100.00 (per session rate) = 4.16 sessions per day

In this example we have used “gross numbers”.  You will need to factor in your time off and other expenses.  You will need to do more than just have 4 sessions per day at $100.00 per session to reach the goal of $100,000.00 in take home pay.  So to cover your expenses and time off, you will either need to see more clients, raise your rates or both.  In other words, you will need to bring in more than $100,000.00 if you have set that as your goal.

Track and know your expenses  

In order to have a solid business plan, you need to know what your expenses will be.  Office rent, phones, office equipment, and advertising are just a few of the expenses involved to run a practice.  But there are several other expenses to take into consideration.  These are what I call the “Hidden Expenses” (Again, here is the blog post I did on this subject) .  The point being, know what your projected expenses will be in order to factor that in with your business plan and budget.

Plan your cash flow  

Sometimes it is hard to predict when we will have a high volume of clients vs. a low volume.  Generally most practices slow down around holidays. If you are not seeing clients, it also means you are not bringing in any money and your expenses are still there.  So you need to plan for times when your case load and volume of sessions go down.

The best way to handle this is to have a buffer or savings that will cover those down times.  Put into your financial plan regular savings. Treat it like you were paying a bill; something you owe to yourself.

The other thing to consider as you think about cash flow is to consider ways to diversify your income.  In other words, do more than just see clients to bring in the amount of money you need to reach your financial goals.  (More about diversifying income here) .

Create and keep a budget  

With your projected income and expenses, create a budget that will help you track your KPI’s, expenses and cash flow. Look at this and update it often.

Marketing Plan

A marketing plan is the primary tool for bringing in new clients. If you were to tell someone what you do and what kinds of people you work with in your practice, how would you describe it?  In other words, what is your “elevator pitch”? Your marketing plan is driven by a clear concise message that you get out to the public through your marketing efforts.   Investing your time, effort and resources into your marketing plan is where you will get a ROI, (return on investment). The ultimate goal of any marketing plan is to bring in new clients.  So learn all you can about marketing your practice and then put a plan into action.   More on marketing here…

Growth Plan

As you grow it might mean having to spend money on things that will facilitate that. For example, moving to a new office or adding support staff.  Investing in your private practice can be done either financially or in terms of time. And the old adage of “you have to spend money to make money” is true.  But you need to know how to invest wisely. Learn what is going to be the best ROI with both your time and money. Also what will truly help you grow.

This is where having a long term plan comes in.  Where would you like to be 5 or 10 years from now with your practice?  What are the small steps and investments you will need to make in order to reach those long term goals?  Put plans and actions in place in your business plan now to help you reach those long term goals.

Business plans can seem intimidating to some.  But the time spent in developing a good business plan for your private practice will be well worth it. Let it be a living document that changes and grows as your practice grows. Refer to it often so that it can be a roadmap for your growth.  The good news is that you can tweak it anytime you want  to….and you should!

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How to Build a Business Plan for Your Therapy Practice

Starting a therapy practice can be incredibly rewarding, but it also comes with its challenges. 

Beyond clinical expertise, you need a solid business plan to succeed. Picture your business plan as a practical road map, designed to support your journey through the uncertain and unpredictable world of business ownership.

Taking the time to do it now will help you create the practice you want now, rather than compromising and having to pivot later. 

When the challenges of entrepreneurship seem overwhelming (and they will), this plan stands as your reliable guide, helping you make decisions aligned with what you want for your business.

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Embrace the CEO role

I hate to be the one to tell you this, but nothing you read in the remainder of this article matters if you don't accept this hard truth: Being a clinician is no longer your main job.

You are the CEO of your therapy practice. You are also sales, HR, IT, marketing, admin, manager, and yes, CFO. 

Accept that being a clinician and running a profitable therapy practice are two very different things that require two very different skill sets. Write your vision down. Get clear on your values. Step into your CEO role.

Define your personal goals

Start with your personal goals. They drive your business aspirations. Maybe you want to only work three days a week so you have time to spend with your family. Living abroad and having the flexibility to see clients from anywhere in the world may appeal to you. Getting clear on what you value and your personal goals helps you to structure a business that best serves you.

Consider factors like:

• Family commitments
• Community involvement

By aligning your business with your personal aspirations, you create a practice that truly suits you. This alignment between your personal and business aspirations isn't just beneficial—it's a pivotal factor for achieving a fulfilling practice that doesn't feel like the agency job you left.

Create your business goals

Answer fundamental questions such as:

• What's your therapy practice's purpose?
• Will you specialize?
• Will you offer additional services?
• Are you aiming for a solo practice or planning to expand into a larger group practice ?
• How will you define your services?
• How will you plan your marketing strategy ?
• How will you set your fees ?
• What is your revenue goal?

You may aspire to have a waitlist of dream clients, hire staff, or hit $20K months. Whatever you desire can be achieved by answering these foundational business questions.

Manage your cash flow

Ensure financial stability with a clear cash flow plan, consisting of two parts.

Projections: Predicting income and expenses

Begin with projections, estimating when money comes in and goes out based on past financial data. It's like foreseeing your financial path, and here's where using the financial reports provided by Heard becomes especially meaningful. These reports serve as your compass, guiding you through the intricate landscape of your practice's finances.

System: Implementing your plan

With projections in hand, it's time to execute. Decide how much you'll allocate to different areas, like expenses, payroll, taxes, savings, and your earnings. Keep track of these allocations and adjust as needed. This structured approach transforms your projections into actionable financial decisions, making sure your practice thrives. Businesses don't go out of business due to lack of profit, they go out of business due to lack of cash. By monitoring and reviewing your cash, you set your business up to not run out of money.

Maximizing your profit

Maximizing your profit is about adopting strategies to increase your earnings. This could mean enhancing your services, adjusting fees effectively, and streamlining operations for better efficiency. You should also focus on key profit drivers like your sales conversion rate and the number of potential clients who engage with your services. To maximize profit, it's essential to understand the nuances of sales and marketing , as they drive revenue growth. Additionally, keep an eye on your expenses to make sure you're not outspending what you're earning. This balanced approach ensures your practice remains financially healthy.

Stay on track

After crafting your business plan, regularly review and adapt. Keep a close watch on your progress. Ensure your income aligns with your needs, and make tweaks along the way.

If a marketing strategy falls short, switch it up and pivot. Closing new clients left and right and now you have a full caseload of dream clients, amazing! Your business plan will change as you grow and become more successful. It's important to review your progress, celebrate your wins, and adjust the plan along the way.

A simple and executable business plan is the foundation of a thriving mental health practice. As you embrace your CEO role, set personal and business goals, manage cash flow, and maximize profit, you pave the way for success. Regular monitoring and adjustment keep you on track as this is a continuous process you will redefine many times. 

With this actionable plan, you're equipped to impact your clients and live the life you desire. ‍

Want to learn more? Click here to watch “How to Build a Business Plan for Your Therapy Practice" presented by Ashley Harlan, MBA.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

Ashley Harlan, MBA is a Chief Financial Officer, Founder, and CEO of The Concierge CFO. She’s passionate about partnering with mental health and wellness professionals to help you reach your mission through financial freedom. Her focus is on guiding you to earn what you deserve, achieve your goals, and not burn out. If you're ready to build a practice you enjoy, serve the clients you feel called to, and not have to sacrifice your lifestyle, join her Profitable Practice Accelerator —a 6-week program that enhances your financial stability and gives you the freedom to live the life you want. Ashley can be found on Instagram , Twitter , and LinkedIn .

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Creating a robust business plan for your private practice business

By Jamie Frew on Jun 16, 2024.

Fact Checked by Nate Lacson.

What is a business plan?

Naturally, you may be wondering what a business plan is, and what it entails. Fortunately, we’re here to help you understand the ins and outs concerning effective business plans for healthcare, and what is required to help you hit the ground running. After all, coming from a health background, you may not have an in-depth understanding of what a business plan exactly is, and so we want to make sure that you become acquainted with the basics. 

A business plan should cover the four major areas of your practice, which include sales, expenses, human resources, and financing. Doing so allows you to establish clear business goals, as well as provides a baseline for you to monitor and measure any progress. It’s a great way of holding you accountable, and it also acts as a reference point for when you may lose focus. Business plans are an essential part of your toolkit for learning, as you manage expectations and work towards overarching goals. 

Why do you need a business plan?

At the end of the day, you are a business, and you need to be working towards specific goals that are achievable and measurable in order to generate a profit. Failure to do this can result in facing problems that incur large time and money costs, which could have been prevented and avoided with an effective business plan. It ensures sustainability and can help you make informed decisions regarding your operations, so you don’t waste energy and resources on options that are not viable. Sometimes, simply using business plans is a great way to articulate and specify goals, which is particularly important when working with other staff, as it makes sure that everyone is on the same page. When it comes to business stakeholders, transparent business goals are also highly significant. 

Business plan formats

Business plans can vary in their formats, which means there’s no one right approach. You need to carefully evaluate the needs that are specific to your business, and apply them when thinking of your business. For instance, there’s the most common business plan, the ‘traditional’ plan, which can take a significant amount of time to write and can be over ten pages long. Typically venture capitalist firms and lenders use this plan, however, there is also the ‘lean’ business plan. This is a more condensed version that follows the exact same format, but instead, it only includes the most important information or the highlights. This is quite useful for new hires or for when current plans need to be modified for specific markets. The final plan, which is unlikely to be used for private healthcare businesses, is the ‘non-profit’ plan. Non-profit plans are for entities that are public or offer a social benefit, which emphasizes the impact the business will make. As you can see, there’s a range of approaches you could take when it comes to your plan, and each serves different purposes, so you must evaluate what’s best for you. 

Key elements of a business plan for a private practice

To help you create the best business plan possible, we’ve outlined the requirements that you must incorporate. Implementing these healthcare tools and templates will greatly elevate the quality of your business, and ensure you cover all the essentials.   

Mission and vision

One of the most important things to consider is to communicate the purpose of your healthcare practice. Not only is this vital for your understanding, but it’s also significant for business stakeholders, including any staff you may have. You should clarify your business pathway with all relevant information that others require. The mission and vision should highlight the reasons why you started practicing, how your practice sets you apart in treating patients, who you help, any specific concerns you can treat, as well as personal values. Remember to keep it to a few sentences! 

Business description

You also need a business description that outlines a general overview of your business, such as your specialty, the healthcare approaches you use, the populations you work with, as well as any special skills that can set your business apart from competitors. You could also include how many current clients you see, as well as how many are seen in a week, and if you have any current staff members. Including all this information is beneficial for when you may seek loans, and being able to supply information about you personally is always a plus. 

It’s important that when you curate a business plan, you research fellow healthcare practitioners in your area of expertise. Taking the time to evaluate the market can help you make informed decisions when it comes to your treatment, offices, resources, and technology. Sometimes, it can reveal specific location needs, which helps identify where you may need to improve regarding skill development. Researching can ensure that you’re profitable with the decisions you make. 

Financial plan

Creating a financial plan is an integral component of an overall business plan, as it helps you understand your cash flows and where you need to invest or reduce costs. In a financial plan, you need to include office rent, utilities, and products, as well as staff salaries, and software or technology fees. Once you’ve calculated your expenses, you can work out the minimum income needed to stay afloat and grow your business.  

You must attract and retain clients, and the best way to market your therapy business is to implement effective strategies. This can include building a social media presence with a good website, joining directories, advertising in flyers, newspapers, and radio stations, as well as creating blog posts to improve search engine optimization. The possibilities are endless!

Sample business plan: Therapy practice

To illustrate our previous points, we’ve included a therapy business plan for you to replicate within your own practice, and help you get started. Below is an example of a therapy clinic, and the following information provides a solid checklist for counselling practices, but can be generalized to any healthcare practice. 

Practice Name: Smith Therapy

Website: www.smiththerapy.com

Date: April 2022

Helping clients who experience depression, with a focus on young adults and cognitive behavioral therapy (CBT).

My Business Goals:

• Develop my knowledge of depression, and Major Depressive Disorder (MDD) to an advanced level
• Develop a clinical guide that can be published and purchased online

Income Goals:

• Client sessions - 6 clients per day x 4 days x 50 weeks x $110 per session = $132,000
• Clinical guide - $15 x 150 sales per year = $2,250

Total income year: $134,250

• Bank fees $200
• Internet $500
• Insurance $400
• Repairs $200
• Advertising $1000

Total expenses: $5,600

Profit = $134,250 - 5,600 = $128,650 (allocated to retirement, wages, and taxes)

Also include any set-up costs such as laptops, websites, and other resources

• Writing content
• Administrative skills
• Research experience

Weaknesses:

• Marketing - Not my area of specialty, so need a free online course to understand the best methods
• Sole practitioner - Need to investigate income insurance
• Easily distracted - Need to manage goals and time management skills

Opportunities:

• No one else in my location offers depression services to young adults
• I can work with high schools in my area to advertise 
• Cash flow - Needs more research into a financial plan with consultants due to starting out

Marketing Plan:

• Contact and network with schools
• Facebook advertising 

Take home message

Having a robust business plan is an integral component of every successful healthcare clinic, so you must spend time working on each section to ensure they’re up to scratch. We understand it can be overwhelming to start, as there are a lot of areas to consider, however, we hope you now have a more solidified understanding of the essentials. Business plans don’t have to be difficult, and when curated well, you’re sure to set yourself up for success, as they allow you to prioritize patient health and maintain a steady profit. With our business plan template, you will be able to plan the ins and outs of your business and elevate the likelihood of achieving your professional goals. You can stay on track, and work towards improving clinical outcomes and the overall flourishing of your business!

Get Carepatron for free today and show us your business planning love!

Further reading:

• How to Create a Solid Business Plan for Your Private Therapy Practice
• Telemedicine in the United States: An Introduction for Students and Residents

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Counseling Private Practice Business Plan

• Previous Post

As Mental Health Professionals, you pursue your passion – Helping People. However, your practice is also your business! If your business is not successful, you won’t be able to pursue your dream of helping people for long.

If you’re wondering how to start a private practice, the first step in the process is to create a Counseling Private Practice Business Plan.

Why a business plan? Have you ever gone on a road trip for vacation? What did you do to make your vacation as fun and exciting as it could be? You planned! Is my car ready for the trip? Do I know where I am going? Do I need hotel reservations? What is the best route to take me there? Do I have the tools to make my trip successful: map, GPS, a good functioning car?

A Business Plan is just that – planning out all the details of where you want your practice to go and what you need to make that trip a success. Whether you are a sole practitioner, a group practice or part of a major company, you need a plan

iTherapy Team

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What therapist want you to know, the most fundamental part of marketing for therapists., does your family (know how to) talk to each other, why forgive, comments (15).

Thank you, kind people

Thank you for your interest. We hope we can continue to be a resource for you and your counseling private practice.

I LOVE it. I know biz plans are so important. So I really look forward to the step-by-step help. Thanks!

Thank you! We are glad to help. We look forward to continuing to help each step of the way. Check back periodically for more post and information to help your office or online counsling practice grow.

This is a very kind gesture. I think it is wonderful that you are lending your expertise to the counseling community. ? Bravo

Thank you! We are excited to help the industry. We are listening to our providers and finding ways to help them and the industry grow.

I have a LMSW and I am also an ordained minister , so is there a possibility of someone like me obtaining a private practice ?

Thank you for your question! I forwarded your contact info to one of our specialists to help you.

This is going to be a good experience and a great learning opportunity

We sure hope so! We are listening to our providers and others in the counseling community. We want to help you and the office and online counseling industry continue to grow.

Where can I find additional updates? I’ve already completed the checklist and information on who to serve. What’s next?

We’re working on the next part, which is a SWOT analysis (Strengths Weaknesses Opportunities and Threats).

Robyn, this site will give you some ideas too https://www.dramberlyda.com

Please tell me what kind of certifications are needed to do private practice in USA? I have a PhD in developmental psychology from India.

Thank you Priya for your inquiry. Certifications will vary state-to-state in USA. You will have to determine which state or states you want to get certified in order to narrow down patient base.

For example, here are some links for North Carolina: 1. Mental health license requirements https://www.google.com/search?q=north+carolina+mental+health+license+requirements&oq=north+carolina+mental+health+lic&aqs=chrome.3.0j69i57j0l4.8303j0j7&sourceid=chrome&ie=UTF-8

2. LPC (Licensed Professional Counselor) license: https://www.humanservicesedu.org/north-carolina-lpc.html

3. Licensure Information: https://ncpsychology.org/pdfs/Handout_Licensure_Information_North_Carolina.pdf

Hope these help!

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Psychotherapy Private Practice Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Medical and Healthcare

Do you want to start a psychotherapy practice? If YES, here is a sample psychotherapy private practice business plan template & FREE feasibility report.

People are always looking for non-conventional ways to cure whatever illness they are suffering from which is why people that are involved in psychotherapy practice are in high demand. Psychotherapists may be mental health professionals such as psychiatrists, psychologists, mental health nurses, clinical social workers, marriage and family therapists, or professional counselors.

Psychotherapists may also come from a variety of other backgrounds, and depending on the jurisdiction may be legally regulated, voluntarily regulated or unregulated (and the term itself may be protected or not).

Please note that to start and run a successful psychotherapy private practice, you will first have to obtain your college degree in behavioral science (e.g., psychiatry, psychology, counselling, social work, sociology) with workshops, certificate classes and symposia that fill voids in your area of expertise.

Below is a sample psychotherapy private practice business plan template that will help you write yours without much stress.

A Sample Psychotherapy Private Practice Business Plan Template

1. industry overview.

Psychotherapy (psychological therapy or talking therapy) is the use of psychological methods, particularly when based on regular personal interaction with adults, to help a person change behavior and overcome problems in desired ways.

Psychotherapy aims to improve an individual’s well-being and mental health, to resolve or mitigate troublesome behaviors, beliefs, compulsions, thoughts, or emotions, and to improve relationships and social skills. Please note that certain psychotherapies are considered evidence-based for treating some diagnosed mental disorders.

Professionals who are into psychotherapy private practice business are grouped under the Behavioral Therapists industry and this industry includes behavioral therapists / practitioners that primarily engaged in the independent practice of psychotherapy designed to eliminate undesired behaviors or mental challenges.

A close study of the industry shows that the industry has experienced steady conditions and stable growth over the last five years.

Rising student enrollment rates have stimulated demand for the industry’s services. Most importantly, increased access to health insurance has better enabled individuals to afford industry services, as many psychotherapy private practice services are covered by health insurance.

More individuals have obtained private health insurance coverage, better enabling them to access industry services. The PPACA has increased the number of individuals with government health insurance by expanding access to Medicaid. These trends are expected to continue over the next five years to 2022.

According to research from the Centers for Disease Control and Prevention, an estimated 50.0% of all Americans will develop some sort of mental illness in their lifetime that requires behavioral therapy. Furthermore, many individuals with behavioral health ailments have coexisting physical health conditions.

This factor strains the US healthcare system, as behavioral issues can complicate patients’ treatment for other medical conditions or amplify current medical issues.

For instance, depressed patients are typically three times more likely to be noncompliant with their treatment recommendations, which can add significantly to healthcare costs. In response, behavioral therapists provide services through numerous channels.

The Behavioral Therapists industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 76,481 registered and licensed Behavioral Therapists and psychotherapy private practitioners.

The industry is responsible for the employment of over 125,543 people. Experts project the industry to grow at a 4.5 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 this industry.

Please note that it is absolutely compulsory for any investor who is looking towards starting any health related business in the United States of America to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.

Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.

Some of the factors that encourage entrepreneurs to start their own psychotherapy private practice business could be that the business requires low level manpower, the business can easily get support from the government at all levels and it is indeed profitable despite the legislature governing the industry.

Interestingly, psychotherapy may be delivered in person (one on one, or with couples, or in groups), over the phone, via telephone counseling, or via the internet.

As a psychotherapy pathology private practitioner, aside from your professional qualifications, the key attributes needed to be able to make good success from the trade is patience, enthusiasm, passion about the specific area to be handled, and constant positivity. You are also expected to be highly proactive.

2. Executive Summary

Jonny Belfast® Psychotherapy Practitioners, LLP is a licensed Psychotherapy firm that is specialized in helping her clients change their behavior and overcome mental health related problems in desired ways.

The scope of our business offerings covers areas such as improving an individual’s well-being and mental health, to resolve or mitigate troublesome behaviors, beliefs, compulsions, thoughts, or emotions, and to improve relationships and social skills et al.

Our business will be located in a well – populated residential estate in New Orleans – Louisiana, United States of America.

Jonny Belfast® Psychotherapy Practitioners, LLP is a client-focused and result driven psychotherapy organization that provides broad – based approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will ensure that we work hard to meet and surpass all our clients’ expectations as it relates to their mental health and behavioral goals.

At Jonny Belfast® Psychotherapy Practitioners, 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 certified psychotherapists and related health workers with various skills set who are passionate in helping our clients overcome their behavioral challenges in record time.

Jonny Belfast® Psychotherapy Practitioners, LLP will at all times demonstrate her commitment to sustainability, both individually and as a psychotherapy private practice 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.

Our overall business goal is to position our private psychotherapy practice to become the leading brand in the Behavioral Therapists industry in the whole of New Orleans – Louisiana, United States of America, and also to be amongst the top 10 psychotherapy private practice businesses in the United States of America within the first 5 years of operation.

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

Jonny Belfast® Psychotherapy Practitioners, LLP is founded by Dr. Jonny Belfast and he will run the business with his partner Dr. Biden San Jose. Dr. Belfast is a certified and renowned Psychotherapist. He has over 20 years’ experience working with a wide range of people both in the United States of America and Canada.

3. Our Products and Services

Jonny Belfast® Psychotherapy Practitioners, LLP is going to offer psychotherapy and related services within the scope of the Behavioral Therapists industry in the United States of America.

Our intention of starting our business is to help our clients overcome their behavioral challenges and improve their interpersonal skills, competence, capacity and productivity and of course to also make profits from the Behavioral Therapists industry.

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;

• Monitor patients’ progress and adjust treatments
• Develop treatment plans
• Evaluate behavioral patterns and mental health test results
• Develop individual or group programs in schools to deal with abnormal behavioral patterns and mental health problems

4. Our Mission and Vision Statement

• Our vision is to build a highly competitive and effective psychotherapy private practice business that will become the number one choice for both individuals and corporate organizations in New Orleans – Louisiana and the whole of the United States of America.
• Our mission is to provide affordable, professional and highly effective psychotherapy private practice services to a wide range of clients.
• We want to position Jonny Belfast® Psychotherapy Practitioners, LLP to become one of the leading brands in the industry in the whole of New Orleans – Louisiana, and also to be amongst the top 10 psychotherapy firms in the United States of America within the first 5 years of operation.

Our Business Structure

Jonny Belfast® Psychotherapy Practitioners, LLP, is a psychotherapy firm that intends starting small in New Orleans – Louisiana, but hopes to grow big in order to compete favorably with leading firms in the industry in the United States.

We are aware of the importance of building a solid business structure that can support the 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 Jonny Belfast® Psychotherapy Practitioners, 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.

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

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

• Principal Partner/Chief Executive Officer

Psychotherapy Practitioners

Office Administrator

• Marketing Executives

Client Service Executive

5. Job Roles and Responsibilities

Principal Partner/Chief Executive Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Develop treatment plans for problems such as behavioral challenges and mental disorder
• Instruct clients in techniques for more effective communication
• Handles any other duty as assigned by the Principal Partner / CEO.
• Responsible for overseeing the smooth running of HR and administrative tasks for Jonny Belfast® Psychotherapy Practitioners, LLP
• Regularly holds meetings with key stakeholders to review the effectiveness of the organizations’ Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily activities of Jonny Belfast® Psychotherapy Practitioners, LLP.

Marketing Executive

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

6. SWOT Analysis

Jonny Belfast® Psychotherapy Practitioners, 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 psychotherapy private practice 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 Jonny Belfast® Psychotherapy Practitioners, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jonny Belfast® Psychotherapy Practitioners, LLP;

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

Aside from the synergy that exists in our carefully selected team members and our strong online presence, Jonny Belfast® Psychotherapy Practitioners, LLP is well positioned in a community with the right demography and we know we will attract loads of clients from the first day we open our doors for business.

As a new psychotherapy private practice organization in New Orleans – Louisiana, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated Behavioral Therapists industry; that is perhaps our major weakness.

• Opportunities:

Opportunities are abound in this line of business. As a matter of fact, subsidized state and federal healthcare exchanges have expanded private health insurance.

Healthcare reform has also increased the number of Americans who rely on government insurance and also the demand from educational services will increase alongside school enrollment. As a standard psychotherapy private practice organization, we are ready to take advantage of any opportunity that comes our way.

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

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

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

7. MARKET ANALYSIS

• Market Trends

The trend in the Behavioral Therapists industry shows that in the last half decade, the industry has grown consistently. Psychotherapy 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 psychotherapy services when needed. Rising student enrollment rates will boost demand for industry services.

One trend in the industry is such that if you want to be ahead of your competitors, you should be able to acquire as much certifications as possible and you should be able to have loads of testimonies from your clients. The truth is that if your clients experience huge difference in their life as a result of hiring your services, then they will be compelled to help promote your organization.

Another notable trend in this industry is the influence of technology; the advent of technology is responsible for the increase in income generated by industry.

With technology, it is now easier for psychotherapists to work with 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 psychotherapists to work with clients in different parts of the world.

8. Our Target Market

The target market for psychotherapy private practice firms is all encompassing. As a standard psychotherapy private practice organization, Jonny Belfast® Psychotherapy Practitioners, LLP offers a wide range of services hence we are well trained and equipped to service a wide range of clients.

Our target market as a psychotherapy private practice firm cuts across people of different class and people from all walks of life.

We are coming into the Behavioral Therapists industry with a business concept that will enable us work with the clients from different background and different status. Below is a list of the clients that we have specifically designed our services for;

• People with mental health and behavioral challenges
• People suffering from one form of addictions or the order
• Hospitals and other medical clinics

Our Competitive Advantage

The Behavioral Therapists 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 behavioral challenges. It is the practice for psychotherapists to acquire as much certifications as it relates to their area of specialization; it is part of what will make them stay competitive in the industry.

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

Jonny Belfast® Psychotherapy Practitioners, LLP might be a new psychotherapy firm in New Orleans – Louisiana, but our management team are considered gurus in the industry. They are highly qualified psychotherapists that can successfully help her clients overcome their challenges within a short period of time. These are part of what will count as a competitive advantage for us.

Aside from our robust experience and expertise of our psychotherapists, we have a very strong online presence that will enable us work with clients in different parts of the world.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category 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 objectives.

9. SALES AND MARKETING STRATEGY

We are mindful of the fact that there are stiff competitions amongst psychotherapy 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. We will also ensure that our clients overcome their challenges in record time.

Our goal is to grow Jonny Belfast® Psychotherapy Practitioners, LLP to become one of the top 10 psychotherapy private practice 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 New Orleans – Louisiana but also in other cities in the United States of America.

Jonny Belfast® Psychotherapy Practitioners, LLP is set to make use of the following marketing and sales strategies to attract clients;

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

Sources of Income

Jonny Belfast® Psychotherapy Practitioners, LLP is established with the aim of maximizing profits in the Behavioral Therapists industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Jonny Belfast® Psychotherapy Practitioners, LLP will generate income by offering the following psychotherapy private practice services;

• Develop treatment plans for problems and disorders
• Develop individual or group programs in schools to deal with abnormal behavioral patterns

10. Sales Forecast

One thing is certain, there would always be people who would need our services in other for them to overcome their behavioral and mental health related problems. This is the major reason why the services of psychotherapy private practice firms will always be needed.

We are well positioned to take on the available market in New Orleans – Louisiana 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 psychotherapy private practice business and our clientele base.

We have been able to examine the psychotherapy private practice 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 Jonny Belfast® Psychotherapy Practitioners, LLP, it is based on the location of our firm and of course the wide range of related services that we will be offering;

• First Fiscal Year (FY1): $150,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $750,000

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.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and private clients in the whole of New Orleans – Louisiana 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 Jonny Belfast® Psychotherapy Practitioners, LLP;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around New Orleans – Louisiana.
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Jonny Belfast® Psychotherapy Practitioners, LLP and the services we offer
• List our psychotherapy private practice firm in local directories / yellow pages
• Advertise our life psychotherapy private practice firm in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our logo et al.

12. Our Pricing Strategy

Psychotherapy services are billed on per hour basis and flat fees. As a result of this, Jonny Belfast® Psychotherapy Practitioners, 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.

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.

• Payment Options

The payment policy adopted by Jonny Belfast® Psychotherapy Practitioners, 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 regulations of the United States of America.

Here are the payment options that Jonny Belfast® Psychotherapy Practitioners, LLP will make available to her clients;

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

In view of the above, we have chosen banking platforms that will enable our clients make payment without any stress on their part.

13. Startup Expenditure (Budget)

This is what it would cost us to start our own standard psychotherapy private practice in the United States of America;

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

Going by the report from the market research and feasibility studies conducted, we will need about one hundred and seventy – five thousand (175,000) U.S. dollars to successfully setup a medium scale but standard psychotherapy private practice firm in the United States of America.

Generating Funds/Startup Capital for Jonny Belfast® Psychotherapy Practitioners, LLP

Jonny Belfast® Psychotherapy Practitioners, LLP is a partnership business that will be owned by Dr. Jonny Belfast and he will run the business with his business partner Dr. Biden San Jose. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

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

N.B: We have been able to generate about $75,000 (Personal savings $50,000 and soft loan from family members $25,000) and we are at the final stages of obtaining a loan facility of $100,000 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.

14. Sustainability and Expansion Strategy

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 company, then it won’t be too long before the business closes shop.

One of our major goals of starting Jonny Belfast® Psychotherapy Practitioners, LLP is to build a business that will survive off its own cash flow without 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 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.

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

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

Check List/Milestone

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

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A One Page Business Plan for Your Therapy Practice

Profitability

THIS POST INCLUDES:

1. Keep Your Business Plan Simple 2. Parts of a Business Plan 3. How to Complete a Business Plan 4. Sample Business Plan: Art Therapy Practice 5. Additional Business Planning Information 6. Free Download Business Plan Checklist

KEEP YOUR BUSINESS PLAN SIMPLE

Many people have a perception of what a business plan entails. They may think business plans are only useful for large companies or businesses you want to get a loan from a bank and need to explain their financial position.

A business plan involves much more than looking at the financial aspects of your business. It involves defining your clients, assessing your strengths and weaknesses in your business, and identifying the resources you need to execute your goals for your business.

Your business plan should be written using simple language. A business plan should be written so that it encourages you to take action on developing parts of your business that need your attention such as resourcing, marketing , and financial planning.

Many business plans are written for the benefit of a board of directors, however, if you are a private practice therapist, your board of directors is you. Therefore it is important to write your business plan using language that will motivate you and help you solve problems that may exist in your private practice.

If you are running a private practice and you are the sole employee, it is easy enough to create a business plan using a one-page process. While it is important to undertake these important administrative and planning aspects of your business, it’s also important that you keep momentum on running your business so that you don’t get too distracted by onerous administrative tasks.

It’s also important to remember that a business plan is often a changing process. As your private practice develops, you may want to change parts of your business that suit your goals at that time.

It’s a good idea to review your business plan at least once a year so that you can make any amendments and future goals for the year ahead. In the first year of your business, you will want to pay close attention to your business plan and possibly review it every month, however, once your practice is established you can undertake a review process less frequently.

A business plan is simply about being prepared.

PARTS OF A BUSINESS PLAN

The content of your business plan should always be based on providing information that helps you progress in your private practice. It is good to include information that is simple, concise and provides actionable steps.

GENERAL BUSINESS PLAN

Essentially, the most important parts of your business plan will include:

• Why do you want to start a private practice
• What are the mechanics of your private practice – income, expenses, staff, administration etc
• What are your strengths, weaknesses, opportunities, and threats (SWOT analysis)
• What is your marketing plan

These 4 areas are fundamental parts of your business plan. Your business plan should be specific to your private practice, however, we’ve created a sample outline below of the most important details that you should consider based on the above 4 fundamental parts.

DETAILED BUSINESS PLAN

• Private practice name:
• Date of this plan:
• My mission for my private practice:
• My business goals (should be specific and measurable):
• Income avenues:
• Initial cost set up:
• My strengths:
• My weakness (and how to manage them):
• Opportunities for my private practice:
• Threats to my private practice succeeding:
• Marketing Plans:

HOW TO COMPLETE A BUSINESS PLAN

Completing a business plan takes some time and effort. Essentially you are working on a document that is based on goals, expectations, and unknowns. It can feel difficult to determine exact details to include in your business plan when there are so many unknown variables.

From this perspective, your business plan is simply a guideline to get you started. It should always be viewed as a process that requires adaptability and flexibility as you become more experienced in running your private practice.

The business planning process can be overwhelming especially if you are more interested in client work instead of administrative work. In many ways creating your business plan is an introduction to running your private practice.

At times when running your private practice, you will be required to do administrative work that feels more tedious compared to the client work that you want to do. It is good to note any resistance you feel when creating your business plan as it may be a good way to assess your desire to run your private practice with many of the non-client work tasks that you will be required to undertake.

Set a time limit on creating your business plan. We’ve introduced 13 sections above in the detailed business plan. You could dedicate an individual time slot for each detailed item so that you don’t get too overwhelmed with researching a lot of information at once.

The first 3 items are simple information recording items and should only take you seconds to record. If you haven’t already named your business or subsequent website name, then you may want to spend some time on working out what your private practice should be called.

Whenever you name anything whether it be your private practice, services types, products, or workshops, you should always name items from your client’s point of view. Any names should be easy to spell, pronounce, remember, and understand in terms of purpose. Consider the demographics of your ideal clients and be guided by what language and words might mean to them. For example, if you want to appeal to elderly clients, you may not want to name your business: Artz4U

As you work through each item on your detailed business plan, remember to record all information in one central area. A lot of software integrates, so you should be able to combine both word processing documents and spreadsheet documents in one primary document. A program such as Evernote is a good tool to use for creating your business plan because you can access it at any time across multiple devices. Evernote is fairly robust in creating written text, tables, checklists, audio, and more.

Evernote is a useful program to record all of your business information in as a central database. This means you can access information about your private practice at any time. Evernote is also a great way to store and record information from external sources (eg. Internet) that you can use to help develop your business.

You may want to read our previous post about using Evernote for blogging to see how you can also use Evernote for your business planning process. 10 Useful Tips to Use Evernote for Blogging

Evernote is free for a basic account, however, you can purchase a premium subscription for additional features. You will easily be able to use a free Evernote account to create your business plan.

SAMPLE BUSINESS PLAN: ART THERAPY PRACTICE

Included in this section is a sample of how to create your business plan using the parts of a business plan listed above. This sample is simplified to give you an idea of how each section should be used.

It’s important to note that your financial information such as income, expenses, and initial set up are usually specific to your first year. Each additional year after will be different as you may not have the same ongoing costs as you did in your first year. You will also most likely have your lowest income year in your first year until your practice becomes more established.

It is is a good idea to extrapolate your financial calculations out for at least the first 5 years so you can get some perspective over the short and long term success of your private practice. This will also help you plan for any initial savings that you need to inject into your business in the first year. Being financially prepared will help reduce the stress that you feel around meeting income goals.

The more elaborate your business goals are, the bigger your business plan will be. This business plan is a simplified version to get you moving and taking action on establishing your private practice.

All names, websites, and financial information is fictional for illustration.

PRIVATE PRACTICE NAME ABC Art Therapy

WEBSITE www.abcarttherapy.com

DATE OF THIS PLAN January 2019

MY PRIVATE PRACTICE MISSION To help clients experiencing anxiety and depression. A focus on adolescents and building self-esteem.

MY BUSINESS GOALS

• Become an expert in art therapy and anxiety/depression in my area.
• Create workshops for adolescents and building self-esteem
• Develop a workbook for adolescents that can be purchased online and at workshops

INCOME GOALS (per year)

• General client sessions – 4 clients per day x 4 days x 50 weeks x $80 per session = $64,000
• Workshops – 4 per year x 10 clients each x $80 = $3200
• Workbook – $20 x 200 sales per year = $4000

TOTAL INCOME YEAR 1: $71,200

NOTE: Your income will most likely be more varied as you may choose to take on reduced fee clients or charge more for additional services such as report writing etc. You may also set initial client session goals for the first year and increase them each year after.

EXPENSES (ongoing per year)

• Bank Fees $100
• Accounting/Legal $200
• Education/Courses $300
• Telephone/Internet $500
• Insurance $320
• Office Supplies $800
• Art supplies $2500
• Professional fees $150
• Repairs and maintenance $150
• Subscriptions $150
• Advertising $1500
• Wages (inc. Tax, superannuation/401k, retirement) TBA

TOTAL EXPENSES: $14,470

NET PROFIT: $71,200 – $14,470 = $56,730 (allocated to wages, taxes, retirement planning etc)

NOTE: In the expenses section, we’ve written TBA under Wages etc. You may want to calculate the wages you pay yourself as a set amount at the start and then your income and expenses will need to allow for that level of wages to be paid. Alternatively, you may want to calculate your income and expenses initially, and then allocate the remaining profit to pay your wages.

INITIAL COST SET UP

• Plastic desks x 5 $100
• Plastic folding chairs x 10 $100
• Lounge chairs x 3 $500
• Art room decor $200
• Desktop computer $1200
• Printer/scanner $300
• Art room supplies $1000
• Website and general admin $500

TOTAL SET UP COST: $5,100

• Writing content – good for creating workshops and workbooks
• Public speaking – good for public marketing and networking
• Specialty in working with adolescents (note various training obtained)
• Setting procedures
• Financial acumen – need to hire a bookkeeper/accountant. Set a schedule for reviewing data
• Marketing – undertake a free online course to determine the best methods of marketing online and offline
• Easily distracted – can become distracted by pursuing multiple goals. Set a plan and meet with an accountability partner to stay on track
• I am a sole practitioner – investigate income insurance

OPPORTUNITIES FOR MY PRIVATE PRACTICE

• There are 3 high schools in my immediate area where I could offer my workshops or work with the school counselor on developing programs.
• There are only 2 other therapists who deal specifically with adolescents in my area – neither of them provides art therapy services.

THREATS TO MY PRIVATE PRACTICE SUCCEEDING

• There are 8 other therapists who focus on anxiety/depression treatments. Approach each of them to network for referrals.
• Illness and professional burnout – implement regular self-care and supervision
• Cash flow problems – develop a nest egg to pay bills

MARKETING PLANS

• Networking with other therapists in my area
• Contact GP’s and other allied health professionals
• Network with high school counsellors for workshops
• Facebook advertising
• Art therapy association directory
• Counselors association directory
• Build website content and create email list with newsletter
• Social media posting – establish social media plan

ADDITIONAL BUSINESS PLANNING INFORMATION

Below is a list of previous blog posts that will supplement the information about business planning in this blog post. Read these blog posts to dig deeper into each aspect of running your art therapy practice.

ADMINISTRATION

• How to Backup Your Important Business Files
• Practice Management Software to Use as an Art Therapist
• 10 Steps to Set Up Your Art Therapy Practice

ART THERAPY HELP

• How to Set Up Your Art Therapy Room
• Link List: Useful Therapy Resource Websites for Forms, Templates and Tools
• Excel (spreadsheets) vs Accounting Software To Record Financial Information
• How to Record Income and Expenses for your Art Therapy Practice
• Strategies to Increase Profit For Your Therapy Practice
• 10 Ways to Increase Your Therapist Income
• How Do I Create an Ecourse for my Therapy Practice
• How To Organise an Art Therapy Group
• What to do when you have no clients booked
• Where to find Clients for your Art Therapy Practice
• 5 Essential Marketing Templates for your Therapy Practice
• Create A Sales Funnel for an Art Therapist
• Design a Simple Layout for Your Art Therapy Website Design
• How to Build an Email List for your Therapy Practice
• How to Create a Free Offer to Build Your Email List
• How to Create an Annual Social Media Plan in 60 mins
• How to Get Started With Google Analytics in 5 Easy Steps
• How to Plan Your Marketing Strategies
• Link List: Online Marketing Courses to Improve Your Marketing Skills
• Review of Free Social Media Schedulers
• The Best Marketing Methods for Art Therapists
• Tools for Organizing Your Social Media Content
• Understand the Marketing Cycle of Your Art Therapy Practice
• How to Establish Your Business Network
• Professional Networking for An Art Therapist
• 10 Useful Planning Tools for Your Business
• 10 Useful Tips to Use Evernote for Blogging
• How to Plan A Productive Year as a Therapist
• Planning Template for Your Art Therapy Practice
• Task Management Software For Art Therapy Planning
• Self-care for the Art Therapist
• Using Art Therapy For Your Own Self-Care

———————— Need help with setting up your Therapy Practice admin policies and procedures? If you need help to set up your Therapy Practice business, we have an Admin Package in the store which contains a collection of essential business documents.

The Admin Package is available in 3 formats, including:

• Microsoft Word

You can read more about the packages in our store HERE . 

BUSINESS ADMIN

• Business Details
• Fee Schedule
• Cancellation Policy
• Refund Policy
• Disclaimers
• Terms of Use
• Privacy Policy
• Business Trackers
• Social Media Tips
• Business Admin Maintenance

BUSINESS DEVELOPMENT

• Business Goals
• Project Template

CLIENT ADMIN

• Client Intake Checklist
• Client Call Log
• Consent for Services
• Client Privacy Policy
• Authorisation to release information
• Social Media Policy

EMAIL & LETTER TEMPLATES

• Inquiry Reply
• Referral Request
• Reminder Late Payment
• Response for psychological report
• Response to subpoena

FREE DOWNLOAD: Free Download Sample Business Plan

SIGN UP below to download the FREE Sample Business Plan to help you create your own business plan for your art therapy practice.

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Rick Gawenda's Ascend Appetizer: A Budget Plan to Nourish Your Practice

Rick Gawenda is coming to Ascend to tell you why your clinic needs a therapy practice budget plan.

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There are many events and meetings that I (and other PT movers and shakers) look forward to each year, but the one that holds a special place in my heart is WebPT’s Ascend conference . If you can only attend one annual event, make it Ascend. I've enjoyed attending since its inception in 2014, and this year will be no different.

As with any conference I attend, I am often bombarded with questions about new regulations and billing conundrums. As I expect this trend to continue, I chose to speak this year on a topic I feel many small private practices are sorely lacking sound knowledge of budgeting and business finances. This may surprise some of you, but just over half of small businesses in the US use a budget , and based on conversations I have had in years past, I am willing to bet that number is even smaller for rehab therapy practices. So to get Ascend attendees—or any new private practice owners—ready for 2025 budgeting, here are five reasons why every private practice needs a therapy practice budget plan.

1. A therapy practice budget plan sets you up for success next year

Although most practice owners and managers didn’t get into private practice because they loved the business side of PT—it certainly wasn’t for the margins—the most successful private practice owners will tell you they couldn’t do it without creating a budget for the year ahead. Without a business budget, you have no way of preparing yourself or your staff for the upcoming year regardless of what headwinds (rate cuts anyone?) or tailwinds you encounter.

Better still, having a business budget for the upcoming year will empirically tell you what needs to be done for future business success, and what key performance indicators (KPIs) you need to track to ensure that success becomes a reality. Managing your business finances effectively, including budgeting, tracking expenses, and separating personal and business finances, is crucial. You can even level up your budget a bit more with a monthly or quarterly budget.

2. A budget plan clearly shows you where your money comes from

In the simplest of terms, determining your income-per-visit is a key metric that must be tracked and differentiated. Why? Well, in 2024, getting paid for rendering treatment to patients is a lot more complicated than just sending a superbill to the patient or insurance company. Play a game of “Eeny Meeny Miny Moe’’ and whichever commercial insurance company you land on is likely to have different rules and regulations from the rest, including payment-per-visit.

For example, one insurance company may pay for services based on the Current Procedural Terminology (CPT) codes that dictate units and the respective values of each treatment and intervention while other companies may only pay a flat rate per visit—regardless of the number of units and time you bill. Within each of these two distinct payment methods lies a great deal of uncertainty that you keep a metric for to accurately reflect what your actual cash flow is. (That’s not to exclude other forms of income-per-visit like cash pay offerings, direct-to-employer contracts, and more, that further complicate your cash flow picture.)

With a steady tab on your income-per-visit numbers, you should have a decent idea of how much money you will make in the coming year—and catch that tiger by its toe. But what good is that number if you don’t know where those funds are going after they’re received? Reviewing your bank statements to track and categorize expenses is crucial. This helps identify all expenditures, including forgotten ones, and deduce both regular and one-off costs for budgeting purposes.

3. A therapy practice budget helps you understand exactly where your money is going

Perhaps just as important—or the ying to income-per-visit’s yang—is the business metric cost-per-visit. How much money must you spend to be able to bill for one visit of physical therapy? This number is less influenced by insurance companies and more so reliant on the nuts and bolts of running your own private practice—and other expenses.

It is crucial to distinguish between personal expenses and business expenses when managing finances in a private practice. While individuals may be familiar with budgeting for personal expenses, creating a business budget involves different considerations and essential costs that must be accounted for separately to ensure the practice's financial viability.

To start, the largest piece of overhead affecting your cost-per-visit is staff wages. Not only do you need to account for the treating therapists, but you also need to factor in front office staff, aides and technicians, and any other ancillary staff that do not have a direct treating role, but function as a part of your private practice.

On top of that, there are added insurance regulations where therapy assistants are paid less for their services compared to the licensed PT, OT, or SLP. But don’t stop there! You must still factor in how much an assistant costs vs the supervising therapist. If the assistant takes a $15 hit to payment— hello CO/CQ modifiers —but is $20 less in wages compared to the supervising therapist, having the assistant on staff can still make a good deal of financial sense.

Once these numbers are known you should also consider factors like utilities, malpractice insurance coverage, office space, and other expenses so you can collect on the income-per-visit noted above.

4. A budget plan set for the year gives you the best chance to attain financial goals

Once you have a budget for the next year set and ready to go, you should try to stick to it as best you can regardless of what happens in the future. Hopefully, you have a monthly or quarterly budget to use for short-term challenges like sudden staff shortages due to parental leaves, but even more, permanent staff losses should not change the KPIs you set forth for the coming year. 

Additionally, having a set budget will allow you to reset your table and see if a current or new insurance contract is a good one. When vetting different insurance contracts on whether or not what is offered is a good business decision for your practice, you need a budget to know where that specific red line is between earning money and listing money—not to mention the possible pros and cons of going in-network or out-of-network with a payer. For many years, PT private practices have been too complacent in accepting outright bad contracts from insurance payers and this is partly to blame for some of the extrinsic strains we see in staff turnover and wages today. By budgeting for next year and being a more astute practice owner, you will create an environment for business success while keeping your palate fresh for growth.

5. Bonus: Learn more at WebPT's Ascend 2024 in Chicago

Managing the budget and business expenses of a physical therapy practice is not easy, nor is it much easier to sit down and read for hours on end to get all the need-to-know facts about running said business. I find it much easier to soak up knowledge from my peers and other industry leaders when I can see them in person, hear them in person, and—most importantly—network with them in person. 

So, come see me—and other professionals in the rehab therapy industry—at Ascend in Chicago September 12-14 , and get more details on how to set your own private practice up for success in 2025 and beyond. The menu is full this year from private practice gurus tackling leadership development to innovative technology-infused presentations all curated for your long-term success. 

More Therapy Practice Tips and Tricks...

To hold your appetite over for therapy practice business tips, WebPT’s Intelligence Hub is a free resource to supplement your clinical expertise and business budgeting menu. The Medical Group Management Association (MGMA) is also a valuable resource for comparing budgets and utilizing industry benchmarks. From the simple start of opening and running a private practice to resources for your marketing efforts, WebPT is here to help you achieve therapy practice success, find more clients, and create the ideal private practice for you.

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