business plan for counseling center

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

Mental Health Private Practice Business Plan PDF Template

Courtney Gardner, MSW • 2024-01-24

Have your progress notes written for you automatically

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.

Let Mentalyc AI Write Your Progress Notes Fast

✅ HIPAA Compliant

✅ Insurance Compliant

✅ SOAP, DAP, EMDR, Intake notes and more

✅ Individual, Couple, Child, Family therapy types

✅ Template Builder

✅ Recording, Dictation, Text & Upload Inputs

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.

Take your time back! Get your progress notes done automatically.

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.

Stop Wasting Time on Notes. Get Back to What Matters Most.

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.

Have your progress notes automatically written for you!

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

See More Posts

5 Ways Mentalyc AI Can Improve The Profitability Of Your Practice

What is Assessment in Soap Note (How to Write it)?

Daily Living Activities - 20 (DLA-20)

Mentalyc Inc.

Copyright © 2021-2024 Mentalyc Inc. All rights reserved.

Meet the team

About our notes

Feature Request

Privacy Policy

Terms of Use

Business Associate Agreement

Contact Support

Affiliate program

Who we serve

Psychotherapists

Group practice owners

Pre-licensed Clinicians

Become a writer

Help articles

Client consent template

How to upload a session recording to Mentalyc

How to record sessions on Windows? (For online sessions)

How to record sessions on MacBook? (For online sessions)

Popular Blogs

Why a progress note is called a progress note

The best note-taking software for therapists

Writing therapy notes for insurance

How to keep psychotherapy notes compliant in a HIPAA-compliant manner

The best Mental health progress note generator - Mentalyc

How to Start a Counseling Center

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

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

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

Start a counseling center by following these 10 steps:

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

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

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

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

What will you name your business?

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

How much can you charge customers?

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

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

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

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

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

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

Want some help naming your counseling center?

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

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

What are the ongoing expenses for a counseling center?

Owners should budget in the following expenses:

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

Who is the target market?

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

How does a counseling center make money?

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

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

How much profit can a counseling center make?

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

How can you make your business more profitable?

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

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

STEP 2: Form a legal entity

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

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

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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

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

STEP 3: Register for taxes

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

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

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

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

STEP 4: Open a business bank account & credit card

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

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

Open a business bank account

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

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

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

Get a business credit card

Getting a business credit card helps you:

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

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

STEP 5: Set up business accounting

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

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

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

State & Local Business Licensing Requirements

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

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

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

Certificate of Occupancy

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

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

STEP 7: Get business insurance

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

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

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

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

STEP 8: Define your brand

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

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

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

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

How to promote & market a counseling center

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

How to keep customers coming back

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

STEP 9: Create your business website

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

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

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

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

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

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

STEP 10: Set up your business phone system

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

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

Recommended Business Phone Service: Phone.com

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

Is this Business Right For You?

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

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

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a counseling center?

A typical day for an owner will involve the following:

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

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

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

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

What is the growth potential for a counseling center?

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

TRUiC's YouTube Channel

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

Take the Next Step

Find a business mentor.

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

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

Learn from other business owners

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

Resources to Help Women in Business

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

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

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

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

How and when to build a team

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

Useful Links

Industry opportunities.

• American Counseling Association
• American Mental Health Counselors Association

Real World Examples

• Crossroads Counseling
• Oakland Hills Counseling
• ACAS Counseling

Further Reading

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

Have a Question? Leave a Comment!

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customers Success Stories

Business Plan Course

Small Business Tools

Strategic Canvas Templates

E-books, Guides & More

• Sample Business Plans
• Medical & Health Care

Counseling Private Practice Business Plan

Free Business Plan Template

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

• Fill in the blanks – Outline
• Financial Tables

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:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Counseling services:.

Highlight the counseling practice services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

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:

Business Description:

Describe your business in this section by providing all the basic information:

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.

Mission Statement:

Business history:.

If you’re an established counseling practice service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

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.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

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

Market size and growth potential

Competitive analysis:, market 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:

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:

Describe your cuisines:

Mention the counseling private practice services your business will offer. This list may include services like,

• Assessment and evaluation
• Individual therapy
• Couples therapy
• Family therapy
• Group therapy
• Psychoeducation
• Crisis intervention
• Consultation and workshops

Additional services:

Customized approach, expertise or specialization:.

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:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

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.

Pricing Strategy

Marketing strategies:, sales strategies:, customer retention:.

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:

Operational process:, equipment & software:.

Include the list of equipment and software required for counseling private practice, such as furniture, therapeutic tools, teletherapy tools, 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:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

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:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

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 .

Related Posts

Medical Practice Business Plan

Wellness center Business Plan

Free Business Plan Templates

Best Business Plan AI Generators

Basic Components of a Business Plan

Steps for Creating Business Plan

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

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?

Visit us on Facebook , Twitter , LinkedIn

Related Resources

How to Create a Mental Health Counseling Business Plan for Your Practice

Last Updated: July 29, 2022

If you plan on opening a private practice, you must create a comprehensive business plan that maps your road to success. A solid business plan can make all the difference in whether your mental health private practice succeeds. But what is a business plan, why is it important and how do you create a mental health counseling business plan? Below, we’ll discuss everything you need to know to develop a winning business plan for your counseling private practice.

What Is a Business Plan?

A business plan is a road map for getting your counseling private practice off the ground and helping it grow over a five-year period. Business plans should detail your goals and the strategies for reaching them. For a private practice, these strategies should include marketing to your target audience and building trust in clients or the community.

Why is it Important to Have a Mental Health Counseling Business Plan for Your Practice?

You wouldn’t try to reach a faraway destination you’d never been to before without directions. In the same sense, you shouldn’t try to build a counseling private practice without a detailed business plan. At its core, a business plan answers the most critical questions about your company — the why, what, who and how of how you’ll do business moving forward.

Creating Your Business Plan

Creating your private practice business plan requires research and consideration. While you’re doing market research and business planning, ask yourself these basic but crucial questions:

• Why are you starting your therapy practice?
• How will you do business?
• How will you market your business?
• What are the business goals of your therapy practice?

Why Are You Starting Your Therapy Practice?

Answering why you’re starting your private practice can help you develop your mission statement, a brief customer-facing statement about why you’re doing what you do. For example, are you creating your private practice to support a specific group of people? Will you be employing mental health professionals who treat certain things? What do you most want potential clients to know?

Developing a mission statement is a great way to begin your private practice business plan. You can use your forward-facing statement to align all future planning efforts.

How Will You Do Business?

There are many ways to run a counseling private practice. Consider whether you’ll offer telehealth services or require people to attend in-person sessions. Where do you plan on setting up your physical counseling private practice? You should also consider whether you’ll remain in a single location or plan on expanding into other areas.

What types of counseling will you offer? For example, you could provide individual or family counseling. You might focus solely on counseling clients or keep a psychiatric professional on staff to help diagnose and manage more serious mental health issues.

You should also ask yourself the following questions:

• Will you accept insurance? If yes, what insurance plans do you hope to take?
• Where is your ideal location?
• What is your financial plan? In other words, how do you intend to create a reliable cash flow for your business?
• What is your company vision?
• What is your growth plan? How and when do you plan to expand your employees, services or locations?
• What age groups do you plan to serve initially and moving forward? Will you provide child-oriented counseling or focus solely on adults?
• How will you go about developing a treatment plan for your clients? Will you incorporate a holistic approach, medications or traditional talk therapy? Something else?

How Will You Market Your Business?

A solid mental health marketing plan is crucial to the success of your private practice business. Potential clients won’t even know you exist without a robust, targeted marketing plan. To create a marketing plan, you’ll need to figure out who your audience is, where they are and why they need your small business.

For counseling private practices, your audience is most likely people in your area who need counselors or mental health professionals. Generally, local marketing tactics will work best, but this isn’t always the case. For example, if you decide to offer mental telehealth services, your potential clients could be located anywhere.

Is there a specific age range that will need your services most? What gender identity are most of your potential patients? What’s unique about the therapists you employ?

To answer these questions, you should perform a detailed industry analysis to see what is or isn’t working for businesses like yours. Consider the potential return on investment versus the cost for each marketing method. Local print marketing materials might work well, as can word of mouth. Social media marketing is generally a cost-effective method, as is content marketing (like running a blog on your website), although both take quite a bit of effort.

There’s no single way to market your business, so you should find the way that works best for you. However, using search engine optimization (SEO) alongside other marketing strategies generally works for every business, regardless of industry or sector.

What Are the Business Goals of Your Therapy Practice?

What objectives do you hope to achieve in the first year after opening your doors? How about in the first five years? Having well-defined business goals is crucial because it gives your company something to strive towards and helps measure the success of your practice. Although your initial business plan should focus primarily on the first five years, you may want to briefly mention any long-term goals you hope to achieve.

Lead to Recovery Is Here to Help

If you need help marketing your counseling private practice, Lead to Recovery is here to help. We are the best treatment center marketing agency and we are dedicated in helping you reach your business goals. Contact us today at (855) 876-7238 or fill out our online contact form for a free SEO consultation that can determine how to drive quality traffic to your website quickly.

Reviewed by:

Matthew Travers Rehab Marketing Expert

Your Website is Costing You Admissions

Find out how many admissions your website SHOULD be getting through our Traffic Projection Analysis .

YOU OPENED A TREATMENT CENTER. NOW WHAT?

Download the definitive marketing guide to full admissions.

Perhaps you’re just opening up a new center and looking to establish your brand identity. Or maybe you have an established center and are looking for a comprehensive way to promote your facility.

Lead to Recovery

Proud members of.

Copyright © Lead To Recovery   |    All Rights Reserved    |    1333 S Ocean Blvd, Pompano Beach, FL 33062, USA      |    855-876-7238      |      Contact       |      Privacy

Copyright © Lead To Recovery 

All Rights Reserved

1333 S Ocean Blvd, Pompano Beach, FL 33062, USA

855-876-7238

How to Open a Counseling Private Practice

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

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

Download our Ultimate Business Plan Template here

15 Steps To Open a Counseling Private Practice :

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

1. Choose the Name for Your Counseling Private Practice

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

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

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

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

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

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

3. Develop Your Counseling Private Practice Business Plan

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

Your business plan should include the following sections:

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

Finish Your Business Plan Today!

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

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

Below are the five most common legal structures:

1) Sole proprietorship

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

2) Partnerships

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

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

3) Limited Liability Company (LLC)

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

4) C Corporation

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

5) S Corporation

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

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

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

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

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

6. Secure a Location for Your Business

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

To find the right space, consider:

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

7. Register Your Counseling Private Practice with the IRS

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

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

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

8. Open a Business Bank Account

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

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

9. Get a Business Credit Card

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

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

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

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

10. Get the Required Business Licenses and Permits

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

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

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

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

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

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

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

11. Get Business Insurance for Your Counseling Private Practice

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

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

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

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

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

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

12. Buy or Lease the Right Counseling Private Practice Equipment

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

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

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

13. Develop Your Counseling Private Practice Marketing Materials

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

The key marketing materials you will need are as follows:

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

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

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

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

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

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

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

15. Open for Business

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

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

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

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

How to Open a Counseling Private Practice FAQs

Is it hard to open a counseling private practice.

Counseling private practice can be a very rewarding career path. 

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

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

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

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

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

What type of counseling private practice is most profitable?

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

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

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

What are the ongoing expenses for a counseling private practice?

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

How does a counseling private practice make money?

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

Is owning a counseling private practice profitable?

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

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

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

Why do counseling private practices fail?

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

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

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

Who are key players in the counseling private practice market?

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

Some of the key players in the market include:

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

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

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

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

However, some common counseling private practice fees include:

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

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

Other Helpful Business Plan Articles & Templates

• Business Plans Handbook
• Business Plans - Volume 09
• Counseling Center Business Plan

Counseling Center

BUSINESS PLAN     JUNIPER COUNSELING CENTER (JCC)

1600 West Main Street Ann Arbor, Michigan 48106

The Juniper Counseling Center (JCC) is a mental and health counseling/education center focusing on teen mothers, troubled children/youth, and senior citizens with mental/health issues. The business plan was developed for the purpose of a start-up business loan in the amount of $20,935.

EXECUTIVE SUMMARY

Company summary, market analysis summary, strategy & implementation summary, management summary, financial plan.

The Juniper Counseling Center (JCC) is a mental and health counseling/education center focusing on teen mothers, troubled children/youth, and senior citizens with mental/health issues. JCC is located at 1600 West Main Street in Ann Arbor, Michigan. The business plan was developed for the purpose of a start-up business loan in the amount of $20,935. The total amount needed to open JCC is $26,935. The owner's investment is $6,000.

Our projected sales for 2002 is over $290,000 and our first year projected net profits are well over $40,000.

Juniper's keys to success include: marketing, service quality, growth potential, implementing an effective cash flow plan, achieving efficiency, running our counseling center professionally, and maintaining a serious business discipline in everything we do.

Mental and health counseling and educational training services, as shown in our plan, have an excellent profitability level and growth rate. Our competitive edge along with new counseling techniques put JCC in the forefront of counseling and educational services. We are living in an age where new techniques for mental and health counseling are in great demand. Our center will differ from the traditional counseling services because of our added personal touch.

Our objectives are to:

• Provide counseling to individuals, couples, and families.
• Provide various therapeutic group sessions (i.e., bereavement, divorce, teen parenting, senior citizens' health issues, troubled children/youth).
• Provide health prevention and maintenance groups.
• Provide various disease-focused therapeutic groups.

JCC's mission is to empower disadvantaged and disenfranchised individuals, families, and youths to take control of their destiny and function productively by providing them with the necessary skills to realize their dreams, through counseling, education, social skills training, motivation, and participating in the treatment of abnormal behaviors to become successful.

Keys to Success

JCC's cash flow plan is to:

• Maintain enough money on hand each month to pay the cash obligations the following month.
• Identify and eliminate deficiencies or surpluses in cash.
• Alter business financial plans to provide more cash if deficiencies are found.
• Invest any revealed excess cash in an accessible, interest-bearing, low-risk account such as a savings account or short-term CD or T-bill.
• Clearly understand the mental health education market and competition while continually adjusting accordingly.
• Keep enough cash, as needed cushion for security, on hand to cover expenses.
• Reduce accountant expenses by producing our own summary statistics and projections via accounting software Therapist Helper.

Our vision is to move Washtenaw County's disenfranchised population to a condition of empowerment and self-determination, by enabling them to employ innovative strategies to produce desirable actions that lead to healthy results. JCC is dedicated to the community it serves. Through seminars, therapeutic groups, individual, couples, and family counseling, the center strives to raise public awareness to the needs of at-risk residents within our community. Services are designed to strengthen and increase self-esteem, self-respect, and respect for others in society, promote health, and to address issues relating to improving the quality of their lives.

Company Ownership

The founder and owner is Rolanda K. Walker, R.N., MSW, Ph.D. It is a privately owned corporation.

Company Location and Facilities

JCC will be located at 1600 West Main Street, Ann Arbor, Michigan.

Business Operations

The process of the JCC business operations is as follows:

• Counseling hours will be 9:00 A.M. until 5:00 P.M., Monday through Friday with flexible weekend and evening hours.
• Clients will come for services via physicians and school referrals, court orders, and by word-of-mouth. Per request, some clients with special needs will receive home visits.
• A client's first visit will be called in to the client's insurance company for approval of services.
• The client must have prior permission from the insurance company before they can receive services.
• On the day of the initial in-take, the client is assessed and a treatment plan is sent to the insurance company.
• The insurance will return payment for services in about 14 days.

Start-up Summary

Our total start-up costs are $26,935, which is mostly for furniture, equipment, working capital, and expenses associated with opening our first office. Direct owner investment will be $6,000. JCC will seek a commercial loan for the remaining $20,935 needed to start up the business. The assumptions are shown in the following table.

Services offered include education, training, and counseling to empower and implement a change in a person's behavior and thinking.

JCC will also provide the following services to individuals, families, couples, and youth:

• Violence/Conflict Resolutions
• Positive growth
• Bereavement
• Families in Crisis
• Grandparents Parenting
• Teen Parenting
• Relationship Problems
• Out-of-Control children and teen youths
• Health Services Utilization
• Alcohol/Substance Abuse
• Employment Difficulties
• Home Visits Available

JCC will be focusing on providing education and counseling services to teen mothers, out-of-control children/youth, individuals with mental health disorders, and senior citizens with mental and health issues.

• According to the National Campaign to Prevent Teen Pregnancy 1996 Michigan Report, a total of 29,840 15 to 19-year-olds gave birth.
• About 20 percent of U.S. children and adolescents (15 million), ages 9 to 17, have diagnosable psychiatric disorders (MECA, 1996, the Surgeon General, 1999)
• Chronic disease, memory impairment, and depressive symptoms affect large numbers of older people, and the risk of such problems often increases with age. In 1995, almost 60 percent of people age 70 and older report having arthritis, up slightly from the proportion reporting arthritis in 1984. The prevalence of arthritis and other chronic diseases, such as hypertension, heart disease, cancer, diabetes, and stroke are also reported, and vary by race and ethnicity. Increases in memory impairment and depressive symptoms occur with advancing age: one third or more of men and women age 85 and older have moderate or severe memory impairment and 23 percent of this group experience severe depressive symptoms.

Target Market Segment Strategy

The U.S Census Bureau County Population report of 1998 states that there are approximately 436,084 people living in Washtenaw County. Any of these individuals is a possible client for JCC.

JCC knows we cannot survive just waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offering. Focusing on targeted segments is the key to our future. Therefore, we will focus our marketing message and our service offerings. We will develop our message, communicate it to our referral partners, and make good on it.

Teen Mothers

Nearly one million teen girls get pregnant each year. More than four out of 10 young women get pregnant at least once before they turn 20. Each year the federal government alone spends about $40 billion to help families that began with a teenage birth.

In Michigan, 11,350 15 to 17-year-olds gave birth, and 18,490 18 to 19-year-olds gave birth. Michigan ranks 24 (Rank of 1=largest decrease) for teen pregnancy rate with 87 pregnancies per 1,000 girls. Teen pregnancies were down in all age groups ranging from girls aged 14 and younger to girls aged 15 to 19-year-olds. Twenty-two percent of births in Michigan are to teens who have already had a birth.

Hispanic/Latina girls were the highest in birth rates among different racial/ethnic groups with African Americans being the second highest and White (non-Hispanic) being the third highest. From 1991-1998 African American girls has had the highest decrease in births with a 35% decrease. White (non-Hispanic) came in second with a 22% decrease and Hispanic/Latina with a 3% decrease in births. Asian/Pacific Islanders had an increase of 7% in teen births. JCC will continue this fight against teen pregnancy through our educational and counseling programs for teens.

Troubled Children/Youth

On January 17, 2001 David Satcher, M.D., Surgeon General of the United States of America unveiled a compelling report on youth violence to the frontline caregivers of our nation. The report was commissioned after the now infamous 1999 Columbine event that focused America's attention on children's behavior and their sometimes inability to cope with stress. In the report, Dr. Satcher invites families, school personnel, and public health communities to take a proactive role in the prevention of youth violence. "This is no time to let down our guard on youth violence," said Dr. Satcher.

Dr. Satcher's public health perspective identifies behavioral, environmental, and biological factors associated with youth violence. The report goes on to encourage our nation to take steps in educating individuals, communities, and primary care physicians to protect themselves from these risks. Dr. Satcher's public health approach offers a practical, goal-oriented, and community-based strategy for promoting and maintaining health. "The most urgent need now is a national resolve to confront the problem of youth violence systematically using researchbased approaches and to correct damaging myths and stereotypes that interfere with the risk at hand," said Satcher.

According to the American Academy of Child and Adolescent Psychiatry (AACAP) the needs and voice of child and adolescent psychiatry have been buried under the sweeping forces of federal mandates and national medical organizations' consensus on the oversupply of specialists. They have failed to recognize the continuing critical shortage of child and adolescent psychiatrists. There is a danger of becoming marginalized when the profession cannot provide needed services and contribute to society. The serious undersupply of practitioners has resulted in children receiving inadequate care from mental health professionals who lack the necessary training.

Report of the Surgeon General's Conference on Children's Mental Health: A National Action Agenda released the following information on January 3, 2001. From this information a report was developed and is the culmination of nearly a year of significant activities that were launched with the March 22, 2000, White House Meeting on Children's Mental Health. The report emphasizes the magnitude of the problem facing us in the United States. One in 10 children and adolescents suffers from a mental illness severe enough to cause some level of impairment. The report also emphasizes that it is estimated that fewer than 1 in 5 of these children receive needed treatment in any given year.

As stated in the foreword to the report, "The burden of suffering experienced by children with mental health needs and their families has created a health crisis in this country. Growing numbers of children are suffering needlessly because their emotional, behavioral, and developmental needs are not being met…… It is time that we as a Nation took seriously the taskof preventing mental health problems and treating mental illnesses in youth."

Prevalence and Magnitude of Child and Adolescent Psychiatric Problems

• The Center for Mental Health Services (1998) estimated that 9 to 13 percent of U.S. children and adolescents, ages 9 to 17, meet the definition of "serious emotional disturbance" and 5 to 9 percent of U.S. children and adolescents, "extreme functional impairment."
• Only about 20 percent of emotionally disturbed children and adolescents receive some kind of mental health services (the Surgeon General, 1999), and only a small fraction of them receive evaluation and treatment by child and adolescent psychiatrists.
• The demand for the services of child and adolescent psychiatry is projected to increase by 100 percent by 2020. (U.S. Bureau of Health Professions, DHHS, 2000).
• The population of children and adolescents under age 18 is projected to grow by more than 40 percent in the next 50 years from the current 70 million to more than 100 million by 2050 (U.S. Bureau of the Census, 1999).

Senior Citizens Health Status

Older Americans are living longer and living better than ever before. But many of those age 65 and older face disability, chronic health conditions, or economic stress according to a new federal indicators report that describes the status of the nation's older population.

Population:

The number and proportion of older people in the U.S. population has grown and generally will continue to grow at a very rapid pace. Aging in the twenty-first century will be characterized by a steep rise in the population age 85 and older and increased racial and ethnic diversity.

• The number of older people in the U.S. has increased tenfold since 1900. Today, an estimated 35 million people, 13 percent of the population, are age 65 and older. By 2030, 20 percent of Americans, about 70 million, will have passed their sixty-fifth birthday. The population age 85 and above is currently the fastest-growing segment of the older population; its growth is particularly important for anticipating health care and assistance needs, because these individuals tend to be in poorer health and require more services than people below age 85.
• The racial and ethnic makeup of the U.S. is changing, and the older population is no exception. In 2000, an estimated 84 percent of the population age 65 and older is non-Hispanic white, 8 percent non-Hispanic black, 6 percent Hispanic, 2 percent non-Hispanic Asian and Pacific Islander, and less than 1 percent non-Hispanic American Indian and Alaska Native. By 2050, those proportions are projected to be substantially different: 64 percent of the older population is expected to be non-Hispanic white, 16 percent Hispanic, 12 percent non-Hispanic black, and 7 percent non-Hispanic Asian and Pacific Islander, with the non-Hispanic American Indian and Alaska Native populations remaining at less than 1 percent.
• Today's older Americans are better educated than their counterparts 50 years ago, a factor that can positively influence socioeconomic status and health. In 1998, a high school diploma was held by some 67 percent of older Americans, compared with just 18 percent in 1950. About 15 percent of older Americans had earned at least a bachelor's degree in 1998, increasing from 4 percent in 1950.

Health Status:

Older Americans are living longer and feeling better. An overwhelming majority rate their health as good or excellent. Men and women report comparable levels of well-being. Disability rates are declining as well. But large numbers of older people find their health threatened by memory impairments, depression, chronic conditions, and disability, especially at very advanced ages, which can substantially diminish quality of life.

• Americans born at the beginning of the twenty-first century are expected to live almost 30 years longer than those born at the turn of the twentieth century. In 1997, a newborn baby girl could expect to live 79 years and a boy 74 years, compared to 51 years for a girl and 48 years for a boy born in 1900. Life expectancy varies by race, however. The average life expectancy for a white baby born in 1997 was 6 years higher than for a black baby born in the same year.
• Despite the prevalence of illness or chronic conditions, the proportion of Medicare beneficiaries age 65 and older with a chronic disability was 21 percent in 1994, down from 24 percent in 1982. During this time period, the older population grew significantly, and the number of older people estimated to have functional limitations increased by 600,000. This was considerably fewer, however, than the 1.5 million increase projected had disability rates not declined.

Industry Analysis and Trends

Overall teen pregnancies have decreased but they are still too high. The overall U.S. teenage pregnancy rate declined 17 percent between 1990 and 1996 (the most recent year available), from 117 pregnancies per 1,000 women aged 15-19 to 97 per 1,000. The national teen birth rate declined 3 percent between 1998 and 1999, reaching a rate of 49.6 births per 1,000 women ages 15-19—the lowest rate ever recorded. Since 1991, the teen birth rate has declined 20 percent. Nearly one million teen girls get pregnant each year. More than four out of 10 young women get pregnant at least once before they turn 20. Each year the federal government alone spends about $40 billion to help families that began with a teenage birth. Yet, much work is needed to be done in order to keep teen pregnancy down, such as more educational and counseling programs.

About 20 percent of U.S. children and adolescents (15 million), ages 9 to 17, have diagnosable psychiatric disorders (MECA, 1996, the Surgeon General, 1999). "There is a dearth of child psychiatrists…… Furthermore, many barriers remain that prevent children, teenagers, and theirparents from seeking help from the small number of specially trained professionals…… Thisplaces a burden on pediatricians, family physicians, and other gatekeepers to identify children for referral and treatment decisions." (Mental Health: A Report of the Surgeon General, 1999). The population of children and adolescents under age 18 is projected to grow by more than 40 percent in the next 50 years from the current 70 million to more than 100 million by 2050 (U.S. Bureau of the Census, 1999).

The number of older people in the U.S. has increased tenfold since 1900. Today, an estimated 35 million people, 13 percent of the population, are age 65 and older. By 2030, 20 percent of Americans, about 70 million, will have passed their sixty-fifth birthday. The population age 85 and above is currently the fastest growing segment of the older population; its growth is particularly important for anticipating health care and assistance needs, because these individuals tend to be in poorer health and require more services than people below age 85.

The global population is aging at a rate unprecedented in history. In the U.S., the population age 65 and older is expected to double by 2030. The Forum developed the report "Older Americans 2000: Key Indicators of Well-Being" to regularly track trends as society and individuals look for ways to address the aging boom. Today's report, which brings together information from more than a dozen national data sources for the first time, will serve as a baseline for future updates.

Americans age 65 and older are an important and growing segment of our population. While many federal agencies provide data on this diverse population, it is sometimes difficult to understand how this group is faring. For the first time, the federal statistical system has come together to provide a unified picture of the overall health and well-being of older Americans. —Katherine K. Wallman, Chief Statistician, U.S. Office of Management and Budget

Competition

As a Registered Nurse and Health Psychologist, Rolanda K. Walker is equipped with advanced training and information about the interaction of psychological and medical conditions (or psychomedical disorders). This includes information about psychological difficulties that can be caused by medical conditions, as well as psychological factors which can complicate or delay recovery from medical conditions. This is the kind of expertise that will stimulate further thought about the assessment and treatment of patients with psychomedical disorders. This is the expertise that will give Juniper Counseling Center a cutting edge over their competition.

JCC will focus on servicing Washtenaw County and the surrounding areas. The three population segments will be individuals, families, and couples. The target customer is usually a person or persons with some type of behavioral dysfunction.

Competitive Edge

We start with a critical competitive edge: there is no competitor we know of that can claim anywhere near as much specific expertise on the problems and opportunities of psychological treatment as JCC. Our positioning on this point is very hard to match, so we must maintain our focus in our strategy, marketing and business development, and fulfillment. We should be aware that the tendency to dilute this expertise with more generalized counseling work could weaken the importance of our competitive edge.

Also, our potential competitor does not make home visits. Our staff is prepared to take our services to our clients. Older citizens many times are unable to leave their home for reasons such as lack of transportation, limited mobility, fear of driving, and issues of personal safety, to name a few. We will provide a holistic approach to total wellness by including intensive medical education pertaining to all medical diagnosis and treatments.

Price of Service

Prices will vary according to a person's insurance coverage and their ability to pay. Generally the cost of service averages about $75.00 per one-hour session. There will be one group session with 10 clients at $30 per client for the length of 52 weeks.

Sales Strategy

Sales in our business is client service. It is repeat business. One doesn't sell a session, one develops a treatment plan that works for the client.

We expect to see at least 15 clients per day. Dr. Walker will consult with 5 clients at an average of $75 per session, and each of her therapists will consult with 5 clients at an average of $75 per session. There will be at least one ongoing group session per week, averaging 10 clients at $30 per client, running for 52 weeks.

We expect to make enough money to expand the programs that Dr. Walker will implement in order to reach all disenfranchised individuals in the surrounding area.

Sales Forecast

We expect sales to increase as our staff and referral base increase. The following table gives a run-down on forecasted sales.

JCC's staff has an accumulated 75 years plus in the Health Care industry related to experience. All are well versed in the evolution of the Health Care industry and share a vision for the successful positioning of Juniper Counseling Center within the Health Care Industry.

Our professional staff come to you with many years of experience, compassion, sensitivity to cultural values which affect the treatment outcome, and a strong desire to make life the best that it can be for all of its citizens.

Our management team consists of founder Rolanda K. Walker (RN, MSW, ACSW, Ph.D.), who has worked in the Health Care arena for over 20 years as a Registered Nurse/Health Educator and Social Worker for the last 5 years. Dr. Walker is a graduate from Wayne State University as a Health Educator and is also graduate from University of Detroit Mercy's MSW program. She is currently finishing up her Ph.D in Health Psychology from the University of Michigan-Ann Arbor.

Our professional support team will consist of of three registered nurses who will provide health education through medical seminars, groups, and individual counseling.

Personnel Plan

The following table summarizes our personnel expenditures for the first three years. We believe this plan is a compromise between fairness and expedience and meets the commitment of our mission statement. A professional staff of three RNs, 3-4 Therapists, Office Manager, Billing Clerk, Payroll Manager, Accountant, and Cleaning Crew will be assembled. These individuals will provide health education through seminars, groups, and individual counseling.

All the therapists will be paid 50-50. This means that for all counseling services provided, the therapist will be paid one-half of the amount the insurance company pays. For example, if a insurance company pays $75.00 per session, the therapist will be paid $37.50 per session.

The financial plan is for rapid, but controlled growth. Initial capitalization is pegged at 150K with cash streaming in from referrals over a period of six months. We plan to increase our clientele and cashflow through networking.

Break-even Analysis

The following table summarizes our break-even analysis. With approximate fixed cost of $2000 per month at the outset (a bare minimum), we need to bill $4000 to cover our costs. We really don't expect to reach break-even until a few months into the business operation.

Projected Profit and Loss

Our projected profit and loss is shown in the following table, with a net sales of more than $40,000 the first year to more than $60,000 through the third, and profits almost negligible for the start-up phase of this business.

Detailed monthly projections are included in the appendices.

Projected Cash Flow

Cash flow projections are the most critical indicator of our business's success. Attainment of the targeted population participation will ensure the accumulation of required cash to execute the running of the organization. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.

Projected Balance Sheet

The balance sheet in the following chart shows managed but sufficient growth of net worth and a sufficiently healthy financial position. The monthly estimates are included in the appendices.

General Assumptions

Profit and Loss (Income Statement)

User Contributions:

Comment about this article, ask questions, or add new information about this topic:.

Start a Counseling Center

Becoming the Mental Gym Trainer: A Journey to Open a Sanctuary of Enlightenment and Healing

COUNSELING CENTER

Related business ideas, discover your perfect domain, counseling center mini business plan, expected percent margins:, earnings expectations:, actions to hit those numbers:, operations:, management of counselors:, marketing and client acquisition:, quality of service:, cost control:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a counseling center is the right business endeavor, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: naming the business, registering the business, creating a logo, designing a website, step 3: obtain necessary licenses and permits, apply for licenses and permits, obtain professional licenses, maintain licenses and permits, step 4: develop a business plan, outline goals and objectives, estimate startup costs, step 5: secure financing, consider small business loans, explore grants, step 6: find a suitable location, research local regulations, consider the space, look for amenities, step 7: hire employees, step 8: market the business, step 9: monitor business performance, explore more categories, take the next steps.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Psychological Health Center Business Plan

Start your own psychological health center business plan

Amesbury Psychological Center

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

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

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

The key to success for this turnkey project includes:

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

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

1.1 Objectives

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

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

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

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

1.2 Mission

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

1.3 Keys to Success

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

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

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

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

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

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

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

2.1 Company Ownership

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

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

2.2 Company Locations and Facilities

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

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

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

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

3.1 Service Description

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

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

3.2 Competitive Comparison

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

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

3.3 Sales Literature

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

3.4 Fulfillment

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

3.5 Future Services

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

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

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

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

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

4.1 Target Market Segment Strategy

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

4.1.1 Market Trends

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

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

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

4.1.2 Market Growth

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

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

4.1.3 Market Needs

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

4.2 Service Business Analysis

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

4.2.1 Main Competitors

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

Not-for-Profit Facility

1. North Essex Mental Health Center

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

a. Strengths:

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

b. Weaknesses:

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

d. Strategies To Thwart Competition:

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

2. Arbour/HRI Counseling

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

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

c. Potential Impact of Strengths:

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

d. Strategies to Thwart Competition:

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

3. Harris Street Associates

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

4. Harborside Psychological Center

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

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

4.3 Market Segmentation

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

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

Strategy and Implementation Summary

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

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

5.1 Sales Strategy

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

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

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

5.1.1 Sales Forecast

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

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

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

5.2 Value Proposition

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

5.3 Competitive Edge

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

5.4 Marketing Strategy

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

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

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

5.4.1 Promotion Strategy

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

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

5.4.2 Positioning Statement

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

5.4.3 Pricing Strategy

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

5.5 Strategic Alliances

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

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

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

6.1 Organizational Structure

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

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

6.2 Management Team

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

**Names have been removed for confidentiality

6.3 Management Team Gaps

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

6.4 Personnel Plan

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

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

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

Financial Plan investor-ready personnel plan .">

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

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

7.1 Important Assumptions

There are several assumptions related to this turn key project.

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

The following table summarizes the general financial assumptions.

7.2 Key Financial Indicators

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

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

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

7.3 Break-even Analysis

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

7.4 Projected Profit and Loss

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

7.5 Projected Cash Flow

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

7.6 Projected Balance Sheet

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

7.7 Business Ratios

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

Tax Season Savings

Get 40% off LivePlan

The #1 rated business plan software

Discover the world’s #1 plan building software

• Our Offerings
• Rave Reviews

How To Develop A Private Practice Business Plan

• May 30, 2022
• Becky DeGrossa

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

One of the things I took away from his presentation was to be successful, you need to be prepared, and you need to have a plan.

As the owner of a small business myself, I know that having a solid plan in place has been a vital aspect of CounselingWise’s growth and success. I’ve found that having a plan is what drives a business forward to achieve its goals . Without a plan, as Howard mentions, you are less successful.

During the webinar, Howard talked about the 11 different parts (or “modules”) of a business plan . Each part is equally important and pieces together an organized view of any business. Today, I am going to highlight five parts of Howard’s business plan. To learn about the other six (equally as important) parts, be sure to check out the webinar replay here .

Before we dive into the different parts of a successful business plan, I want to lead you with something to think about. During the webinar, Howard advised, “ Think about your business plan as a matter of survival in your professional life . It’s an opportunity for you to really organize yourself and appraise what is going on in your business.”

5 Key Parts of a Successful Business Plan

1. the four c’s of your vision.

If you are familiar with the SWOT technique (a planning method use to evaluate your strengths, weaknesses, opportunities, and threats), then the 4 C’s will be something you relate to . 

Because he didn’t want to focus on a person’s weaknesses or threats, Howard viewed this planning method through a different colored lens.

The 4 C’s stand for:

• What Are Your Capabilities? (your strengths)
• What Are Your Challenges? (your weaknesses)
• What Are Your Chances? (opportunities)
• What Are Your Concerns? (threats)

This piece of the counseling business plan is key to evaluating your practice from a personal and professional level. 

Take out a pen and paper and jot down all of the above as they apply to you.  Get a piece of paper and breaking it into four columns. In each column, write down your professional and personal capabilities, challenges, chances and concerns. One thing to keep in mind—it’s okay to have the same thing in multiple categories.

By having your capabilities, challenges, chances, and concerns outlined on paper, you can better plan for the future of your practice and your personal life .

It forces you to take what’s kind of hazy and abstract in your head and makes it a tangible reality. That way then you know where you stand and how to move forward with your vision for your practice. 

2. Your Mission Statement

The next part of the private practice counseling business plan I want to highlight is your mission statement. In Howard’s presentation, he said to ask yourself… 

“What is my purpose? What was I born to do? What do I really want to do? How do I want to affect the populations I am working with? What am I empowered to do?”

By answering the above questions, and really digging down into the meat of the reason you get up every morning , you will develop a wholehearted mission statement for your practice.

But what does developing a mission statement look like in practice? 

For his therapy practice, Howard’s mission statement is, “ Build something new in order to change something old in order to grow .”

One thing to keep in mind when writing your own mission statement… 

Make sure you are writing the statement in lay terms , and not professional/clinical terms. Try to stay away from words like “depression,” “anxiety,” etc. You are writing this not only for yourself, but also for your clients.

3. Your Services

This is the who , what , when , where and why of your services as a private practitioner. 

This part of the private practice business plan is key to giving you the clarity you need in terms of the services you provide , and the services you may want to offer in the future.

• Who? Who are you working with? Who are the populations you treat? Do you work with couples, adults, children (what age children?), teens? What kind of couples do you work with? For example: high conflict, couples about to get married, etc. Really dig deep into the “who” of your services to determine what clients you have and what clients you want.
• What? What are the issues you want to focus on? If the “who” is couples, what type of couples issues do you want to work with? Howard’s example was that he likes to work with couples that have a high degree of conflict and are tired of fighting with each other.
• When? When are you providing your services? When you are first starting out, as Howard mentioned, it could be Fridays and Saturday mornings. When you build your practice more, you can shift your hours more and more. Determine when you want to practice and include it in your plan.
• Where? Where do you want to practice? Maybe you want to do a day in a doctor’s office. Maybe you want to offer therapy out in the community, or in the wilderness. Think creatively about where you want to practice. It will maximize the benefits of your services.
• Why? For the why, you will want to see your mission statement. The why is all about your passion and purpose.
• How? How do you treat your patients? This is all about your treatment intervention style (EFT, mind-body-connection, EMDR, etc). What are your technique leanings?

This part of the plan is powerful. It helps move you in terms of defining yourself and who you are. You will also draw from this part as your quick “this is what I do.”

As you are completing this part of your business plan, keep in mind that you will probably have three or four different sub-sections under each of these .

Answer each question for each service you offer or want to offer. Eventually, this will all be useful information that you’ll want to include on your website. 

If you’re thinking ahead and want to use this exercise to generate content for your website, check out how to write informative specialty pages .

4. Personal Growth

To grow professionally, it’s important to take care of yourself so you can grow personally. 

In order to have a healthy work-life balance, you will want to focus on 4 main areas :

• Nutrition: Are you eating a healthy, well-balanced diet?
• Sleep: Are you getting enough sleep?
• Exercise: Are you moving your body?
• Spirituality: Are you expressing yourself spiritually? This could look like anything, such as a religious practices, time in nature, yoga , etc.

Think of things that are important to you on a personal level and write them down. Personal growth is a key piece of your business plan.

Because if you don’t grow yourself, how can you expect to grow your private practice? It all works in concert, together. 

5. Administration

The Administration part of the private practice business plan can be hard, especially if you are used to being a one-person show. 

And  if you think you can run the show without any professional support throughout your entire career, you will be spread very thin .

As part of your counseling business plan, you need to create an administration plan to ensure you have the support you need to build a successful practice—and keep your sanity. 

Think about the people who you currently have supporting your practice professionally. Then think about the people you may want to include in your group of practice professional support.

Naturally, some people may not be ready for this, so think about this part of your private practice counseling business plan when you are ready. 

You know you’re ready when you say to yourself, “I am getting really sick and tired of doing this admin task, and I am now in a place where I can afford to hire someone to do it for me.”

By getting support, you free up emotional space so you can pursue things that drive your interests and passions . This is a vital piece to your professional growth.

Administrative support includes but is not limited to… 

• a medical biller (if you accept insurance),
• a bookkeeper,
• an accountant for tax purposes,
• a financial manager/adviser,
• an investment banker,
• a corporate attorney,
• an insurance agent,
• a commercial real estate broker (rent or buy)
• and a virtual/actual assistant.

Each part of the counseling business plan that I discussed today is vital to a successful practice. Your business plan, however, really isn’t complete without the remaining six. To learn about all 11 parts, and to learn more from Howard about a successful business plan, watch the webinar replay here .

You can also download the Business Plan Template here .

One last tip : Don’t just write your plan and forget about it. Howard recommends going back every six or so months to revisit the plan and stick to your goals.

You can also watch my interview with Howard Baumgarten, founder of Smart Practice Central, below. 

Enjoy the replay!

How To Conduct Teletherapy For Kids

Teletherapy has introduced unique challenges, especially when it comes to younger clients so that it’s important to ensure your telehealth sessions are engaging, with clear communication and a calm atmosphere. Below, we consider some of the necessary steps for creating effective teletherapy for kids. Discuss The Camera Set Up Make sure the child is in

Why The New Google Analytics May Show Less Data

Over the Summer of 2023, Google Analytics updated to its latest version, called Google Analytics 4 (or UA4). Not only has the rollout changed the layout of Google Analytics but it’s also changed the way Google Analytics collects data. You may have noticed changes to your own Google Analytics data for your Private Practice website. 

The Top Therapist Directories (Pros, Cons, and Costs to List Your Practice)

You’ve heard of therapist directories. Maybe you even discussed the effectiveness of getting listings and which ones to use and avoid with your professional colleagues. So, is investing your time in therapist directories like Psychology Today or Good Therapy worthwhile?

What High Ranking Blog Posts Do For Your Site

As part of a ranking strategy Private Practice owners should utilize blog posts for their website. Why? Because blogs are a necessary component of a smart SEO strategy if practices are going to connect with their potential clients through Google. Blogs are one of the most proactive means by which Private Practices can increase their

Counseling Private Practice Business Plan Template [Updated 2024]

Counseling Private Practice Business Plan Template

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

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

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

Sample Business Plan for a Counseling Private Practice

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

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

Comments are closed.

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

Counseling Private Practice Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2C Sector

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

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

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

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

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

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

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

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

A Sample Counseling Private Practice Business Plan Template

1. industry overview.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

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

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

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

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

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

3. Our Products and Services

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

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

Our service offerings are listed below;

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

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

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

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

Office Administrator

• Marketing Executives

Client Service Executive

5. Job Roles and Responsibilities

Principal Partner / Chief Executive Officer:

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

Psychologist, Social Worker and Marriage Counselor

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

Marketing Executive

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

6. SWOT Analysis

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

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

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

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

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

• Opportunities:

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

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

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

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

7. MARKET ANALYSIS

• Market Trends

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

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

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

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

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

8. Our Target Market

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

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

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

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

Our competitive advantage

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

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

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

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

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

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

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

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

10. Sales Forecast

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

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

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

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

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

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

• Marketing Strategy and Sales Strategy

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

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

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

12. Our Pricing Strategy

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

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

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

• Payment Options

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

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

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

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

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

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

Check List / Milestone

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

Related Posts:

• Pressure Washing Business Plan [Sample Template]
• Personal Concierge Business Plan [Sample Template]
• Digital Print Shop Business Plan [Sample Template]
• Wedding Planning Business Plan [Sample Template]
• Freelance Paralegal Business Plan [Sample Template]

This Business of Therapy

Private practice counselling business plan.

About to start a counselling private practice? And looking for an easy-to-follow guide on writing a business plan that works? Our private practice counselling business plan template is for you!

But before getting into the specifics let’s first first address 2 key questions…

Quite literally, it’s a plan for your business, your therapy business.

Each practice is as individual as the therapist it supports, and that’s what a business plan is, a support for you as you step into the shoes of being a self-employed professional.

It’s also a structure to help you to clarify what you want and a guide of how you are going to go about it as a new private counsellor.

How my counselling business could benefit from it?

A business plan will help you:

• Analyse the environment in which your practice is going to be established
• Identify which areas in counselling are in high demand
• Establish what services you would be offering
• Differentiate you from competing private counsellors
• Set up your financial goals
• Create a marketing plan for your counselling business
• Stay accountable to your business goals and aspirations

And with the basics out of the way let’s get straight into our template…

1. Profession Overview: Environment, Trends & Competition Analysis

The first piece of a counselling business plan is often looking at the environment in which the practice is going to be established. So ask yourself, what is going on in the therapy profession as you set out to create your counselling practice, and what is likely to be the impact of that on your plans? You might consider for example:

• Client Issues currently in the news
• Trends in the structure of practices (eg sole practitioner vs group practice)
• Employee Assistance Programs and Health Insurers
• VAT and Income tax issues

Ask questions, read the journals of the professional bodies, attend meetings where these issues are discussed. Learn about the business aspects of the profession you are planning to make your own.

Look around at your colleagues who are already in practice. Speak to your own therapist and supervisor. What are they doing that you like and dislike? Can you learn from their successes and their failures? How have they rooted into the community in which they are based? If you find these ideas difficult to engage with, consider doing some market research.

We none of us exist in isolation. No man is an island, as the saying goes. The environment in which we practice will influence and shape our practice.

So, a city practice will differ from a country one. Clients in the city may care less about privacy and more about proximity to a bus stop. Clients in the country may not want to see someone who they will later meet in the supermarket, and so may choose to visit a therapist in the next town. The issues a city client brings will differ from those of a country town, which will differ again from a practice in the suburbs.  Where are you planning to locate your practice, and what are the unique challenges and strengths of that location and its inhabitants?

You can read more about creating a business plan for your practice, and lots of other advice about finding your way through the maze of starting a private practice in “This Business of Therapy: A Practical Guide to Starting, Developing and Sustaining a Therapy Practice.”

2. Market Positioning: Establish Your Place in the Profession

Having got an overview of the profession and started to form an idea of the bigger picture, how do you see yourself fitting in with the broader environment you explored in the previous section?  Are there any opportunities that offer themselves and which might help you in setting up your own unique counselling business?

Begin to form an idea of the client you would like to work with. This is a step often missed. Think of a client you have loved to work with. What was it about them that appealed to you? Was it the issue they brought? Their personality? Their willingness to engage in the work? Their understanding of their process? Do you like working with women or men, young people or old, wealthy or financially strapped? Do you like parents or adolescents or couples?

Try to get as specific as you can. Bear in mind this doesn’t restrict who you work with, it helps you to create a better understanding of what suits you best.

• Do you know who you would like to serve? What issues draw you?
• Who is an ideal customer for you? What are their struggles and their aspirations?
• What will differentiate you from a neighbouring colleague?
• What will differentiate you from a practitioner of other modalities?
• What is special about what you have to offer?

If you are struggling to know how your therapy practice might be unique and different from your colleagues’, read more about “The Second Pillar: Knowing Your Practice,” in my book, “This Business of Therapy: A Practical Guide to Starting, Developing and Sustaining a Therapy Practice.”

3. How to Write a Counselling Service Description That Attracts Clients

All therapists have similar basic qualifications and offer similar services. But while yours and my services may appear to be similar, they are unique. Try to get a feel for the unique shape, colour and texture of your practice. How do you see yourself offering services to clients? What will those services be? How will they be structured? How do you describe what you do? What benefits will your work bring to those who you work with?

For example, you may offer your counselling sessions online, or I may visit a client’s home. You may offer a fixed term contract or have views about endings. You may feel strongly about anonymity while I may feel strongly about time boundaries. I may have experience of working with anxiety or of loss and bereavement. You may like to sit on the floor or offer your client a glass of water or a cup of tea. I may like to offer playdoh or crayons. I may wish my clients to find forgiveness for themselves and others in their lives, and you may wish them to stand up for themselves or find their voice. My own personal experiences of life will influence the therapy I offer to my clients, and so will yours.

In this context, it is important not to focus too much on your counselling qualifications. You can do the job, that is a given as far as most clients are concerned. What they want to know is that you are interested in their problems, and that you hold the hope of something better for them in the future. The 80/20 rule is helpful here. 80% of what you say about your practice should be about your clients, and 20% or less about you.

4. Private Practice Counselling Business Marketing Plan

Having a plan for how to market and attract clients to your counselling practice  is an essential, unless, like I said above, you don’t care whether you get clients or not, and you don’t care about wasting time, money and effort on marketing to people who will never be clients.

A marketing plan is important to take you out of the ideas you have into the reality of taking action. Despite what the Law of Attraction proponents might suggest, a client cannot find you unless you can be seen and heard. A marketing plan sets out how you are going to be seen and heard. Your marketing plan should address the following questions:

• How do clients find you, where do they come from? (Note, if you haven’t formed an idea of who your client is likely to be, this step will be difficult for you!)
• When they first make contact, what is your aim for that first meeting?
• Do those people who make contact and who are suitable as clients for you stay as clients? If not, why not? What could you do differently to encourage them?
• Will your clients recommend you? If not, why not? What could you do differently to encourage them?
• How can you increase your income?

Be as specific as you can here. For example, if you are expecting clients to come through GPs, be clear about which GPs you are going to target and why. If the client you are hoping to attract experiences depression, research which GPs support an holistic approach to depression, and recommend counselling or psychotherapy as part of their treatment plan.

Because your aim when first speaking to a potential client is to find out whether you might be a good fit for them, think about the questions you might ask to elicit this information. What would tell you the client is a good fit for you?

In relation to increasing your income, if you struggle to turn away clients who cannot pay you your full fee, find a way of dealing with this, such as referring to a local low cost service, or having a specific number of low cost clients at any time.

Most importantly, note that we are not talking here about selling someone into a service they don’t want or need. We are not talking about coercing or manipulating. We are talking about opening a door and welcoming those who wish to enter, and are a good fit for what we have to offer.

To learn more about effectively marketing your practice read, “The Third Pillar: Growing Your Practice,” in “ This Business of Therapy; A Practical Guide to Starting, Developing and Sustaining a Therapy Practice.”

5. Risks Analysis: Challenges When Setting Up A Counselling Private Practice

There is risk inherent in every venture. The challenge when setting up a private counselling practice is to identify the risks and to find ways to mitigate them with the appropriate supports. What risks do you face in setting up or expanding your practice? Typical risks include:

• Financial risks such as losing money, or not having enough financial support to see you through the early lean phase.
• Emotional risks such as feeling overwhelmed or isolated, and fear of failure.
• Informational risks such as not knowing how to do something, or not knowing who could help.
• Reputational risks such as doing something you’re not competent to do and harming your reputation.
• Legal risks such as failure to implement relevant legislation (GDPR, Child Protection, health and safety, taxes)

Again, get as specific as you can. The more specific you get about identifying the risk (or the fear) related to being a private counsellor, the easier it will be to find a solution to help.

What supports might you need to help manage these risks? Supports might include information you need to find (eg what are the laws and how do they apply to me?), skills you need to learn and grow (for example, financial management skills such as bookkeeping and budgeting), or people supports (eg having a tribe of supportive colleagues who you meet regularly and who understand what you are experiencing.)

6. Financial Projections to Guide your Counselling Therapy Business

For example, the income in a therapy practice can be seasonal, with peaks and troughs at different times of the year, depending on client attendance. You will need to plan for the troughs, and to put some money aside in the fertile times to carry you over the lean ones, or the times when you are on holidays or sick.

Financial information also helps to form a ground from which you can set your fees. Too often, therapists look at their fees from the perspective of patients, and don’t pay enough attention to their own needs. For example, how much of a client’s hourly or sessional fee do you pay out for your rent, or your supervision? All of the fee doesn’t go into your bank account as disposable income, and the amount does not seem so big when you reduce it by the costs you will have to pay out.

Before starting you will need to clarify several parameters, such as:

• What time do you have available for your practice; think about both the client hours, patient work related hours and the practice admin and promotion hours.
• What price range are you thinking about setting for your fees?
• Start getting an idea of the costs you will likely incur, such as rent, insurance, supervision, professional memberships, CPD etc

If you are starting up, you should have some projections or budgets, that show how you expect your practice will perform financially in the first year or more of its life. If you are already in practice, in addition to projections, your business plan should also include historical information, such as an income and expenditure account.

– Here’s an example of a budget for a small practice

– Here’s an example of a cash flow projection for the next 3 months: small practice cash flow projection

– Here’s an example of an income and expenditure account. https://thisbusinessoftherapy.com/example-income-and-expenditure-account/ ( Note that it’s very similar to the budget, except the figures are historical rather than estimated for the future.)

If you worry about managing your finances, and don’t know where to start, you’ll find lots of support in my book, “This Business of Therapy: A Practical Guide to Starting, Developing and Sustaining a Therapy Practice,” it’s a guide to earning a living from the work you love.

7. Executive summary: Your Counselling Business Plan in a Snapshot

8. Counselling Business Plan Checklist: 16-Question Guide to Writing your Plan 

As you prepare to write your own private practice counselling business plan, refer to this list of questions:

• Name: My practice is going to be called…
• Location: My practice is going to be based…
• Structure: My practice is going to be…
• I am setting up this practice because I am passionate about…
• The values that support my practice are…
• It is important to me that clients of my practice will benefit from working with me in the following ways…
• Clients will come to me because…
• They will pay for my services because…
• I bring these personal qualities to the work…
• I have had these experiences…
• And acquired these skills and expertise…
• I can sabotage myself by…
• My practice will be based…
• These words best fit the environment I’d like to operate from…
• My main competitors are…
• These existing services most closely match mine…
• My offering is different from my peers in that…
• My Offering: I am going to offer these services…
• I am going to provide my services to…
• I am most drawn to working with…
• Their problems are…
• Their challenges are…
• Their desires are…
• My services will benefit them in these ways…
• These factors are unique to me and my practice…
• I see my clients as coming to me through the following channels…
• I am going to reach these clients to let them know I am available to help them by…
• I have this much time available to work with clients (per week, month year)…
• I am also willing to spend this much time to work on developing my practice (per week, month)…
• My clients will be willing to pay me this much…
• They will pay me this because…
• Clients will continue to come and see me for…(weeks, sessions, months, years)
• It will cost me €… to see clients (per hour, week, month)
• These are the business risks I will be facing…
• My practice could be vulnerable in these ways…
• I intend to respond to those risks by…
• Viability: My therapy practice will be not only survive, but will thrive because…
• I want to earn € after costs, each (week, month, year)…
• The following financial statements reflect my plans as set out above:
• I intend to monitor my financial results by…

Wellness Center Business Plan Template

Written by Dave Lavinsky

Wellness Center Business Plan

You’ve come to the right place to create your Wellness Center business plan.

We have helped over 2,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Wellness Centers.

Below is a template to help you create each section of your Wellness Center business plan.

Executive Summary

Business overview.

Best Health Wellness Center is a startup wellness center located in Denver, Colorado. The company was founded by Melissa Smith, an experienced physician with over 20 years in the medical field working as a clinical psychiatrist. During her tenure, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa is confident that her clinical expertise combined with a deep understanding of the wellness market, will enable her to run a profitable wellness center of her own. Melissa is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a wellness center – administration, marketing, financial management, and patient support.

Best Health Wellness Center will offer a full suite of wellness services to provide patients with a complete wellness regimen from head-to-toe and inside and out. Best Health Wellness Center will be the preferred wellness center for individuals in Denver who are looking for a personalized and thorough approach to wellness.

Product Offering

The following are the products and services that Best Health Wellness Center will offer:

• Skincare Treatments
• Nutrition Programs
• Fitness Programs
• Telemedicine
• Counseling & Support Groups
• Vitamins & Supplements

Customer Focus

Best Health Wellness Center will target individuals of all ages who are looking to improve their quality of life. The company will target individuals with specific wellness goals such as healthy weight, better fitness, or better skin. No matter the customer, Best Health Wellness Center will deliver personalized and high quality service from certified professionals.

Management Team

Best Health Wellness Center will be owned and operated by Melissa Smith. Melissa is a graduate of Colorado University with a degree in medicine. She is an experienced physician with over 20 years as a clinical psychiatrist. During her tenure in the medical field, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa will be the chief executive officer for the wellness center. She will oversee the staff’s activities, customer relationship management, and day-to-day operations.

Angela Johnson will be the company’s chief operating officer and help oversee the wellness center’s business operations. Angela has a master’s degree in business administration and over ten years of experience managing a wellness center. Angela will handle contractor and supplier relationships, logistics, and budgeting for the business.

Edward Rodriguez will execute the company’s marketing plan and advertising strategies. Edward is a graduate of the University of Arizona with a bachelor’s degree in marketing.

Success Factors

Best Health Wellness Center will be able to achieve success by offering the following competitive advantages:

• Wide range of wellness services provided by a large network of experienced professionals.
• Best Health Wellness Center offers personalized wellness programs to cater to each patient’s needs and wellness goals.
• The company’s leadership team has built a network of supplier relationships that will allow Best Health Wellness Center to purchase vitamins and supplements for lower prices than their competitors. Best Health will then be able to pass this cost-savings on to its patients.

Financial Highlights

Best Health Wellness Center is seeking $560,000 in debt financing to launch its wellness center business. The funding will be dedicated towards securing the facility and purchasing wellness center equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Wellness center build-out: $280,000
• Wellness center equipment, supplies, and materials: $100,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Best Health Wellness Center.

Company Overview

Who is best health wellness center.

Best Health Wellness Center is a newly established wellness center in Denver, Colorado. Best Health will offer a full suite of wellness products and services to provide patients with a complete wellness regimen from head-to-toe and inside and out. Best Health Wellness Center will be the preferred wellness center for individuals in Denver who are looking for a personalized approach to wellness. The company will offer free consultations for new patients and will build individualized wellness plans to accommodate the needs and goals of each person.

Best Health Wellness Center will also be able to guarantee the lowest prices on vitamins and supplements in the area thanks to its leadership team members’ existing supplier network connections. The company offers patients the option to select a la carte services for a one time fee or recurring services on a monthly payment plan.

Best Health Wellness Center History

Best Health Wellness Center is owned and operated by Melissa Smith, an experienced physician with over 20 years as a clinical psychiatrist. During her tenure in the medical field, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa is confident that her clinical expertise combined with a deep understanding of the wellness market, will enable her to run a profitable wellness center of her own. Melissa is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a wellness center – administration, marketing, financial management, and patient support.

Since incorporation, Best Health Wellness Center has achieved the following milestones:

• Registered Best Health Wellness Center, LLC to transact business in the state of Colorado
• Has narrowed down potential office spaces for lease in locations near healthcare facilities, gyms, and other businesses the wellness center’s patients are likely to frequent
• Reached out to numerous contacts to include vitamin and supplement suppliers and wellness professionals who are experts in their fields to begin obtaining supplier and professional contracts
• Began recruiting a staff of wellness center personnel to work at Best Health Wellness Center

Best Health Wellness Center Services

Industry analysis.

The United States health and wellness industry is valued at approximately $4 Trillion and is forecasted to reach $6.75 Trillion by the year 2030 growing by a compound annual growth rate of 5.2%. The health and wellness market includes a wide range of activities that can be segmented by categories such as personal care and anti-aging, nutrition, wellness tourism, preventive medicine, spa culture, and traditional medicine.

Wellness in particular is gaining popularity worldwide. Consumers view wellness as a combination of health, fitness, nutrition, appearance, sleep, and mindfulness. Of these categories, consumers spend the most on health, followed by appearance and fitness. Trends in the wellness market include increasing customer preferences for natural products as well as personalized and digital services.

Customer Analysis

Demographic profile of target market.

The precise demographics for Denver, Colorado are:

Customer Segmentation

Best Health will primarily target the following customer profiles:

• Individuals of all ages
• Individuals with disposable income
• Individuals interested in improving their quality of life
• Individuals with fitness, health, appearance, or other wellness-related goals

Competitive Analysis

Direct and indirect competitors.

Best Health Wellness Center will face competition from other wellness centers. A description of each competitor company is below.

Healthy Life Wellness Center

Healthy Life Wellness Center is one of the largest wellness center companies based in Denver, Colorado. Established in 2010, the company currently operates ten wellness centers throughout the United States. Healthy Life Wellness Center offers a variety of wellness services in the categories of fitness, nutrition, skincare, mental health, and social health. Healthy Life Wellness Center aims to deliver exceptional care for every patient. The company uses a stringent selection process for its personnel to ensure all of its patients receive the best quality of care. Healthy Life Wellness Center’s team of experienced physicians come from a variety of disciplines to provide a well-rounded wellness experience for its patients.

Great Shape Wellness Center

Great Shape Wellness Center is a small wellness center catering to local residents of Denver, Colorado. Great Shape Wellness Center operates one location in a busy retail district. The company specializes in fitness, nutrition, and body sculpting services. Great Shape Wellness Center is owned and operated by former athletes who understand the needs and goals of their clientele. The wellness center professionals are able to provide clients with personalized fitness and nutrition plans to help them reach their wellness goals. The company prides itself on providing visible results.

For The Win Wellness Center

For The Win Wellness Center is a Denver, Colorado-based wellness center that provides superior in-personal wellness services for local Denver residents and virtual services for patients worldwide. The company offers a variety of services including skincare, body sculpting, IV therapy, and light therapy. For The Win Wellness Center also provides individual and group therapy, counseling, personal training, life coaching, and other mental health services in-person and virtually. All services are performed by licensed healthcare providers who are experts in their fields.

Competitive Advantage

Best Health Wellness Center will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Best Health Wellness Center will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for Best Health Wellness Center is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Best Health maintains an active social media presence with regular updates and promotional content to incentivize customers to use the company’s services.

Professional Associations and Networking

Best Health Wellness Center will become a member of professional associations such as the American Wellness Center Association, Denver Wellness Society, and the Colorado Health and Wellness Association. The leadership team will focus their networking efforts on expanding the company’s supplier and patient network.

Print Advertising

Best Health Wellness Center will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents and businesses that are likely to frequent the wellness center.

Website/SEO Marketing

Best Health Wellness Center will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list the products and services Best Health is able to provide. The website will also list information on discounts and upcoming events.

The marketing director will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Denver wellness center ” or “wellness center near me”, Best Health Wellness Center will be listed at the top of the search results.

The pricing of Best Health Wellness Center will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s products and services. Best Health will also offer discounts to recurring patients.

Operations Plan

The following will be the operations plan for Best Health Wellness Center.

Operation Functions:

• Melissa Smith will be the CEO of the company. She will oversee the wellness center staff and day-to-day operations. Melissa has spent the past year recruiting the following staff:
• Angela Johnson – Chief Operating Officer who will manage the budgeting, supplier relationships, and logistics.
• Jeffrey Brown – Bookkeeper who will provide all accounting, tax payments, and monthly financial reporting.
• Edward Rodriguez – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and print advertising campaigns.

Milestones:

Best Health Wellness Center will have the following milestones complete in the next six months.

1/1/2023 – Finalize contract to lease the office space for the wellness center

1/15/2023 – Finalize employment contracts for the Best Health Wellness Center management team

2/1/2023 – Begin build-out of the wellness center and purchase equipment, materials, and supplies

2/15/2023 – Begin networking at industry events and implement the marketing plan

3/15/2023 – Finalize contracts with suppliers and contractors

4/15/2023 – Best Health Wellness Center officially opens for business

Best Health Wellness Center will be owned and operated by Melissa Smith. Melissa is a graduate of Colorado University with a degree in medicine. She is an experienced physician with over 20 as a clinical psychiatrist. During her tenure in the medical field, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. She will oversee the staff’s activities, patient relationships, and day-to-day operations.

Financial Plan

Key revenue & costs.

The revenue drivers for Best Health Wellness Center are the fees charged to patients in exchange for the company’s products and services. The company will offer a choice of payment options that includes one-time fees for new patients who are interested in trying out the products and services to monthly subscription tiers that allow patients to choose the products and services they’d like to purchase on a regular basis.

The cost drivers will be the overhead costs required in order to staff a wellness center. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

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 in order to pay off the startup business loan.

• Average patients per month: 50
• Average fees per month: $20,000
• Overhead costs per year: $640,000

Financial Projections

Income statement, balance sheet, cash flow statement, wellness center business plan faqs, what is a wellness center business plan.

A wellness center business plan is a plan to start and/or grow your wellness center 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 Wellness Center business plan using our Wellness Center Business Plan Template here .

What are the Main Types of Wellness Centers?

There are a number of different kinds of wellness centers , some examples include: Day, Destination, and Medical Wellness Center.

How Do You Get Funding for Your Wellness Center Business Plan?

Wellness Centers are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

This is true for a wellness center business plan or a holistic wellness center business plan.

What are the Steps To Start a Wellness Center Business?

Starting a wellness center 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 Wellness Center Business Plan - The first step in starting a business is to create a detailed wellness center business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your wellness center 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 wellness center business is in compliance with local laws.

3. Register Your Wellness Center Business - Once you have chosen a legal structure, the next step is to register your wellness center 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 wellness center 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 Wellness Center Equipment & Supplies - In order to start your wellness center 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 wellness center 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 start a successful wellness center business:

• How to Open a Wellness Center Business

• Criteria for Evaluating Debt Management Programs 
• Best Debt Settlement and Debt Management Services
• Why You Should Trust Us

How Do Debt Management and Settlement Services Work?

Should you pay for assistance with debt settlement and management, best debt settlement and debt management companies: a comprehensive guide.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

Introduction

The importance of managing debt effectively.

Properly managing debt can help you build wealth and reach your financial goals, such as buying a home or obtaining a business loan to launch a new business venture.

However, too much debt or " bad debt " can put your credit score in harm's way, hampering your ability to borrow in the future.

Digging yourself out of excessive or delinquent debt is challenging, but if you're struggling to pay what you owe, external help is available.

Overview of debt management programs

With a debt management program, a credit counselor negotiates with your creditors for you to create new payment plans.

Your creditors may waive fees and lower the interest rate on your accounts if you agree to repay the debt through a debt management program. 

Criteria for Evaluating Debt Management Programs 

To evaluate debt settlement and debt management services, there are several essential factors to consider.

First, FTC regulations prohibit debt relief companies from collecting fees from a client until they have settled, reduced, or altered the terms of at least one of that client's debts. Companies that charge an up-front fee should be disregarded.

Assessing your debt situation and choosing the right program

Think about the amount of debt you are carrying and the best way to eliminate it. Compare the benefits and features of the programs you are considering and factor in your personal financial goals. Do you want to get rid of the debt sooner rather than later or do you have time and money to spread the payments out? 

Read on to learn more about the best debt settlement and debt management services.

$7,500 minimum debt required

15-25% of enrolled debt + $9.95 account sign-up fee and $9.95 monthly fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Lower minimum debt than other debt settlement companies
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Helps settle private student loans
• con icon Two crossed lines that form an 'X'. Customer reviews mention long settlement times
• con icon Two crossed lines that form an 'X'. Monthly fees for dedicated account
• Must have a minimum total debt balance of $7,500 to qualify (some states have laws setting higher minimums)
• Fee ranges from 15% to 25%
• One-time fee of $9.95
• Monthly fee of $9.95
• Available in these states: AL, AK, AR, AZ, CA, DE, FL, IA, ID, IN, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, NE, NM, NV, NY, OK, PA, SD, TN, TX, UT, WI

Best Debt Settlement and Debt Management Services 2024

• National Debt Relief : Most types of debts settled
• CreditAssociates : Money-back guarantee
• Accredited Debt Relief : Best reviewed
• ACCC : Best credit counseling 

National Debt Relief

Cost: 15-25% of total enrolled debt

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Includes private student loans
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accredited with the AFCC
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Fee transparency
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $7,500 minimum debt requirement
• con icon Two crossed lines that form an 'X'. Customer service conducted exclusively over the phone
• con icon Two crossed lines that form an 'X'. Lack of legal or tax guidance

National Debt Relief boasts an average savings of 25% (after fees) for clients who complete a settlement program, and has extensive positive reviews online. However, the debt settlement process has several potential pitfalls, and there may be other solutions better suited to your needs.

Operating since 2009, National Debt Relief claims to have helped more than 400,000 people get out of debt. National works with most kinds of unsecured debt, including credit cards, medical bills, personal loans, and private student loan debt. There is no advertised minimum debt required to apply for National's debt relief programs, though most clients have debt in excess of $10,000.

National offers free consultation with no upfront fees, as no payment is collected until you approve a settlement and make at least one payment on a debt. There's also no fee for backing out so long as you do so before your debt is settled. Once National negotiates a settlement, the fee averages 15-25% of the total enrolled debt (not the settled amount). Completing the settlement program takes 24-48 months on average.

National Debt Relief is accredited by the American Fair Credit Council (AFCC) and has an A+ rating from the Better Business Bureau. National also has a Trustpilot rating of 4.7 stars out of five, with 95% of over 38,000 reviewers giving the company four or five stars. Common complaints among negative reviews include a lengthy settlement process, unexpectedly high fees, and a lack of clarity about the legal and tax implications of debt settlement.

One apparent negative of National Debt Relief is that customer support is only available by phone, with no email or chat option. While business hours for new customers include weekends and extend to midnight on weekdays, support for current clients is only available Monday to Friday from 10 a.m. to 8 p.m. EST.

You can find our National Debt Relief review here.

CreditAssociates Debt Relief

Cost: Estimated 25% of debt (fees not publicly available)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Charged for the amount settled rather than amount enrolled
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Debt relief blog
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Money-back guarantee advertised
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. AFCC and IAPDA accredited
• con icon Two crossed lines that form an 'X'. Fees not publicly available

CreditAssociates has been in operation since 2015. The company helps clients settle a variety of unsecured debts, but emphasizes solutions for those dealing with credit card debt, medical bills, and business debt. There is no advertised minimum debt required to enroll in CreditAssociates' debt relief programs.

CreditAssociates offers a free consultation with its team of debt settlement experts, and charges a fee only when the company is involved in a settlement. CreditAssociates also markets a "money-back guarantee," but does not offer further details about that guarantee prior to enrollment. The company cites an average timeline of 36 months to complete a debt settlement program. 

CreditAssociates has accreditation from both the AFCC and the International Association of Professional Debt Arbitrators (IAPDA). The company also has an A+ rating from the Better Business Bureau, though it has a high incidence of complaints relative to the number of reviews. Trustpilot reflects a more positive view of CreditAssociates, with a rating of 4.9 stars out of five and 98% of over 14,000 reviewers giving the company four or five stars. Common complaints among negative reviews include poor communication and the use of high-pressure sales tactics.

One standout feature of the CreditAssociates website is its debt relief blog , which offers a treasure trove of articles on topics like credit, bankruptcy , budgeting, and more. These articles are available whether or not you enlist their services.

On the downside, while anecdotal evidence places the cost of using CreditAssociates in line with other debt settlement services, the company's website conspicuously fails to disclose the range of potential fees. It's website mentions that the average customer saves 55% on their debt without fees and 30% with its fees included. CreditAssociates is not available in Colorado, Connecticut, Minnesota, Maryland, Vermont, and Wyoming.

Read our CreditAssociates review here.

Accredited Debt Relief

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Online knowledge hub and blog
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accredited with AFCC and CDRI
• con icon Two crossed lines that form an 'X'. Only available in 30 states

Accredited Debt Relief is a DBA of debt consolidator Beyond Finance. The company has been in operation since 2011, claiming to have served more than 200,000 clients and paid off more than $1 billion of client debt. Accredited Debt Relief works exclusively with unsecured debt such as credit cards, medical bills, and payday loans , offering both debt settlement services and debt consolidation through its affiliates. There is no published minimum debt required to enroll, but client reviews indicate the company only handles debts totaling over $10,000.

Accredited Debt Relief offers free consultations and savings estimates with no upfront fees and no obligation to enroll. The company boasts that clients who make all monthly deposits reduce their enrolled debt by approximately 45%, with fees averaging 15-25% of the total amount. Some clients are able to pay off debts in as little as 12 months, but the typical timeline ranges up to 48 months.

Accredited Debt Relief is accredited by both the AFCC and the Consumer Debt Relief Initiative (CDRI). The company has an A+ rating from the Better Business Bureau with a very low incidence of complaints relative to the number of reviews. Trustpilot rates Accredited Debt Relief at 4.9 stars out of five, with 98% of over 5,600 reviewers giving the company four or five stars. Common complaints among negative reviews include dissatisfaction with the enrollment process and misrepresentation of how fees are assessed.

Accredited Debt Relief has an online knowledge hub with extensive information about topics related to debt, as well as a blog that covers personal finance more broadly. Customer service offers is accessible by phone for no less than 14 hours daily, seven days a week, as well as by email. One negative about Accredited Debt Relief is that it only operates in 30 states plus Washington, D.C. Clients outside of the covered states are ineligible to enroll.

You can find our full Accredited Debt Relief review here. 

American Consumer Credit Counseling

A debt management plan (DMP) is a type of repayment plan that's set up and managed by a non-profit credit counseling agency like ACCC. As part of ACCC's DMP, creditors may waive late and overlimit fees, lower interest rates, reduce monthly payments and bring passed due accounts current (also known as re-aging).

Cost: $39 one-time fee and $7 monthly maintenance fee per account

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Available in all 50 states
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free preliminary counseling session
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Monthly fee capped at $70
• con icon Two crossed lines that form an 'X'. Takes four to five years to complete

American Consumer Credit Counseling is a non-profit credit counseling agency that offers advice on various financial topics such as budgeting, student loans, and bankruptcy. The main service it offers is a debt management plan, usually over three to five years, that costs a $39 setup fee and a $7 monthly fee per account, capped at $70. With an affordable fee structure and positive reviews, ACCC is one of the best credit counseling services.

• ACCC can offer you Debt Management Counseling to help you:
• Reduce your interest rates and monthly payments by 30-50%
• Consolidate credit card bills into one simple monthly payment
• Bring an end to harassing calls from debt collectors
• 100% free consultation with a certified debt specialist
• Become Debt-Free (3 - 5 years in most cases)

American Consumer Credit Counseling is a non-profit agency offering debt relief, credit counseling , and financial education services. Operating since 1991, the agency specializes in debt management programs to help clients with unsecured debts such as credit cards and store cards, medical bills, signature loans, and collection accounts . There is no published minimum debt required to enroll.

American Consumer Credit Counseling provides a preliminary counseling session at no charge, during which a professional certified counselor helps review your finances, discuss options for debt relief and develop a budget and action plan. Those who enroll in a debt management program pay a one-time fee of $39 and monthly maintenance fee of $7 per account, which is capped at $70. Both enrollment and maintenance fees may be waived based on state regulations or for those in financial hardship.

The agency's debt management program works with creditors to lower interest rates, eliminate late and over-limit fees, and re-age delinquent accounts to make them current. The program is designed to take approximately four to five years to complete, but the timeline depends on the amount of debt, the creditors, and the client's ability to pay.

American Consumer Credit Counseling is a member of the National Foundation for Credit Counseling, and is accredited by the Council on Accreditation. The agency has an A+ rating from the Better Business Bureau with a nearly negligible incidence of complaints relative to the number of reviews. There are no reviews on Trustpilot, but its brick and mortar locations have over 10,000 combined Google reviews, of which only 37 gave less than four stars.

Unlike the debt settlement programs listed above, American Consumer Credit Counseling offers services in all 50 states. The agency also has 21 offices in 13 states and Washington, D.C. In addition to providing a toll-free number and general email address, the agency's contact page commendably lists phone extensions, email addresses, and hours of operation for each of its departments.

You can find our American Consumer Credit Counseling review here. 

Debt Settlement and Debt Management Frequently Asked Questions

Debt management programs are offered by credit counseling agencies to help individuals consolidate their debt and pay it off by negotiating with their creditors to establish payment plans and lower interest rates. 

Debt management programs focus on paying off the full amount of debt over time, using a payment plan with reduced interest rates and waived fees. On the other hand, debt settlement programs negotiate with creditors to settle the debt for less than the full amount of the debt, which can negatively impact your credit score. 

Yes, most programs will charge a monthly fee for managing your debt plan and handling the payments. It's important to compare fees and services offered by different programs to ensure they are compatible with your financial situation and goals. It's also illegal for a debt settlement company to charge up-front fees.

There can be a dip in your credit score at the beginning of your debt management plan, but as your debt decreases your score will typically rise. Also, working with a debt management program may be noted on your credit report . If you close accounts as part of the program that may temporarily lower your score due to changes in credit utilization and account age.

Do your research and look for accredited programs with positive reviews and transparent fee structures. Consider your financial situation, the total amount of debt, and your ability to make monthly payments, make sure the payment plan structure can realistically fit into your budget. 

Methodology: How We Chose the Best Debt Settlement and Management Services

The debt relief industry has several trade associations and organizations that offer accreditation for debt and credit-related services. Examples include the American Fair Credit Council, the International Association of Professional Debt Arbitrators, the Consumer Debt Relief Initiative, and the National Foundation for Credit Counseling. Reputable debt relief and debt management services don't need accreditation from all of these groups, but should be accredited by at least one. Services that did not meet that requirement were left out of this analysis.

With those two parameters established, we rated services according to their fee structures (including the range of potential fees and how clearly they are disclosed in advance), the number of years in operation, money-back guarantees in cancellation policies, and customer satisfaction based on personal reviews. 

Debt management and debt settlement services have similar aims, but distinct approaches to achieving them. Debt management services negotiate with creditors to reduce monthly payments by waiving fees, lowering interest rates, and extending repayment periods. These measures do not reduce the amount of your debt, but make it easier to pay down. Debt management services tend to be inexpensive or free, and impact your credit minimally so long as you make payments according to plan.

Debt settlement services also seek to reduce monthly payments, but they do so by negotiating with creditors to reduce the amount owed rather than alter the terms of repayment. Debt settlement services generally charge a percentage of the total debt, and because debt settlement requires you to stop making payments during negotiation, the process damages your credit significantly. As a result, debt settlement is a better fit for those under severe financial duress who are seeking an alternative to bankruptcy . Note that debt forgiven in a settlement may be considered taxable income unless you get an exemption for economic hardship.

Some companies offer both debt settlement and management, but both services differ from debt consolidation , which simplifies repayment and by combining multiple debts into one at a lower interest rate.

Debt settlement and management services can help those struggling with debt, but they aren't the only options. Before enrolling in one of these services, there are several alternatives to consider.

First, check your area for credit counseling agencies or other non-profit resources that offer debt consultations with no fee. They can advise you about debt relief solutions and help you figure out which ones best suit your needs. Talking with them first won't take any other options off the table.

Second, you may be able to negotiate a debt settlement with your creditors directly to reduce or otherwise change the terms of your debt. Cutting out the middle man can save whatever fees you would have paid, but without the expertise of a settlement or management service to guide you, the responsibility will be on your shoulders. That decision may be worthwhile, but it shouldn't be made lightly.

Finally, debt consolidation may be preferable to debt settlement or management depending on the nature and amount of what you owe. If you're still current on your debts and able to continue making payments, consolidating loans can help you simplify payments and lower interest rates without adding fees.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

• Main content