In this second post, I continue outlining considerations for starting your own practice:
- Choose your clients wisely. You will likely be tempted to take everyone who calls you in order to build your caseload. Resist that temptation. Be selective about who you take. Take money out of the equation and objectively evaluate if you are qualified to work with the presenting problem of this individual. If you think you aren’t the best fit, refer them to someone who can treat them more effectively. (Here’s where your networking pays off. I recommend keeping a binder of business cards or a list for referral purposes). Taking on too many clients, or too many severe issues can overwhelm you and lead to burnout, particularly in the beginning of your career.
- Make a business plan. Start by adding up all of your expenses. I recommend doing it per month, and amortizing yearly expenses such as professional memberships (i.e. ACA) and malpractice insurance. Now you know your business costs. Then, figure out how much you are going to charge clients. Lastly, figure out how much profit you want to make. Do the math, and you’ll know how many clients you need to see in a week to create the desired amount of profit. Too many? (For example, thirty clients a week is probably unrealistic for a novice practitioner). Then either you need to cut your business expenses, increase your hourly rate, or get a business loan.
- It does cost a bit up front to open a practice, and it may take several months before you have enough income to cover your expenses, not to mention bring home a paycheck. So having a realistic financial plan (and a lot of patience and trust in yourself) is an important part of being successful. Talk to other clinicians who are in private practice in your area to get a sense of how long it might take to build your client base. Having these conversations can normalize the process of establishing a practice from scratch, which at times can feel unbearably slow. Therefore, plan on using savings or having some other means of support (such as a financially successful spouse or a second job) until you get your practice going.
Yours in the Joy of Knowledge,
Dr. Barbara LoFrisco
