Start-up Funding | |
Start-up Expenses to Fund | $9,000 |
Start-up Assets to Fund | $106,000 |
Total Funding Required | $115,000 |
Assets | |
Non-cash Assets from Start-up | $5,000 |
Cash Requirements from Start-up | $101,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $101,000 |
Total Assets | $106,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $50,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $50,000 |
Capital | |
Planned Investment | |
Direct Owner Investment | $65,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $65,000 |
Loss at Start-up (Start-up Expenses) | ($9,000) |
Total Capital | $56,000 |
Total Capital and Liabilities | $106,000 |
Total Funding | $115,000 |
The Center is located in Amesbury, Massachusetts, and has been in the same location since 1996. The location is excellent because the Center is easily accessible by automobile or public transportation, and has ample parking. The psychological center has its own entrance on the south side of the building, ensuring moderate privacy and confidentiality. The Center has been recently refurbished by the hospital and there is space available for growth. Leasing arrangements are yet to be negotiated, though $10-$12 dollars a square foot is the customary rate as quoted by local realtors. The Center will ask the hospital to subsidize rent for the first two years of operation, representing their support to ensure the success of this project.
The Center occupies approximately 2,200 square feet. It has nine clinical offices and group rooms. There is a larger reception area that is separated by a divider, allowing for a child and adult reception area. Included in the square footage is a small staff kitchen, a staff bathroom, and a business/intake office. The offices are handicapped accessible. There is a public unisex, handicapped-accessible bathroom within close proximity to the Center, and one within the building.
Leasing arrangements are in process. Based upon a financial analysis and financial projections, the hospital will need to subsidize rent for the first two years if the project is to succeed. It is our goal to obtain a three-year lease from the Anna Jaques Hospital with an option to renew a second three-year lease. The present location is not critical to the success of the business. After three years we will review our rental options, the need for additional space, and other available facilities in the geographical area prior to renewing the contract.
The Center provides an array of quality mental health and substance abuse/addiction services to individuals, couples, and families. The service population includes people of all age ranges. Specifically, services include psychopharmacology, psychotherapy, substance abuse programs, and contracted mental health services. A multidisciplinary staff provides quality treatment of mood disorders, anxiety disorders, attention deficit hyperactivity disorders, behavioral disorders, post traumatic stress disorders, stress management, substance abuse disorders, and gambling addiction disorders.
There are four components of the Center that interact closely with each other, and also with the consumer’s primary care physician, when appropriate. The philosophy of treatment recognizes the totality of the individual in his or her life situation. This includes the interconnection of multiple dimensions from biomedical to spiritual, as well as external relationships of the individual to the family and larger social groups.
The Center provides quality, accessible service. The key to differentiation is to promote and evidence the mission of the Center to our customers in a meaningful and understandable manner. It is clear that we will not be able to compete doing “business as usual.” Our approach will be customer directed. Our customers will be able to discern our intangible, as well as our tangible, benefits. Our dedicated focus on all our customers will place us ahead of our competitors. When compared with its competitors, the Center stands out in several respects:
At the time of this writing, our logo, brochure, business cards, and advertising are in the process of being developed. Our focus will be on selling the Center’s perceived qualities and intangibles.
The key of fulfillment will be provided by the philosophy and principals of the business. The core values are customer focus, quality treatment, and professional expertise, as is evidenced by associates and staff performance, compassion, trust, and hard work.
Market analysis summary how to do a market analysis for your business plan.">.
In this age of health care reform and increased use of contracts with health maintenance organizations (HMOs), preferred provider organizations (PPOs), and other groups, the demand for behavior health care providers continues to decline. This phenomenon, being driven by behavioral health “carve outs,” has created a competitive clinical market, resulting in customer service being a critical factor. From this particular perspective, the customer identified as payor is: self-payor, medicare, medicaid, and managed care companies. They clearly drive the large percentage of referrals within the industry.
The Center has identified several behavioral health payors who have a strong foothold in the Merrimack Valley area. They include: Tufts HMO and Tufts Affiliated Health Programs, Harvard/Pilgrim Health Care, Medicare, Medicaid/MBHP, Magellan/MBC, Magellan Lucent, United Behavioral Health, Behavior Health Network, managed care company (MCC)/Cigna, US Health Care, and Health Care Value Management (indemnity products). Consumers participating in these programs are drawn from the communities of the Merrimack Valley and Southern New Hampshire area. Within this service area it is estimated that HMOs provide insurance for approximately 51% of the population.
It should be noted that there is an abundant supply of behavioral health providers/institutions within the Merrimack Valley and Southern New Hampshire. They include: psychiatric hospitals, residential facilities, outpatient group practices that vary from public to private organizations, and solo practitioners. Customer service, then becomes an even more critical factor. To obtain and maintain a foothold in the behavioral health market will necessitate the provision of optimal, accessible, quality customer service.
The Center has four primary customers, each with their own specific needs. These include:
1. | |
Physicians | Professionalism |
Hospitals | Consultation |
Schools | Correspondence |
Agencies | Accessibility |
2. | |
Individuals | Accessibility |
Couples | Respect |
Families | Compassion |
Groups | Empathy |
3. | |
MCO’s | Clear communication |
Self-pay | Cost-effective care |
Agencies | Easy access for clients |
PPOs | Shared treatment philosophy |
Indemnity Program | Responsiveness and cooperation |
4. | |
Billing/Collectable | Cooperative working relationship |
Legal | Timely payment facility owner |
Human Resource | Respect |
Insurance |
If the Center is going to survive and grow, we must market our services aggressively. As previously noted, our referral base is primarily driven by managed care companies, medicare and medicaid, indemnity products and self-payors. Within the Merrimack Valley geographical area, HMOs have approximately 51% of the covered lives. Focusing on and identifying the needs of these five referral sources is critical for our growth.
Trends which began with health care reengineering and the introduction of managed health care will continue during the next decade. There will continue to be change within this industry, but change will be less dramatic than the health care revolution of the 1980s and 1990s. Managed care companies will continue to influence fee structures and restructure the provider network.
With the advent of mental health parity in Massachusetts, utilization rates and reimbursement rates should improve. Under the mental health parity law, insurance companies are not allowed to cap mental health services for biologically based mental health disorders. Co-payments cannot escalate during the course of treatment for these disorders.
Managed care organizations (MCOs) are beginning to review provider compensation packages with the intent of increasing compensation rates. Rates have been flat for the past ten years.
As noted in a previous section, the growth rate for the Center during the past three years has been significant. There is no identified reason indicating that this will change. We are currently referring out four to five phone calls per day. Within the geographical area, it takes approximately six to eight weeks to get an appointment with a psychiatrist. For psychotherapy, it takes approximately seven to eight days to get an appointment. With the use of additional staff and creative scheduling, some of these challenges can positively impact the bottom line.
Dr. Marc Shay, an adult psychiatrist, has recently become an associate of the Center. He has committed to 12 hours per week, resulting in an increase of services by 48 units per week. His schedule is filled for the next three weeks as of July 10, 2000. He will begin work on July 17, 2000. We are also in the process of negotiating with a clinical nurse specialist to work 12 hours per week. Her specialty is with children and adolescents. Her starting date is estimated to be early September 2000.
Previously, we have identified the significant aspects of services offered by the Center. Of these services, children and adolescent services are in greatest demand by all referral sources. This gives strength to the four segments of our delivery service system which address these needs. Additionally, there is significant population growth in the Merrimack Valley and southern New Hampshire areas, and this growth is projected to continue over the next decade.
The behavioral health care industry consists of inpatient programs, residential and partial programs, outpatient group practices, and outpatient solo practices. For the purposes of this business plan, we will focus on multidisciplinary group practices, both public and private. Within the geographical area designated as the service area for this business plan, the industry participants include: North Essex Mental Health Center, Arbour/HRI Counseling Services, Harris Street Associates, and Harborside Psychological Center.
To identify the principal behavioral health competitors within the Merrimack Valley, it is important to have an understanding of the behavioral health industry as it has been transformed by the influence of health care restructuring. There are primarily four types of behavioral health facilities: (1) psychiatric hospitals, (2) residential facilities, (3) outpatient group practices, and (4) solo practices. The primary competitors of the Center fall within the third category, outpatient group practices. These practices can be further categorized as public, not-for-profit facilities, and for-profit private practice facilities that include homogeneous group practices and multidisciplinary group practices.
Not-for-Profit Facility
1. North Essex Mental Health Center
North Essex Mental Health Center, Inc., Newburyport, Massachusetts with a satellite office in Haverhill, Massachusetts. Three years ago, this facility was bought by a subsidiary of Northeast Health Systems of Beverly, Massachusetts. This facility is a community mental health center whose primary consumer is the medicaid population. The center has been providing behavioral health services in the Merrimack Valley area for over 20 years. This center has grown significantly in the last 10 years, culminating in the opening of an Amesbury office. North Essex Mental Health Center is the dominant provider in the Northeast area of Massachusetts. They are the emergency services provider for MBHP and have contracted with the AJH to provide emergency services to their emergency room. Their payor mix is composed of medicare, medicaid, self pay, and some MCOs.
a. Strengths:
b. Weaknesses:
d. Strategies To Thwart Competition:
2. Arbour/HRI Counseling
HRI/Arbour Psychological Center is a moderate-size, for-profit mental health center. It is a full-service multidisciplinary center, offering mental health services to children, adolescents, and adults. It was recently procured by Arbour Mental Health Systems. This center has recently invested money to refurbish a facility that houses their geropsychiatry program. Their payor mix is spread among Medicare, Medicaid, self pay, and MCOs
c. Potential Impact of Strengths:
d. Strategies to Thwart Competition:
3. Harris Street Associates
Harris Street Associates is a multidisciplinary group practice providing mental health services to the Newburyport and Haverhill communities. It was established over fifteen years ago by several local psychiatrists and psychologists. Their payor mix has been primarily with MCOs, with some indemnity programs. It has had a rocky financial history, culminating in being bought by H.E.S. For the past three years, H.E.S. has attempted to turn around the financial status of the agency without success. It was recently announced that the center is closing on October 30, 2000.
4. Harborside Psychological Center
Harborside Psychological Center is located in Newburyport, Massachusetts. It is a multidisciplinary mental health group practice. Until recently, their service focus has been psychotherapy with children, adolescents and adults. Currently, this center has added pharmacology to their list of services. Their payor mix is composed of MCOs and employee assistance programs (EAPs).
The market segmentation can best be understood from an analysis of the clinical services being offered by the Center. Presently, three services are offered: psychotherapy, pharmacology, and substance abuse/addiction treatment. When the Center commences its operations, a fourth service will be implemented: behavioral health contracts. Contracts are different from the previous three segments in that the services are provided offsite at another facility.
All services are offered to all age groups, with a modality of treatments that include individual, couple, families, and group. Some customers will use only one service at a time, while others will use a mix of the various services simultaneously.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Psychotherapy | 6% | 5,784 | 6,793 | 7,374 | 7,846 | 8,348 | 9.61% |
Psychopharmacology | 0% | 3,911 | 5,184 | 6,282 | 6,282 | 6,282 | 12.58% |
IOP | 0% | 898 | 898 | 988 | 988 | 988 | 2.42% |
B H Contracts | 5% | 0 | 0 | 2,000 | 2,000 | 2,000 | 0.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 13.56% | 10,593 | 12,875 | 16,644 | 17,116 | 17,618 | 13.56% |
The Center will focus its market activities on two market areas: the communities of Merrimack Valley, and Southern Hew Hampshire. Services will include psychotherapy, psychopharmacology, and substance abuse/addiction services.
The target customers are the consumers of mental health services (i.e. individuals, couples, families, and groups). The composition breakdown is approximately 50% adults and 50% children, adolescents, and families. The second target customer are the payors. They are an integral piece of this turn key project. The payors are basically the gatekeepers for referrals and authorizations.
The Center’s sales strategy will target potential purchasers and referral sources of our services, from:
Wherever possible, our niche marketing approach will be linked to our sales strategies.
The following chart and table depict the Center’s forecasted sales. During the first year, we expect a yearly growth rate of approximately 100% from the previous fiscal year. Since existing associates will remain with the Center, and several associates from a closed center will join us and bring at least sixty percent of their current caseload with them, the forecast is reasonable. The Center is in the process of negotiating with Harbor Schools to provide mental health services, resulting in 3,300 additional units of service. The sales forecast is also based on the assumptions that we meet projected staffing patterns, managed care contracts are transitioned to the Center without difficulty, and a Medicaid provider number is obtained without complications.
Operationally, the Center is prepared to handle growth. Support staff is in place, as are other necessary environmental resources. The immediate problem would be to transfer patients from one center to another. Through a planned transition program being driven by the therapists, it should occur without too much difficulty or confusion.
The chart and table depict a modest 18% growth rate for the second year, and a 23% growth rate for the third year. The second year growth rate will be the result of adding additional therapy hours. The third year growth will be a result of adding therapy contracts. We are in the process of negotiating with Harbor Schools to provide on sight therapy services.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Psychotherapy | 5,784 | 6,792 | 7,374 |
Psychopharmacology/MD | 2,520 | 3,264 | 3,950 |
Psychopharmacology/CNS | 1,391 | 1,920 | 2,332 |
Addictions/3 hr IOP | 310 | 310 | 450 |
Addictions/1hr IOP | 588 | 588 | 538 |
Contracts | 0 | 0 | 2,000 |
Other | 0 | 0 | 0 |
Total Unit Sales | 10,593 | 12,874 | 16,644 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Psychotherapy | $59.52 | $59.52 | $59.52 |
Psychopharmacology/MD | $40.92 | $40.92 | $40.92 |
Psychopharmacology/CNS | $32.55 | $32.55 | $32.55 |
Addictions/3 hr IOP | $77.19 | $77.19 | $77.19 |
Addictions/1hr IOP | $22.32 | $22.32 | $22.32 |
Contracts | $0.00 | $0.00 | $59.52 |
Other | $0.00 | $0.00 | $0.00 |
Sales | |||
Psychotherapy | $344,264 | $404,260 | $438,900 |
Psychopharmacology/MD | $103,118 | $133,563 | $161,634 |
Psychopharmacology/CNS | $45,277 | $62,496 | $75,907 |
Addictions/3 hr IOP | $23,929 | $23,929 | $34,736 |
Addictions/1hr IOP | $13,124 | $13,124 | $12,008 |
Contracts | $0 | $0 | $119,040 |
Other | $0 | $0 | $0 |
Total Sales | $529,712 | $637,372 | $842,225 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Psychotherapy | $35.71 | $35.71 | $35.71 |
Psychopharmacology/MD | $28.64 | $28.64 | $28.64 |
Psychopharmacology/CNS | $19.53 | $19.53 | $19.53 |
Addictions/3 hr IOP | $13.12 | $27.02 | $27.02 |
Addictions/1hr IOP | $4.91 | $6.47 | $6.47 |
Contracts | $0.00 | $0.00 | $35.71 |
Other | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||
Psychotherapy | $206,558 | $242,542 | $263,326 |
Psychopharmacology/MD | $72,183 | $93,481 | $113,128 |
Psychopharmacology/CNS | $27,166 | $37,498 | $45,544 |
Addictions/3 hr IOP | $4,068 | $8,376 | $12,159 |
Addictions/1hr IOP | $2,887 | $3,804 | $3,481 |
Contracts | $0 | $0 | $71,420 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $312,863 | $385,701 | $509,057 |
If the Center is going to compete effectively, it will need to clearly define its value-added benefits. Our goal is to meet and exceed the needs of our customers: consumers, staff and associates, payors, consultants, and other referral sources. Previously, we discussed the needs of our customer. These needs will drive the value-added philosophy and marketing strategy.
Our competitive edge is our associates and staff affiliations. Our associates and staff spread the company proposition, “our mission is to meet/exceed customer’s expectations.” Our affiliations with the Anna Jaques Hospital and other medical group practices allows us to interface easily with a strong referral base. Hard work, integrity, accessibility, experience, quality service, and customer satisfaction are the factors influencing our competitive edge. When the customers call the Center, they will get a real person, not a voice mail message.
Target marketing of our services is critical to growth. Strategies will include:
Marketing tools will include: direct mail, print and audio advertising, public speaking, and relationship building with identified managed care corporations and persons.
Multiple strategies will be used to promote the Center. Throughout the promotional strategy, our focus will be on selling the Center. The types of promotions will include:
It is our goal to enhance our image and reputation by being responsive, accessible, and by providing quality treatment. By building relationships, we will cultivate our image with case managers and network managers of identified managed care organizations.
Pricing for the services provided by the Center is market driven. Our fee structure is based upon a survey of existing MCOs and other payors. In order to operate profitably under these prices, it is imperative that the Center monitor and control costs. Behavioral health industry watchers believe that there is at least a 15% range of variation in what certain managed care companies will pay different providers for a given service. Our goal is to obtain the highest price within the competitive range by convincing the payor that we have a service to offer which exceeds that of our competitor. A possible example of this is creative bundling.
Strategic alliances are critical to the goals of the Center, and include selling more services and strengthening our relationship with all our customers. If we are to meet our strategic goals, we must have a strong, continued alliance with Anna Jaques Hospital. Concurrently, we must strengthen and develop our relationship with our referral networks, especially medical groups within the Anna Jaques System and the surrounding community.
The Center’s organizational structure is based upon a shared services model. The founding president/director of the Center has an accumulated twenty years of administrative, management, and clinical experience in the human service and behavioral health industry. The management philosophy is based upon open-book management, shared responsibility, and mutual respect.
The founding president/director will manage the company. Since the company is organized as a shared service model, relationships will be a key variable in setting the direction of the Center. There will be an advisory board composed of four leaders in the field of behavioral health, managed care, organizational dynamics, and a consumer.
An advisory management group, consisting of the Center’s staff, will meet on a regular basis to review the Center’s financial structure, identify customer relations issues, and develop future goals for growth, marketing, and sales. This group will be assigned the task of developing a plan to implement and integrate a Continuous Quality Improvement (CQI) component and culture into a private practice Shared Service Model (SSM). A customer relations committee will be formed to brainstorm, formulate ideas, plan and implement activities to enhance levels of satisfaction among all customers. The organizational chart follows:
Amesbury Psychological Center |
| |
| Organizational Chart |
|
ADVISORY BOARD | CENTER DIRECTOR | CONSULTANTS |
SUPPORT STAFF | ASSOCIATES | MEDICAL DIRECTOR |
| MEDICAL STAFF |
|
| THERAPISTS |
|
| ADDICTION STAFF |
|
| CONTRACTS STAFF |
The proposed personnel team includes the individuals listed below. It will involve one to three consultants, a five member advisory board composed of professionals, and a consumer and CQI team composed of associates and staff. Dr. John Nestor will be the president and director. He has an extensive employment history in program start-up, budgeting, and program development. The advisory board includes:
**Names have been removed for confidentiality
At present, we are in the process of identifying a financial services company and consultants for several other areas.
The personnel plan reflects the needs of a shared service model for a multidisciplinary behavioral health center. It should be noted that benefits are provided to those personnel designated as salaried or hourly employees who work more than 30 hours per week. Associates will be paid a predetermined percentage of their collectible fees. Employees will be paid every two weeks. Associates will be able to draw the first paycheck and reconcile the second paycheck each month.
Human resources, legal, fiscal billing, and marketing/sales will be out sourced. We are in the process of identifying a human resource company and a billing/collection company. The billing company will be paid a percent of fees collected with a goal of collecting at least 93% of that billed. Thought will be given to other risk variables to be included in the contract. The costs for the Human Resource services are not determined as of this writing.
The president/director’s compensation will be a combined package that includes 75% administrative salary and 25% from clinical work.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Center Director (.75 FTE) | $41,244 | $42,481 | $43,755 |
Client Accounts Coord. (.75 FTE) | $23,244 | $23,941 | $24,659 |
Secretary/Recep (1 FTE) | $24,000 | $24,720 | $25,462 |
Receptionist (.50 FTE) | $11,256 | $11,594 | $12,302 |
Total People | 4 | 4 | 4 |
Total Payroll | $99,744 | $102,736 | $106,178 |
The financial plan for this turn key project is presented in detail in the following sections. There are three important factors in the financial plan:
There are several assumptions related to this turn key project.
The following table summarizes the general financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 9.75% | 9.75% | 9.75% |
Long-term Interest Rate | 9.75% | 9.75% | 9.75% |
Tax Rate | 2.50% | 0.00% | 2.50% |
Other | 0 | 0 | 0 |
The following benchmark chart indicates our key financial indicators for the first three years of operation. We see significant growth during fiscal year 2001, as compared to the previous fiscal year. Units of service are projected to increase by approximately 75%. The growth during fiscal year 2001 is reasonable in that the existing pharmacology will continue with the pharmacology and three pharmacology/therapists will transfer to the pharmacology with their clients from a center that is closing in the community. A recent medical graduate psychiatrist will join our Center as of July 2000. We will recruit one to two pharmacology nurse specialists during the fiscal year 2001. The Center will double in size during its first fiscal year, as compared to its previous level of operation. During the second fiscal year the growth rate will be approximately 18%. During the third year of operation it will grow at a rate of 23%. This growth will be a result of securing contracts with local human service agencies. Although the rate of expected receipts remains the same during the next two years, it is expected to improve during the third year with new contracts, and experience and familiarity with the new billing system. A financial goal is to be debt-free by the end of the fourth year of operation.
Similiarly, collection days remains the same during the next three years. However, efforts will be made to improve this variable with the use of electronic billing.
As sales of services increase, operating costs will rise as well. Every effort will be made to contain these costs proportionately. There are no actual or projected significant increases evident. The variable costs will increase during the third year as we need to hire new staff for the projected contracts. The hiring will not be concluded until the contracts are signed so as to avoid any unnecessary spending.
The following chart and table summarize the Center’s Break-even Analysis. These figures and assumptions are fairly well represented since they are based upon actual historical data. Cost control and production improvement will ensure profitability.
Break-even Analysis | |
Monthly Units Break-even | 752 |
Monthly Revenue Break-even | $37,618 |
Assumptions: | |
Average Per-Unit Revenue | $50.01 |
Average Per-Unit Variable Cost | $29.53 |
Estimated Monthly Fixed Cost | $15,400 |
The following table shows the projected profit and loss statement. Projected sales increased from approximately $530,000 the first year of operation to more than $637,000 the second year and more than $842,000 the third year. The third year growth is a result of additional units of service gained through a contract with a local residential program.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $529,712 | $637,372 | $842,225 |
Direct Cost of Sales | $312,863 | $385,701 | $509,057 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $312,863 | $385,701 | $509,057 |
Gross Margin | $216,850 | $251,670 | $333,167 |
Gross Margin % | 40.94% | 39.49% | 39.56% |
Expenses | |||
Payroll | $99,744 | $102,736 | $106,178 |
Marketing/Promotion | $7,700 | $10,500 | $11,100 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $3,000 | $3,000 | $3,500 |
Billing Fees (6% of billed plus 1.5% copays) | $22,951 | $31,869 | $42,111 |
Insurance | $3,500 | $3,600 | $3,600 |
Rent | $10,992 | $11,000 | $26,400 |
Human Resource/HR Logic | $6,000 | $6,000 | $6,000 |
Med Dir.,Multidisc.,RNCS Sup. | $10,000 | $12,000 | $12,000 |
Telephone | $6,000 | $6,500 | $7,000 |
Postage | $1,050 | $1,300 | $1,400 |
Office Supplies | $3,860 | $4,110 | $4,200 |
Payroll Taxes | $0 | $0 | $0 |
Contract/Consultants | $10,000 | $10,000 | $10,000 |
Total Operating Expenses | $184,797 | $202,615 | $233,489 |
Profit Before Interest and Taxes | $32,053 | $49,055 | $99,678 |
EBITDA | $32,053 | $49,055 | $99,678 |
Interest Expense | $4,400 | $3,436 | $2,260 |
Taxes Incurred | $1,103 | $0 | $2,435 |
Net Profit | $26,550 | $45,619 | $94,983 |
Net Profit/Sales | 5.01% | 7.16% | 11.28% |
The following chart and table summarize the Center’s cash flow. The projections are a combination of short-term borrowing and Center receipts. Cash flow is obviously critical to the Center’s success. The monthly cash flow, as shown in the table, generally improves from month to month. The chart and table reveal a positive cash flow as operations move beyond the seventh month and steadily continues thereafter.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $52,971 | $63,737 | $84,222 |
Cash from Receivables | $356,266 | $557,202 | $724,642 |
Subtotal Cash from Operations | $409,237 | $620,940 | $808,864 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $409,237 | $620,940 | $808,864 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $99,744 | $102,736 | $106,178 |
Bill Payments | $369,968 | $482,273 | $628,567 |
Subtotal Spent on Operations | $469,712 | $585,010 | $734,744 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $9,000 | $11,515 | $12,620 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $478,712 | $596,525 | $747,364 |
Net Cash Flow | ($69,475) | $24,415 | $61,500 |
Cash Balance | $31,525 | $55,940 | $117,439 |
The following table shows the projected balance sheet. The monthly estimates are included in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $31,525 | $55,940 | $117,439 |
Accounts Receivable | $120,475 | $136,908 | $170,268 |
Other Current Assets | $5,000 | $5,000 | $5,000 |
Total Current Assets | $157,000 | $197,847 | $292,708 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $157,000 | $197,847 | $292,708 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $33,450 | $40,193 | $52,690 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $33,450 | $40,193 | $52,690 |
Long-term Liabilities | $41,000 | $29,485 | $16,865 |
Total Liabilities | $74,450 | $69,678 | $69,555 |
Paid-in Capital | $65,000 | $65,000 | $65,000 |
Retained Earnings | ($9,000) | $17,550 | $63,169 |
Earnings | $26,550 | $45,619 | $94,983 |
Total Capital | $82,550 | $128,169 | $223,153 |
Total Liabilities and Capital | $157,000 | $197,847 | $292,708 |
Net Worth | $82,550 | $128,169 | $223,153 |
The following table shows the projected business ratios as determined by the Standard Industry Classification (SIC) Index code 8063 for the mental health center industry.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 20.32% | 32.14% | 2.30% |
Percent of Total Assets | ||||
Accounts Receivable | 76.74% | 69.20% | 58.17% | 25.20% |
Other Current Assets | 3.18% | 2.53% | 1.71% | 33.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 60.00% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 40.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 21.31% | 20.32% | 18.00% | 23.10% |
Long-term Liabilities | 26.11% | 14.90% | 5.76% | 19.60% |
Total Liabilities | 47.42% | 35.22% | 23.76% | 42.70% |
Net Worth | 52.58% | 64.78% | 76.24% | 57.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 40.94% | 39.49% | 39.56% | 0.00% |
Selling, General & Administrative Expenses | 39.65% | 36.14% | 32.27% | 73.80% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 0.40% |
Profit Before Interest and Taxes | 6.05% | 7.70% | 11.84% | 8.90% |
Main Ratios | ||||
Current | 4.69 | 4.92 | 5.56 | 2.45 |
Quick | 4.69 | 4.92 | 5.56 | 1.95 |
Total Debt to Total Assets | 47.42% | 35.22% | 23.76% | 42.70% |
Pre-tax Return on Net Worth | 33.50% | 35.59% | 43.66% | 8.10% |
Pre-tax Return on Assets | 17.61% | 23.06% | 33.28% | 14.20% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 5.01% | 7.16% | 11.28% | n.a |
Return on Equity | 32.16% | 35.59% | 42.56% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.96 | 4.19 | 4.45 | n.a |
Collection Days | 83 | 82 | 74 | n.a |
Accounts Payable Turnover | 12.06 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 27 | 26 | n.a |
Total Asset Turnover | 3.37 | 3.22 | 2.88 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.90 | 0.54 | 0.31 | n.a |
Current Liab. to Liab. | 0.45 | 0.58 | 0.76 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $123,550 | $157,654 | $240,018 | n.a |
Interest Coverage | 7.29 | 14.28 | 44.11 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.30 | 0.31 | 0.35 | n.a |
Current Debt/Total Assets | 21% | 20% | 18% | n.a |
Acid Test | 1.09 | 1.52 | 2.32 | n.a |
Sales/Net Worth | 6.42 | 4.97 | 3.77 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Psychotherapy | 0% | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 | 482 |
Psychopharmacology/MD | 0% | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 | 210 |
Psychopharmacology/CNS | 0% | 86 | 86 | 86 | 86 | 86 | 86 | 146 | 146 | 146 | 146 | 146 | 146 |
Addictions/3 hr IOP | 0% | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 |
Addictions/1hr IOP | 0% | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 | 49 |
Contracts | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Unit Sales | 853 | 853 | 853 | 853 | 853 | 853 | 913 | 913 | 913 | 913 | 913 | 913 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Psychotherapy | $64.00 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 | $59.52 |
Psychopharmacology/MD | $44.00 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 | $40.92 |
Psychopharmacology/CNS | $35.00 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 | $32.55 |
Addictions/3 hr IOP | $83.00 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 | $77.19 |
Addictions/1hr IOP | $24.00 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 | $22.32 |
Contracts | $64.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Other | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
Sales | |||||||||||||
Psychotherapy | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | $28,689 | |
Psychopharmacology/MD | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | $8,593 | |
Psychopharmacology/CNS | $2,794 | $2,794 | $2,794 | $2,794 | $2,794 | $2,794 | $4,752 | $4,752 | $4,752 | $4,752 | $4,752 | $4,752 | |
Addictions/3 hr IOP | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | $1,994 | |
Addictions/1hr IOP | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | $1,094 | |
Contracts | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Psychotherapy | 60.00% | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 | $35.71 |
Psychopharmacology/MD | 70.00% | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 | $28.64 |
Psychopharmacology/CNS | 60.00% | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 | $19.53 |
Addictions/3 hr IOP | 17.00% | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 | $13.12 |
Addictions/1hr IOP | 22.00% | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 | $4.91 |
Contracts | 60.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Psychotherapy | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | $17,213 | |
Psychopharmacology/MD | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | $6,015 | |
Psychopharmacology/CNS | $1,676 | $1,676 | $1,676 | $1,676 | $1,676 | $1,676 | $2,851 | $2,851 | $2,851 | $2,851 | $2,851 | $2,851 | |
Addictions/3 hr IOP | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | $339 | |
Addictions/1hr IOP | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | $241 | |
Contracts | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | |
Long-term Interest Rate | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | |
Tax Rate | 30.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $43,163 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | $45,122 | |
Direct Cost of Sales | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $25,484 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | $26,659 | |
Gross Margin | $17,679 | $17,679 | $17,679 | $17,679 | $17,679 | $17,679 | $18,462 | $18,462 | $18,462 | $18,462 | $18,462 | $18,462 | |
Gross Margin % | 40.96% | 40.96% | 40.96% | 40.96% | 40.96% | 40.96% | 40.92% | 40.92% | 40.92% | 40.92% | 40.92% | 40.92% | |
Expenses | |||||||||||||
Payroll | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | |
Marketing/Promotion | $675 | $675 | $675 | $675 | $675 | $625 | $625 | $625 | $625 | $625 | $625 | $575 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Billing Fees (6% of billed plus 1.5% copays) | $53 | $665 | $1,685 | $2,093 | $2,096 | $2,104 | $2,131 | $2,174 | $2,217 | $2,385 | $2,628 | $2,720 | |
Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $200 | |
Rent | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | |
Human Resource/HR Logic | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Med Dir.,Multidisc.,RNCS Sup. | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | |
Telephone | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Postage | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $50 | $50 | $50 | |
Office Supplies | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $330 | $230 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Contract/Consultants | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $833 | $837 | |
Total Operating Expenses | $13,602 | $14,214 | $15,234 | $15,642 | $15,645 | $15,603 | $15,630 | $15,673 | $15,716 | $15,834 | $16,077 | $15,923 | |
Profit Before Interest and Taxes | $4,077 | $3,465 | $2,445 | $2,037 | $2,034 | $2,076 | $2,832 | $2,789 | $2,746 | $2,628 | $2,385 | $2,539 | |
EBITDA | $4,077 | $3,465 | $2,445 | $2,037 | $2,034 | $2,076 | $2,832 | $2,789 | $2,746 | $2,628 | $2,385 | $2,539 | |
Interest Expense | $400 | $394 | $388 | $382 | $376 | $370 | $364 | $358 | $351 | $345 | $339 | $333 | |
Taxes Incurred | $1,103 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | $2,574 | $3,071 | $2,057 | $1,655 | $1,658 | $1,706 | $2,469 | $2,432 | $2,395 | $2,283 | $2,046 | $2,206 | |
Net Profit/Sales | 5.96% | 7.11% | 4.77% | 3.83% | 3.84% | 3.95% | 5.47% | 5.39% | 5.31% | 5.06% | 4.53% | 4.89% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $4,316 | $4,316 | $4,316 | $4,316 | $4,316 | $4,316 | $4,512 | $4,512 | $4,512 | $4,512 | $4,512 | $4,512 | |
Cash from Receivables | $0 | $0 | $1,295 | $38,847 | $38,847 | $38,847 | $38,847 | $38,847 | $38,906 | $40,610 | $40,610 | $40,610 | |
Subtotal Cash from Operations | $4,316 | $4,316 | $5,611 | $43,163 | $43,163 | $43,163 | $43,359 | $43,359 | $43,418 | $45,122 | $45,122 | $45,122 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $4,316 | $4,316 | $5,611 | $43,163 | $43,163 | $43,163 | $43,359 | $43,359 | $43,418 | $45,122 | $45,122 | $45,122 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | $8,312 | |
Bill Payments | $1,076 | $32,261 | $31,815 | $32,808 | $33,196 | $33,192 | $33,185 | $34,343 | $34,379 | $34,419 | $34,535 | $34,759 | |
Subtotal Spent on Operations | $9,388 | $40,573 | $40,127 | $41,120 | $41,508 | $41,504 | $41,497 | $42,655 | $42,691 | $42,731 | $42,847 | $43,071 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | $750 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $10,138 | $41,323 | $40,877 | $41,870 | $42,258 | $42,254 | $42,247 | $43,405 | $43,441 | $43,481 | $43,597 | $43,821 | |
Net Cash Flow | ($5,822) | ($37,007) | ($35,265) | $1,293 | $905 | $910 | $1,112 | ($45) | ($23) | $1,641 | $1,525 | $1,301 | |
Cash Balance | $95,178 | $58,172 | $22,906 | $24,200 | $25,105 | $26,014 | $27,126 | $27,081 | $27,058 | $28,699 | $30,224 | $31,525 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $101,000 | $95,178 | $58,172 | $22,906 | $24,200 | $25,105 | $26,014 | $27,126 | $27,081 | $27,058 | $28,699 | $30,224 | $31,525 |
Accounts Receivable | $0 | $38,847 | $77,694 | $115,246 | $115,246 | $115,246 | $115,246 | $117,009 | $118,772 | $120,475 | $120,475 | $120,475 | $120,475 |
Other Current Assets | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
Total Current Assets | $106,000 | $139,026 | $140,866 | $143,153 | $144,446 | $145,351 | $146,261 | $149,135 | $150,853 | $152,533 | $154,174 | $155,699 | $157,000 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $106,000 | $139,026 | $140,866 | $143,153 | $144,446 | $145,351 | $146,261 | $149,135 | $150,853 | $152,533 | $154,174 | $155,699 | $157,000 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $31,202 | $30,721 | $31,701 | $32,090 | $32,087 | $32,041 | $33,197 | $33,232 | $33,268 | $33,376 | $33,605 | $33,450 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $31,202 | $30,721 | $31,701 | $32,090 | $32,087 | $32,041 | $33,197 | $33,232 | $33,268 | $33,376 | $33,605 | $33,450 |
Long-term Liabilities | $50,000 | $49,250 | $48,500 | $47,750 | $47,000 | $46,250 | $45,500 | $44,750 | $44,000 | $43,250 | $42,500 | $41,750 | $41,000 |
Total Liabilities | $50,000 | $80,452 | $79,221 | $79,451 | $79,090 | $78,337 | $77,541 | $77,947 | $77,232 | $76,518 | $75,876 | $75,355 | $74,450 |
Paid-in Capital | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 |
Retained Earnings | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) | ($9,000) |
Earnings | $0 | $2,574 | $5,644 | $7,701 | $9,356 | $11,014 | $12,720 | $15,189 | $17,620 | $20,015 | $22,298 | $24,344 | $26,550 |
Total Capital | $56,000 | $58,574 | $61,644 | $63,701 | $65,356 | $67,014 | $68,720 | $71,189 | $73,620 | $76,015 | $78,298 | $80,344 | $82,550 |
Total Liabilities and Capital | $106,000 | $139,026 | $140,866 | $143,153 | $144,446 | $145,351 | $146,261 | $149,135 | $150,853 | $152,533 | $154,174 | $155,699 | $157,000 |
Net Worth | $56,000 | $58,574 | $61,644 | $63,701 | $65,356 | $67,014 | $68,720 | $71,189 | $73,620 | $76,015 | $78,298 | $80,344 | $82,550 |
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Written by Dave Lavinsky
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their mental health practices.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a mental health private practice business plan step-by-step so you can create your comprehensive business plan today.
Download our Ultimate Business Plan Template here >
A business plan provides a snapshot of your mental health practice as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
If you’re looking to start a mental health practice or grow your existing practice, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your mental health private practice business to improve your chances of success. Your mental health private practice business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a mental health private practice are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for mental health private practice companies.
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If you want to start a mental health private practice or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your mental health private practice business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of mental health private practice you are running and the status. For example, are you a startup, do you have a mental health private practice that you would like to grow, or are you operating a chain of mental health private practices?
Next, provide an overview of each of the subsequent sections of your plan.
In your company overview, you will detail the type of mental health private practice you are operating.
For example, you might specialize in one of the following types of mental health private practices:
In addition to explaining the type of mental health private practice you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
In your industry or market analysis, you need to provide an overview of the mental health private practice industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the mental health private practice industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your mental health private practice business plan:
The customer analysis section of your mental health private practice business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, couples or families.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of mental health private practice you operate. Individuals would respond to different marketing strategies versus families, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.
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Your competitive analysis should identify the direct and indirect competitors your business faces and then focus on the latter.
Direct competitors are other mental health private practices.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes psychiatrists, other healthcare providers, or members of the clergy. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a mental health private practice business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of mental health private practice that you documented in your company overview. Then, detail the specific products or private practice services you will be offering. For example, will you provide on-call emergency therapy sessions, client referral incentives, or group behavioral therapy retreats?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the mental health services you offer and their prices.
Place : Place refers to the site of your mental health private practice. Document where your company is situated and mention how the site will impact your success. For example, is your mental health private practice located in a quiet neighborhood office, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your mental health private practice marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your mental health private practice, including answering calls, planning and providing therapy sessions, billing insurance and/or patients, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth session, or when you hope to reach $X in revenue. It could also be when you expect to expand your mental health private practice to a new city.
To demonstrate your mental health private practice’s potential to succeed, a strong management team is essential. Highlight your private practice company’s founders and key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a private practice company.
Ideally, you and/or your team members have direct experience in managing mental health private practices. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a mental health private practice or successfully running a small therapy clinic.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your business costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you see 5 patients per day, and/or offer group therapy sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your mental health private practice, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a mental health private practice:
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your 5-year office location lease or a list of insurance plans you accept.
Writing a business plan for your mental health private practice is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the mental health private practice industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful mental health private practice.
You can download our mental health private practice business plan PDF to help you get started on your own business plan.
If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Business Plan Template has features not available in the free template including its financial projections template which automatically calculates your five-year financial projections including income statement, balance sheets, and cash flow statements.
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Written by Dave Lavinsky
You’ve come to the right place to create your Mental Health Private Practice business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their practices.
Below is a template to help you create each section of your Mental Health Private Practice business plan.
Business overview.
Harmony Mental Health Center is a new mental health private practice located in Portland, Oregon. The practice is focused on helping community members cope with their mental health concerns, such as dealing with life challenges or living with severe mental health disorders. The practice will have a full staff of counselors, psychologists, and psychiatrists in order to offer as many services as possible to help our clients cope and improve their mental well-being.
Harmony Mental Health Center is led by Sasha Pascal, who has been a trained and licensed psychiatrist for 20 years. She has seen many people stop care or not get care at all due to the expensive costs of the mental health industry. She has made it her mission to create a practice that offers a sliding scale so that more members of the Portland community can get the help they need.
Harmony Mental Health Center will provide several mental health services to its clientele to help them with their life challenges and mental health concerns. Some of these services include:
Harmony Mental Health Center will serve the residents of the Portland, Oregon area who are struggling with difficult life challenges or serious mental health concerns. We will primarily target residents earning less than the local median income by offering a sliding scale fee system.
Harmony Mental Health Center is led by Sasha Pascal, who has been a trained and licensed psychiatrist for 20 years. Throughout her career, Sasha has helped hundreds of clients improve their mental health by providing counseling and medication management services. However, she has seen many people stop care or not get care at all due to the expensive costs of the mental health industry. She has made it her mission to create a practice that offers a sliding scale so that more members of the Portland community can get the help they need.
Harmony Mental Health Center will be able to achieve success by offering the following competitive advantages:
Harmony Mental Health Center is currently seeking $650,000 to launch. The funding will be dedicated towards securing the office space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:
The following graph below outlines the pro forma financial projections for Harmony Mental Health Center.
Who is harmony mental health center.
Harmony Mental Health Center is a new mental health private practice located in Portland, Oregon. The practice is focused on helping community members cope with their mental health concerns, particularly those who are living with severe conditions such as bipolar disorder, schizophrenia, or post traumatic stress disorder (PTSD). The practice will have a full staff of counselors, psychologists, and psychiatrists in order to offer as many services as possible to help our clients cope and improve their mental well-being.
In addition to providing these services, we offer sliding scale rates for members who earn below the local median salary. Mental health services are typically very expensive, which prevents many people with mental health disorders from getting the help they need. We hope that by providing this sliding scale, more people will be able to afford our care and get help.
Once Sasha came up with her idea to offer affordable mental health services, she immediately began to do the groundwork to make it a reality. She conducted a market analysis to see who would benefit the most from these services and recruited other mental health professionals who were interested in joining the practice.
After finishing her analysis, she set out to find a potential office location. She has found an ideal location and is currently due diligence on the property. Once the lease is signed, all operations will move there.
Since incorporation, Harmony Mental Health Center has achieved the following milestones:
Harmony Mental Health Center will provide a wide variety of services to help our clients cope with their challenges and mental health concerns. Each client’s path of treatment will vary depending on their condition or particular challenges and needs.
Below is a list of some of the services that Harmony Mental Health Center will offer to its clients:
The mental health services industry is expected to grow substantially over the next few years.
Now that the world understands the importance of mental health, many people are seeking out care for their mental health concerns. This is creating incredible demand for mental health private practices and the expertise and care of mental health professionals. This demand will ensure the industry continues to expand and remains profitable.
One challenge to private practices is the popularity of app-based therapy companies such as BetterHelp and Talkspace. These apps have thousands of customers due to their convenience and affordable rates. Private practices that offer remote sessions and inexpensive fees will be able to compete with these apps.
Another challenge is the skyrocketing costs of mental health care. Due to demand and inflation, counseling fees and medication costs are quickly rising. This makes it much harder for people in middle or lower economic brackets to receive the care they need. Practices that offer sliding scale fees or partner with numerous insurance plans are more likely to keep a steady clientbase.
Demographic profile of target market.
The demographic for the Portland, Oregon area are as follows:
Total | Percent | |
---|---|---|
Total population | 1,680,988 | 100% |
Male | 838,675 | 49.9% |
Female | 842,313 | 50.1% |
20 to 24 years | 114,872 | 6.8% |
25 to 34 years | 273,588 | 16.3% |
35 to 44 years | 235,946 | 14.0% |
45 to 54 years | 210,256 | 12.5% |
55 to 59 years | 105,057 | 6.2% |
60 to 64 years | 87,484 | 5.2% |
65 to 74 years | 116,878 | 7.0% |
75 to 84 years | 52,524 | 3.1% |
Harmony Mental Health Center will primarily target the following customer profiles:
Direct and indirect competitors.
Harmony Mental Health Center will face competition from other companies with similar business profiles. A description of each competitor company is below.
Mount Hood Therapy Center is a large and popular therapy clinic that provides a wide range of counseling and mental health services. It staffs dozens of mental health professionals who all have various backgrounds, training, and education. This allows them to serve as many clients as possible and provide them with the exact mental health treatment they need. These services include traditional counseling, medication management, and complementary therapies, such as yoga.
While we expect Mount Hood Therapy Center to continue to thrive based on its popularity and variety of services offered, the clinic is very expensive and primarily caters to residents who earn a high income or have great insurance. Residents earning under the median income are not likely to afford these services and will come to Harmony Mental Health Center to receive care.
Stumptown Wellness is a counseling clinic that will be located in the same business center as Harmony Mental Health Center. It is a fairly affordable clinic that provides individual, group, and couples counseling services. It is one of the more popular counseling clinics in the area and has had a great reputation since its opening in 2005.
Though Stumptown Wellness is thriving, the practice does not offer psychiatry services or medication management options. Many people with mental health conditions utilize these services to manage their symptoms and need a practice that provides them. Therefore, people with these conditions will be more inclined to seek the help of Harmony Mental Health Center.
Mental Health Matters is a community service of affordable therapy offered by a local university. It is run by students who are training to become licensed therapists but do not have a license yet. They are supervised by their professors, who are trained, experienced, and licensed therapists. Because licensed professionals do not conduct the services, they are offered at an affordable rate and only to clients who earn less than the median income in the area.
Though Mental Health Matters offers a great service to the community, many clients prefer working with a licensed professional. We will be able to provide a similar sliding scale but also provide mental health services that are administered by trained and licensed professionals. Mental Health Matters also does not provide psychiatric services which our practice will have.
Harmony Mental Health Center will be able to offer the following advantages over their competition:
Brand & value proposition.
Harmony Mental Health Center will offer the unique value proposition to its clientele:
The promotions strategy for Harmony Mental Health Center is as follows:
Website/SEO
Harmony Mental Health Center will design an efficient and appealing website to attract clients. The website will be well organized, informative, and list the services that we provide. The website will also list information about our sliding scale.
We will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Portland mental health center ” or “mental health center near me”, Harmony Mental Health Center will be listed at the top of the search results.
Social Media
Sasha Pascal will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure Harmony Mental Health Center maintains an active social media presence with regular updates and promotional content to incentivize customers to utilize our services.
Doctor’s Offices
Sasha will visit multiple doctors and primary care offices to ask them to refer our company to any patients needing affordable mental health services. We will ask them to keep a handful of our brochures on hand and hand them out to whoever requests a mental health clinic.
Ongoing Customer Communications
Harmony Mental Health Center will publish a monthly email newsletter to provide education information about mental health as well as self-care tips.
Harmony Mental Health Center’s pricing will be moderate so clients feel they receive great value when utilizing our mental health services. We will bill our clients’ insurance companies first and then charge our clients directly for whatever their plans don’t cover.
The following will be the operations plan for Harmony Mental Health Center. Operation Functions:
Harmony Mental Health Center will have the following milestones completed in the next six months.
Sasha Pascal has a Ph.D in Psychology from the University of Oregon. In addition to helping clients with their mental health concerns, she has been running her own private practice for nearly ten years. Therefore, she has the necessary experience to run a larger mental health private practice and will lead our company to success.
Key revenue & costs.
The key revenues for Harmony Mental Health Center will come from the fees charged for providing mental health services. The fees will either be charged directly to the client or their insurance carrier, depending on whether or not they have insurance coverage for mental health care.
The major cost drivers for the company will include the cost of supplies, salaries, overhead costs, and marketing expenses.
Key assumptions.
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
What is a mental health private practice business plan.
A mental health private practice business plan is a plan to start and/or grow your mental health private practice business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Mental Health Private Practice business plan using our Mental Health Private Practice Business Plan Template here .
There are a number of different kinds of mental health private practice businesses , some examples include: Cognitive Therapy, Behavioral Therapy, Holistic Therapy, and Interpersonal Therapy.
Mental Health Private Practice businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting a mental health private practice business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Mental Health Private Practice Business Plan - The first step in starting a business is to create a detailed mental health private practice business plan 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 mental health private practice business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your mental health private practice business is in compliance with local laws.
3. Register Your Mental Health Private Practice Business - Once you have chosen a legal structure, the next step is to register your mental health private practice business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your mental health private practice business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Mental Health Private Practice Equipment & Supplies - In order to start your mental health private practice business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your mental health private practice business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
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Making a plan for your private practice gives you the opportunity to identify important points to consider for any small business, including finances, goals, and potential barriers to success. Considering these factors now can help prevent difficulties, or even business failure, in the future.
Finding it difficult to start writing a business plan? We can help with that. Here, we go over several essential elements to include and offer some tips to consider as you begin creating your own business plan.
While you’ll likely personalize the structure of your business plan to meet the unique needs of your private practice, all business plans should include certain essential information that outlines a path to success.
Your mission and vision statement communicates the purpose of your private practice. Writing this statement may seem daunting, but all it needs are a few sentences answering at least some of the following questions:
Like other components of a business plan, specific mission statements can vary based on your practice’s approach. Just take time to consider exactly how you want to help others and how your background, training, and specific approach can offer benefit—then set this out clearly in writing.
The description of your private practice can be a general overview of your business. Include all relevant information about your business, such as:
If you intend to use your business plan for anything beyond your own reference (to seek a loan or create a proposal, for example), consider providing some background about yourself and your practice. Keep things professional, but take this opportunity to personalize your description and make yourself more relatable.
Taking time to research the therapy market in your area can help you make important decisions about your niche, office location, and methods of reaching potential clients.
Researching nearby therapists can provide a clearer picture of a specific location’s needs. If your target area already boasts a number of therapists who practice similar approaches or treat the same issues, consider targeting a slightly different demographic or training in a new specialty.
For example, instead of saying “I work with children of all ages,” consider “I see clients of all ages but specialize in working with teenagers who have ADHD , learning difficulties , problems in school , or behavioral issues.” Consider your skill set and think about the help you, specifically, can provide. You might worry narrowing your practice’s focus will decrease the number of potential clients, but the reverse is more likely to be true. People seeking a therapist for any of those specific concerns may find you before they find a therapist who doesn’t indicate a specialty.
When choosing your office location, you’ll also want to make sure potential clients of your demographic can find and reach you easily. Once you’ve found an ideal location, you’ll need to consider marketing strategies, another key component of market research. How will you get word out once you’re ready for clients?
The financial part of a business plan should involve several components.
First, you’ll want to calculate your operating costs, or expenses. These costs might include:
Once you’ve determined your monthly (or annual) operating costs, you’ll need to calculate the minimum amount of income you need to support yourself and keep your practice in business. Once you have this figure, you can use it to set your therapy fees and create a sliding scale, if you decide to use this fee structure. It may help to consider how many sliding-scale clients you can take on at a time
Deciding whether or not to accept insurance is also an important decision you’ll have to make before beginning to see clients. Some practitioners prefer to avoid working with insurance companies, so it’s important to research the necessary steps and decide whether accepting insurance will meet the needs of your practice.
If you have independent funding to start, make a note of this. If you’ll need some income to get it started, also note your strategy for obtaining these funds.
You’ll find it next to impossible to reach many new clients without investing time and effort into both developing your reputation as a mental health professional and putting yourself in front of potential clients. Including ideas for marketing strategies in your business plan can provide focus. Consider these possibilities:
The final (and perhaps most significant) component of your business plan? Your goals for the future. These goals should include a time component, and they should be focused and specific.
Your primary goal, when starting your therapy practice, is probably to help people. But consider more detailed goals. Exactly how do you want to help? If you want to help young children overcome trauma , your goal may be pursuing continuing education in trauma-focused therapy approaches during the first 6 months of practice. If you want to counsel pregnant teenagers, it might help to have a goal of learning more about the various school, family, or health-related challenges teen parents face.
Other goals including planning for the growth of your practice. Again, it helps to note specific, achievable milestones along with responses to reaching these milestones. For example, you might mention, “In 2 years, I hope to be seeing 20 clients each week. When I have more than 20 clients for a period of 2 months, I’ll look to add another professional to my practice.”
Certain details may change over time as your business grows and you adapt your practice to meet new needs. You might add more staff, gain new specialties, or become certified in additional therapy approaches. As your circumstances change, so might the needs or goals of your practice. It’s a good idea to revisit your business plan once or twice a year, just to update any information and address any parts that have become less relevant.
References:
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How to write a business plan for your therapy practice.
Starting a therapy practice is a great way to provide mental health services to those in need.
It also allows therapists to build their own practice and specialize in the areas they are most passionate about.
But, before launching anything, make sure you have a business plan in place.
A business plan is an essential part of launching a successful therapy practice. It provides a roadmap for success and outlines the costs, resources, and strategies needed to bring the practice to life. Creating a business plan helps ensure that the practice is well-positioned for success in the long-term.
In short, a thorough business plan will help make sure your therapy practice is profitable .
What should you consider when writing a business plan for a therapy practice? What's the basic outline for the structure? What are the important financial ratios to consider? How can I simplify the task of writing a business plan and save time?
Luck is on your side! This article provides answers to all these questions, leaving no stone unturned!
One last thing: it's up to you whether to start your business plan from scratch.
Instead, you can download our editable business plan for a therapy practice and adapt it to suit your business needs.
Is it worth considering a business plan for your therapy practice.
Yes, you should absolutely consider creating a business plan for your therapy practice.
Drafting a viable business plan will help to:
Our team has drafted a business plan for a therapy practice that will provide you with clear steps and strategies to achieve these objectives successfully.
A business plan is packed with important facts, figures, and indicators. It must be presented in a structured format, to make easy to read and digest.
When we made our business plan for a therapy practice , we ensured it was properly organized.
There are 5 main sections (Opportunity, Project, Market Research, Strategy and Finances).
The initial section is named "Market Opportunity."
Explore this section for essential insights and analysis on therapy practices, including therapy modalities, patient demographics, regulatory considerations, and business strategies, assisting professionals in establishing successful and impactful therapy practices.
This section receives updates to maintain data accuracy.
The "Project" section provides an opportunity to describe your therapy practice, including the types of therapy you specialize in (e.g., individual, couples, family), therapeutic approaches, qualifications, therapy room ambiance, client-centered care, and the unique value proposition that supports clients in their journey towards mental and emotional well-being.
Also include a short description about yourself at the end of this section.
Discuss your qualifications as a therapist, your therapeutic approach, and how you plan to provide compassionate and effective therapy services. Highlight your specialization areas, your client-centered approach, and your dedication to helping individuals improve their mental health and well-being through your therapy practice.
We wrote some text in our business plan. Adapt it to fit your idea exactly.
After that, comes the "Market Research" section.
In this section, you will find a market segmentation analysis for your therapy practice.
It includes a study of competing therapy practices and emphasizes your practice's competitive advantages. A tailored SWOT analysis is also provided.
Within the "Strategy" section, a detailed plan spanning three years is outlined, specifying the necessary initiatives to make your therapy practice highly profitable.
Additionally, you'll find a marketing strategy, a plan to manage risks, and a completed Business Model Canvas in this section.
Lastly, the "Finances" section is dedicated to presenting all the financial data, tables, and visuals for your project.
The Executive Summary provides a brief overview of the business plan of your therapy practice.
Keep it short and to the point, with a maximum of 2 pages. Include only the key points.
The intention behind this document is to make the reader enthusiastic about your business plan.
In the Executive Summary of your therapy practice, provide answers to these questions: what type of therapy does your practice offer? who is your target audience? are there other therapy practices in the area? what funding do you require?
The market study of your therapy practice helps you understand external factors such as client demands for mental health services, competition within the healthcare industry, and emerging trends in therapeutic approaches.
By conducting an extensive market analysis, a therapy practice can understand client therapy needs, offer professional counseling and therapy services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal client base, increased appointments, and a prominent position in the therapy industry.
Here's what we've included in the "Market Research" section of our business plan for a therapy practice :
What's the business model of a therapy practice, business model of a therapy practice.
A therapy practice's business model revolves around providing therapeutic services and support to individuals experiencing mental health, emotional, or behavioral issues. Revenue is generated through therapy session fees, potentially accepting insurance reimbursements.
The business model focuses on licensed therapists, providing evidence-based therapy approaches, effective marketing to target individuals seeking therapy services, and building strong client relationships based on empathy and expertise in mental health.
Success depends on therapist qualifications and experience, delivering effective therapy outcomes, fostering positive client experiences and recommendations, and continuously staying updated with therapeutic methodologies and mental health advancements to provide impactful and compassionate therapy services.
Keep in mind the difference between "business plan" and "business model."
A business model is a framework that demonstrates how a company operates profitably and adds value to customers.
In a business plan, you leverage the Business Model Canvas as a user-friendly framework to illustrate the structure of your business.
Rest assured, there is a Business Model Canvas (already completed) in our business plan for a therapy practice .
Market segmentation for your therapy practice involves dividing your potential clients into different groups based on their therapy needs, mental health concerns, and demographics.
These categories may include factors such as individual therapy, couples therapy, child therapy, or clients seeking specific therapy approaches or specialties (e.g., cognitive-behavioral therapy, trauma therapy, grief counseling).
By segmenting your market, you can offer specialized therapy services and interventions that cater to each segment's specific requirements. For example, you might focus on individual therapy and provide counseling sessions for clients dealing with anxiety, depression, or life transitions, offer couples therapy to support couples in strengthening their relationships and resolving conflicts, specialize in child therapy and provide play-based or expressive therapy techniques for children experiencing emotional or behavioral challenges, or focus on specific therapy approaches or specialties such as cognitive-behavioral therapy, trauma-focused therapy, or grief counseling to address specific client needs.
Market segmentation allows you to effectively target your marketing efforts, communicate your expertise in specific therapy approaches or specialties, and provide a supportive and therapeutic environment that meets the unique needs and preferences of each client segment.
In the business plan for a therapy practice , you will find a detailed market segmentation that helps you understand your audience and their preferences.
Without a doubt, you will not be alone in your neighbourhood. There are other therapy practices who appeal to the same customers
Your business plan should feature a thorough examination of your competitors' strengths, weaknesses, and attributes.
Be aware of their weaknesses (such as lack of specialized therapy techniques, inadequate client assessment methods, or poor therapeutic outcomes).
Why should you focus on these elements? Well, these weaknesses can hinder the effectiveness of therapy practices. By addressing these aspects, you can provide compassionate and professional therapy services, offer a safe and comfortable therapeutic environment, and deliver personalized treatment plans, positioning your therapy practice as a trusted and supportive resource for individuals' mental and emotional well-being.
It's what we call competitive advantages—strengthening them helps your business stand out from the rest.
Here are some examples of competitive advantages for a therapy practice: licensed and experienced therapists, diverse range of therapy services, personalized treatment plans, empathetic and supportive environment, effective therapeutic techniques and approaches, positive client outcomes and testimonials, continuous professional development.
A SWOT analysis can help identify potential opportunities, threats, strengths, and weaknesses of a therapy practice before it begins.
As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a therapy practice
When we use the "S" in SWOT, we mean Strengths, which are the project's positive qualities.
For a therapy practice, possible strengths could be an experienced and knowledgeable staff, a positive reputation, a wide range of services, and a welcoming and comfortable atmosphere.
The "W" represents Weaknesses, indicating the weaker areas or aspects of the project that need enhancement.
In the case of a therapy practice, potential weaknesses could include a limited client base, inadequate insurance coverage knowledge, and lack of specialized therapists.
O represents Opportunities in SWOT, referring to the external factors or circumstances that can contribute to the project's growth.
In the case of a therapy practice, potential opportunities include offering online sessions, providing group therapy sessions, offering workshops, and engaging in community outreach.
The "T" in SWOT symbolizes Threats, indicating the potential risks or unfavorable conditions that the project needs to mitigate.
A marketing strategy is an integral component of a business plan as it highlights how a business will attract customers and generate profits.
A therapy practice can attract individuals seeking mental health support by implementing a well-crafted marketing strategy that highlights the practice's qualified therapists, compassionate approach, and positive client testimonials.
Individuals won't seek your counseling services without proper promotion; showcasing your expertise, empathy, and successful outcomes is necessary.
Have you considered implementing creative marketing initiatives for your therapy practice? Organize mental health workshops or seminars, collaborate with local healthcare providers for cross-referrals, and utilize online platforms to share resources and tips for emotional well-being.
Don't panic if you're struggling to grasp the concepts of marketing and communication.
A successful business plan requires comprehensive financial data in order to accurately forecast future performance.
As you prepare your business plan, it is important to include revenue forecasts for your therapy practice.
We must ensure that this revenue forecast is reasonable and easily comprehensible.
Our financial plan for a therapy practice is user-friendly, providing automated validations that allow you to rectify any assumptions swiftly. This guarantees the creation of credible projections with ease and assurance.
It goes without saying that you should create a preliminary budget for launching your therapy practice. Don't overlook any expense. By the way, we've listed them all in our financial plan!
A key aspect of your financial plan is the break-even analysis, which helps determine whether your therapy practice will be profitable or not.
Starting a mental health clinic or organization can be a daunting task, especially when it comes to securing funding and support for your services. But with ClickUp's Business Plan Template for Mental Health Services, you can confidently outline your vision, goals, and strategies to effectively communicate your business model.
This comprehensive template is designed specifically for mental health clinics and organizations, and includes everything you need to create a compelling business plan. From articulating your mission and setting financial projections, to developing marketing strategies and operational plans, ClickUp's template has got you covered.
With ClickUp's Business Plan Template for Mental Health Services, you can showcase the value and impact of your mental health services, and take the first step towards building a successful and thriving clinic or organization. Start planning your future today!
A Business Plan Template for Mental Health Services can provide several benefits to mental health clinics or organizations, including:
ClickUp’s Business Plan Template for Mental Health Services is the perfect tool to help mental health clinics or organizations outline their goals and strategies effectively:
Creating a business plan for mental health services can be a complex process, but with the help of ClickUp's Business Plan Template, you can simplify it. Follow these four steps to get started:
Begin by clearly defining your mission statement and identifying your target audience. What kind of mental health services do you want to provide, and who do you want to serve? Consider the specific needs of your target audience and how your services will address those needs.
Use a Doc in ClickUp to outline your mission statement and describe your target audience in detail.
Before launching your mental health services, it's crucial to understand the market landscape and identify potential competitors. Conduct thorough market research to gather insights about the demand for mental health services in your area, the current service providers, and any gaps or opportunities in the market.
Use the Table view in ClickUp to organize and analyze your market research data, including competitor analysis, target market demographics, and industry trends.
Based on your mission and market research, develop a comprehensive service offering that aligns with the needs of your target audience. Determine the types of mental health services you will provide, such as therapy, counseling, or support groups, and decide on the pricing structure for each service.
Create custom fields in ClickUp to track and manage your service offering and pricing strategy. This will help you keep track of the different services, their pricing, and any additional details.
A solid financial plan is essential for the success of any business. Estimate your startup costs, including expenses for hiring staff, renting office space, acquiring equipment, and marketing your services. Develop a revenue projection based on your service pricing and projected client base.
Use Dashboards in ClickUp to create visual representations of your financial plan, including income projections, expense breakdowns, and cash flow analysis. This will help you monitor and track your financial performance over time.
By following these four steps and utilizing ClickUp's Business Plan Template, you can create a comprehensive business plan for your mental health services. This plan will serve as a roadmap for your success and guide your decision-making process as you start and grow your business.
Mental health clinics and organizations can use this Business Plan Template for Mental Health Services to effectively communicate their vision, goals, and strategies to secure funding and support for their services.
First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.
Next, invite relevant members or guests to your Workspace to start collaborating.
Now you can take advantage of the full potential of this template to create a comprehensive business plan:
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Want to start a private practice business? The rapidly increasing demand and untapped market make this an extremely lucrative business opportunity.
Anyone with expertise and resources can start a new business. However, you will require a detailed business plan to leverage your niche market and raise funds.
Need help writing a business plan for your mental health private practice? You’re at the right place. Our mental health private practice business plan template will help you get started.
Free Business Plan Template
Download our free mental health private practice business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!
Writing a mental health 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:
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:
Ensure your executive summary is clear, concise, easy to understand, and jargon-free.
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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:
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.
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.
Here are a few tips for writing the market analysis section of your mental health private practice business plan::
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:
In short, this section of your mental health private 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.
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:
Overall, this section of your mental health 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 mental health private practice, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.
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:
Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.
The management team section provides an overview of your mental health private practice management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.
This section should describe the key personnel for your mental health private practice services, highlighting how you have the perfect team to succeed.
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:
Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.
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.
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 mental health 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 mental health private practice business plan will provide an idea for writing a successful mental health 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 mental health private practice business plan pdf .
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Why do you need a mental health private practice business plan.
A business plan is an essential tool for anyone looking to start or run a successful mental health 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 mental health private practice company.
There are several ways to get funding for your mental health private practice business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:
Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.
Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:
Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.
The level of detail of the financial projections of your mental health private practice business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.
Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.
Indeed. A well-crafted mental health private practice business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.
So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.
Marketing strategy is a key component of your software company business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!
Here are a few pointers to help you understand the importance of having an impactful marketing strategy:
About the Author
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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If you want to start a mental health practice or expand your current practice, you need a business plan.
The following Mental Health Private Practice business plan template gives you the key elements to include in a winning business plan. In addition to this template, a solid plan will also include market research to help you better understand market trends, your competitive advantage and your target customers. It will also help you craft your mission statement, marketing plan and strong financial projections.
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
I. executive summary, business overview.
[Company Name] is a new mental health private practice located in [Location]. The clinic helps individuals with a wide variety of mental health related concerns including managing mental health conditions, improving relationships, and coping with life’s challenges. Though we currently only provide therapy to individuals, we hope to expand our services soon to provide couples therapy, group therapy, and medication management services.
[Company Name] is currently solely run by [Founder’s Name], who has been a licensed counselor for ten years. She helps her clients using a variety of therapy modalities including Cognitive Behavioral Therapy (CBT), Dialectical Behavioral Therapy (DBT), and Interpersonal Therapy. Her experience has provided her with the skills and compassion necessary to run a successful clinic and help hundreds of clients with their mental health concerns.
[Company Name] will provide a variety of therapy services for individuals living in the [Location] area. Clients can come to [Company Name] with any mental health concern they are struggling with, including mental illness or particular life challenges. Though, [Founder’s Name] is currently the only therapist employed by the clinic, [Company Name] will hire several other mental health professionals with unique backgrounds, education, and experiences to better help our diverse clientele. [Company Name] will also hire a psychiatrist to assist with the diagnosis of mental disorders and provide medication management.
[Company Name] will work with a list of insurance companies to ensure as many people as possible have coverage to receive mental health care from us.
[Company Name] will serve the residents living in the [Location] area. The area has a higher median income than most cities, which means most residents have the disposable income to invest in mental health care.
The demographics of the area are as follows:
[Company Name] is led and run by [Founder’s Name]. [Founder’s Name] is a graduate from [University] and has been a licensed counselor for ten years. She uses several therapy modalities to help her clients, including Cognitive Behavioral Therapy (CBT), Dialectical Behavioral Therapy (DBT), and Interpersonal Therapy. After the clinic is established, she will employ other therapists and psychiatrists who can provide a more diverse list of mental health services.
[Company Name] is uniquely qualified to succeed due to the following reasons:
[Company Name] is currently seeking $180,000 to launch. Specifically, these funds will be used as follows:
Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
---|---|---|---|---|---|
Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
Who is [company name].
[Company Name]’s mission is to help local individuals cope or work through their mental health related concerns. We can help with a variety of issues, including relationship problems, trauma, grief, and managing a mental illness. We currently only provide mental health services to individuals, but will soon hire mental health professionals who can work with couples, provide psychiatric services, and run group therapy sessions.
[Company Name] is currently solely run by [Founder’s Name], who has been a licensed counselor for ten years. She has been trained in multiple therapy modalities including Cognitive Behavioral Therapy (CBT), Dialectical Behavioral Therapy (DBT), and Interpersonal Therapy. She is extremely passionate about running a private practice that can help anyone struggling with their mental health. Furthermore, she conducted a survey and found that many people in the community would benefit from this practice and expressed interest in signing up for our mental health services.
After surveying the local client base and finding a potential office location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation]. Currently, the business is being run remotely out of [Founder’s Name]’s home office, but once a lease is finalized, all operations will run from there.
Since incorporation, [Company Name] has achieved the following milestones:
[Company Name] currently provides counseling services to individuals struggling with life challenges or mental health concerns. This can include managing a mental health condition, coping with grief, healing from trauma, and working through relationship problems.
Currently [Founder’s Name] is the only therapist employed by the clinic. However, [Company Name] will hire several other mental health professionals with unique backgrounds, education, and experiences to better help our diverse clientele. Therefore, we hope to offer several other mental health services in the future, including couples counseling, group counseling, and medication management.
The past few years have seen a revolution in the mental health industry. More people than ever before now understand how essential it is to talk to a mental health professional about one’s mental health and challenges. As a result, mental health professionals are rising in demand, which is expanding the industry at a historic rate.
Mental health private practices help clients with a wide range of issues. This can include helping cope with or heal from mental health conditions (such as depression, anxiety, eating disorders, or bipolar disorder), providing guidance on interpersonal matters, or helping clients cope or work through life’s challenges.
One recent benefit to the industry is the transition to remote services. Many people get their counseling sessions online through phone or video chat therapy, and this trend is expected to continue. Even after the pandemic ended, millions of people preferred to discuss their matters remotely with their mental health support team. These services are often more convenient for clients and cheaper.
A significant challenge that mental health private practices face is large online therapeutic apps, such as BetterHelp. These services connect clients with therapists online from anywhere in the world. These essentially are “gig” opportunities for therapists and have gained popularity for several years for their affordable cost and convenience. However, the decreasing reputation of these platforms is sending clients back to high-quality mental health private practices.
According to Allied Market Research, the mental health industry is expected to grow at a CAGR of 3.5%. This is moderate growth that ensures the industry will continue to grow and thrive. Mental health services have never been in more demand and this trend is expected to continue for the foreseeable future.
Demographic profile of target market.
[Company Name] will serve the community residents of [Location] and its surrounding areas. Our mental health care clinic will focus on helping individuals with their mental health concerns. We expect much of our clientele to be young adults or millennials who have the disposable income to invest in quality mental health care.
The company will primarily target the following three customer segments:
Direct & indirect competitors.
The following clinics are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Columbia Mental Health Care Columbia Mental Health Care has been a popular private practice since 1988. It is a large clinic that employs dozens of mental health professionals, all with different backgrounds and areas of expertise. They offer counseling for individuals, couples, and families and have psychiatrists who can help with medication management. Clients who go to Columbia can get help coping with a diagnosis, navigating a major life transition, or working through conflict with others.
Cherry Tree Therapy Center Cherry Tree Therapy Center was established in 2005 to address the mental health concerns of the community. Like Columbia, it is a larger clinic with many therapists to choose from. These therapists come from many backgrounds and offer a variety of treatments and counseling for many disorders and situations. However, Cherry Tree is well-known for its expensive rates, which prevents many residents from seeking their help.
Sunnyvale University Counseling Services Established in 2008, Sunnyvale University Counseling Services is a community service of affordable therapy offered by Sunnyvale University. It is run by students who are training to become licensed therapists but do not have a license yet. They are supervised by their professors, who are trained, experienced, and licensed therapists. Because licensed professionals do not conduct the services, they are offered at an affordable rate and only to clients who are in the lowest economic brackets of the community. Though these rates are affordable, many potential clients don’t seek help with this practice because they need the help of an experienced mental health professional who has a license to help them.
[Company Name] enjoys several advantages over its competitors. Those advantages include the following:
You can download our Business Plan Template (including a full, customizable financial model) to your computer here. [Company Name] seeks to position itself as a respectable, welcoming mental health private clinic. Clients can expect to receive professional therapy and mental health services from a team of skilled therapists and psychiatrists.
The [Company Name] brand will focus on the clinic’s unique value proposition:
[Company Name] expects its target market to be individuals living within a 5 to 10-mile radius of its location. [Company Name]’s promotion strategy to reach these clients includes:
Website/SEO [Company Name] will develop a professional website that showcases pictures of the office and the list of mental health services that we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media [Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Doctor’s Offices [Founder’s Name] will connect with multiple doctors and primary care offices to ask them to refer our clinic to any patients looking for mental health services. We will ask them to keep a handful of our brochures on hand and hand them out to whoever is in need of mental health services.
Local Publications [Company Name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, mental health publications, and similar channels will be a major promotion effort.
Ongoing Customer Communications [Company Name] will maintain a website and publish a monthly email newsletter to provide tips for mental health self-care and educate our clients on the basic psychology/science behind common mental health concerns.
Community Events/Organizations [Company Name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
[Company Name]’s pricing will be moderate so clients feel they receive great value when obtaining our mental health services.
Functional roles.
[Company Name] will carry out its day-to-day operations on an appointment basis. Clients can make an appointment through our website or by calling the office. [Company Name] will have a comfortable waiting area, but patients will likely be seen within 5-10 minutes of checking in at the front desk.
In order to execute [Company Name]’s business model, the company needs to perform several functions: Service Functions
Administrative Functions
Date | Milestone |
---|---|
[Date 1] | Finalize lease agreement |
[Date 2] | Design and build out [Company Name] |
[Date 3] | Hire and train initial staff |
[Date 4] | Kickoff of promotional campaign |
[Date 5] | Launch [Company Name] |
[Date 6] | Reach break-even |
Management team members.
[Company Name] is led and run by [Founder’s Name]. [Founder’s Name] graduated from [University] with a Master’s in Counseling and has been a licensed counselor for ten years. [Founder’s Name] uses several therapy techniques and modalities to help her clients. Some of these include Cognitive Behavioral Therapy (CBT), Dialectical Behavioral Therapy (DBT), and Interpersonal Therapy. After the clinic is established, she will employ other therapists and psychiatrists who can provide a more diverse list of mental health services.
Though she has never run a mental health private practice herself, her experience as a counselor at other practices has given her the experience to run the operations of the practice and assist her clientele with all their mental health concerns.
[Founder’s Name] will serve as [Company Name]’s Owner and Office Manager. In the beginning, she will be the sole therapist for the clinic. Shortly after the practice launches, we will need to hire the following personnel:
Revenue and cost drivers.
The key revenues for [Company Name] will come from the fees charged for the provided mental health services. These services will either be charged directly to the client or through their insurance provider.
The key cost drivers for [Company Name] will be the salaries, rent, utilities, supplies and equipment, and marketing expenses.
Key assumptions.
Number of Clients | Average |
---|---|
FY 1 | 100 |
FY 2 | 120 |
FY 3 | 150 |
FY 4 | 200 |
FY 5 | 225 |
5 Year Annual Income Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
Expenses & Costs | ||||||
Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
LIABILITIES & EQUITY | ||||||
Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | |||||
Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
CASH FLOW FROM INVESTMENTS | |||||
Investment | ($246,450) | $0 | $0 | $0 | $0 |
Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
CASH FLOW FROM FINANCING | |||||
Cash from equity | $0 | $0 | $0 | $0 | $0 |
Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
SUMMARY | |||||
Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
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Last Updated: May 31, 2024
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.
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.
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 private practice business plan requires research and consideration. While you’re doing market research and business planning, ask yourself these basic but crucial questions:
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.
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:
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 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.
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.
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Mental health business plan | ms word, 9+ sample mental health business plan, what is a mental health business plan, key elements of a mental health business plan, how to advertise your mental health business, do businesses require a business plan, what are some of the components of mental health assessment, what is the importance in having your budget be part of the business plan.
Step 1: make your business stand out, step 2: brand your business, step 3: materialize your marketing strategy, step 4: work within your budget, step 5: strengthen your network, share this post on your network, you may also like these articles.
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Hundreds of new psychiatric private practices are started each year, yet I repeatedly hear from graduating psychiatry residents and psychiatric private practice colleagues that they have not had adequate preparation in the business of running a private practice. Off the shelf business plan templates were helpful but did not quite hit the mark for me when I started my practice in 2002. So, I modified them over time to come up with a system that worked well for me and am sharing it here.
The three basic choices for your psychiatric business entity are: sole proprietorship, LLC, or S corporation . The choice is based mainly on relative costs, tax implications, and general business liability (rather than professional liability). I recommend consulting with a local accountant and lawyer with experience working for other health care providers before deciding. I have not been convinced of clear advantages to one versus another, with one exception: for those that think that they have a high likelihood of creating a group practice, you might as well fork over the extra money to set up an LLC or S corporation so that you have the option of continuing under the same tax ID #.
I am referring here to questions that you probably have already answered before deciding to start your practice. 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 (i.e. therapy versus medication management)?
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. Developing referral sources is all about networking, which I will cover in more depth in another post.
Another very powerful, but still underutilized method for generating patient flow, is through internet marketing. This could be as simple as putting up a practice website and including information about your skills and expertise. If you have unique skills that would stand out in a keyword search, then simply having a website might be enough to generate patient flow. But, in the competitive world of internet marketing, there are many, many additional things that you can do to generate traffic to your site. The common buzzwords are search engine optimization (SEO), search engine marketing (SEM), and social media marketing. Most private practices that use internet marketing will stop with SEO. If you do not yet have a website and plan to build one with the intention of driving traffic to your site, I recommend getting professional help before you start. That way, you can design the site with an eye towards SEO. In the Seattle area, experienced internet marketing professionals cost between $80 to $200 per hour or work on retainer. You could start by putting an ad in craigslist and shopping until you find one that has experience working with small practice health care providers.
I break up operating processes into four categories: facilities, front office, back office, and insurance.
Facilities refer to your plan for the 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. Some of these functions can be carried out by front office staff or even by an Electronic Health Record (EHR) .
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 including medical, dental, and long and short-term disability insurance.
Check out Valant’s new billing solutions for mental health practices .
Continue reading: Psychiatric Business Plan Template
Team refers to internal staff and outside consultants such as a lawyer, accountant, bookkeeper and medical biller. If you have an Electronic Health Record (EHR) , you might consider your account manager or vendor as part of your team, since they will have such an important role in helping you organize your workflow.
It is not necessary to have fancy financial projections to start and successfully operate a small psychiatric private practice. However, it is important to understand the basics of how you generate net income and understand concepts such as opportunity cost . While some readers will consider these concepts insultingly simplistic, I find that it is often helpful to deeply review the obvious in a formula. Formula number one is below:
By itself, this is not especially enlightening or profound. But it then tells us which variables we’ll need to further break down. See below:
In my experience, the typical starting psychiatrist will overestimate this number. This comes from overestimating collections rates, fees paid by insurance for a unit of service, show rate, and patient flow. So I’d budget for 20% less than whatever you come up with in your plan, at least until you get validation from real revenue.
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.
1. Don’t sweat excessively about location. You will probably move within 2 years. At that point, you’ll better understand your needs
2. 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.
3. Start with a behavioral health care focused Electronic Health Record . It’s easier to build it into the fabric of your practice from the beginning rather than switching later.
4. 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.
5. Understand 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.
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By: Author Tony Martins Ajaero
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Are you about starting a mental health counseling firm? If YES, here is a complete sample mental health counseling business plan template & FREE feasibility report.
Mental health counselors work as primary caregivers for their patients. Duties of a mental health counselors include conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals.
Mental health counselors may work for a school, for a government department or an agency, as part of a social outreach agency or for another entity.
To start and run a successful mental health counselling business, you will first have to obtain your college degree in behavioral science (e.g., psychiatrist, psychology, counselling, social work, sociology) with workshops, certificate classes and symposia that fill voids in your areas of expertise like geriatric, pediatric, adolescent and other segments of society with special mental health needs and issues.
Take general business classes if time allows. If you intend starting this business, just make sure you conduct your personal research and acquire licenses required by state, city and/or community mental health agencies and authorities.
Take your time to draft a budget covering start-up expense. Writing a business plan will help you focus your practice’s future direction. Below is a sample mental health counseling business plan template that will help you successfully write yours without much stress.
1. industry overview.
Mental health counselling business is part of the Mental Health and Substance Abuse Centers industry and the industry is made up of organizations that provide long-term residential care and treatment for patients with mental health and substance abuse illnesses.
These establishments offer long-term housing, supervision and counseling services. Please note that this industry does not include hospitals with inpatient and outpatient care or facilities that primarily provide services for adults with intellectual and developmental disabilities.
A close study of the Mental health and substance abuse Centers industry shows that in the last half a decade, the industry has grown consistently. Mental health counseling services are needed regardless of economic conditions, which insulate the industry from economic fluctuations.
Going forward, as people continue to be employed and regain a steady income, private health insurance will become more affordable, prompting consumers to seek mental health counseling services when needed.
The Mental Health & Substance Abuse Centers industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 8,658 registered and licensed Mental Health & Substance Abuse Centers and Counselors scattered all around the United States of America.
The industry is responsible for the employment of over 226,576 people. Experts project the industry to grow at a 3.4 percent annual rate within 2014 and 2019. It is important to state that there is no single organization that has a lion share of the market in the Mental Health & Substance Abuse Centers industry.
A recent report published by IBISWorld shows that over the past five years, Mental Health & Substance Abuse Centers in the US has grown by 5.0 percent to reach a revenue of $18 billion in 2019. In the same time – frame, the number of businesses have grown by 3.1 percent and the number of employees have grown by 3.6 percent.
Please note that the requirements to become a mental health counselor in all states in the US, include a master’s degree and a state license. Bachelor’s degree programs can be completed in a variety of fields and usually take 4 years to complete, and master’s degree programs in counseling take 2-3 years.
In order to become successful as a mental health counselor, you should be able to connect with people and constructively discuss their problems and issues. Excellent written and verbal communications skills and an analytical approach will serve you well in mental health counseling industry.
Mind Pro® Mental Health Counseling Firm, LLP is a licensed counseling (private practice) firm that is specialized in helping her clients overcome their mental health challenges.
The scope of our business offerings covers areas such as conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals, online counseling services and retailing of self-help books and materials.
Our business will be located in between a well – populated residential estate and a business district in in Spring Valley – Nevada, United States of America. We are intentional in choosing this location because Nevada has the highest prevalence of mental illness and lowest access to care among youths. 2 out of 3 Nevadan adults with mental illness received no treatment.
According to MHAScreening.org, Nevada had the highest percentage of people who scored in the severe level for depression (33.72 percent). Nevada also had the highest rate of thoughts of self-harm and suicide reported among mental health screeners.
Mind Pro® Mental Health Counseling Firm, LLP is a client-focused and result driven mental health counseling organization that provides broad – based counseling at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will ensure that we work hard to meet and surpass all our clients’ expectations as it relates to their mental health and overall wellbeing whenever they hire our services.
At Mind Pro® Mental Health Counseling Firm, LLP, our clients’ overall best interest would always come first, and everything we do is guided by our values and professional ethics.
We will ensure that we hire professional and certified psychiatrist, psychologists, social workers and counselors with various skill sets who are experienced and passionate in helping our clients overcome their mental health challenges within record time.
Mind Pro® Mental Health Counseling Firm, LLP will at all times demonstrate her commitment to sustainability, both individually and as a mental health counseling organization, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely.
Mind Pro® Mental Health Counseling Firm, LLP is founded by Dr. John Lakewood and he will run the business with his business partner Dr. Mercy Williams. Dr. John Lakewood is a certified and renowned psychiatrist and mental health counselor.
He has over 20 years’ experience working with top government officials, corporate executives, celebrities and sports people in the United States of America.
Mind Pro® Mental Health Counseling Firm, LLP is going to offer varieties of mental health counseling services within the scope of the mental health and substance abuse industry in the United States of America.
Our intention of starting our mental health counseling business is to help our clients overcome their challenges, achieve their personal goals and improve their competence, capacity and productivity and of course to also make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
Our Business Structure
Mind Pro® Mental Health Counseling Firm, LLP, is a mental health counseling firm that intends starting small in Spring Valley – Nevada, but hopes to grow big in order to compete favorably with leading firms in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.
At Mind Pro® Mental Health Counseling Firm, LLP, we will ensure that we hire people that are qualified, hardworking, creative, passionate, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff / partners and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
Office Administrator
Accounting Clerk
Client Service Executive
Principal Partner / Chief Executive Officer:
Psychiatrist and Mental Health Counselor
Marketing Executive
Mind Pro® Mental Health Counseling Firm, LLP engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured mental health counseling business that can favorably compete in the highly competitive industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Mind Pro® Mental Health Counseling Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mind Pro® Mental Health Counseling Firm, LLP;
Our essential strength lies in the power of our team; our workforce. We have a team of experts in the industry, a team with excellent qualifications and experience in mental counseling practice.
Aside from the synergy that exists in our carefully selected team and our strong online presence, Mind Pro® Mental Health Counseling Firm, LLP is well positioned in a community with the right demography of people with mental health challenges and we know we will attract loads of clients from the first day we open our doors for business.
As a new mental health counseling organization in Spring Valley – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive mental health and substance abuse Centers industry; that is perhaps our major weakness.
The mental health and substance abuse industry has grown in response to increased awareness of mental health and substance abuse issues.
So also, expanded federal funding for Medicare and Medicaid has benefited industry operators hence encouraging people with mental health challenges to seek the services of mental health counseling practitioners. As a standard mental health counseling organization, we are ready to take advantage of these opportunities.
Persons seeking treatment for mental health or substance use disorders have several options with regards to types of providers and treatment models.
As a result, mental health counsellors experience external competition from numerous sources, including from short-term inpatient and outpatient service providers in the Mental Health and Substance Abuse Clinics Industry. External competition is anticipated to remain high in 2019, posing a potential threat to operators in the industry.
The latest trend shows that the business opportunities and of course career outlook for mental health counseling is excellent, with the U.S. Bureau of Labor Statistics (BLS) projecting 23 percent growth from 2016 up to 2026. Job growth is expected because people are more willing to seek mental health help, and it is becoming a less expensive form of treatment.
So also, in the United States of America, Federal funding for Medicare and Medicaid has increased during the period as states have expanded Medicaid coverage to a greater number of low-income individuals. An increase in coverage enables more individuals struggling with substance use and mental illness to access industry services.
Currently, an estimated 41.9 percent of industry revenue is derived from Medicaid and Medicare reimbursement payments. In 2019, federal funding for Medicare and Medicaid is expected to increase, presenting a potential opportunity for the industry.
A notable trend in this industry is the influence of technology; the advent of technology is responsible for the increase in income generated by mental health counselors all over the world. With technology, it is now easier for mental health counselors to counsel their clients that are thousands of kilometers away from them.
Tools like video calling / Skype, YouTube, live chat and Webcast et al are being used by mental health counselors to counsel clients in different parts of the world.
The target market for mental health counseling firms is all encompassing. Mind Pro® Mental Health Counseling Firm, LLP is a professional mental health counseling firm that is specialized in helping her clients with mental health challenges improve their competence, capacity and productivity.
Our target market as a mental health counseling firm cuts across people of different class and people from all walks of life.
We are coming into the mental health and substance abuse Centers industry with a business concept and company’s profile that will enable us work with the clients from different background and status. Below is a list of the clients that we have specifically design our mental health counseling services for;
Our competitive advantage
The mental health and substance abuse Centers industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can help them overcome their mental health challenges, and achieve their personal health goals.
It is the practice for mental health counselors to acquire as much certifications as it relates to their area of specialization; it is part of what will make them stay competitive in the industry
Mind Pro® Mental Health Counseling Firm, LLP might be a new mental health counseling firm in Spring Valley – Nevada, but our management team are licensed and highly qualified psychiatrists, psychologists and mental health counselors that can help our clients overcome their mental health challenges and achieve their personal health goal within a short period of time.
These are part of what will count as a competitive advantage for us. Aside from our robust experience and the expertise of our psychiatrists, psychologists, social workers and mental health counselors, we have a very strong online presence that will enable us counsel clients in different parts of the world from our online portals.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups mental health counseling businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
Mind Pro® Mental Health Counseling Firm, LLP is established with the aim of maximizing profits in the mental health and substance abuse Centers industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.
Mind Pro® Mental Health Counseling Firm, LLP will generate income by offering the following mental health counseling services;
One thing is certain, there would always be corporate organization (schools, rehab centers and clinics) and individuals who would need the services of mental health counselors. This is the major reason why the services of mental health counseling firms will always be needed.
We are well positioned to take on the available market in Spring Valley – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our mental health counseling business and our clientele base.
We have been able to examine the mental health counseling market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Mind Pro® Mental Health Counseling Firm, LLP, it is based on the location of our mental health counseling company and of course the wide range of mental health counseling services that we will be offering;
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
We are mindful of the fact that there are stiffer competitions amongst mental health counseling firms in the United States of America; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Mind Pro® Mental Health Counseling Firm, LLP.
We will also ensure that our clients overcome their mental health challenges in record time; we want to build a standard mental health counseling business that will leverage on word of mouth advertisement from satisfied clients.
Our goal is to grow Mind Pro® Mental Health Counseling Firm, LLP to become one of the top 5 mental health counseling organizations in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Spring Valley – Nevada but also in other cities in the United States of America.
Mind Pro® Mental Health Counseling Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of Spring Valley – Nevada which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote and advertise Mind Pro® Mental Health Counseling Firm, LLP;
Generally, counseling and consulting services are billed on per hour billing rate and flat fees on a weekly or monthly basis. As a result of this, Mind Pro® Mental Health Counseling Firm, LLP will charge our clients flat fees except for few occasions where there will be need for us to charge special clients on hourly basis.
At Mind Pro® Mental Health Counseling Firm, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our clients at regular intervals.
We are aware that there are some clients that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.
The payment policy adopted by Mind Pro® Mental Health Counseling Firm, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Mind Pro® Mental Health Counseling Firm, LLP will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our client make payment for mental health counseling services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
From our market research and feasibility studies, we were able to come up with the following financial projections and costing as it relates to establishing our mental health counseling business in the United States of America;
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (120,000) U.S. dollars to successfully set up a medium scale but standard mental health counseling firm in the United States of America.
Generating Funds/Startup Capital for Mind Pro® Mental Health Counseling Firm, LLP
Mind Pro® Mental Health Counseling Firm, LLP is a partnership business that will be owned by Dr. John Lakewood and he will run the business with his business partner, Dr. Mercy Williams. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $70,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Mind Pro® Mental Health Counseling Firm, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our mental health counseling services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Mind Pro® Mental Health Counseling Firm, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
Support: 866.543.6646 | Sales: 855.489.1792
When opening your own behavioral health practice, your business plan can make or break your practice. From your clinical approach to your administrative operations, a business plan should guide your decision-making in all aspects of your practice. Here’s how to get started:
Launching your behavioral health practice is exciting, but shouldn’t be rushed. Start creating your business plan with a simple list, or search online for a business plan template to provide a little more structure. Explore other practices to get some ideas and decide how you may (or may not) want to organize your own practice. Network with other behavioral health professionals, or consider taking local or online business classes or tutorials on different aspects of business ownership.
No matter the industry, every business plan should include several common elements: • What products or services you offer • Your legal structure ( sole proprietorship, an LLC, or an S corporation ) • What other employees or partners you may hire • How you will market your business • What makes you different from competitors • Your business goals and how you will measure success • Obtaining additional financing, if necessary • How to handle accounting • What federal, state, or local licensing or permits are required • What insurance (payroll, liability, etc.) is needed • Your mission statement
Your business plan should also address questions unique to a behavioral health practice, including: • Who are your clients (including age groups, demographics, or conditions)? • Will you rent or buy a space, or work out of your home? • What therapeutic approaches will you use? • Do you need additional education or training? • Will you partner or collaborate with other behavioral health providers, social service organizations, or hospitals? • Will you offer telehealth? • How will you handle documentation and client data? • Will you use software solutions, such as accounting or an EHR? • What will your rates and payment options be? What insurance will you accept? • Will you join a referral network? • How will you bill clients? How will you handle late or missed payments? • What will your scheduling process be like? • How will you handle a client that is not a good fit? • Will you work with an accountant or an attorney?
You can personalize your business plan to address your personal work and productivity style. This part might help guide decisions like: • Establishing and maintaining boundaries with clients • When you will take lunch breaks • Whether you have a mentor you can consult • How much time you need between client sessions • How you will stay motivated and disciplined • How to respond to serious, negative feedback • How much time you will dedicate to administrative tasks and how much on clinical tasks The benefit of running your own practice is having the flexibility to change your operations. If you want to change your accounting software, marketing style, or work hours, you can! Your business plan should grow and evolve with you and your practice, so don’t worry about getting it perfect right away. Your behavioral health business plan should address the type of software you use to make things easier for you. BestNotes EHR and CRM solutions , created for behavioral health and addiction treatment providers, can help you start your practice on the right track. Contact us today to learn more !
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Mental health illness has been a long prevailing issue in society. Mental health problems range from the worries we all experience as part of everyday life to serious long-term conditions. Those inflicted with a more serious problem can cause a lot of implications such as anxiety and depression can be severe and long-lasting and have a big impact on people’s ability to get on with life. Mental health issues should be treated seriously like any other illness which is why health professionals and mental health counselors are there to help address this issue. Counselling clinics and health institutions have been offering services and treatment plans all around but to efficiently be able to partake in this practice requires an able mental health business plan. Know more about this as you continue reading this article and don’t forget to check out our free mental health business plan samples below:
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Over the past several years, the mental healthcare system has evolved tremendously, however majority of people are still struggling with various forms of mental illness and find it difficult to get appropriate treatment at the right time due to barriers like lack of providers, poor access, high cost and, social stigma. A mental health business plan will help institutions map out a plan and goals, create strategies and action plans , identify target clients and determine financial projections.
There’s no right or wrong way to write a business plan . What’s important is that your plan meets your needs and helps you attain your goals . Conducting mental health assessments , developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals are all part of the mental health procedure and planning. To be able to incorporate all these requires as mentioned an effective mental health business plan. To get you started, here are the components you need to know as you go about writing your business plan:
An executive summary must contain quick overview of the problem your business solves, your solution to the problem, the business’s target market which are clients who are dealing with mental health challenges, key financial highlights, and a summary of who does what on the management team. Include the scope of the business for example covering areas such as mental health assessments , developing treatment plans, therapy sessions, running preventative mental wellness classes or workshops amongst others.
Define what your company is all about, company ownership, business facilities, location and operating hours.
Make a list of the various products or services your mental health institution will be offering. This section of your business plan delves into the core of what you are trying to achieve. You may want to write in detail the problem you are solving, how you are solving it, the competitive landscape, and other key factors about the products or services that you are building now and plan on building in the future and your business’s competitive edge.
Include include plans related to locations and facilities, technology, and any regulatory issues if applicable.
A mission statement of a business plan explains what your business offers, how it does this and who it helps. It captures the overall value of your product or service. Such as state your institution’s commitment to the quality mental health care and overall health strategies and varied medical services.
Market analysis in a mental health industry setting may include the market trends in regards to the availability of a mental health assistance and counseling, the inner scope of these issues and how to address them. As well narrow down the specific target market you want to include in your scope and how this would correspond with your institution’s services.
It is imperative to be able to announce to the world and your target market the services and products you wish to offer and of course that can help them with their mental state issues. Any services regarding one’s physical or mental state is a sensitive matter and must be dealt accordingly. Try to create awareness and empowerment with mental health marketing. The challenge is overcoming the stigma associated with mental health, creating awareness of the services offered and reducing friction for those seeking help.
Identify the financial projections and costing as it relates to establishing your mental health institution. This should include any break-even analysis , projected profit and loss , cash flow and balance sheet.
Mental Disorders or psychiatric disorders are health conditions which affect your thinking, feeling, mood, and behavior. This can very much affect your daily way of life.
Treatment plans are important to help a patient slowly recover as these are guidelines for the therapeutic process and provide you and your therapist with a way of measuring whether therapy is working.
These are institutions that provides services like individual counselling, group counselling, and organizes various kinds of programs on mental health.
Like all other disease and illnesses, our society is in a constant battle against mental illness and the alarming implications it can cause to individuals and the people around them. Initiatives and steps has been devised by health professionals to help address this concern. Which of course initially starts with a carefully thought mental health business plan, and like all other business plan this will serve as a road map so you may fully implement your goals in aiding those who drastically need help.
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COMMENTS
Tip 4: Include the Clinical Aspect of Your Business. Make your business plan tailored to your behavioral health practice. For this, think about the clinical aspect of your business. Take the following into consideration: - The clients' demographics, age group, and conditions. - Clinic location (rent or buy a space or at home) - The ...
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 ...
Executive Summary. Amesbury Psychological Center (the Center) is a multidisciplinary behavioral health care practice that offers mental health and substance abuse services to the communities of the Merrimack Valley. Our focus is to provide cost-effective, quality treatment. Our mission is to create, promote, and maintain a positive customer ...
Mental Health Private Practice Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their mental health practices. In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a mental ...
Harmony Mental Health Center is currently seeking $650,000 to launch. The funding will be dedicated towards securing the office space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs.
Consider these possibilities: Commit to spending a certain number of hours each week on marketing strategies. Use those hours to network and meet with potential referral sources, plan new ...
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.
A marketing strategy is an integral component of a business plan as it highlights how a business will attract customers and generate profits. A therapy practice can attract individuals seeking mental health support by implementing a well-crafted marketing strategy that highlights the practice's qualified therapists, compassionate approach, and ...
Mental health clinics and organizations can use this Business Plan Template for Mental Health Services to effectively communicate their vision, goals, and strategies to secure funding and support for their services. First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space ...
Our business plan template includes several categories of questions aimed at simplifying and clarifying your plan for your behavioral health practice. Included in this document are questions about your mission statement, description of your practice, legal framework, operations, EHR system, marketing, organizational structure, and finances.
Writing a mental health 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 ...
The following Mental Health Private Practice business plan template gives you the key elements to include in a winning business plan. In addition to this template, a solid plan will also include market research to help you better understand market trends, your competitive advantage and your target customers.
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 ...
What is a mental health business plan? A mental health business plan pertains to the written document regarding a mental health facility's core objectives, methodologies, overall structure, and plan to achieve the goals it has set for itself. It is basically the blueprint for a clinic that aims to target mental health issues. Having a business plan is very important because it serves as a ...
The three basic choices for your psychiatric business entity are: sole proprietorship, LLC, or S corporation. The choice is based mainly on relative costs, tax implications, and general business liability (rather than professional liability). I recommend consulting with a local accountant and lawyer with experience working for other health care ...
A Sample Mental Health Counseling Business Plan Template 1. Industry Overview. Mental health counselling business is part of the Mental Health and Substance Abuse Centers industry and the industry is made up of organizations that provide long-term residential care and treatment for patients with mental health and substance abuse illnesses.
Make your business plan your own. You can personalize your business plan to address your personal work and productivity style. This part might help guide decisions like: • Establishing and maintaining boundaries with clients. • When you will take lunch breaks. • Whether you have a mentor you can consult. • How much time you need between ...
Sample Business Plan For Mental Health Private Practice: Business Basics for Private Practice Anne D. Bartolucci,2017-08-03 Business Basics for Private Practice is a step by step guide to developing a successful practice from initial conceptualization and business plan to future growth for the true
Know more about this as you continue reading this article and don't forget to check out our free mental health business plan samples below: Mental Health Business Plan. 7+ Mental Health Business Plan Samples. 1. Mental Health Project Business Plan. 2. Mental Health Services Business Plan. more.
Sample Business Plan For Mental Health Private Practice: Business Basics for Private Practice Anne D. Bartolucci,2017-08-03 Business Basics for Private Practice is a step by step guide to developing a successful practice from initial conceptualization and business plan to future growth for the true
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