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Mental Health Private Practice Business Plan PDF Template

Courtney Gardner, MSW • 2024-01-24

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

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

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

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

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

Creating a Compelling Business Description and Service Offerings

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

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

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

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

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

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

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

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

Critical elements of a successful counseling private practice business plan.

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

Mission Statement

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

For example, your mission statement could be:

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

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Business description.

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

For instance:

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

Financial Plan

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

Operational Details

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

Market Analysis

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

Competitive Advantage

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

For example:

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

Financial Projections

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

Avoiding Common Mistakes and Ensuring a Competitive Advantage

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

Some of the significant mistakes to avoid include:

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

Legal Requirements for Opening a Private Practice

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

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

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

Malpractice Insurance

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

Business Registration

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

HIPAA Compliance

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

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

Your Own Comprehensive Business Plan Checklist

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

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

Mental Health Private Practice Business Plan Template

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

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

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

How often should I review and revise my business plan?

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

How do I get funding for my private practice?

There are a few options for funding a private practice:

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

What are the keys to a successful business plan?

The keys to a successful private practice business plan are:

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

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

How do I price my services?

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

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

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

What insurance plans should I accept?

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

Consider accepting:

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

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

How do I market my private practice?

Effective marketing strategies for a private practice include:

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

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

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

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

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Mental Health Business Plan

Recently, the important role of mental health has been widely acknowledged by many countries and communities around the world. Despite the progress, people with mental health conditions remain victims of human rights violations, discrimination, and stigma. With extremely low treatment coverage, the gap between people needing care and those with access to care remains substantial. This is why mental health businesses, in the form of mental health hospitals and counseling centers, among others, are booming to allow more and more individuals to get access to the care they need. Likewise, your goal in setting up a mental health business is to significantly increase the number of people with psychological conditions gaining access to the support they need in managing mental health issues. However, like many other businesses , you need a roadmap to better guide you in structuring, running, and growing your mental health business.

Generally, creating a business plan takes a complicated process. There are a lot of aspects you need to look into in order to make your business a success. This is why it’s quite hard to choose where to start in creating your business plan. But fret not because we give you more than three business plan ideas through our examples and templates below.

3+ Mental Health Business Plan Examples

1. mental health business plan template.

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2. Business Plan for Mental Health

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3. Mental Health Small Business Plan

4. Standard Mental Health Business Plan

What Is a Mental Health Business Plan

So your vision is to help people with mental health conditions get access to the services they need at an extensive rate. Now to make your vision possible, your first mission is to create a business plan. A business plan will guide you through each stage of your mental health business; from starting to managing. Through this, you can think through the key elements of your business — funding agreement , budget , investors, and more.

How to Write a Mental Health Business Plan

You need to have a written business plan for your behavioral health practice. With it, the likelihood of achieving a successful mental health business becomes relatively higher. But, how do you write it? Before we get started with the process, please remember that a business plan should include the executive summary, company description, market analysis, organization and management chart, marketing and sales, funding request, and financial projections. Also, don’t forget to include services and/or products. You might want to consider providing learning resources that can help patients diagnosed with mental health problems themselves or the people who want to help them.

Without further ado, let’s get started!

Tip 1: Conduct Thorough Research

Know more about the different aspects of mental health and be sure it lines up with your goals and objects. Research and analyze the services or products that you plan to provide — understand how they can help people who are suffering from mental health issues.

A little suggestion, try to research the various interventions made by other mental health providers; analyze their effectiveness and which areas do they fail. This will help you make innovative psychotherapeutic interventions that can potentially address treatment gaps in the past. In other words, know your company, what you provide, your competition, and the market intimately.

Tip 2: Determine Your Purpose

A business plan is a written document describing the nature of your business, the sales and marketing strategy, financial background, and the profit and loss statement . As such, you should have a clear purpose as to why you are establishing a mental health business. This is why research is imperative in your business plan.

Serving as a roadmap that provides direction for your business, it’s important to keep in mind if you’re self-funding or building your company from nothing else but personal savings or cash from the first profit — in your case, you may have a long way to go. So, determine if you’re planning to attract investors or not. If you do, write your plan in a way that targets them.

Tip 3: Have Your Strategic Marketing Plan Ironed Out

Map your marketing strategy  to give you a clear guide in effectively reaching your target market. Be creative in thinking about how you introduce your services. For this, your marketing strategy might include venturing into digital marketing. There is a number of mental health providers who were able to expand their reach with the help of a digital marketing agency.

But, of course, be sure to personalize your business plan. This will aid you in creating a concrete marketing strategy.

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 therapeutic approaches you will take – Prospective behavioral healthcare provider partners – Telehealth – Counseling Treatment Plan

These are just a few of the considerations you need to look into with the overall operation. If you have anything else in mind, include them in your business plan. It might help.

What Are the Main Purposes of a Business Plan?

There are three main purposes of a business plan, which include (1) creating an effective business growth strategy, (2) determining the company’s future financial needs, and (3) attracting investors.

Is a Business Plan the Same as Marketing Plan?

No. A business plan covers the business as a whole, including the overall strategy, financial plans, target markets, sales, services and/or products, operations, and their relation to each other. On the other hand, a marketing plan focuses on the marketing strategy (target market, messaging, platform, etc.).

How Does a Business Plan and Marketing Plan Relate with Each Other?

Your marketing plan provides how your company will achieve or exceed its purpose and mission. The purpose and mission should be identified in the business plan.

You can neither go right nor wrong in writing a business plan. What matters is that your plan is able to achieve, if not exceed, your needs and expectations. If you’re puzzled about how to begin with your business plan, feel free to browse for more of our business plan examples and templates, such as: – Daycare Business Plan – New Business Plan – Small Business Plan – Cafe Business Plan – Bakery Business Plan

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Psychological Health Center Business Plan

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Amesbury Psychological Center

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

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

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

The key to success for this turnkey project includes:

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

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

1.1 Objectives

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

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

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

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

1.2 Mission

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

1.3 Keys to Success

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

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

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

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

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

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

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

2.1 Company Ownership

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

2.2 Company Locations and Facilities

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

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

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

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

3.1 Service Description

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

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

3.2 Competitive Comparison

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

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

3.3 Sales Literature

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

3.4 Fulfillment

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

3.5 Future Services

If the Center is to sustain its growth and other capacities, it must continuously strengthen its customer relations and identify their ongoing needs. We will watch closely for industry trends that may impact our delivery service system. Our energies will be focused on creative problem-solving solutions in how we deliver our service and how we reimburse our associates and staff for their 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:

4.1 Target Market Segment Strategy

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

4.1.1 Market Trends

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

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

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

4.1.2 Market Growth

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

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

4.1.3 Market Needs

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

4.2 Service Business Analysis

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

4.2.1 Main Competitors

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

Not-for-Profit Facility

1. North Essex Mental Health Center

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

a. Strengths:

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

b. Weaknesses:

• Size (considered to be arrogant by some area professionals resulting in a negative perception in the community)  
• High staff turnover

c. Potential Impact of Strengths:

• Politically well connected
• Large pool of resources to draw from
• Staff availability to respond to request for proposals (RFPs) and request for quotations (RFQs)

d. Strategies To Thwart Competition:

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

2. Arbour/HRI Counseling

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

• Good location in downtown Haverhill
• Affiliations
• Programming: geropsychiatry partial hospitalization program
• Community respectability
• Unknown at this time
• Part of a large system
• Strong referral base
• Programming/outreach home-based legal services

d. Strategies to Thwart Competition:

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

3. Harris Street Associates

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

4. Harborside Psychological Center

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

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

4.3 Market Segmentation

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

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

Strategy and Implementation Summary

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

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

5.1 Sales Strategy

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

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

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

5.1.1 Sales Forecast

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

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

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

5.2 Value Proposition

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

5.3 Competitive Edge

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

5.4 Marketing Strategy

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

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

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

5.4.1 Promotion Strategy

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

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

5.4.2 Positioning Statement

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

5.4.3 Pricing Strategy

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

5.5 Strategic Alliances

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

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

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

6.1 Organizational Structure

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

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

6.2 Management Team

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

**Names have been removed for confidentiality

6.3 Management Team Gaps

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

6.4 Personnel Plan

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

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

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

Financial Plan investor-ready personnel plan .">

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

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

7.1 Important Assumptions

There are several assumptions related to this turn key project.

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

The following table summarizes the general financial assumptions.

7.2 Key Financial Indicators

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

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

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

7.3 Break-even Analysis

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

7.4 Projected Profit and Loss

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

7.5 Projected Cash Flow

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

7.6 Projected Balance Sheet

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

7.7 Business Ratios

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

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Business Plan Template for Mental Health Services

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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!

Business Plan Template for Mental Health Services Benefits

A Business Plan Template for Mental Health Services can provide several benefits to mental health clinics or organizations, including:

• Clearly defining the vision, mission, and goals of the mental health services, ensuring alignment and clarity among all stakeholders
• Outlining financial projections, helping secure funding and resources necessary to support the growth and sustainability of the mental health organization
• Identifying target market segments and developing effective marketing strategies to reach and engage the right audience
• Detailing operational plans, ensuring smooth and efficient delivery of mental health services
• Providing a roadmap for continuous improvement and strategic decision-making, enabling the mental health organization to adapt and thrive in a dynamic healthcare landscape.

Main Elements of Mental Health Services Business Plan Template

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:

• Custom Statuses: Track the progress of each section of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect is accounted for and easily managed.
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to provide additional information and categorize different aspects of your business plan, allowing for easy organization and retrieval of essential details.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and the Getting Started Guide to visualize your business plan from various angles, making it easier to navigate and collaborate with team members.
• Collaboration and Documentation: Collaborate with your team, assign tasks, and attach relevant documents such as financial projections, marketing strategies, and operational plans directly within ClickUp, streamlining the process and ensuring everything is in one place.

How To Use Business Plan Template for Mental Health Services

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:

1. Define your mission and target audience

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.

2. Conduct market research

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.

3. Develop a service offering and pricing strategy

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.

4. Create a financial plan

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.

Get Started with ClickUp’s Business Plan Template for Mental Health Services

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:

• Use the Topics View to organize different sections of your business plan, such as vision, mission, goals, financial projections, and marketing strategies
• The Status View will help you track the progress of each section, whether it's complete, in progress, needs revision, or still to do
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan
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Mental Health Private Practice Business Plan

Free Business Plan Template

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

• Fill in the blanks – Outline
• Financial Tables

How to Write A Mental Health Private Practice Business Plan?

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 plan is ready and summarizes each section of your plan.

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

Introduce your Business:

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

Market Opportunity:

Products and services:.

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

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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2. Business Overview

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

Business Description:

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

Describe what kind of mental health private practice you offer and the name of it. You may specialize in one of the following private practices:

• Psychiatry practice
• Neuropsychology practice
• Behavioral therapy
• Cognitive therapy
• Specialized Mental health practice: Couples therapy, eating disorder, trauma and PTSD, addiction, grief.
• Describe the legal structure of your private practice company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

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

Future Goals

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

3. Market Analysis

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

Target market:

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

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your mental health practice will cope with all the trends.

Regulatory Environment:

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

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

4. Products And Services

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

Describe your services:

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

• Assessments and evaluation
• Treatment planning
• Medication management
• Therapy sessions
• Psychoeducation

Treatment and therapies:

Mention different types of treatments and therapies you will offer at your private practice.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

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.

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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.

6. Operations Plan

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

Staffing & Training:

Operational process:, software & tools:.

Include the list of equipment and machinery required for mental health private practice, such as diagnostic tools, office equipment, EHR system, etc.

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

7. Management Team

The management team section provides an overview of your 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.

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

Remember, the appendix section of your 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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What are Key Elements of Business Plan

Frequently asked questions, 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.

How to get funding for your mental health private practice business?

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:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

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

How do I write a good market analysis in a mental health private practice business plan?

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:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my mental health private practice business plan?

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.

Can a good mental health private practice business plan help me secure funding?

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.

What's the importance of a marketing strategy in a mental health private practice business plan?

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:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

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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Mental Health Counseling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Medical and Healthcare

Are you about starting a mental health counseling firm? If YES, here is a complete sample mental health counseling business plan template & FREE feasibility report.

Mental health counselors work as primary caregivers for their patients. Duties of a mental health counselors include conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals.

Mental health counselors may work for a school, for a government department or an agency, as part of a social outreach agency or for another entity.

To start and run a successful mental health counselling business, you will first have to obtain your college degree in behavioral science (e.g., psychiatrist, psychology, counselling, social work, sociology) with workshops, certificate classes and symposia that fill voids in your areas of expertise like geriatric, pediatric, adolescent and other segments of society with special mental health needs and issues.

Take general business classes if time allows. If you intend starting this business, just make sure you conduct your personal research and acquire licenses required by state, city and/or community mental health agencies and authorities.

Take your time to draft a budget covering start-up expense. Writing a business plan will help you focus your practice’s future direction. Below is a sample mental health counseling business plan template that will help you successfully write yours without much stress.

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.

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.

2. Executive Summary

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.

3. Our Products and Services

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;

• Conducting mental health assessments and counselling
• Developing individualized treatment plans
• Leading individual or group therapy sessions
• Running preventative mental wellness classes or workshops
• Making treatment referrals
• Online mental health counselling services
• Retailing of self – help books and materials

4. Our Mission and Vision Statement

• Our vision is to build a highly competitive and effective mental health counseling business that will become the number one choice for both individuals and corporate organizations in Spring Valley – Nevada and the whole of the United States of America.
• Our mission is to provide affordable, professional and highly effective mental counseling services to a wide range of clients. We want to position Mind Pro® Mental Health Counseling Firm, LLP to become one of the leading mental health counseling brands in the industry in the whole of Spring Valley – Nevada, and also to be amongst the top 5 mental health counseling firms in the United States of America within the first 10 years of operation.

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;

• Principal Partner/Chief Executive Officer
• Psychiatrist and Mental Health Counselors

Office Administrator

Accounting Clerk

• Marketing Executives

Client Service Executive

5. Job Roles and Responsibilities

Principal Partner / Chief Executive Officer:

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

Psychiatrist and Mental Health Counselor

• Work with individuals, groups and communities to improve mental health
• Encourage clients to discuss emotions and experiences
• Examine issues including substance abuse, aging, bullying, anger management, careers, depression, stress and suicide
• Work with families
• Help clients define goals, plan action and gain insight
• Develop therapeutic processes
• Refer clients to psychologists and other services
• Take a holistic (mind and body) approach to mental healthcare
• Handle any other duty as assigned by the Principal Partner / CEO.
• Responsible for overseeing the smooth running of HR and administrative tasks for Mind Pro® Mental Health Counseling Firm, LLP
• Regularly hold meetings with key stakeholders to review the effectiveness of the organizations’ Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversee the smooth running of the daily activities of Mind Pro® Mental Health Counseling Firm, LLP.

Marketing Executive

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

6. SWOT Analysis

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.

• Opportunities:

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.

7. MARKET ANALYSIS

• Market Trends

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.

8. Our Target Market

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;

• People undergoing depression
• Psychiatric patients
• Drug addicts (Substance abusers)

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.

9. SALES AND MARKETING STRATEGY

• Sources of Income

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;

• Retailing of self -help books and materials

10. Sales Forecast

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;

• First Fiscal Year: $150,000
• Second Fiscal Year: $300,000
• Third Fiscal Year: $550,000

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

• Marketing Strategy and Sales Strategy

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;

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

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for 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;

• Place adverts on both print (community – based newspapers and health related magazines) and electronic media platforms
• Sponsor relevant community – based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our brand
• Install our Billboards in strategic locations all around Spring Valley – Nevada.
• Engage in roadshow from time to time in targeted neighborhoods around Spring Valley – Nevada
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Mind Pro® Mental Health Counseling Firm, LLP and the services we offer
• List our mental health counseling firm in local directories / yellow pages
• Advertise our life mental health counseling firm in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our logo

12. Our Pricing Strategy

Generally, counseling and consulting services are billed on per hour billing rate and flat fees on a weekly or monthly basis. As 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.

• Payment Options

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;

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

In view of the above, we have chosen banking platforms that will enable our client make payment for mental health counseling services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

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;

• Business incorporation fees in the United States of America will cost – $750.
• The budget for liability insurance, permits and license will cost – $3,500
• Acquiring an office space that will accommodate the number of employees we intend employing for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
• Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• The cost for accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
• Launching an official website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
• Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (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;

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

N.B: We have been able to generate about $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.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a 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

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

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Counseling Private Practice Business Plan Template

Written by Dave Lavinsky

Counseling Private Practice Business Plan

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

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

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

Executive Summary

Business overview.

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

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

Product Offering

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

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

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

Customer Focus

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

Management Team

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

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

Success Factors

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

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

Financial Highlights

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

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

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

Company Overview

Who is peaceful minds, peaceful minds history.

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

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

Since incorporation, Peaceful Minds has achieved the following milestones:

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

Peaceful Minds Services

Industry analysis.

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

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

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

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

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

Customer Analysis

Demographic profile of target market.

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

The demographics for Tigard, Oregon are as follows:

Customer Segmentation

Peaceful Minds will primarily target the following customer profiles:

• Married couples
• Millennials

Competitive Analysis

Direct and indirect competitors.

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

Riverside Therapy Center

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

Tigard Mental Health And Wellness

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

Portland State University Counseling Services

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

Competitive Advantage

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

Marketing Plan

Brand & value proposition.

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

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

Promotions Strategy

The promotions strategy for Peaceful Minds is as follows:

Website/SEO

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

Social Media

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

Doctor’s Offices

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

Ongoing Customer Communications

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

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

Operations Plan

The following will be the operations plan for Peaceful Minds.

Operation Functions:

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

Milestones:

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

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

Financial Plan

Key revenue & costs.

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

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

Funding Requirements and Use of Funds

Key assumptions.

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

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

Financial Projections

Income statement, balance sheet, cash flow statement, counseling private practice business plan faqs, what is a counseling private practice business plan.

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

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

What are the Main Types of Counseling Private Practice Businesses?

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

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

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

What are the Steps To Start a Counseling Private Practice?

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

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

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

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

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

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

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

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

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

Learn more about how to open a successful private practice :

• How to Open a Counseling Private Practice Business

Psychiatric Business Plan Template

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.

Legal Framework

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 #.

Service Delivery Model

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)?

Generating Patient Flow

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

Operations Model

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.

Financial Model

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:

• Net Income = Revenue – expenses

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:

• Revenue = Average Fee per face to face hour x hours worked

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.

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

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.

Your Turn to Make a Move

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Switching Your EHR? Here’s How to Get Your Providers on Board

How To Create a Holistic Mental Health Clinic Business Plan: Checklist

By henry sheykin, resources on holistic mental health clinic.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis

Welcome to our blog post on how to write a business plan for a holistic mental health clinic! As the demand for holistic approaches to mental well-being continues to rise, it's important to understand the necessary steps to create a successful clinic that caters to individuals seeking personalized and evidence-based treatments. In this article, we will guide you through the process with nine key steps to help you create a comprehensive and effective business plan.

Statistical Information: The holistic mental health industry has experienced significant growth in recent years, with a CAGR of 8.7% from 2019 to 2026. This growth can be attributed to the increasing awareness and importance placed on mental well-being, as well as the shift towards more holistic and integrative approaches to healthcare.

• Conduct market research
• Define your target market
• Identify your unique selling proposition
• Conduct a competitive analysis
• Assess the legal requirements and regulations
• Create a comprehensive budget and financial plan
• Formulate a marketing and branding strategy
• Identify potential funding sources
• Develop a preliminary staffing and operational plan

By following these nine steps, you will be able to lay a strong foundation for your holistic mental health clinic, ensuring that it meets the needs of your target market and stands out amongst competitors. Let's dive into each step in detail, starting with conducting market research.

Conduct Market Research

Before embarking on the journey of starting a holistic mental health clinic, it is crucial to conduct thorough market research. This step will provide you with valuable insights into the current state of the industry, identify potential opportunities and challenges, and help you make informed decisions for your clinic.

To begin your market research, start by gathering information about the demand for holistic mental health services in your target market. Look for data and statistics regarding mental health prevalence, treatment preferences, and the availability of holistic mental health options in your area.

• Identify key demographics and segments within your target market. Consider factors such as age, gender, occupation, and socioeconomic status.
• Examine existing holistic mental health clinics in your area to understand their offerings, pricing, marketing strategies, and customer feedback.
• Identify any gaps or unique opportunities in the market that your clinic can fulfill or capitalize on.
• Consider the potential demand for specific services such as therapy, counseling, workshops, or alternative treatments in your market.
• Research the latest trends and developments within the holistic mental health field to stay relevant and innovative.

Tips for conducting market research:

• Utilize online resources, such as industry reports, market studies, and surveys, to gather relevant data and insights.
• Interview potential clients and industry professionals to gain a deeper understanding of their needs and preferences.
• Visit local networking events and conferences to connect with professionals in the mental health and wellness industry.
• Utilize social media platforms and online forums to engage with potential clients and gather feedback.
• Consider hiring a market research firm or consultant to conduct a comprehensive analysis.

By conducting thorough market research, you will be equipped with the necessary knowledge to make informed decisions throughout the planning and implementation stages of your holistic mental health clinic. This critical step will lay the foundation for a successful business venture and ensure that your clinic effectively meets the needs of your target market.

Define Your Target Market

Defining your target market is a crucial step in creating a successful business plan for your holistic mental health clinic. By identifying your ideal customer base, you can tailor your services and marketing efforts to meet their specific needs and preferences.

When defining your target market, consider the following:

• Demographics: Determine the age, gender, location, and socioeconomic status of your target audience. Understanding these factors will help you craft personalized services and marketing campaigns.
• Psychographics: Dive deeper into your target market's interests, values, beliefs, and lifestyle choices. This information will enable you to create a clinic environment and services that resonate with their holistic approach to mental well-being.
• Needs and Challenges: Identify the specific mental health needs and challenges your target market may face. This could include stress management, anxiety, depression, or seeking alternative treatments. Understanding their needs will allow you to develop tailored services and treatment options.
• Preferences: Determine how your target market prefers to receive mental health services. Are they more likely to seek therapy in-person or prefer online counseling? Understanding their preferences will help you design your clinic's offerings and delivery methods to align with their expectations.

Tips for Defining Your Target Market:

• Conduct surveys or interviews with potential clients and professionals in the mental health field to gather insights and feedback.
• Utilize online research tools and platforms to gather data on your target audience's preferences and behaviors.
• Consider collaborating with mental health professionals or organizations to gain a deeper understanding of the market and its needs.
• Regularly review and update your target market definition to reflect changes in the industry and evolving customer needs.

By defining your target market, you can tailor your services, marketing campaigns, and overall business approach to attract and serve the right clientele. This will increase the likelihood of success and pave the way for long-term growth and sustainability of your holistic mental health clinic.

Identify Your Unique Selling Proposition

In order to stand out in the competitive landscape of mental health clinics, it is crucial to identify and clearly articulate your unique selling proposition (USP). Your USP is what sets your holistic mental health clinic apart from others and communicates the value and benefits you offer to your target market. Here are some important steps to help you identify your USP:

• Understand your target market: Before you can identify your USP, you need to have a clear understanding of your target market. Consider their needs, preferences, and pain points. What are they looking for in a holistic mental health clinic? What are their motivations and desired outcomes?
• Assess your competition: Conduct a thorough competitive analysis to see what other clinics are offering. Identify their strengths and weaknesses, and look for gaps or areas where you can differentiate yourself.
• Highlight your unique expertise: Consider your background, qualifications, and expertise. What unique skills or knowledge do you bring to the table that sets you apart from others in the field? Emphasize these capabilities and how they benefit your clients.
• Consider offering a specialized service or treatment that is not readily available in the market.
• Focus on the holistic approach and emphasize the comprehensive range of services you offer.
• Showcase any success stories or testimonials from previous clients to highlight the effectiveness of your treatments.
• Communicate your commitment to personalized care and individualized treatment plans.
• Highlight any partnerships or collaborations with other holistic health practitioners or organizations.

By clearly identifying and effectively communicating your unique selling proposition, you can differentiate your holistic mental health clinic, attract a loyal client base, and position yourself as a leader in the industry.

Conduct A Competitive Analysis

As you embark on your journey to establish a holistic mental health clinic, it is crucial to conduct a thorough competitive analysis to gain insight into the existing market landscape and identify potential opportunities for differentiation. This analysis will equip you with the knowledge necessary to position your clinic strategically and make informed decisions that set you apart from competitors.

During your competitive analysis, consider the following key factors:

1. Identify Competitors:

• List all the existing mental health clinics and wellness centers in your target area that offer similar services or cater to a similar target market.
• Include both conventional healthcare providers as well as holistic wellness centers that may overlap with your offerings.

2. Evaluate Services:

• Assess the range of services and treatments provided by your competitors.
• Identify any gaps in their services where your clinic can fill a need or offer something unique.

3. Analyze Pricing:

• Compare the pricing models adopted by your competitors.
• Consider whether your clinic's pricing strategy should align with the market, position itself as a premium service, or offer competitive rates to attract and retain clients.

4. Study Marketing and Branding:

• Review the marketing and branding strategies employed by your competitors.
• Assess their website, social media presence, and overall messaging.
• Consider how you can differentiate your clinic's branding to appeal to your target market.

5. Assess Reputation and Customer Reviews:

• Look into the reputation of your competitors by researching online reviews, ratings, and customer feedback.
• Note any recurring themes or issues that you can address in your clinic to provide an exceptional customer experience.

By conducting a comprehensive competitive analysis, you will be equipped with the knowledge to position your holistic mental health clinic in a way that stands out from the crowd. This analysis will help you refine your business plan and develop a unique value proposition that resonates with your target market, setting a strong foundation for the success of your clinic.

Assess The Legal Requirements And Regulations

When establishing a holistic mental health clinic, it is essential to thoroughly assess the legal requirements and regulations to ensure compliance and avoid any potential legal issues. This step ensures that your clinic operates within the boundaries of the law while providing quality care to your clients. Here are some key aspects to consider:

• Research Licensing and Certification Requirements: Depending on your location, specific licensing and certification requirements may apply to mental health clinics. It is crucial to research and understand these requirements to ensure your clinic meets all necessary qualifications. This may involve obtaining licenses for healthcare providers, therapists, or counselors, as well as ensuring compliance with additional regulations.
• Understand Privacy Laws and Regulations: Protecting client confidentiality and privacy is paramount in the mental health field. Familiarize yourself with privacy laws, such as the Health Insurance Portability and Accountability Act (HIPAA), and ensure your clinic has appropriate policies and procedures in place to safeguard client information.
• Comply with Insurance and Billing Regulations: If your clinic plans to accept insurance or offer billing services, understanding and complying with relevant insurance regulations is crucial. This may involve participating in insurance networks, setting appropriate billing rates, and adhering to insurance companies' requirements and guidelines.
• Follow Ethical Standards and Codes of Conduct: Mental health professionals are held to ethical standards and codes of conduct established by professional associations. Familiarize yourself with these standards and ensure your clinic's policies and procedures align with them.
• Consult with Legal Professionals: Seeking legal advice from professionals specializing in healthcare or mental health can provide valuable guidance and ensure your clinic follows all necessary legal requirements.
• Stay Up-to-Date with Regulatory Changes: Laws and regulations surrounding healthcare are subject to change. Stay informed about any updates or revisions to regulations relevant to your clinic to maintain compliance.
• Document Policies and Procedures: Clearly document all clinic policies and procedures to ensure staff members are aware of and adhere to legal requirements. This documentation is important for maintaining accountability and can aid in training new employees.

Create A Comprehensive Budget And Financial Plan

Creating a comprehensive budget and financial plan is crucial for the success of your holistic mental health clinic. It allows you to estimate the financial resources needed to launch and sustain your business, as well as identify potential sources of revenue.

To start, gather all the necessary information regarding your clinic's expenses, including rent, utilities, salaries, equipment, supplies, and marketing expenses. It's important to have a realistic estimation of these costs to ensure that your budget accurately reflects the financial needs of your clinic.

Once you have a clear understanding of your expenses, you can move on to forecasting your revenue. Consider factors such as consultation fees, therapy session fees, workshop fees, and any other potential income streams. Research industry benchmarks or speak with experts in the field to help you estimate your revenue projections.

Next, create a budget spreadsheet that lists all your expenses and revenue projections. Categorize your expenses and revenue sources to make it easier to track and monitor your financial performance.

When developing your financial plan, it's important to consider the break-even point of your clinic. This refers to the point at which your revenue covers all your expenses, resulting in zero profit or loss. Understanding your break-even point will give you a clear target to strive for and help you gauge the financial viability of your clinic.

Here are some tips to consider when creating your budget and financial plan:

• Be thorough and precise when estimating your expenses. It's better to overestimate than to underestimate and be caught off guard by unexpected costs.
• Research industry standards to ensure that your pricing is competitive but still profitable.
• Consider potential sources of funding or grants that may be available to support your clinic's financial needs.
• Regularly review and update your budget and financial plan as your clinic grows and evolves.
• Seek the guidance of a financial advisor or accountant to help you navigate the complexities of creating a budget and financial plan.

By creating a comprehensive budget and financial plan, you will have a clear understanding of the financial aspects of your holistic mental health clinic. This will not only help you attract potential investors or secure funding but also give you the confidence to make informed business decisions that will drive the success and sustainability of your clinic.

Formulate a Marketing and Branding Strategy

Once you have a clear understanding of your target market and unique selling proposition, it's time to formulate a strong marketing and branding strategy to effectively promote your holistic mental health clinic. This strategy will help you attract and retain clients, build brand recognition, and establish a strong presence in the market.

Start by developing a strong brand identity that reflects the values and mission of your clinic. This includes creating a visually appealing logo, choosing a color palette that aligns with your brand's tone and personality, and developing a consistent brand voice.

Next, determine the most effective marketing channels to reach your target market. This may include online marketing strategies such as search engine optimization (SEO), social media marketing, and content marketing. It's important to understand where your potential clients spend their time and tailor your marketing efforts accordingly.

Consider leveraging the power of social media platforms to engage with your audience and build brand awareness. Regularly post relevant and helpful content, such as tips for maintaining mental well-being and success stories from your clinic. Engage with your followers by responding to comments and messages promptly, and encourage them to share your content with their networks.

• Collaborate with influencers or experts in the mental health and wellness space to reach a larger audience and boost your credibility.
• Offer informative webinars or workshops to educate your target market and showcase your expertise.
• Consider partnering with local businesses or organizations that align with your values and target market to cross-promote each other's services.
• Collect and showcase testimonials from satisfied clients to build trust and credibility.
• Regularly evaluate and analyze the results of your marketing efforts to identify areas for improvement and refine your strategy.

Remember that your marketing and branding strategy should align with your overall mission and values. By effectively communicating the unique benefits of your holistic mental health clinic, you can attract and retain clients who resonate with your approach and actively seek out your services. Stay consistent with your messaging and continuously adapt your strategy to stay relevant in a ever-changing market.

Identify Potential Funding Sources

Securing funding is a crucial step in establishing a holistic mental health clinic. In order to bring your business plan to life, it is important to identify potential funding sources that align with your clinic's mission and goals. Here are some key considerations to keep in mind:

• Government Grants: Research and explore various government grants that are available for mental health initiatives. These grants can provide crucial financial support for your holistic mental health clinic.
• Nonprofit Organizations: Seek out nonprofit organizations that focus on mental health and wellness. Many of these organizations offer grants or financial assistance to businesses with similar objectives.
• Private Investors: Connect with individuals or venture capitalists who are interested in investing in mental health initiatives. Prepare a compelling pitch to showcase the potential of your holistic mental health clinic and how their investment can make a significant impact.
• Crowdfunding: Utilize online platforms to engage with the community and raise funds for your clinic. Share your story, vision, and goals to inspire others to contribute to your cause.
• Financial Institutions: Approach banks or credit unions to inquire about small business loans, lines of credit, or other financial services that can support your clinic's operations and growth.
• Prepare a thoroughly researched and well-presented business plan to increase your chances of securing funding.
• Seek partnerships with local mental health organizations or associations that may have access to funding opportunities.
• Consider offering sponsorships or naming opportunities within your clinic to attract potential donors.
• Participate in mental health conferences and events to network with potential funders and build relationships.

By carefully researching potential funding sources and presenting a compelling case for your holistic mental health clinic, you will be well on your way to securing the necessary funds to turn your vision into a reality.

Develop A Preliminary Staffing And Operational Plan

Once you have determined the market, defined your target audience, and identified your unique selling proposition, it's time to develop a preliminary staffing and operational plan for your holistic mental health clinic. This plan will outline the key roles and responsibilities within your clinic, as well as the operational processes that will ensure smooth day-to-day functioning.

1. Determine the staff required: Start by identifying the various roles that will be essential for your clinic's operations. These may include therapists, counselors, administrative staff, and support staff. Consider the qualifications, certifications, and experience necessary for each position.

2. Define the responsibilities: Clearly outline the responsibilities and roles of each staff member. This will help ensure that there is clarity and accountability within your team. Assign tasks and duties based on each staff member's expertise and strengths.

3. Establish hiring criteria: Determine the criteria for hiring staff members who align with your clinic's values and mission. This may involve considering their experience, qualifications, and passion for holistic mental health care.

4. Develop training protocols: Create training protocols to ensure that your staff is well-equipped with the necessary knowledge and skills. This may include providing ongoing training opportunities, attending conferences, and staying updated on the latest research and techniques in holistic mental health care.

5. Implement operational processes: Identify and develop operational processes that will enable your clinic to run efficiently. This may involve establishing protocols for appointments, scheduling, billing, record-keeping, and client intake procedures. Streamlining these processes will enhance the overall client experience and contribute to organizational effectiveness.

• Regularly communicate and collaborate with your staff to encourage a supportive and inclusive work environment.
• Consider utilizing electronic health record systems to improve efficiency and accuracy in record-keeping.
• Stay updated on industry regulations and best practices to ensure compliance and provide optimal care to your clients.

Developing a preliminary staffing and operational plan is essential to ensure that your holistic mental health clinic can operate effectively and provide the highest quality care to your clients. While this plan may evolve as your clinic grows, having a solid foundation from the start will contribute to long-term success and sustainability.

In conclusion, creating a business plan for a holistic mental health clinic requires careful consideration and strategic planning. By following these 9 steps, you can ensure that your clinic is well-positioned in the market, meets legal requirements, and has a strong financial foundation. Additionally, by focusing on your unique selling proposition and developing a comprehensive marketing strategy, you can attract potential clients and secure funding sources. Lastly, outlining a staffing and operational plan will ensure that your clinic operates efficiently and effectively. With these steps in place, your holistic mental health clinic can thrive and make a positive impact on individuals seeking mental well-being in a holistic and nurturing environment.

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Counseling Private Practice Business Plan Template

Written by Dave Lavinsky

Counseling Practice Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their counseling private practices. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a counseling private practice business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Counseling Private Practices

With regards to funding, the main sources of funding for a counseling private practice are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan 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 confirm 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 counseling private practices.

Finish Your Business Plan Today!

How to write a business plan for a counseling private practice.

If you want to start a counseling private practice or expand your current one, you need a business plan. Below are links to each section of your counseling private practice business plan template:

Executive Summary

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

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of counseling private practice you are operating and the status. For example, are you a startup, do you have a counseling private practice that you would like to grow, or are you operating a chain of counseling private practices?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the counseling private practice industry. Discuss the type of counseling private practice you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of counseling private practice you are operating.

For example, your counseling private practice might specialize in one of the following divisions:

• Clinical psychology : this type of counseling private practice assesses, diagnoses, treats, and prevents mental disorders. Specialization within clinical psychology may focus on areas such as neuropsychology, geropsychology, child psychology, etc.
• Industrial-organizational psychology: this type of counseling private practice specializes in applying the principles of psychology to the workplace, to assist with a range of HR issues such as employee retention or productivity.
• Marriage and family therapy: this type of counseling private practice is licensed to diagnose and treat mental and emotional disorders within the context of marriage, couples, and family systems.
• Social work: this type of counseling private practice includes services such as individual and group therapy, crisis intervention, and child and family counseling.

In addition to explaining the type of private practice you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

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

Industry Analysis

In your industry analysis, you need to provide an overview of the counseling private practice industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason for market research 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 private practice business plan:

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

Customer Analysis

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

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of private practice you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

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

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

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

Direct competitors are other counseling private practices.

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

With regards to direct competition, you want to describe the other counseling private practices with which you compete. Most likely, your direct competitors will be counseling private practices located very close to your location.

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

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

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

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

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

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

Marketing Plan

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

Product : In the product section, you should reiterate the type of counseling private practice company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you provide psychodynamic therapy, behavior therapy, cognitive therapy, or integrative therapy?

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

Place : Place refers to the location of your counseling private practice company. Document your location and mention how the location will impact your success. For example, is your counseling private practice located in a busy retail district, a business district, a standalone office, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your counseling private practice marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your therapy 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 counseling 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 counseling private practice to a new city.  

Management Team

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

Ideally you and/or your team members have direct experience in managing counseling 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 like 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 counseling private practice or successfully running a small medical practice.  

Financial Plan

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

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

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

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your counseling 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 bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure 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.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a private practice:

• Cost of computer software.
• Cost of furniture and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

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 office location lease or a list of insurance plans you accept.  

Putting together a business plan for your therapy private practice is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert counseling private practice business plan; download it to PDF to show banks and investors. You will really understand the counseling private practice industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful private practice .  

Counseling Private Practice Business Plan FAQs

What is the easiest way to complete my counseling private practice business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your business plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of private practice you are operating and the status; for example, are you a startup, do you have a private practice that you would like to grow, or are you operating a chain of private practices?

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.  

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FREE 7+ Mental Health Business Plan Samples [ Clinic, Charity, Counseling ]

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:

Mental Health Business Plan

7+ mental health business plan samples, 1. mental health project business plan, 2. mental health services business plan, 3. mental health business plan, 4. children mental health business plan, 5. sample mental health business plan, 6. mental health vision business plan, 7. community mental health business plan, 8. mental health program business plan, what is a mental health business plan, how to create a mental health business plan, 1. executive summary, 2. company summary, 3. products and services, 4. operations, 5. mission statement, 6. market analysis, 7. marketing strategies, 8. financial plan, what are mental disorders, why are treatment plans important, what is a counselling centre.

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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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Exclusive: The Founder Mental Health Pledge is looking to create a turning point in startup culture

Economic crises are human crises. And yet, even in the worst of times, we still struggle to talk about mental health. 

Last year, as Silicon Valley Bank was collapsing, Naveed Lalani and Brad Baum noticed there was a subtext to much of what they were seeing on then-Twitter—that, as founders scrambled to make payroll, mental health struggles were peeking through social media veneers. They decided it was time to act, creating the Founder Mental Health Pledge, now a nonprofit devoted to promoting mental health and well-being for startup entrepreneurs.

“We thought, this is absolutely the moment for us to do something,” said Alan Woodruff, the Founder Mental Health Pledge’s executive director. “We all felt just this personal drive to not only create this but do it in a way that was really going to create impact.”

It started with a pledge—asking startups and VCs to “make mental health a business priority.” They weren’t sure who would sign, but the tech ecosystem offered a resounding “yes.” To date, 748 investors and startup leaders from more than 42 countries have signed the original pledge. 

Now, the Founder Mental Health Pledge has launched a new initiative, asking VC firms to begin including mental health clauses in their term sheets—and twelve firms have taken it on as founding adopters, Fortune has exclusively learned. That group of firms includes Melek Capital, Open Opportunity Fund, Forum Ventures, Red Swan Ventures, Roadster Capital, Evio Venture Capital, and Playfair Capital. 

The clause expressly states that these VCs “support founders using a portion of the received funds specified in this term sheet to treat, at their discretion, the direct costs of caring for their mental well-being…as a legitimate, worthwhile, and encouraged business expense.”

Though I’m viscerally unqualified to make the case there’s causation, it’s hard to deny that there’s correlation between psychological struggle and profound achievement. One of my favorite books as a teenager was called Lincoln’s Melancholy: How Depression Challenged a President and Fueled His Greatness . (I was super cool, I know.) 

As I was flipping through the book while writing this essay, I found this passage: 

Lincoln’s story confounds those who see depression as a collection of symptoms to be eliminated. But it resonates with those who see suffering as a potential catalyst of emotional growth. 

‘What man actually needs,’ the psychiatrist Victor Frankl argued, ‘is not a tension-less state but rather the striving and struggling of a worthwhile goal.’ Many believe that psychological health comes with the relief of distress. But Frankl proposed that all people—and particularly those under some emotional weight—need a purpose that will both draw on their talents and transcend their lives.

And founders, who often create things transcending their own lives, are especially prone to mental health conditions, data shows. Specifically, dopamine-driven mental health conditions, including ADHD and bipolar disorder, are incredibly common among people who become founders, psychiatrist Dr. Michael Freeman told me. Freeman, who exclusively works with entrepreneurs and is one himself, is adamant about the prevalence. 

“If you want to be an investor, then you’re going to be investing in a lot of people with mental health issues,” said Freeman. “There’s no way around it, that’s just your reality. It’s highly likely that about 40% of the people you’re investing in will have diagnosable mental health conditions.“ 

But we still struggle to talk about it. For Dmytro Grechko—who last year raised a $1.5 million seed round for his no-code cloud infrastructure startup Deskree—the Founder Mental Health Pledge’s term sheet clauses are important, but they’re a start. 

“Founders have to learn how to build and design products, how to fundraise, but they also have to learn about themselves, how to become a stronger, more mentally healthy person,” Grechko told Term Sheet. “That needs to be part of the conversation, and right now I think we’re pretty far away from that. But without great beginnings, it’s impossible to get anywhere.”

I’ve been slowly watching FX and Hulu’s Feud: Capote Vs. The Swans , and it’s so clearly the story of someone exceedingly gifted—whose screaming emotional pain ultimately silenced his talents. That’s seemingly happened to gifted entrepreneurs and technologists, from Tony Hsieh to Aaron Swartz, leaving careers devoted to innovation unfinished. 

So, investors may ask: How could I entrust millions of dollars to someone grappling with mental health issues? But data suggests that’s fundamentally the wrong question. The right question, I’d argue, is this: Can you afford not to?

Introducing “Ask Andy”… In my first week at this job, several of Fortune ’s top editors told me I absolutely had to read Andy Dunn’s Burn Rate: Launching a Startup and Losing My Mind . I’d bypassed it for years, imagining another “I made money and triumphed over all” story. But Dunn—who cofounded Bonobos and is a strategic advisor for the Founder Mental Health Pledge—subverted my expectations with his very first lines: “This book isn’t what you think it is. This is not a self-aggrandizing tale of entrepreneurial success.”

And it wasn’t. Instead, Burn Rate is a kinetic, honest, and nuanced memoir from a founder who built and sold a successful startup while struggling in deeply painful ways with an undiagnosed mental illness. Some lines I think about a lot: “A small bid for help can be, privately, a gigantic effort, imperceptible to its recipient, and crushing to the bidder if rejected.”

“Ask Andy,” debuting later this month, will deliver more of that hard-earned, empathetic wisdom. It’ll be a recurring advice column geared towards founders, startup executives, and investors, for bids large and small. I couldn’t be happier Andy’s bringing so much of himself to Fortune —and to you. Send Andy a question here.

See you Monday,

Allie Garfinkle Twitter: @agarfinks Email: [email protected] Submit a deal for the Term Sheet newsletter here .

Joe Abrams curated the deals section of today’s newsletter.

VENTURE DEALS

- Pi Health , a Cambridge, Mass.-based platform designed to streamline clinical trial processes for cancer therapies and treatments for other diseases, raised $30 million in Series A funding. AlleyCorp and Obvious Ventures led the round and were joined by Invus Capital and others.

- Sealed , a New York City-based provider of residential energy efficiency software and solutions, raised $30 million in funding. Keyframe Capital led the round and was joined by Cyrus Capital , CityRock , Fifth Wall , and others. 

- Draftwise , a New York City-based AI-powered contact and negotiation platform for lawyers, raised $20 million in Series A funding. Index Ventures led the round and was joined by Y Combinator and Earlybird Digital East Ventures . 

- Omni , a San Francisco-based business intelligence platform, raised $20 million in new funding from Theory Ventures .

- mmERCH , a New York City-based Web3 platform that creates fashion items with an NFT twin, raised $6.4 million in seed funding. Liberty City Ventures led the round and was joined by 6529 Holdings , Christie’s Ventures , Flamingo DAO , and angel investors.

- Mindfuel , a München, Germany-based data product management company, raised €3.8 million ($4.1 million) in seed funding. Project A Ventures led the round and was joined by angel investors.

- Nest Health , a New Orleans, La.-based in-home and virtual care provider, raised $4 million in a seed extension. SpringTide led the round and was joined by Alumni Ventures , Ochsner Ventures , and others. 

- Orbio , a Köln, Germany-based methane emission tracking platform, raised $4 million in seed funding. Initialized Capital led the round and was joined by Y Combinator , the European Space Agency , and angel investors.

- Alithea Genomics , a Lausanne, Switzerland-based provider of solutions designed to simplify and streamline the generation of RNA data, raised CHF 2.8 million ($3.2 million) in a seed extension. Novalis Biotech Acceleration led the round and was joined by TechU Ventures and existing investors.

- Fluent Metal , a Cambridge, Mass.-based developer of production-grade liquid metal printing, raised $3.2 million in funding. E15 led the round and was joined by Pillar VC and angel investors. 

- Work & Mother , a Houston, Texas-based provider of office lactation suites, raised $3.5 million in seed funding, from Building Ventures , The Artemis Fund , Claritas Capital , Second Century Ventures , and Alumni Ventures .

- 9 Lives Interactive , a remote independent game studio, raised $3 million in funding. Mechanism Capital led the round and was joined by Delphi Digital , Sfermion , 3Commas Capital , Momentum 6 , Kosmos Ventures , Devmons GG , and CSP .

- STUDSON , a Tigard, Ore.-based maker of safety helmets, raised $2.5 million in funding. HIA BV led the round and was joined by existing investors. 

- ROAR Games , a Brooklyn, N.Y.-based independent games studio, raised $1.5 million from The Games Fund .

PRIVATE EQUITY

- ArmorWorks Enterprises , a portfolio company of Littlejohn Capital , acquired Fox Valley Metal-Tech , a Green Bay, Wis.-based provider of metal fabrications for naval ships, submarines, combat vessels, and other defense applications. Financial terms were not disclosed.

- NewSpring Franchise acquired a majority stake in Shake Smart Holdings , a San Diego-based chain of healthy fast-casual beverage and food franchises. Financial terms were not disclosed. 

- Zendesk , backed by Hellman & Friedman and Permira , agreed to acquire Ultimate , a Berlin, Germany-based provider of service automation. Financial terms were not disclosed.  

- Bharcap Partners acquired Insurvia , a Las Vegas, Nev.-based insurance services holding company, from Gemspring Capital . Financial terms were not disclosed. 

- Meiser International GmbH and Dubai Transport Company agreed to acquire IKG , a Houston, Texas-based steel grating and industrial flooring manufacturer, from KPS Capital Partners . Financial terms were not disclosed. 

- AstraZeneca agreed to acquire Amolyt Pharma , a Cambridge, Mass. and Paris, France-based biotech company developing treatments for endocrine diseases, for up to $1.1 billion.

- Auna , a Lima, Peru-based hospital operator, plans to raise up to $450 million in an offering of 30 million shares priced between $13 and $15 on the New York Stock Exchange. The company posted $1 billion in revenue for the year ending December 31, 2023. Enfoca and Juan Rafael Servan Rocha back the company.

FUNDS + FUNDS OF FUNDS

- Ballistic Ventures , a San Francisco-based venture capital firm, raised $360 million for its second fund focused on cybersecurity companies. 

This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers in venture capital and private equity. Sign up for free.

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5 Mental Health Business Ideas You Can Start in 2024

Roughly 20% of Americans are living with a mental health condition at any given time.

If you’ve been a victim or lived with one, you know how severe these conditions can get. Without good mental health, it’s impossible to have good physical health.

You might have used your passion for mental health to care for victims. Perhaps you donate funds to or volunteer in mental health charities.

Thumbs up for that, but did you know you can turn your passions into a profitable business? Check out these mental health business ideas and you might find something that piques your interest.

1. Mental Health Blog

Starting a mental health blog might not sound like a typical business idea, but hang on!

Ever gone online to look up information about a certain mental health condition or issue but struggled to zero in on what you were looking for? There’s a lot of accurate, authoritative information online, but there’s also a lot of misinformation. Anyone can start a website or blog and post whatever they like.

This is why creating a blog that focuses on mental health can be a great idea, especially if you’re an expert in the field. If you’re a licensed psychologist, for example, your qualifications already give you an upper hand. Readers will consider you a subject-matter expert, which is exactly what a mental health blog needs.

So, how do you turn the blog into a business?

There are a few monetization strategies you can implement, including affiliate marketing or running ads. You can also monetize your audience by selling them a relevant product, such as a mental health e-book.

2. Yoga/Meditation Studio

When you’re feeling stressed, which can be a sign of anxiety or depression, you often wish you could go somewhere calm just to relax your mind. It’s for this reason yoga and meditation are such powerful tools for promoting relaxation and enhancing your mental health wellness.

As such, starting a meditation studio can turn out to be a great business. You’ll be making money by charging membership or access fees, and in return, you’ll be giving your customers an opportunity to attain better mental health.

Opening a meditation studio will require you to learn about the licensing requirements in your location. In some states, you cannot open such a studio if you’re not a mental health professional.

With business permits and licenses figured out, your next task is to find an ideal space and transform it into a haven of tranquility. You will also need to hire a few meditation and yoga instructors and invest in the right studio equipment.

3. Mental Health Coaching

As a professional, mental health coaching is on the rise. More people are starting to embrace signing up for coaching classes to improve their mental health. In a recent survey , 80% of respondents confirmed that their self-esteem and confidence improved after working with a mental health coach.

It’s clear there’s a good business opportunity here. Do you have what it takes to seize it?

Of course, not everyone can start a mental health coaching business. You might be a good life coach, for example, but that doesn’t necessarily mean you can start coaching people about their mental health.

Mental health coaching is a preserve of mental health professionals. You have to be a certified and/or licensed psychologist, professional counselor, mental health nurse, psychiatrist, or other mental health professional to offer coaching services.

As a coach, you can offer your services online or in a local office/clinic setup. You can also combine both worlds to maximize your reach.

If your license allows you to offer treatment services, be sure to invest in mental health treatment software . It will make it easier to manage your programs and coordinate service delivery.

4. Mental Health Solutions for the Workplace

About 80% of organizations in the U.S. care about employee mental health. Most of these are already offering programs to support their employees, and others are planning to introduce similar programs in the near future.

Most organizations don’t have the expertise to develop effective mental health wellness programs in-house, so they outsource the job to experts. This creates a business opportunity for mental health experts who can create workplace solutions for organizations.

These solutions include:

• Mental health surveys
• Anonymous helplines for employees
• Programs for teaching mental health skills
• Coaching and counseling

You, however, need to create a business through which you can offer such solutions. With a mental health coaching business, for example, you can focus on designing solutions for the workplace.

Like other B2B businesses, don’t expect clients to start streaming in out of the blue. It’s through marketing and networking that you will build a solid client base.

5. Mental Health Wearables

If you’re an innovative person with a passion for mental health and wellness, there’s an exciting business opportunity for you: mental health wearables.

There are plenty of such devices on the market, such as smartwatches, anxiety relief bands, and stress trackers, but there’s a lot of room for innovation. Bringing a new device to life, from ideation to prototyping to manufacturing, can be a capital-intensive venture. With the right networks, though, your mental health startup can grow into a big company.

If inventing new devices isn’t your thing, you can still start a thriving business that resells mental health wearables. You can source them cheaply from various markets abroad and sell them at home at a profit.

Bear in mind that selling medical devices may require the approval of the relevant government authorities. Be diligent and ensure your products have the necessary approvals before you put them on the market. Otherwise, you can easily end up on the wrong side of the law.

Mental Health Business Ideas That Work!

Running a mental health business is akin to killing two birds with one stone. You get to help people battling various mental health conditions while earning a living. However, you need the right idea.

Each of these mental health business ideas has the potential to grow big. A lot will depend on your business acumen, though.

Keep tabs on our website for informative articles, insights, and news from around the world.

This article is published by NYTech in collaboration with Syndication Cloud.

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How business leaders can take action on mental wellness.

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Dena is the CEO of Crisis Text Line and has spent over 20 years operating at the intersection of nonprofits and for-profits.

As a source of hope in a world that can often feel heavy, nonprofits occupy a special place in the communities they reach. At Crisis Text Line, our community includes the thousands of texters who reach out to us for help each month seeking mental health support in their times of need.

To understand our community more deeply, we partnered with Common Good Labs to analyze anonymized conversations our volunteers had with young people under the age of 18. The goal was to discover what youth say they need their communities to provide in support of their mental health and well-being. The results were profound and revealed real actionable things that are within our reach if we all work together as a community.

Young people reported that social connection, engagement with music and the arts, mental health services, sports programs, access to books and outdoor spaces were critical to supporting a healthy sense of well-being. Sadly, despite suicide being the second-leading cause of death among adolescents, these resources and programs that help teens cope continue to be cut, limiting or eliminating broad access.

While this research focuses on youth, it speaks to a universal truth: People of all ages are craving connection, outlets for creative expression and accessible physical activities. Communities large and small need these resources to stay healthy but don’t always have access to them.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024.

And we all need these resources now more than ever. According to the American Psychological Association , Americans are feeling the impact of years of collective trauma, including the Covid-19 pandemic, global conflicts, racial conflict and injustice, inflation and climate-related disasters. While this can leave people feeling powerless, we can take action to improve the well-being of our communities today.

Corporations are communities in and of themselves and are important members of their broader communities. As business leaders, we have the opportunity to provide resources that can enable our organizations, employees and communities to thrive. There are many creative ways that business leaders can make a difference and support mental health, well-being and connection in the workplace and within their communities.

Create a culture of care.

We know that a company’s health can often be measured by the well-being of the individuals who work there, and it is critical for leadership to provide the tools for a healthy workplace. There are endless opportunities to incorporate space for connection and movement into the workday. This might involve walk-and-talk meetings, supporting employee resource groups or organizing employee social events during work hours. Moreover, engaging your team in thinking through ways to create space for connection and wellness is a mental health activity in and of itself.

Support youth mental health through families.

Every workplace has a certain percentage of employees who are parents and responsible not only for their mental well-being but also that of their children. Supporting the mental health of young people in our communities also means caring for their parents.

Granting parents some latitude to prioritize their families' welfare fosters social bonds and wellness. Where possible, embracing flexibility to enable employees to get their jobs done while allowing them to attend their children's engagements is likely to enable them to be fully present at work. In addition, providing mental health insurance that is available to both parents and their families is invaluable.

Help keep your communities healthy.

The health and vibrancy of companies and the communities in which they operate are linked. It is mutually beneficial when local communities and their residents are happier and healthier. Together, we all thrive. While sometimes the challenges our communities face feel overwhelming, there are actionable and tangible things that can be done to address them, and business leaders can play key roles in the locales where they live and work.

Knowing that people (especially our youth) need connection, access to arts and recreational programs, and mental health support, seek out opportunities to contribute to your community. This includes advocating and providing funding for nonprofits, schools and community resources to support recreational and green spaces, arts programs and libraries. Take the opportunity to get creative in finding ways of supporting your community and employees at the same time with things like volunteer opportunities or allowing the use of under-utilized office and outdoor space for community efforts like Boy Scout or Girl Scout meetings.

For-profit and nonprofit leaders can play a pivotal role in fostering mental health resilience within communities by prioritizing supportive environments and implementing initiatives that promote well-being. By fostering open dialogue about mental health, providing resources for self-care and professional support, and creating flexible work arrangements that accommodate individuals' needs, leaders can cultivate a culture of understanding and empathy. This will allow us to not only enhance the overall health and productivity of our workforce but also contribute positively to the well-being of the communities we serve.

Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?

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‘Kashchenko’: Moscow’s most famous psychiatric hospital

As Moscow grew, the Preobrazhenskaya Hospital (the first psychiatric clinic) couldn’t treat all the arriving patients anymore. This fact made local psychiatrists quite concerned. They asked Nikolai Alexeyev, the city mayor, for help. In 1889, he organized fundraising to solve this problem. At first, the mayor only wanted to expand the Preobrazhenskaya Hospital, but then, he decided that Moscow needed a second clinic with 300 new beds.

The Alexeyev Psychiatric Clinical Hospital.

A commission of psychiatrists and city officials, headed by Alexeyev, decided to build the new clinic on the territory of the former Beketov manor. In the middle of the 19th century, merchant Kanatchikov bought these lands and named them ‘Kanatchikova dacha’, which then stuck to the hospital itself.

N. A. Alekseyev, 1880s.

Famous psychiatrist Viktor Butske designed the plan of the future clinic: it had to be a complex of distant two-floor pavilions joined with warm passages for doctors. This complex had a ‘U’-shape and was divided into two halves - for men and women. The departments were located at the sides of the central administrative building. This plan left a lot of free space on the territory, as Butske understood that the complex would, most likely, be expanded later.

Viktor Butske, the plan developer and first head of the Alexeyev hospital.

The construction began in 1890. The first half of the red and white brick complex started operating in 1894 and, in two years, the second was opened. In the following several years, the clinic was expanded with extra departments (for example, for chronically ailing people). It’s remarkable that practically all the money for the building was donated by rich Muscovites encouraged by Nikolai Alexeyev. The mayor, meanwhile, was shot and killed in 1893. Experts then found out that his killer had a mental disorder… And the new hospital was named in honor of Alexeyev.

The administrative building of the hospital, 1913.

When the first half was opened, Viktor Butske became the head of the hospital. He was a supporter of the ‘no-restraint’ system. That’s why straitjackets were never used in Alexeyev Hospital - the doctors wrapped aggressive patients into wet bed sheets to calm them down. Butske understood that the atmosphere mattered. Each department had its own garden. All the wards were well-furnished, except the ones for the violent. He made sure all the staff respected the ill and were kind to them. At first, the hospital used some isolation rooms and kept window screens in the wards for violent patients, but these measures had disappeared completely by 1903.

A living room in the women’s ward, 1904-1906.

As the number of patients grew, Butske had decided to let some of them live and work out of the clinic and organized the system of patronage. In 1900, he started to relocate some patients into families living in the villages near Moscow (for example, Troparyovo and Belyayevo, which are now parts of the city). Of course, the hospital staff kept supervising such patients. Butske knew that the patronage would do well: while he worked at the Preobrazhenskaya hospital, a friend of his was declared to have an incurable mental disorder. The doctor put his friend with a peasant family and it helped a lot to fight the illness.

The pool room in the department for the chronically ailing, 1904-1906.

Butske was replaced by another remarkable psychiatrist named Pyotr Kashchenko in 1904. The new hospital head kept developing the ideas of the ‘no-restraint’ system. The patients were also allowed to receive visitors. One of the doctors remembered that Leo Tolstoy once came to see someone there. Kashchenko did his best to destigmatize the patients with mental disorders and to socialize them. He already had some experience of applying work therapy and, in 1905, a new building for workshops and entertainment was built for the hospital.

The sewing workshop room in the women’s ward, 1904-1906

When the Russian Revolution of 1905 started, Kashchenko organised medical brigades to help injured revolutionaries. At the time, he was too respected to be punished for his political views. The Soviet administration then honored the doctor for his deeds: In 1922, they renamed the Alexeyev Hospital after Kashchenko, though he had left for St. Petersburg in 1907. Unfortunately, during the Soviet period, people were still afraid of psychiatric hospitals (because of repressions) and of people with mental disorders, so the name of the great doctor received negative associations.

Pyotr Kashchenko.

During World War II, Kashchenko Hospital also received soldiers with craniocerebral injuries. Due to medication shortage, they were often treated with electroshock therapy - a notorious method that causes scientific disputes, though its efficacy is proven.

In the Soviet era, the hospital admitted some famous people. Joseph Brodsky spent some time there between 1963-1964 to undergo a psychiatric examination. The poet didn’t have an official job and was accused of “social parasitism”. Brodsky insisted that writing poetry was real work, but the court didn’t agree. The friends of the poet hoped the examination would save him from punishment, but it didn’t: In March 1964, Brodsky was condemned to compulsory labor In the Arkhangelsk area (990 km north-east of Moscow) and, later, had to emigrate. In the Kaschenko Hospital, Brodsky wrote a dark and hopeless poem titled ‘Novy God na Kanatchikovoy Dache’ (“New Year at Kanatchikova Dacha”).

Joseph Brodsky, 1972.

Famous Soviet bard and singer Vladimir Vysotsky also spent some time at the Kashchenko Hospital to treat his alcoholism. He described the life of the patients in a humorous song called ‘A letter to the editors office of ‘Obvious-Incredible’ TV program from an insane asylum - Kanatchikova Dacha’. There is an interesting detail: Vysotsky sings that the chief doctor named Margulis finally banned watching TV at the hospital. This is a fictional character. The real chief doctor at the time was Valentin Morkovkin, who later complained that he had done a lot for Soviet psychiatry (he had published many scientific works), but had finally become known as a doctor who tried to help Vysotsky.

Vladimir Vysotsky, 1978.

In 1994, the hospital was renamed back to the ‘Alexeyev Psychiatric Clinical Hospital’. Nowadays, it has numerous departments, branch clinics and even a radio station called ‘Zazerkalye’ (“Through the Looking Glass”) and runs psychiatric education courses. The primary principles of freedom and respect are still kept there. And even though the hospital’s name has changed, the people still commonly call it ‘Kashchenko’.

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