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 counseling 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.
Download the Counseling Private Practice business plan template (including a customizable financial model) to your computer here <–
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 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.
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
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.
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.
Download the Counseling Private Practice business plan template (including a customizable financial model) to your computer here <–
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 counseling services.
The demographics for Tigard, Oregon are as follows:
Total | Percent | |
---|---|---|
Total population | 1,680,988 | 100% |
Male | 838,675 | 49.9% |
Female | 842,313 | 50.1% |
20 to 24 years | 114,872 | 6.8% |
25 to 34 years | 273,588 | 16.3% |
35 to 44 years | 235,946 | 14.0% |
45 to 54 years | 210,256 | 12.5% |
55 to 59 years | 105,057 | 6.2% |
60 to 64 years | 87,484 | 5.2% |
65 to 74 years | 116,878 | 7.0% |
75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Peaceful Minds will primarily target the following customer profiles:
- Married couples
- Families
- 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.
While we expect Riverside Therapy Center to continue to thrive based on its popularity and variety of services offered, this clinic does not specialize in marriage and family counseling. In fact, they only have a few counselors available that cater to this clientele. We expect that families will want a clinic that specializes in their concerns and will be more inclined to work with Peaceful Minds.
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.
Though the clinic has some marriage and family counselors, the clinic’s primary focus is the diagnosis, management, and treatment of mental disorders. The clinic also only offers remote sessions until further notice. So while we expect Tigard Mental Health And Wellness will continue to succeed, many couples and families will be eager to switch to Peaceful Minds for in-person sessions with a therapist that can help them with their specific concerns.
Portland State University Counseling Services
Portland State University Counseling Services is a community service of 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.
Though Portland State University offers a great service to the community, many clients prefer working with a licensed professional. Therefore, we expect many families will choose one of the great therapists at Peaceful Minds over Portland State University.
Download the Counseling Private Practice business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Peaceful Minds will be able to offer the following advantages over their competition:
- 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.
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 counseling 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.
Pricing
Peaceful Minds’s pricing will be moderate so clients feel they receive great value when utilizing our counseling 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 counseling services to her initial clientbase.
- 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.
Download the Counseling Private Practice business plan template (including a customizable financial model) to your computer here <–
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
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.
Financial Plan
Key Revenue & Costs
Peaceful Minds’s revenues will come primarily from counseling 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
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
Download the Counseling Private Practice business plan template (including a customizable financial model) to your computer here <–
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.
- Number of clients:
- Year 1: 30
- Year 2: 50
- Year 3: 75
- Year 4: 100
- Year 5: 150
- Annual rent: $100,000
- Average counseling session cost: $150
Financial Projections
Income Statement
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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.
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 Business?
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. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your 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 counseling private practice business: