7 figure counseling practice presentation aca 2014
DESCRIPTION
How to Build a 7-Figure Counseling Practice, Presentation for the 2014 American Counseling Association (ACA) Conference. By Anthony Centore Ph.D.TRANSCRIPT
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Building a 7-FigureCounseling Practice
Anthony Centore Ph.D.
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Becoming an Entrepreneur
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Someone willing to work 80 hours a week to Avoid
working 40
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Hands on Entrepreneurship
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We needed new rugs
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Low Typical Moments
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Can I be an Entrepreneur?
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Cons PROS
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ConsDifficult
PROS
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ConsDifficult
Risk
PROS
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ConsDifficult
RiskWork
PROS
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ConsDifficult
RiskWork
PROSFlexible
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ConsDifficult
RiskWork
PROSFlexibleCreative
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ConsDifficult
RiskWork
PROSFlexibleCreative
Own Boss
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ConsDifficult
RiskWork
PROSFlexibleCreative
Own BossFinancial?
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A note on rugs
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What it takes to succeed in Private practice
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A tale of 2 counselors
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Brian
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Emma
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Advantages
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Advantages
Clinical Experience
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Advantages
Clinical Experience
Business Acumen
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Advantages
Clinical Experience
Community Reputation
Business Acumen
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Advantages
Clinical Experience
Investment Capital
Community Reputation
Business Acumen
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Advantages
Clinical Experience
LuckInvestment
Capital
Community Reputation
Business Acumen
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Constant Forward Movement
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un-catch 22s
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Progress > efficiency
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CFM
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Who’s story sounds more like you?
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Not a solo practice
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Group v. Solo
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Go solo
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Simpler
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6 Figures
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Higher Profit Margin
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More Time Counseling
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Go Group
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Sellable
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Fly wheel
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Freedom from the couch
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less isolating
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SHOW me the money
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SHOW me the money
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SHOW me the moneyA counselor will bill about $75 per session
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SHOW me the moneyA counselor will bill about $75 per session
36 sessions a week = $2,700
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SHOW me the moneyA counselor will bill about $75 per session
36 sessions a week = $2,70048 weeks a year = $129,600
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SHOW me the moneyA counselor will bill about $75 per session
36 sessions a week = $2,70048 weeks a year = $129,600
A psychologist will bill about $95 per session
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SHOW me the moneyA counselor will bill about $75 per session
36 sessions a week = $2,70048 weeks a year = $129,600
A psychologist will bill about $95 per session= $164,160
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SHOW me the moneyJust therapy, without:
Psychological TestingMedication Management
Group CounselingCourt Appearances
Other Ancillary Services
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SHOW me the money7.7 Counselors, or6.1 Psychologists
to earn$1,000,000 in Revenue!
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$1,000,000 in revenue!
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But Wait!
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Revenue is not Profit
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SHOW me the money
Therapist Compensation
55-70% of Total Revenue
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SHOW me the moneyTherapist Compensation
55-70% of Total Revenue
~ $300,000 - $450,000 left
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What can you buy with $450,000?
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1.08 ct. platinum, fancy vivid blue diamond
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775 sq foot apartment, with one bath, in Brookline, MA
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Take That, Austin Powers
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Not so fast
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Operational Expenses
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%Computers & Equipment: 0-.5%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%Computers & Equipment: 0-.5%Dues & Subscriptions: 0-.5%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%Computers & Equipment: 0-.5%Dues & Subscriptions: 0-.5%Insurance Audits: 0-.5%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%Computers & Equipment: 0-.5%Dues & Subscriptions: 0-.5%Insurance Audits: 0-.5%Meals, Entertainment & Gifts: 0-.5%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%Computers & Equipment: 0-.5%Dues & Subscriptions: 0-.5%Insurance Audits: 0-.5%Meals, Entertainment & Gifts: 0-.5%Furniture: 0-.5%
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Operational ExpensesCredentialing, Billing & Credit Card Fees: 7-15%Rent & Parking: 3-7%Reception & Scheduling: 3-5%Office Expenses, Supplies & Postage: 1-3%Admin Salaries: 0-8%Marketing: 0-5% (once at capacity)Research & Development: 0-3%Clinical Supervision & Professional Development: 0-3%Software & Electronic Medical Records: 0-3%Accounting, Bookkeeping & Legal: .5-1%Travel: 0-1%Bank Fees: 0-1%Phone, Internet, Electric & Gas: 0-1%Unemployment, General & Professional Liability Insurance: 0-1%Recruiting: 0-1%Computers & Equipment: 0-.5%Dues & Subscriptions: 0-.5%Insurance Audits: 0-.5%Meals, Entertainment & Gifts: 0-.5%Furniture: 0-.5%Maintenance & Cleaning: 0-.5%
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Net Profit
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-25% to 25%
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Results May Vary
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Results May Vary1) Take home the same in solo practice
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Results May Vary1) Take home the same in solo practice
2) Only money they keep is what they produce
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Results May Vary1) Take home the same in solo practice
2) Only money they keep is what they produce3) Highly profitable, and self-sustaining
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Results May Vary1) Take home the same in solo practice
2) Only money they keep is what they produce3) Highly profitable, and self-sustaining4) A combination of self and team best
*Sellable & Real Estate
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Getting to Black
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Built to Sell
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Starting with the End In Mind
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Reasons to Sell Include...
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Relocate
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Career Change
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to Liquidate!
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Retirement
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Think You’re Too Young?
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QuickTime™ and aH.264 decompressor
are needed to see this picture.
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An “unsellable Business”
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Do you know what your Business is worth?
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EBITDA, MULTIPLE OF REVENUE,
OWNER BENEFIT, Cost of Starting from
Scratch
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Recoup investment in 3 years, and make a living
along the way
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12 ways to build Value
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Brand
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Grow Far Beyond SOlo
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Don’t leave potential unrealized
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“Potential co-operative marketing with other health related professionals in same location. Potential to expand professional referral network, expand hours/days of operation or add complementary services. Huge potential to leverage social media marketing for targeted local advertising.”
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Consider an Earn Out
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Finance the buyer
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Focus on New Clients
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Which would you pay more for?...
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A practice with four clinicians performing a total of120 sessions per week, and 8 new client inquiries per month. A practice with two clinicians, performing a total of 60 sessions per week, and 80 new client inquiries per month.
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Credentialing
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Committed Staff
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A psychiatry practice is being purchased from an absentee owner/manager. A few weeks before the close of the sale, the new owner begins working in the practice and begins to implement some basic rules of operation for the administrative staff. They revolt! The staff destroys documents, cancels appointments, refuses to answer the phone, and creates a hostile work environment (they were also, as it was later discovered, stealing from the company). The new owner has no choice but to fire the entire staff, and hire a new administrative team.
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A buyer of a counseling practice discovers that the previous owner has overpaid his clinicians by compensating them heavily for completing basic administrative tasks the previous owner did not want to do. The new owner realizes that the practice cannot survive without the clinicians forgoing their administrative duties (along with the extra cash-cow income). The counselors do not respond well to receiving what they perceive as “a cut in pay”, and several leave the practice. Revenues drop by over 40%, and the practice doesn’t recover for over a year.
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Assets
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A good lease
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A BAD lease
The practice has a 5-year lease in a bad location. The buyer would prefer to move the office, but breaking the lease will be too expensive.
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A BAD lease
The practice has a 5-year lease in a bad location. The buyer would prefer to move the office, but breaking the lease will be too expensive.
The lease is non-transferable, and the landlord wants a 20% rent increase from any new tenant/owner.
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A BAD leaseThe practice has a 5-year lease in a bad location. The buyer
would prefer to move the office, but breaking the lease will be too expensive.
The lease is non-transferable, and the landlord wants a 20% rent increase from any new tenant/owner.
The lease terminates within a year, and the landlord plans to raise the rent more than 5%. Or, the landlord isn’t interested in committing to new lease terms at the present time, creating a big ol’ question mark for the buyer.
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A BAD leaseThe practice has a 5-year lease in a bad location. The buyer would prefer to move the office, but breaking the lease will be too expensive.
The lease is non-transferable, and the landlord wants a 20% rent increase from any new tenant/owner.
The lease terminates within a year, and the landlord plans to raise the rent more than 5%. Or, the landlord isn’t interested in committing to new lease terms at the present time, creating a big ol’ question mark for the buyer.
The space is simple TOO BIG for the practice.
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Honest & Open
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Desirable Location
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Finish Strong
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...And letting go.
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Building the team...is tomorrow
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Building the team...is tomorrowFinding
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Building the team...is tomorrowFinding
Recruiting
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Building the team...is tomorrowFinding
RecruitingInterviews
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Building the team...is tomorrowFinding
RecruitingInterviews
Contractors v. Employees
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Building the team...is tomorrowFinding
RecruitingInterviews
Contractors v. EmployeesAvoiding
Nightmare Counselors
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Building the team...is tomorrowFinding
RecruitingInterviews
Contractors v. EmployeesAvoiding
Nightmare Counselors
Why Practices Lose Their Best
Clinicians
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Building the team...is tomorrowFinding
RecruitingInterviews
Contractors v. EmployeesAvoiding
Nightmare Counselors
Why Practices Lose Their Best
CliniciansOffer Letter /
Contract
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Building the team...is tomorrowFinding
RecruitingInterviews
Contractors v. EmployeesAvoiding
Nightmare Counselors
Why Practices Lose Their Best
CliniciansOffer Letter /
ContractOn-boarding and
Training
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Building the team...is tomorrowFinding
RecruitingInterviews
Contractors v. EmployeesAvoiding
Nightmare Counselors
Why Practices Lose Their Best
CliniciansOffer Letter /
ContractOn-boarding and
TrainingCreating a
Pipeline
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Creating Culture
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Zappos
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Counseling practices Struggle
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Contractors
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ContractorsRogue Clinicians
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ContractorsRogue Clinicians
Psychiatrist
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ContractorsRogue Clinicians
PsychiatristOwner-clinician
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Not a luxury
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Tina Fey
“Don’t hire anyone you wouldn’t want to run into in the hallway at three in the morning.”
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Starts with hiringBut doesn’t end there...
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Things that worked
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Things that worked
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Things that worked
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Things that worked
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Things that worked
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1) Respect and gestures of caring
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“Thriveworks, at its core, is its team of people…We work to engender great loyalty in the team members of Thriveworks and hope that we are successful in developing and maintaining their loyalty to the point that they elect to stay employed with us for life.”
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2) Community
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3) Mission
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4) Progress
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Thriveworks Rank System
Level 1) Assistant Clinician
Level 2) Fellow Clinician
Level 3) Senior Fellow Clinician
Level 4) Associate Clinician
Level 5) Senior Associate Clinician
Level 6) Senior Clinician
Level 7) Distinguished Candidate Clinician
Level 8) Distinguished Clinician
Level 9) Magna Candidate Clinician
Level 10) Magna Clinician
Level 11) Summa Candidate Clinician
Level 12) Summa Clinician
Managing Clinician
Clinician Emeritus / Emerita
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your practice, your culture
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Spend Money to Make Money
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We got Nickels Holding up a Dollar!
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QuickTime™ and aH.264 decompressor
are needed to see this picture.
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We got Nickels Holding up a Dollar!
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1) Your office building
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2) client experience
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3) Medical Billing
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4) your clinical staff
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5) Giving back
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5) GIVING BACK
5) giving back
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5) Giving back
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6) Advertising
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10 Biggest Marketing Mistakes
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big blind swing
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No Tracking
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“Only half of my advertising is working.”
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“The problem is I don’t know which half!”
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Awful social media
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bad headshot
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technical bio
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Spamming
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guest blogging
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bad website
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bad website“Counseling for individuels, couples, and Families”
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dingy office
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dingy office“You can tell whether a business cares about its customers by how nice the
bathrooms are.”
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dingy office“You can tell whether a business cares about its customers by how nice the
bathrooms are.” How are your bathrooms?
How are your waiting rooms?
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no advertising at all
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i’m about to blow your mind
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everything is marketing
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The Final 10%
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How’s it possible?
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The Last 10% is the HARDEST
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Odysseus
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What’s your 10%?
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Are you quitting at 90%?
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Are you quitting at 90%?“Clients don’t need wi-fi in the waiting room”
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Are you quitting at 90%?“Clients don’t need wi-fi in the waiting room”“We don’t answer the phone, but most
clients will leave a message”
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Are you quitting at 90%?“Clients don’t need wi-fi in the waiting room”“We don’t answer the phone, but most
clients will leave a message”“My notes are for me. My records don’t need to
be great.”
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Are you quitting at 90%?“Clients don’t need wi-fi in the waiting room”“We don’t answer the phone, but most
clients will leave a message”“My notes are for me. My records don’t need to
be great.”“I don’t want to accept credit cards. Clients
can write a check”
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Are you quitting at 90%?“Clients don’t need wi-fi in the waiting room”“We don’t answer the phone, but most
clients will leave a message”“My notes are for me. My records don’t need to
be great.”“I don’t want to accept credit cards. Clients
can write a check”“That old armchair was my great aunts. I don’t
have time to refurbish it”
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Are you quitting at 90%?“Clients don’t need wi-fi in the waiting room”
“We don’t answer the phone, but most clients will leave a message”
“My notes are for me. My records don’t need to be great.”
“I don’t want to accept credit cards. Clients can write a check”
“That old armchair was my great aunts. I don’t have time to refurbish it”
“I haven’t dug into new research in years. The most important thing is the relationships with
my clients”
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obsession
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Be 10% obsessed
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Space
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SpaceWhite glove clean and
organized
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SpaceWhite glove clean and
organizedNo more Poland Spring
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULING
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simpler
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hours
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICAL
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
training
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
trainingProfessional development
program
![Page 229: 7 Figure Counseling Practice Presentation ACA 2014](https://reader031.vdocuments.us/reader031/viewer/2022013011/5451721aaf79591b038b7abb/html5/thumbnails/229.jpg)
SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
trainingProfessional development
programMeasure treatment
outcomes
![Page 230: 7 Figure Counseling Practice Presentation ACA 2014](https://reader031.vdocuments.us/reader031/viewer/2022013011/5451721aaf79591b038b7abb/html5/thumbnails/230.jpg)
SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
trainingProfessional development
programMeasure treatment
outcomes
VALUE
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
trainingProfessional development
programMeasure treatment
outcomes
VALUEMore value to clients
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
trainingProfessional development
programMeasure treatment
outcomes
VALUEMore value to clients
1st/10th appointment gifts
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SpaceWhite glove clean and organized
No more Poland SpringHallway should smell better
SCHEDULINGIntake process simplerSessions in 24 hoursNever double book
CLINICALMore positive psychology
trainingProfessional development
programMeasure treatment
outcomes
VALUEMore value to clients
1st/10th appointment giftsMost desirable place
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10% is 100%
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THE end