The expenses of private practice. When starting a psychology practice, the business structure you choose will have long-term impacts in terms of: your personal exposure to risk and liabilities; the flexibility to bring on additional or new owners of the practice; and; growth. Valant takes a look at the components of a business plan and translates it into an easy-to-use framework for both mental health professionals looking to start their own private practice and those looking to expand their current practice. How much will you bring in? Check out our guide to creating an effective private mental health practice business plan below. It is vital to make a well-informed decision when starting a psychology practice to ensure you can best serve your clients in the long run. You’ll also have to plan for retirement and fund your own health insurance. In private practice it is no different. In your business plan, hope for the best but prepare for the worse. The first step to starting your business is to get an Australian Business Number (ABN). To have a successful practice and serve more people, you have to learn how to run a small business, tolerate risk, and be comfortable spending money. These goals should stretch you while still remaining achievable. As a sole practitioner, you will need to understand your taxation and financial responsibilities, including paying yourself a salary. Most people know that whenever a person goes into business there are costs associated with keeping the business running. You will also need to be able to manage administration requirements, budgeting, and business plans. What will happen if your local economy takes a hit and business slows down? Find out elements that need to be included in a private practice business plan. Running a psychology practice means you are also running a business. A business plan is a map that shows where your business is headed. How much will you spend? When a person goes into private practice as a counselor, therapist, psychologist or other mental health clinician, there might be some costs that you are not aware of. Every private practice startup or established needs a business plan. It should show exactly how your private therapy practice will make money and include financial projections. For the purposes of this business plan, we will focus on multidisciplinary group practices, both public and private. You will likely face higher taxes if you are a business owner or self-employed. Private practice is alive and well---but only if you realize that excellent clinical skills are a necessary, though not sufficient, condition for success. In this section of your private practice psychology business plan, we’re looking for SMART goals, goals that are specific, measurable, attainable, relevant, and time-based. 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.