Private Practice Profitability Calculator

Things to consider as a solo practitioner:

• There are only 8 working hours in a day (I know, duh).
• How you split up your time will determine how many patients you can realistically see in a day.
• Will you offer one-hour sessions or 15-minute sessions?
• Always consider work-life balance when planning your schedule.

Pricing is important to the patient:

• Have you checked to see what the going rate is for your services?
• What demographic of the population will you be addressing? This will impact your earning power

We strongly advise that you utilize and EHR with practice management:

• It is essential to nail this from the beginning to secure the work life balance.
• Most EHRs that offer a low entry price have hidden costs that awaits you as your practice grows
• We offer a fixed upfront fee that is inclusive of many services.
• You will see we are affordable!
• Plug in our price or any other you choose, the box shows our price

Everybody has to have this!

• Be sure to shop around for this fixed cost
• We googled this and the answer is $400 - $800 per year for a therapist
• Specialty: For example, surgeons in some states pay as high as $50,000, and OB/GYNs may pay more than $200,000
• It is required by law, don't open your doors without it!

You need to consider income taxes:

• You need to look this up.
• Most states have an online calculator. Google it!

If you are selling items other than your services

• You will need to collect state sales taxes
• Most startups can place a zero here, Next!

If you are not working from a spare room in your house:

• Have you looked for colocation space to start out?
• How many sqr/ft are you going to need to have an inviting office?
• What is the going rate for office space in your area?
• Will you be able to afford this if you only see 5 patients a day?

Don't forget the lights:

• Electricity, water, gas, internet, phone, etc.
• What is the going rate for utilities in your area?
• Tip: take your home bills and double it

Marketing is essential:

• How will you get the word out?
• Psychology Today
• Zocdoc
• Google Ads, Facebook Ads, etc.
• Don't forget to budget for this! Go get the numbers and come back.

Continuing education is a must:

• How many conferences will you attend?
• How many online courses will you take?
• How many books will you read?

Administrative services are a must:

• Will you hire a virtual assistant?
• Will you hire a billing service?
• Will you hire a receptionist?

Professional memberships are not a must but we are throwing them in:

• Will you join the APA?
• Will you join the ACA?
• Will you join the NASW?
• Will you join the AAMFT?

Business insurance is a must:

• Will you have a general liability policy?
• Will you have a business owner's policy?
• Will you have a workers' compensation policy? (This may be overboard)

Legal and accounting fees:

• Will you hire a lawyer?
• Will you hire an accountant?
• Will you hire a bookkeeper?