Counseling Private Practice Business Plan Template
If you want to start a counseling private practice or expand your current counseling practice, you need a business plan.
The following Counseling Private Practice business plan template gives you the key elements to include in a winning business plan. It can be used for a mental health practice, therapy practice, marriage counseling or family therapy.
Counseling Private Practice Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a private counseling clinic that provides family and marriage counseling to residents living in or near [insert company location]. 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.
Products Served
Below is a list of the counseling services that [Company Name] offers to its clients:
- Marriage counseling: This service helps 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
[Company Name] will primarily serve residents that live in [insert location here]. The demographics for this location are as follows:
- 87,309 residents
- Average income of $55,000
- 42% married
- Divorce rate of 12%
- Median age of 38 years
This demographic works to our clinic’s advantage. Almost half of the population is married, and the divorce rate is slightly higher than the national average of 10.9%. This means there are many people struggling with marriage or family challenges that could require our services.
Management Team
[Company Name] is led by [Founder’s Name], who has been a marriage and family therapist for [X] years. She has worked in other private practices around the community and has sustained a very positive reputation. [Founder’s Name] 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.
Success Factors
[Company name] is uniquely qualified to succeed due to the following reasons:
- The local demographics show that many residents may be in need of marriage or family services.
- Very few competitor clinics in the area specialize in marriage and family therapy.
- The management team has a track record of success in the counseling industry.
- [Company Name] is hiring and will continue to hire therapists with diverse backgrounds in order to cater to the diverse needs of the residents of [insert location here].
- [Company Name] will accept most insurance plans.
Financial Highlights
[Company Name is currently seeking $230,000 to launch. Specifically, these funds will be used as follows:
- Clinic interior design: $20,000
- Technology and equipment: $50,000
- Other office and counseling supplies: $10,000
- Working capital: $150,000 for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a private counseling clinic in [insert location here] with a mission to help its clients with matters regarding their relationships, marriage, or family. Some example matters that can be addressed include communication problems, mental illness, integrating blended families, and healing from an affair.
The clinic will consist of multiple therapists, all with different backgrounds and specializations. This ensures that our clients find at least one therapist with a background and practice that aligns with their goals. We believe there isn’t a one-size-fits-all approach when it comes to healing marriage and family concerns, so we will hire a diverse team of therapists that reflects this.
[Company Name] was founded by [Founder’s Name]. [Founder’s Name] has been a marriage and family therapist for [X] years and has helped many clients through their challenges and conflicts. She has worked for various private practices but was eager to establish her own clinic that would utilize multiple forms of therapy and cater to a diverse clientele.
[Company Name]’s History
After surveying the local client base and finding a potential commercial location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
Currently, the business is being run remotely out of [Founder’s Name]’s home office, but once a lease is finalized, all operations will run from there.
Since incorporation, [Company Name] 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 located at [website]
- Determined space design and required equipment
- Hired a virtual assistant to help with bookings and schedules
[Company Name]’s Products/Services
Below are [Company Name]’s initial service offerings:
- Complimentary initial intake: Clients can meet with a therapist for free to discuss their therapeutic goals and see if the therapist/clinic is a good fit for them.
- Marriage and relationship counseling: Therapists provide counseling to married and committed couples to help them through conflict and life challenges.
- Family counseling: Therapists work with the family unit to navigate any problems, conflicts, or challenges that are creating tension.
- Individual counseling: Clients who attend couples or family sessions can also opt for individual sessions to work with the therapist one-on-one.
- Remote services: If clients cannot attend in-person sessions for any reason, they can request to take their sessions remotely.
III. 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. Now more than ever, 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.
Furthermore, we saw 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 were 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 can 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.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and its surrounding area.
[Company Name] will primarily target clients who are married and have families. The community of [company location] 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.
Customer Segmentation
The company will primarily target the following three customer segments:
- Married Couples: The town has a significant married population and a high divorce rate. This means that there are many couples experiencing marriage challenges that are looking for help. [Company Name] will draw in these couples looking for help with these matters.
- Families: Families come in all shapes and sizes and therefore need therapists that can help them with their unique challenges. [Company Name] will hire a diverse array of family therapists to attract families from all backgrounds.
- Millennials: With a local median age of 38 years, millennials make up a huge portion of the town’s population. Millennials have just reached the age where they have established committed relationships and begun building families. More than any generation before them, millennials have created relationships and families that are all unique and diverse. Though this is wonderful progress for our community, it also brings about unique challenges and concerns that were not as common decades before. [Company Name] will market itself as a clinic that is welcoming and can help clients with these matters.
V. Competitive Analysis
Direct & Indirect Competitors
The following clinics are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
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 to cope 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 [Company Name].
Springfield Mental Health And Wellness
Springfield 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.
However, 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 Springfield Mental Health And Wellness will continue to succeed, many couples and families will be eager to switch to [Company Name] for in-person sessions with a therapist that can help them with their specific concerns.
Clark University Counseling Services
Established in 2010, Clark University Counseling Services is a community service of affordable therapy offered by Clark 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 Clark 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 [Company Name] over Clark University.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include the following:
- Affordable sliding scale fee: Counseling is an expensive investment for many clients. That’s why [Company Name] offers an affordable sliding scale fee structure to families who make less than the 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. [Company Name] will focus primarily on these matters, attracting this clientele from our competitors.
VI. Marketing Plan
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] seeks to position itself as a respectable, welcoming counseling clinic. Clients can expect to receive professional marriage and family therapy services from skilled therapists more than anywhere else in [location].
The [Company Name] Brand
The [Company Name] brand will focus on the clinic’s unique value proposition:
- 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
[Company Name] expects its target market to be individuals living within a 5 to 10-mile radius of its location. [The Company’s] promotion strategy to reach these clients includes:
Social Media Ads
Most of the promotional campaigns will be through social media, where we can customize the audience that will be able to see it.
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, mental health publications, and similar channels will be a major promotion effort.
Major Publications
The company will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of XYZ, and it can be expected to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively based on cost-effectiveness.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Doctor’s Offices
The owner 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 in hand them out to whoever requests a counseling clinic or is in need of one.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to provide tips on common marriage and family challenges.
Pricing Strategy
[Company Name]’s pricing will be moderate, so clients feel they receive great value when obtaining counseling services. Whatever amount is not covered by insurance, clients will be happy to pay the small remaining amount for such high-quality services.
VII. Operations Plan
Functional Roles
[Company Name] will carry out its day-to-day operations on an appointment basis. Clients can make an appointment through our website or by calling the office. [Company Name] will have a comfortable waiting area, but patients will likely be seen within 5–10 minutes of checking in at the front desk.
In order to execute [Company Name]’s business model, the company needs to perform several functions. Company Name] anticipates using the services of [X] employees, divided into the following roles:
Service Functions
- Family counseling
- Relationship counseling
- Marriage counseling
- Individual counseling
Administrative Functions
- Marketing functions
- Bookkeeping functions
- Hiring and training staff
- Sourcing and storing supplies
- Appointment setting
- Customer service/payment processing functions
Miscellaneous
- Maintenance functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been a marriage and family counselor for [X] years. She primarily utilizes the Imago Relationship Therapy technique to help her clients with their marriage or relationship concerns.
While [Founder’s Name] 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 [year] shortly after completing her Master’s degree from [school] and obtaining her counseling license.
Hiring Plan
[Founder’s Name] will serve as [Company Name]’s office manager. In order to launch our counseling clinic, we need to hire the following personnel:
- Licensed marriage and family therapists (1 to start)
- Administrative assistants (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’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 the following:
- Salaries
- Therapy supplies and equipment
- Lease
- Taxes
- Marketing
Capital Requirements and Use of Funds
[Company Name] is currently seeking $230,000 to launch. The capital will be used for funding location design and leasing, hiring initial employees, marketing expenses, and purchasing technology and equipment. Specifically, these funds will be used as follows:
- Clinic interior design: $20,000
- Technology and equipment: $50,000
- Other office and counseling supplies: $10,000
- Working capital: $150,000 for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 150 |
| FY 4 | 200 |
| FY 5 | 225 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
