During the current economic crisis, many private practitioners are having a difficult time filling up their caseloads. Others who have wanted to start a private practice may feel fearful at their prospects for success, given the current state of the economy. In this article I will illustrate the eight most important factors in creating a successful practice, whether you’re just starting out or trying to grow an existing practice.
1. Specialize – having a specialty always works better than trying to be a generalist. You need to create a “brand”, a perception in the eyes of the community that you are an expert in one area. We’d be very suspicious of a medical doctor who claimed to be an expert in surgery, internal medicine, urology and neurology. Yet we see advertisements for counselors who claim to treat 10-15 different presenting problems. The fear is that if you specialize, you’ll lose other referrals, but the reality is just the opposite: the most successful clinicians are the ones with a specialty.
2. Study Business and Marketing – being a great clinician is a necessary but not sufficient condition for private practice success. In fact, a mediocre clinician with great marketing skills will always outperform a great clinician with poor marketing skills. Whether we like it or not, we are small business owners, and subject to the same market forces as any other small business in our community. Why do 80% of small businesses fail within five years? Michael Gerber, author of the E-Myth says it’s because being good at delivering a technical service doesn’t mean you know anything about running a business. They are entirely different skill sets, and we’re not born knowing how to do either one. By studying Business and Marketing, I was able to grow my half-time practice to a group practice with nine therapists.
3. Set Specific, Measureable Practice Goals – many therapists say “I want more clients”, rather than setting specific goals. Specific, measureable goals enable you to develop specific plans to reach your goals, and to track how you’re doing. “I want 5 new clients a month, and 25 per week on my caseload” is an example of a specific, measureable practice goal.
4. Create an Online Presence – in the 21st century, it’s very difficult to succeed without having an online presence that can be found in a local search. Over 80% of people seeking professional services start looking online, and if you do not have an online presence, you will miss out on all of these referrals. Many successful practices are now getting 50-80% of their referrals from online sources. A website is the cornerstone of creating a successful online presence (my article in the March/April 2009 Psychotherapy Networker outlines the most essential steps for creating a successful website).
5. Create a Plan to Generate Referrals – it’s mere wishful thinking to set a goal if you have no plan to reach it. The use of Business and Marketing Plans can serve as a valuable guide in delineating the specific steps necessary to reach your practice goals. If you want 5 new referrals a month, you need to make a plan to specify exactly what you are doing to generate those referrals. Advertisements? Online profiles? Past clients? Other clinicians? How exactly do you plan to promote your practice, and how many referrals will come from each source?
6. Take Small, Calculated Risks – every successful private practitioner is someone who has tried something new, and failed numerous times! The only insurance in private practice is to generate referrals from a diverse set of sources, and it’s only by trying new things that you discover which ones will work in your community and your area of specialization. So do small, inexpensive tests of different referral-generation strategies; expand the ones that work and discard the rest.
7. Carefully Track Your Results – it’s only when you know exactly how your efforts are working – or not working – that you can continuously revise and improve your plans for your business. If you spend money on an advertisement, for example, record exactly how much you spent and how much income the ad generated. Keep track of every referral – where they came from and how they heard about you.
8. Get Support – private practice can be a lonely endeavor if you don’t make the effort to reach out and connect with others. In addition to professional organizations locally, you can also have regular lunch meetings with other colleagues in private practice. There are also numerous online groups and forums that offer the opportunity to share private practice success strategies.
Private practice can be an extremely rewarding career choice if one learns how to do it successfully. I know many clinicians all over the US will full practices who have utilized these eight steps to success.