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Private Practice Kickstart
with Miranda Palmer, LMFT
& Kelly Higdon, LMFT

ROI in Building a Private Practice

launch 2I enjoyed watching a recent discussion in an online forum after a person asked if they should invest in coaching.

Each respondent had their own theories as to if it was “worth it”. Some said don’t do it because you can get everything for free on your own. Others listed the people they used and recommended. And then one person brought up the cost and how many clients it would take to have a positive ROI (Return on Investment).

Return on investment is where you look at the time, energy, and money spent and measure that against the outcomes in terms of time, money, or energy. Not all ROI is monetary. For example, having someone clean my house saves me several hours a month, saves me the stress and allows me to work during that time but for me hands down the energy it saves me is the greatest return.

Whenever looking at coaching you need to have some outcomes prepared for which you will use to measure ROI.

In our bootcamp interview, we ask about these measures everytime. The most common response “I never thought about it!” Totally normal and yet when you don’t think about ROI it is a set up for frustration because you will find it hard to remember why you invested your time, money and energy. With bootcamp, it takes about 1 new client coming in weekly for 15 sessions on average to pay for the bootcamp and then any clients after that are the positive return.

So look at anything you invest in with your business. Coaching, tools, CEUs and you can evaluate the ROI. Whenever you make a decision this will be part of your process from now on so you can be crystal clear with your objectives. So let’s look a little bit closer to the questions to ask

  1. MONEY How much will this cost you? Looking at hard numbers, you can put this into your budget if you determine it is something you need. Then you ask, what is the financial return? Just because it is cheap doesn’t mean it will help you make more money. How many clients do you need from this investment to make an increase in income? Money will not always be something you can assess a return on. Instead, it might fall in other categories and that is ok!
  2. TIME How much time will it take you? From commuting to studying to implementing – investing in your practice often takes time. BUT How much time will it save you? For example, having a printer saves you the hassle and time of driving to Kinkos for copies. One of my mentors always said you have to invest time to create more time down the road.
  3. ENERGY How much energy will you invest and what will be gained? For example, taking the time and money to learn a new clinical skill will probably save you and your clients’ energy in the therapy room. Other things may be too energetically taxing depending on what is going on in your life and the stress is not going to be worth it.

 

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ROI in Building a Private Practice

 


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APA Reference
Higdon, K. (2019). ROI in Building a Private Practice. Psych Central. Retrieved on July 17, 2019, from https://pro.psychcentral.com/kickstart/2016/09/roi-in-building-a-private-practice/