Diversifying Streams of Income In Private Practice
At GetTherapy.com, we work with clinicians opening new practices who are ready to dive in head first and absorb all the potential financial risks of a new business, those who keep a full-time job and open their practices simultaneously, and those who are somewhere in-between. Our experts are here to help you feel more confident as you embark on this new adventure. Diversifying income streams is one way to ensure your income remains stable as you start to build your new private practice. In this post, we’ll discuss some ways of diversifying your income streams helps you to maintain a steady bottom line as you grow a thriving practice. Remember, the GetTherapy.com team is happy to help you at any step in the process. We offer a wide range of services to help Arkansas clinicians build successful private practices.
Determine What Level of Risk is Appropriate for You
When starting a private practice, people approach it with varying levels of risk tolerance. You’ll need to be aware of the level of risk you’re able to reasonably accept. In most cases, clinicians fall into one of the following three categories, and the one you fall into will determine how much planning should go into your diversified income streams.
Some, quit their jobs, expecting to be broke for 3 to 12 months and are prepared to absorb the loss of income. Maybe they have a spouse who makes plenty of money. Maybe they live in their parents’ basement. Either way, they’re not scared away by the loss of income, and they are able to tolerate the risk.
The Tentative Planner
Others approach private practice very tentatively. Some spend a year or more gradually building their private practice while maintaining a full-time job all with the intent to quit when the practice is prepared to function full-time.
Most new practice providers are somewhere in the middle. This may look like reducing their current job hours to part-time and spending some time building the clinic and the referral base before they dive in 100%. In fact, this is the approach we recommend for those who want to be full-time in private practice. Although there are things you can do to rapidly increase referrals to get your name out there and build your business quickly, for most people, these are uncharted waters and there are no guarantees. We encourage new clinicians to start out fairly slowly and diversify income streams to manage risk.
Identify Opportunities for Diversified Income in New Practices
What we mean by additional income streams is having other sources of income that are outside your traditional counseling fee-for-service model. Some ways that clinicians can easily diversify their income streams include:
· Taking a part-time gig at a local clinic
· Having a contract to provide services like running group sessions
· Using another set of skills to generate income like writing and blogging
Whatever your other talents and opportunities may be, we recommend that you keep a keen eye on available incomes streams to bring in other non-counseling funds, especially in the beginning. Not only does this reduce your financial risk; it also helps build a network of connections in your community that can turn into reliable referral sources as your practice grows.
Importance of Diversifying Income for Long-Term Success
Diversifying your streams of income is not just important when you’re starting out. It’s also a good idea for the long-term sustainability of your practice. Having a variety of income streams will make your practice more resilient to changes, such as the ebb and flow of referrals, insurance pay rates, etc. It also provides a nice variety of clinical tasks, which keeps you from burning out and can be helpful to other clinicians who you may invite to join your practice.
How GetTherapy.com Can Help
The GetTherapy.com team is dedicated to providing support resources to help private practices across the state of Arkansas. Our goal is to partner with clinics throughout the state to create a network of practices with great care that is easily accessible when patients need it. We are also in private practice ourselves. This means that we know the ins and outs of the field and the value of a diversified income stream. During our New Practice Academy, we will help you identify income streams to establish your solid financial foundation. Just want to talk to one of our experts about diversifying income? Ask about a consultation package. We want to build the best possible practice to be easy for clinicians throughout Arkansas.