Are You in La-La Land About Your Private Practice Income?
I want to share with you two responses I sometimes get from therapists and healers when I pose the question, “How much money do you want to earn in your practice?”
The first is the “I Don’t Know” response. It sometimes goes like this:
“I never thought about that before.”
“I want to make a good income.”
“Enough to take a vacation every year.”
As you can see, the problem with these statements is that they don’t say anything about how much income these professionals want to generate. It’s difficult to achieve a goal when you don’t know what it is.
To the other extreme is the “Pie in the Sky Response,” which sounds like this:
“I heard that people can make a lot of money on the Internet. I want that too.”
“I want to make a million dollars in 6 months.”
Ok. I’m exaggerating on that last one. 
No one has really told me that they wanted to earn a million dollars in 6 months. But, you get the idea.
Often these folks don’t have business skills or experience, lack necessary resources to build a business, and don’t have a plan. Obviously this is a problem as one needs to be grounded in the reality of what it takes to earn the amount one says they want.
If you recognize yourself in one of these two scenarios– even if it’s just a little bit– I don’t want you to feel badly. I want you to do something about it.
To get started, here are 3 things you can do right now:
1. Be clear on what kind of lifestyle you want to live and write it down.
There is no point in coming up with an arbitrary amount of money you want to earn when you don’t even know what you want it for.
Be very specific (e.g.” I want to take a 1 month vacation each year” or “I want to buy a larger home”). Don’t be afraid to dream and thing big. On the other hand, try to be realistic about who you are, your values and what really makes you happy.
2. Calculate how much you will need annually to fulfill your lifestyle and write it down.
Include the amount you need to live on, the cost of any extras you want in your life, and the amount you want to save or invest each month.
Yes, you need to actually do the math.
I know you might not like working with numbers, so if you need help from someone, make sure you get it.
3. Calculate how many client hours you need per week in order to meet your yearly goal.
Remember that to run a successful business you have to allot time for working ON your business, which includes things like administrative tasks, bookkeeping (if you don’t hire a bookkeeper), marketing, training, professional development, etc. This means if you only want to work Monday-Friday from 9-5, you won’t be able to see clients for the entire day because you will need to allow time for these activities.
Finally, don’t forget to factor in business expenses. A private practice is a business after all, and businesses cost money to run–and even more money if you want them to run well and to grow.
I hope those of you who need to will take action by completing the above 3 steps…and soon. It is so easy to procrastinate dealing with one’s finances. But the sooner you deal with them, the sooner you will start taking your business more seriously and allow space for greater success.
Before I close, I want to say that many years ago, I had to take a hard look at how I was managing my own finances. Thanks to Karin Mizgala, my financial planner colleague, and her amazing knowledge, skills and patience with those of us who don’t like dealing with the issue of money and finances, those days are long behind me.
Please share your experiences and thoughts on this topic below, by clicking on the “Comment” button below.
“I’m Not in it For the Money!”
Are you one of those therapists or healers who has said, “I’m Not In It For the Money!”?
If so, you may not have chosen your therapy or healing practice because of the money, but don’t you deserve to live your life free from money worries? My pal, Karin Mizgala, the brilliant financial whiz and I have worked with lots of therapists and healing professionals who do a fantastic job in helping their clients overcome seemingly insurmountable problems.
But when it comes to handling their own finances, well… let’s just say many could use a helping hand. It’s certainly easy to lose track of the financial side of things with so many competing demands on your time and attention.
Nevertheless, bad money habits and practices can seriously impact the viability and profitability of your business – to say nothing of the anxiety, confusion and stress created when things get out of control!
And let’s be straight, here…
Despite all the altruism and compassion you may have -a private practice is still a business. Just like any car wash, dental office, or manufacturing plant. We need to cover our expenses, pay ourselves and our staff and keep up with our taxes if we want to be there for our clients over the years.
And don’t you want enough cash coming in to enjoy a good life now and a secure and comfortable future in your later years?
To run a financially profitable private practice, you need to get honest with yourself.
Can you really say that you know exactly how much money is coming in every month – where it’s coming from — and where it’s going?
Do you know how much, and where to invest money in your practice in order to grow your income?
And…
Do you have a plan for where you want to be financially in the long-term and a concrete strategy for getting there?
If not, now’s the time to do something about it.
Money may not be your favorite topic and you may want to avoid it like the plague. However, if you want to attract more into your life and run a profitable practice, you need to be able to engage in the world of money with confidence and ease.
So here is the scoop…
If you are ready to get the help you need to develop a healthy relationship with your private practice finances, join Karin Mizgala and myself for our Private Practice Finances Made Easy FR.EE Preview Tele-seminar on Wednesday, September 16, 2009.
You can sign up by clicking here.
If you you need to deal with your business finances but are tempted to continue putting it off, I would strongly advise against it.
Why?
Because the sooner you get your financial systems and a plan in place, the sooner you will be successful financially. Yes, really. So join us for this fr.ee call.
Please click on the “comments” button below to add your comments or ask questions about this call or your private practice finances.
Why You Need a Financial Plan for Your Private Practice
I am pleased to offer this article written by my colleague, Karin Mizgala.
Karin and I will be doing the Private Practice Finances Made Easy teleseminar course together starting on March 25/o9. Hope you enjoy it:
I know that most of you didn’t start your practice for the money. And if you’re like most busy practitioners it’s hard to find
time to breathe let alone to plan, especially when it comes to the money-side of your practice. However, even if you don’t feel
comfortable in the world of profits and losses, debts, taxes, budgets and retirement, learning how to take control of your money
and having a financial plan in place will make you more successful.
Here are some of the key benefits of having a financial plan for your practice:
1. It will Help You Realize Your Goals
Your financial plan is your opportunity to be totally clear and honest about what you really want. When you write down your goals you are far more likely to achieve those targets. Your financial plan will also help you set priorities and to commit to
measurable milestones in your life and in your practice. You will know exactly where you are going and how you are going
to get there.
I always remind people that a good financial plan is not only a means to achieve their financial and professional goals. It is
also a means of realizing their spiritual aspirations too. Your financial plan starts with a vision of possibilities where you
set your intentions for your private practice. What follows from there is a systematic, step-by-step, process for fulfilling your
life’s purpose — and the financial objectives that will help you get there.
2) You Can Make More Conscious Decisions & Better Choices
How much money did you really make last year? No, seriously. Do you really know? The scary truth is most practitioners don’t.
Most of us don’t have a handle on our expenses either, and many are in debt or behind in their taxes. Having a financial plan
allows you to make conscious decisions based on realities. Where are you now – and where do you want to go? Only when you have a handle on these two things can you make informed choices and good decisions. Only then can you be truly successful.
3) You Will Be Less Stressed
Being in private practice demands a lot of juggling. The greatest pressure often comes from the financial side of our lives.
Student or business loans, overdue taxes, past due receivables, or simply a bookkeeping mess, can take a lot of joy and
satisfaction from our careers. A simple, easy-to-use financial plan will give you a system to follow that will help you feel more
organized and in control of your money so you can focus your attentions on what you love – working with clients.
4) You can Focus Your Energy and Make more Money
A little strategic planning will allow you to focus your energies better. Where do you want to spend your time? And where do you actually need to spend more time – or less time? There are many activities vying for your attention. Your financial plan gives you the practical information you need to direct your energy, time and attention — and your financial resources. For example, it contains invaluable information you need to make realistic and effective pricing and marketing decisions.
5) You Will Be a Better Role Model for Your Clients
If you’re like a lot of therapists and healing professionals you might feel guilty about wanting – or needing — to make more money from your Practice. Money is an issue that many of your clients might be struggling with as well. By becoming more comfortable and on top of your own finances, you can serve as a more effective role model, a trusted resource and source of inspiration to your clients. This will put you in a better place for encouraging them to get a better handle on their finances as well.
6) You Will Feel More Empowered, Better Organized and More in Control – of Your Life — and your Private Practice
One of the great feelings of satisfaction that comes from taking charge of your finances is re-gaining control of your life and
your practice. With your financial plan in place you will feel more organized and more empowered than ever before. You are likely already doing great work in your private practice and you deserve to make a good living and to not struggle financially. Your new financial plan will allow you to live the life you want.
If you liked the above article and haven’ yet listened to the free audio I did with Karin, “5 Mistakes Therapists, Coaches and Healers Make with Their Private Practice Finances” check it out.
5 Private Practice Financial Mistakes Made By Therapist, Coaches and Healers – Free Audio Recording
My pal, Karin Mizgala, the financial planner and I just recorded a short audio and it’s free for you to listen to:
“5 Mistakes Therapists, Coaches and Healers make With Their Private Practice Finances.”
Check it out. It’s free after all…
http://www.privatepracticefinancesmadeeasy.com
By the way, Karin is the woman I will be doing the “Private Practice Finances Made Easy” 4-week
tele-seminar with that starts on March 25. There is still time to get in on the early bird price and save $50: http://www.privatepracticefinancesmadeeasy.com
UPDATE: The Private Practice Finances Made Easy is now a Home Study Program. You can get it here. A brand new intensive coaching program starts on October 7, 2009. You can find out more here.