Abundant Practice Podcast: Episode #601 - To Scale Or Not To Scale
Host: Allison Puryear
Guest: Sam
Release Date: December 11, 2024
Introduction
In Episode #601 of the Abundant Practice Podcast, host Allison Puryear engages in a thoughtful conversation with Sam, a therapist navigating the challenges of scaling her private practice. The episode delves into the complexities of expanding a solo practice, balancing clinical work with business management, and making strategic decisions to ensure sustainability and personal well-being.
Sam’s Journey to Private Practice
[02:02] Sam: Sam begins by sharing her transition from a group practice based in Atlanta to establishing her own solo virtual practice in North Carolina. She outlines her journey, highlighting significant milestones such as purchasing a home, having a child, launching her website in January, and officially starting her practice in March, which has recently achieved its first two five-figure months.
Key Points:
- Transition from group practice to solo practice in January.
- Launch of a personal website and participation in the Abundance Party program.
- Achieved five-figure monthly revenues in recent months.
- Plans to expand her family and seeking sustainable growth in her practice.
Challenges in Scaling
Sam articulates her current challenges with scaling her practice sustainably. She is contemplating whether to hire associates, expand services to include groups or coaching, and how to manage increased administrative responsibilities without compromising her clinical work.
[05:55] Sam: "I have more officially kind of launched in March and since then this month and last month will be my first two, like, five figure months."
Key Challenges:
- Managing an increasing client load while maintaining quality care.
- Deciding between hiring associates versus expanding services like group therapy or coaching.
- Balancing administrative tasks with clinical responsibilities.
- Navigating niche marketing for anxiety, people-pleasing, perfectionism, and religious trauma.
Allison’s Insights on Scaling
Allison provides valuable insights into the intricacies of scaling a private practice. She emphasizes the importance of simplicity and sustainability, cautioning that scaling often involves increased complexity and potential financial trade-offs.
[06:12] Allison: "What you have right now... is it feeling simple? Is it feeling good? Are you feeling burned out?"
Key Advice:
- Simplicity Over Complexity: Focus on the simplest sustainable model rather than complicating the practice with multiple services or hires.
- Financial Considerations: Hiring associates can lead to reduced personal income and increased management responsibilities.
- Personal Fit: Success in scaling depends on enjoying and being adept at managing staff and business operations.
- Selective Hiring: If hiring, choose associates who align perfectly with the practice’s ethos to minimize stress and maximize synergy.
Evaluating Group Practice vs. Solo Expansion
Allison discusses the pros and cons of transitioning to a group practice. She notes that while group practices can offer increased capacity, they often result in lower personal income and additional managerial burdens.
[12:03] Sam: "I felt like I didn't have a lot of tools or resources to learn how to market myself."
Key Points:
- Income Impact: Group practice owners often earn less individually compared to solo practices.
- Management Demands: Increased time spent on marketing, onboarding, and managing associates.
- Symbiotic Relationships: Successful group practices rely on strong, harmonious relationships between the owner and associates.
- Operational Complexity: Managing multiple clinicians introduces additional layers of complexity and potential stress.
Exploring Alternative Growth Strategies
Sam contemplates alternative methods to scale her impact without overwhelming herself, such as developing psycho-educational groups or training other clinicians in her niche specialty.
[19:03] Allison: "You could kind of franchise it almost so that people would pay to be trained in how to help with religious trauma."
Key Strategies Discussed:
- Psycho-Educational Groups: Offering structured groups that require minimal ongoing personal energy compared to process groups.
- Training Programs: Developing curricula to train other clinicians, potentially creating a scalable model without direct clinical expansion.
- Consultation Groups: Providing consultation for other professionals without the formal responsibilities of supervision.
Rate Adjustment and Financial Planning
A significant portion of the discussion revolves around Sam’s consideration to increase her session rates from $155 to $175 or even $200 per hour to create a financial cushion and reduce workload pressure.
[28:09] Allison: "Somebody who could pay 175 could pay 190 for sure. So really consider. And somebody who could pay 150 can pay 190 most of the time."
Key Recommendations:
- Incremental Rate Increases: Start with a modest rate increase and evaluate client retention before considering further adjustments.
- Financial Cushioning: Allocate the additional revenue to savings to support future scaling or personal financial security.
- Psychological Pricing: Consider pricing strategies that are psychologically appealing to clients, such as rounding rates to whole numbers.
- Monitor Client Response: Contrary to Sam’s fears, most clients do not significantly reduce their sessions following modest rate increases.
Balancing Professional Growth with Personal Well-being
Allison underscores the importance of aligning business decisions with personal values and life goals. She advises Sam to consider the energy investment required for scaling and to prioritize maintaining a balance that allows her to be present for her family.
[29:42] Sam: "I want to be able to be at a place where I can still do the work that I do and that I love, but that it doesn't drain me."
Key Takeaways:
- Energy Management: Choose growth strategies that do not deplete personal energy or interfere with family life.
- Long-Term Sustainability: Ensure that any scaling efforts contribute to long-term personal and professional sustainability.
- Strategic Planning: Plan for future expansions thoughtfully, ensuring financial stability and personal capacity.
Conclusion
In this episode, Allison Puryear provides Sam with pragmatic advice on whether to scale her practice or focus on enhancing her current solo practice model. Emphasizing simplicity, financial prudence, and personal well-being, Allison guides Sam toward making informed decisions that align with her professional aspirations and personal life goals.
Notable Quotes:
- Allison [06:12]: "What you have right now... is it feeling simple? Is it feeling good? Are you feeling burned out?"
- Sam [12:03]: "I felt like I didn't have a lot of tools or resources to learn how to market myself."
- Allison [19:03]: "You could kind of franchise it almost so that people would pay to be trained in how to help with religious trauma."
- Allison [28:09]: "Somebody who could pay 175 could pay 190 for sure. So really consider. And somebody who could pay 150 can pay 190 most of the time."
- Sam [29:42]: "I want to be able to be at a place where I can still do the work that I do and that I love, but that it doesn't drain me."
Final Thoughts
This episode serves as a valuable resource for therapists contemplating the next steps in scaling their private practices. By balancing practical business strategies with personal well-being, Allison and Sam illuminate the path toward a more abundant and fulfilling professional life.
Resources Mentioned:
- Abundance Party Membership Program: www.abundanceparty.com
- Free Private Practice Checklist & Worksheets: www.abundancepracticebuilding.com
- TherapyNotes Offer: Visit therapynotes.com and use promo code abundant for two months free.
Connect and Support:
For further support or inquiries, listeners are encouraged to email the Abundance Practice Building team at help@abundancepracticebuilding.com.
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