Recently I was talking to someone who said, “I’m full, but I don’t want to start a group practice.” We talked about how when they were a 1099, they felt taken advantage of and like it wasn’t worth it.
I get it.
There are a number of things to consider before starting a group practice:
- Do you like managing people?
- Do you enjoy building systems?
- How many calls and referrals sources do you have?
- Do you like how much you currently work?
But there are a number of ways to have a group practice. You could have a couple part-time people, while keeping a full time job. You could go all in. You could take insurance or not.
Group Practice Case Study
TYPICAL CASE STUDY: Here’s an example of a typical practice. Tamara started her practice two years ago and slowly built her practice. She’s on one higher paying insurance and sees 21 clients per week. Between insurance and private pay, she averages $97 per session or $2,094/week. She sees clients M, T, W, and Th and takes a 10 min break between sessions. She doesn’t like the idea of managing people, dealing with HR, or drama.
Ideas for Group Practice
- Raise her rates, leave insurance, and not bring anyone on
- Sublease her office on her off days or nights
- Be more efficient with her time by scheduling every 45 minutes and then take a break every 3-4 sessions.
- Add part-time 1099s or W2s (based on state) to fill in hours
- Add part-time that will lead to full time
Plan for More Money and Less Time in Group Practice
If Tamara had the following schedule, it would be a bit more efficient:
- Monday: sessions at 9:00, 9:45, 10:30, break/eat/bathroom 11:15-11:45, sessions 11:45, 12:30, 1:15, break 2:00-2:30, sessions 2:30, 3:15 total sessions for the day 7
- Tuesday: sessions at 9:00, 9:45, 10:30, break/eat/bathroom 11:15-11:45, sessions 11:45, 12:30, 1:15, break 2:00-2:30, sessions 2:30, 3:15 total sessions for the day 7
- Wednesday: Business planning and blogging 9:00-11:00, sessions 11:00, 11:45, break/lunch 12:30-1:00, sessions 1:00, 1:45, 2:30 total sessions 4
- Thursday: Sessions 4:00, 4:45, 5:30 total sessions 3
Now that Tamara is more efficient, she has time on the following days to consider subleasing or having 1099s or W2s on:
Monday/Tuesday/Wednesday night: 4:00-8:00 (If on the 45 minutes that would be 5 sessions/night = 15 sessions)
Thursday: 9:00-4:00 (8-12 sessions)
Friday: all day (12 sessions)
Saturday: all day (10-12 sessions)
Sunday: all day (10-12 sessions)
That means that she has a potential of around 55 sessions in her office with optimal scheduling which is unlikely).
Now let’s say she had a 1099 or W2 that did half those sessions, or maybe the 27 sessions were all part-time. At her average rate of $97 per session x 27 sessions that is $2,619 total coming in. Say that conservatively happened for 42 weeks per year, that’s $109,998 gross, a conservative take away for the owner would be 25% after expenses, or an extra $27,499.50 ($2,291.65 per month)
Do You Want Help Launching a Group Practice?
Alison Pidgeon (group practice owner and Practice of the Practice consultant) is opening up applications for her next “Start a Group Practice Mastermind” which launches in January 2019. Here’s how she’ll help you launch a group practice:
- We will meet 2x per month for 75 minutes starting in early January. We will have a 15 minute Q&A session followed by the “mastermind” format of 2 hot seats for participants.
- You will be a member of a closed FB group where we can share resources, ideas, and ask questions.
- You will receive a FREE membership to Next Level Practice (normally $77/month) where you can access pre-recorded trainings and webinars in Teachable and interact with other practice owners in a closed FB group.
- You will receive hiring contracts as well as access to Alison’s library of documents designed for a group practice.
- You will be able to download the “Start a Group Practice” workbook Alison has written specifically for this group to help guide you through the process.
- You will have 2 individual 45 minute consulting sessions with Alison scheduled at the beginning and the middle of the group.
- You will have access to 10 pre-recorded trainings on specific topics related to group practice meant to enhance your learning in between sessions.
Cost is $347/month for 6 months
We will meet every other Thursday from 2:00-3:15 pm starting January 3rd through June 6th via Zoom.If you are ready to start a group practice in 2019 click here to schedule an appointment to talk with Alison.
