Private Practice Success Newsletter

June 2007, by Lynn Grodzki, LCSW, MCC (Master Certified Coach)
www.privatepracticesuccess.com

Leadership: Your Business Model

For the past several months in this newsletter, I have been trying to heighten your awareness about the need to take leadership of your practice, to stay ahead of the market downturn.

Leadership means different things at different times, but within a sole proprietorship, leadership means taking steps to enhance these three areas: profitability, autonomy, and fulfillment.

In order to be profitable, you need to find ways to change course and direction with a small business, to respond to a changing market.

Adopting a different business model can create renewal for your business by taking steps towards a major change in the way you position your services and operate your practice, versus a band-aid fix.

This month, I explore the first of 4 feasible business models that translate to profitability for therapists, coaches, consultants, and healing professionals. Those of us in relationship-oriented practices need carefully crafted business models.

Then during the next 3 months, I will explain 3 additional and varied business models, in hopes that one of these will fit your needs for the future.

"Luck is what happens when preparation meets opportunity" (Seneca)

The Boutique Practice

Think about shopping for an article of clothing at Wal-Mart, versus a small boutique, They are two very different experiences. At Wal-Mart, price and convenience are the selling points. At a boutique, quality, design, service, and the overall feel of the store bring customers to the door.

A Boutique Private Practice, also known as a premium or platinum practice, is one in which a client can expect accessibility to the service provider, quality, expertise, and the best service, all for a higher price.

This business model is a growing trend with some physicians and consultants: they limit their client roster to offer immediate access, longer appointment times, and a high level of attention. This focus on service comes with much higher fees.

Some physicians charge a retainer, on top of their regular fees, to patients who want to be part of the boutique practice. (The idea of a yearly retainer in addition to session fees seems to me to challenge the ethics of a psychotherapy practice.)

But the model of creating a high-quality, boutique service business, for which clients pay top dollar for specialized, desired services is one that works in today's market, and appeals to clients for whom money is not the only consideration: your target market are those people who value their time above their dollars. They want the best care and will pay for it.

To fashion a boutique practice, it’s important that you openly articulate the value of your services, to help clients understand the expertise, access to you, and care that they’ll receive. This model works best when you offer niche services targeting a specific "hot" market.

You have to know your "hot" market and understand its critical features in terms of services, location, and results. Here's how to proceed:

"Innovation distinguishes between a leader and a follower." (Steve Jobs)

The key to a boutique practice is to get a niche, and then invest in your visibility (networking, advertising, speaking) and developing an expert reputation (writing, keynote presentations, media attention, etc.)

Getting niched helps you to be a big fish in a small pond. You will spend time educating the market about your niche, so factor that into your business plan. You help to create demand for your services.

To define your market, answer these questions:

1. What is a precise and specific description of my target market in a one sentence?
2. How can I narrow this even further?
3. What are the benefits and results I bring to this targeted clientele?
3. Who have I actually interviewed or spoken to who represents this clientele? What did I learn regarding their needs and wants in terms of coaching?
4. What organizations should I join that serve my targeted clientele? What print material and Internet sites appeal to them that I could be reading? What steps can I take to find out more about the interests, needs, and demands of this narrow market?
5. Do I think this market, as described, is small enough for me to build a reputation via public speaking, networking, or other marketing efforts over the next year?
6. If not, how can I narrow my description of this market further?
7. Do I have the right credentials, materials, and programs or services to move into this market now? If not, what are my next steps in this regard?
9. Who is my current competition in this niche?

"The point to remember about selling things is that, as well as creating atmosphere and excitement around your products, you've got to know what you're selling." (Stuart Wilde)

Today, therapists I know who are succeeding in boutique practices tend to specialize in services such as:

• Psychological services for children with difficulties such as ADD, learning-emotional disabilities, sensory integration problems, and autism spectrum or Asperger’s syndrome, educational psychological assessments or counseling for high-risk teens to keep them out of hospitals and jails.

• Specialized marriage counseling, such as intensive couples workshops, premarital classes, and divorce-busting sessions, all of which appeal to men and use a direct approach to yield results quickly.

• Career-saving services, such as anger management, out-patient addiction treatment (including treatment for internet or sex addiction), and court-referred counseling.

• Single-topic counseling for issues such as adoption, pain management, infertility, sexual abuse, and eating disorders.

• Next new thing: With 750,000 healing professionals needing CEU's, some boutique practices specialize in training, supervision, and personal growth for professionals

The bottom line is that many of us operate a boutique practice, but don't articulate the value of the high degree of service we offer to our clients. If this is your business model, you must let others know about your philosophy of business, not just of your niched service: Your fees are high and your caseload is small for a reason -- to offer the best value and care.

Next time, a completely different business model: The Retail Clinic

Upcoming Presentations

July 18, 2007: Ann Arbor, MI
"Marketing With Integrity"
Ann Arbor Consultation Services
Contact: Terry Dunivin: terrydunivin@aol.com

July 19, 2007: Ann Arbor, MI
"Becoming a Coach"
Ann Arbor Consultation Services
Contact: Terry Dunivin: terrydunivin@aol.com

September 2007: Australia!
Workshops in Sydney, Melbourne, Brisbane, and Perth.
"Success in Private Practice: How to love what you do and be highly profitable too!"
For information and dates, go to: http://kassanevents.com.au/training1.html

October 12, 2007: Toronto, ON
"Private Practice Success"
Leading Edge Seminars
Contact: info@leadingedgeseminars.org

October 13, 2007: Toronto, ON
"Integrating Coaching Into Your Practice"
Leading Edge Seminars
Contact: info@leadingedgeseminars.org

Enter Article Title

Replace this text with an article. Type your second article using plain text, either directly into the web form, or preferably into a word processing program.

Books by Lynn Grodzki, published by WW Norton. To order, click on each book.

	The Business and Practice of Coaching By Lynn Grodzki and Wendy Allen (2005) Reviewed by author Richard Leider as "Nothing less than a radical rethinking of the essentials of building a coaching practice. A must read for all coaches, master and novice alike."
	Building Your Ideal Private Practice By Lynn Grodzki (2000) The best-selling guide to what you need to do and who you need to be in order to have a highly profitable, personally satisfying private practice. Often called the "private practice bible" this book has become a resource for tens of thousands of your colleagues.
	The New Private Practice:Therapist-Coaches Share Stories, Strategies and Advice Edited by Lynn Grodzki (2002) A groundbreaking look at the profession of coaching through the eyes of 16 successful therapist-coaches who tell you how to become a coach, what to charge, and show you how they coach their clients.
	12 Months to Your Ideal Private Practice: A Workbook By Lynn Grodzki (2003) This planned, motivational workbook will help you build the practice you desire. The workbook incorporates fresh ideas, new exercises, further skill sets and much more to give you a direct experience of being carefully coached by Lynn, month-by-month, for a full year.

More next time,

lynn@privatepracticesuccess.com
See the website for additional articles, information about individual coaching, and upcoming classes.