7 Figure Counseling Practice 2 of 3

AN “UNSELLABLE

BUSINESS”

DO YOU KNOW WHAT

YOUR BUSINESS IS

WORTH?

EBITDA,

MULTIPLE OF REVENUE,

OWNER BENEFIT,

COST OF STARTING FROM

SCRATCH

RECOUP INVESTMENT IN 3

YEARS, AND MAKE A

LIVING ALONG THE WAY

12 WAYS TO BUILD VALUE

GROW FAR BEYOND SOLO

DON’T LEAVE POTENTIAL

UNREALIZED

“Potential co-operative marketing with

other health related professionals in same

location. Potential to expand professional

referral network, expand hours/days of

operation or add complementary services.

Huge potential to leverage social media

marketing for targeted local advertising.”

CONSIDER AN EARN OUT

FINANCE THE BUYER

FOCUS ON NEW CLIENTS

WHICH WOULD YOU PAY

MORE FOR?...

A practice with four clinicians performing a

total of120 sessions per week, and 8 new

client inquiries per month.

A practice with two clinicians, performing a

total of 60 sessions per week, and 80 new

client inquiries per month.

CREDENTIALING

COMMITTED STAFF

of the sale, the new owner begins working in the

practice and begins to implement some basic rules of

operation for the administrative staff. They revolt!

The staff destroys documents, cancels appointments,

refuses to answer the phone, and creates a hostile work

environment (they were also, as it was later discovered,

stealing from the company). The new owner has no

choice but to fire the entire staff, and hire a new

administrative team.

previous owner has overpaid his clinicians by

compensating them heavily for completing basic

administrative tasks the previous owner did not want to

do. The new owner realizes that the practice cannot

survive without the clinicians forgoing their

administrative duties (along with the extra cash-cow

income). The counselors do not respond well to

receiving what they perceive as “a cut in pay”, and

several leave the practice. Revenues drop by over 40%,

and the practice doesn’t recover for over a year.

ASSETS

A GOOD LEASE

A BAD LEASE

The practice has a 5-year lease in a bad location. The buyer would prefer to move the office, but breaking the lease will be too expensive.

A BAD LEASE


The lease is non-transferable, and the landlord wants a 20% rent increase from any new tenant/owner.

A BAD LEASE



The lease terminates within a year, and the landlord plans to raise the rent more than 5%. Or, the landlord isn’t interested in committing to new lease terms at the present time, creating a big ol’ question mark for the buyer.

A BAD LEASE



The lease terminates within a year, and the landlord plans to raise the rent more than 5%. Or, the landlord isn’t interested in committing to new lease terms at the present time, creating a big ol’ question mark for the buyer.

The space is simple TOO BIG for the practice.

HONEST & OPEN

DESIRABLE LOCATION

FINISH STRONG

...AND LETTING GO.

BUILDING THE TEAM...is tomorrow

BUILDING THE TEAM...is tomorrowFinding


Recruiting


Recruiting

Interviews


Recruiting

Interviews

Contractors v.

Employees


Recruiting

Interviews

Contractors v.

Employees

Avoiding

Nightmare

Counselors


Recruiting

Interviews

Contractors v.

Employees

Avoiding

Nightmare

Counselors

Why Practices

Lose Their Best

Clinicians


Recruiting

Interviews

Contractors v.

Employees

Avoiding

Nightmare

Counselors

Why Practices

Lose Their Best

Clinicians

Offer Letter /

Contract


Recruiting

Interviews

Contractors v.

Employees

Avoiding

Nightmare

Counselors

Why Practices

Lose Their Best

Clinicians

Offer Letter /

Contract

On-boarding and

Training


Recruiting

Interviews

Contractors v.

Employees

Avoiding

Nightmare

Counselors

Why Practices

Lose Their Best

Clinicians

Offer Letter /

Contract

On-boarding and

Training

Creating a

Pipeline

CREATING CULTURE

ZAPPOS

COUNSELING PRACTICES

STRUGGLE

Contractors

Contractors

Rogue Clinicians

Contractors

Rogue Clinicians

Psychiatrist

Contractors

Rogue Clinicians

Psychiatrist

Owner-clinician

NOT A LUXURY

TINA FEY“Don’t hire anyone you wouldn’t want to run into in the

hallway at three in the morning.”

STARTS WITH HIRINGBut doesn’t end there...

THINGS THAT WORKED

1) RESPECT AND

GESTURES OF CARING

“Thriveworks, at its core, is its team of

people…We work to engender great loyalty in

the team members of Thriveworks and hope

that we are successful in developing and

maintaining their loyalty to the point that they

elect to stay employed with us for life.”

2) COMMUNITY

3) MISSION

4) PROGRESS

Thriveworks Rank System

Level 1) Assistant Clinician

Level 2) Fellow Clinician

Level 3) Senior Fellow Clinician

Level 4) Associate Clinician

Level 5) Senior Associate Clinician

Level 6) Senior Clinician

Level 7) Distinguished Candidate Clinician

Level 8) Distinguished Clinician

Level 9) Magna Candidate Clinician

Level 10) Magna Clinician

Level 11) Summa Candidate Clinician

Level 12) Summa Clinician

Managing Clinician

Clinician Emeritus / Emerita

YOUR PRACTICE,

YOUR CULTURE

SPEND MONEY TO MAKE

MONEY

WE GOT NICKELS HOLDING

UP A DOLLAR!

1) YOUR OFFICE BUILDING

2) CLIENT EXPERIENCE

3) MEDICAL BILLING

7 Figure Counseling Practice 2 of 3

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