When Julia first started her group practice, she was overwhelmed and underpaid, however, she was able make adjustments and improve profitability and work-life balance for her and her team.
Mistakes She Made
She initially offered a rate based on what she “thought” was reasonable, not based on the math. Her experience in community mental health and group practice contributed to her idea of what would be reasonable compensation for a clinician. Her intention was to pay her team well but without calculating payroll tax, expenses, and considering future growth the numbers were not sustainable.
She chose to pay clinicians a percentage as opposed to a flat fee because it required less cash reserve as clinicians were paid when the practice was paid. She also transitioned her caseload to her first two full-time hires which decreased her income significantly. She also
In the beginning, she also did everything herself including answering calls and responding to emails, scheduling clients, and billing. This was in part because she was trying to be conservative financially but also because she wanted to ensure everything was done properly. This quickly led to overwhelm, especially as the team grew.
Things She Does Now
Upon realizing that the compensation model was not sustainable, she did the math to determine what was affordable and offered rates that are reasonable and competitive with increases built in. She took into account payroll tax, expenses, and considered future growth including hiring administrative support, a leadership team, as well as additional benefits and office space.
She switched from percentage to a tiered flat fee when it came to paying clinicians. This contributed to predictable income, simplified payroll, and greater motivation for growth and diversification.
She started a consulting business where she helps entrepreneurs start, expand, and diversify their businesses in order to help them avoid the mistakes she made!
When it was affordable, she hired administrative support and a leadership team. This enabled her to delegate tasks that were better suited for the individuals in those roles and provided her with more time to serve in the role of visionary and CEO.
Consider Us
Compassionate Consulting Company has consultants that are prepared to help you at any stage of your business journey-whether you are just starting out, expanding your team, or looking to diversify or develop leadership skills. Here are testimonials from clients that have worked with us. Schedule a free consult so we can learn more about your business goals and share how we can help. Here are the steps of working with a consultant, what to look for in a consultant, and ways a consultant can help you achieve your business goals. We are here to help you avoid these mistakes in order to ensure your practice is impactful, profitable, and sustainable!
