How do you value a group practice? What is the significance of buying a practice versus creating your own from scratch? Do you have a five-year business plan for your group practice?
In this podcast episode, Joe Sanok speaks about how to buy or sell a practice with Nicole Ball.
Meet Nicole Ball
Nicole is the owner of Mental Wellness Counseling in Traverse City, MI. Mental Wellness Counseling serves all of Michigan with its virtual telehealth options, and clients in Northern Lower Michigan with face-to-face counseling and walk and talk therapy options.
Nicole uses a holistic counseling approach that focuses on all aspects of a person’s life including physical, mental, and spiritual. She is also a full-time Professor of Social Work at Ferris State University, where she teaches social statistics and research, advanced interviewing skills courses, and research mentorship.
In This Podcast
- Buying a practice versus starting your own
- Valuing a business
- Two things to do in your new practice
- Nicole’s advice to private practitioners
Buying a practice versus starting your own
I feel like there is value in the hard work that other people have done to build their practices. (Nicole Ball)
Purchasing an already established group practice means purchasing not only the SEO, the name, and taking over the staff, but also purchasing the hours of work that have been put into building the practice.
A group practice that has been going on for some time will have established SEO, whereas with a new practice you have to build that up from scratch.
For me, I looked at the price comparison. How much would it cost me to start a private practice … [whereas] I could put in a little more cash and have a more established name, look, logo … I had the opportunity to move to the numbers I wanted to see a lot faster. (Nicole Ball)
Valuing a business
- Look at three years of income outside of the current owner
- Assess tangible assets like couches, artwork, etc.
- Value the digital assets like the rights to photos, the websites, etc.
- Calculate the value of the rights to use the brand
Do a five-year business plan to help you lay out the potential direction of your new group practice. What is the value of the business service that you will be offering?
For people who aren’t even buying a practice I would encourage you to develop a business plan … because it is a way of manifesting those goals, just like you would in a treatment plan with a client. (Nicole Ball)
Two things to do in your new practice
1 – Make it yours: upgrade and add your vision into the already existing value in the practice. Level it up with your ideas and plans for the future.
2 – Track your numbers: use your business plan to track the progress you are making in achieving your vision. Use the numbers to see where you can change things or optimize.
Nicole’s advice to private practitioners
You cannot – and do not have to – do it all. Hire help and accept guidance from those around you. Remind yourself that you can accept help, and remember not to sweat the small stuff.
Useful Links mentioned in this episode:
- Use promo code ‘JOE’ to get three free months to try out TherapyNotes, no strings attached!
- Visit The Mental Wellness Counseling Website, and connect with them on Facebook and Instagram
Check out these additional resources:
- NLP how to start a practice | PoP 682
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- Apply to work with us — decision-making matrix for your next steps
Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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