Yesterday I got keys to my new counseling office. I’m going from a one office unit where we squeeze 4 counselors in and highly utilize the space to the max, to a four unit office. My worrisome side is kind of freaking out about the change. If I were my consulting client, the numbers work out, the trajectory of the business will be stifled if this doesn’t happen, and I know it’s time, but it is still really scarey.
My rent is going up $1,500 per month! Whoa.
Over 5 years that is $90,000! That means, and here is where my numbers side of my brain kicks in. I went to an investment calculator and figured out:
- If I were to put $1,500 per month into an account
- Got 8% interest
- For 5 years
- I’d have $114,046.73
That means I’d make $24,046.73 over 5 years. Here are some other numbers I have run:
- If I have 4 counselors
- They see 10 people per week
- They average $100 per session
- I take 35%
- They work 46 weeks per year
That would be $64,400 per year!
Of course I have to subtract the $18,000 in additional rent, so it would be $46,000! I have run these numbers to the point of nausea. When I pull out the calculator, my wife just says, “Put it away.”
For me, running these numbers provides additional feelings that it is the right choice. Either way, big choices and risks are tough to make!
Great counseling and marketing articles from July
Past Monthly Income Reports
People often ask me why I disclose all this information? To me, I am inspired when other people are open and honest. Then I can learn from how they succeed or fail. My hope is that this helps others to grow in their businesses!
2013 Annual Counseling Income: $54,513.97 (January-December 2013)
July 2014 Earning Report
What I’m going to be reporting about how to make extra money and what I’m not going to be reporting
Since some of you are new and some of you have been around Practice of the Practice for a while, I’m going to give a quick summary of where I make income. My full-time job is at a community college as a counselor. I love the job and it gives me great opportunities. Also, since my wife stays home with our daughter it is an income we can count on, health insurance, a pension, and a really great environment! I’m not going to disclose my full-time wages there, since it is not something that is part of my private practice.
I do 4-7 sessions a week in my private practice. I don’t take insurance, so it is private-pay. As a result, I don’t have many expenses in time or actual money. I also do consulting with private practice clinicians and supervision for LLPCs in Michigan (Limited Licensed Professional Counselors), a 100 hour requirement in Michigan.
The term “passive” makes it sound like I don’t have to do work. What I mean is money that I make that is not in direct exchange for my time. I will outline what these are under each item.
How I increased revenue in July 2014
Disclosure: many of the links below are affiliate links that will earn me a commission if you purchase through them, it’s one way that I help support the work I put into the website. Please click on them to help support Practice of the Practice.
Private Practice: $3,940
Other counselors: I have two counselors that work for my practice as 1099 contractors and I get a portion of what is brought in: $607.50
Paperwork Packet: $139.22
Consulting: (this sometimes includes building a website as part of the private practice coach session) I do private practice coaching. Usually there are three parts to it:
- A SWOT (strengths, weaknesses, opportunities, and threats) Analysis
- Website redesign or re-optimization
LLPC Supervision: $1,234.88
The Motherload: $0
E-books: You may have noticed that the Practice of the Practice book has been showing up in the 3-D fashion on the website, this has really helped drive traffic, but isn’t in your face selling. $54.26
Paperback Copy of my book Mental Wellness Parenting: A remarkably simple approach to making parenting easier. Most people would see this as a really bad thing, however, when I wrote the book, I really wanted to focus on it being something to hand out to clients or potential referrals. It’s sort of an over-sized business card. It’s great when people buy it, but I’m not disappointed when they don’t, since I see it more as a marketing tool: $0
Member’s Newsletter to Launch/Grow a Practice
Member’s Newsletter: This is the weekly newsletter that walks people through exactly what they need to do when starting a private practice. $132.29
Affiliate Marketing to Increase Revenue
Aweber: This is the service I use to create emails, manage lists, and create follow-up emails where they can be in order for the person. It’s super cool! $23.40
BlueHost Referrals: If you are setting up a website, this is the best hosting because of their customer service and the ability to have unlimited websites hosted! $390
Amazon Affiliate Referrals: If you are buying something on Amazon, it’d be great if you clicked the link. I get a small commission without you having to pay anything more: $4.61
NameCheap is who I use to purchase my URLs, they are so easy to work with when you’re setting up a website!: $3.20
Google Ads: I have a few ads through the website and these bring in a bit of passive income. Since my podcast interview with Sarah Barnes I’ve been doing a lot less of this: $9.91
LegalZoom: This is the second month that someone has clicked and bought something through this link! It’s so exciting, also my wife bought her PLLC so I got to really see it firsthand. It is amazing and super easy to use. $0
ZynnyMe: I recently connected with Miranda and Kelly to become an affiliate. They have a Business School Bootcamp that is what I wish I could build. Maybe sometime in the future, but for now I’m just going to refer folks to them! $0
July 2014 Total: $8,477.47
Just barely missed last month’s amount of $8,486.38, soooo close!
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Some of the numbers from Google Ads, Amazon, NameCheap, and my e-books will not be paid until they reach a certain amount or 60-90 days after the sale. I report what has been sold in the month it was sold. Also, I do not take expenses off of this report.
Joseph R. Sanok, MA, LLP, LPC, NCC
Joe Sanok is a private practice business consultant and counselor that helps small businesses and counselors in private practice to increase revenue and have more fun! He helps owners with website design, vision, growth, and using their time to create income through being a private practice consultant.
Joe was frustrated with his lack of business and marketing skills when he left graduate school. He loved helping people through counseling, but felt that often people couldn’t find him. Over the past few years he has grown his skills, income, and ability to lead others, while still maintaining an active private practice in Traverse City, MI.
To link to Joe’s Google+ .
Photo by Tax Credits