For therapists, profit is too often an afterthought. You focus on caring for clients and paying rent and clinicians, and take home the leftovers—if there are any. In Profit First for Therapists, Julie Herres adapts the popular Profit First cash flow system specifically for private practice owners. Through client stories and case studies, powerful frameworks, and simple tips, she lays out a clear path to profitability. In this book, you will learn how to:
- Implement Profit First in your therapy practice, step by step
- Determine spending guidelines for various stages of private practice
- Scale your space, your people, and your leadership positions
- Manage clinician compensation, your group practice’s largest expense
No matter the size of your practice, or whether you’ve read Profit First, this book will give you the tools you need to stop worrying about money and achieve financial freedom.
"Herres offers a business management strategy guide that's designed specifically for mental health therapists. In this work, the author takes the established Profit First system for managing business accounts, created by author and lecturer Mike Michalowicz (who provides a foreword), and tailors it to the needs of therapists—from solo practitioners to owners of large, multiclinician practices.
The book first explains Profit First, which is similar to the envelope method of personal finance, with income divided among accounts dedicated to specific areas of a business. The system requires business owners to determine the percentage of income needed for operations, payroll, and other areas, and then to make gradual changes, as needed, to maintain a healthy, self-sustaining business while delivering an adequate return. Herres takes readers through the big-picture aspects and the minutiae of setting up the system, addresses common challenges and mistakes, and explains how Profit First can be adapted to businesses at all stages of growth and maturity.
The book's approach ("Profit happens on purpose, with every session and every clinician in your practice") is sensible and clearly explained, and Herres is an empathetic adviser, reminding therapists that they're not doing their clients or employees any kind of disservice by running a successful business. The book ably covers everything from the mundane, such as how to switch to a multiple-account system without throwing off existing insurance payments or automatic bill payments, to the aspirational, such as using the system to understand when a business is ready to expand.
Readers without an accounting background will have no trouble following the book's more technical aspects, which are laid out in a straightforward manner with plenty of examples. The author's advice is also effectively tailored to the specific needs of therapy practices, addressing differences between insurance and private pay, standard methods of paying contractors and employees, and the relationship between electronic health records and accounting software. A plethora of anecdotes from Herres' clients makes it easy to bridge the gap between theory and practice and to see the Profit First concepts in action.
A thoughtful and detailed approach to a particular niche of business management. "
- Kirkus Reviews
