How to Start a Counseling Center

Part 1 - How to start a Counseling Center business - Background

A counseling center can consist of one counselor in private practice or multiple counselors involved in the same practice. It assists the members of the community by offering mental health services to those who want to lead better lives. Typically, all counselors will share similar educational backgrounds, as well as philosophies regarding the best course of treatment. Therapy may be given to people of all ages, including young children for a variety of behavioral problems. Clients may include those who seek out the services themselves, or those who are mandated to receive therapy by the court system.

Our guide is in 3 parts:

• Part 1 - How to start a Counseling Center business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a counseling center?

Generally, therapists need only a waiting room and an office with a couch or comfortable chair to begin their work. Should you get an office, you will need a Certificate of Occupancy that states you’ve complied with all zoning and building standards. Costs for this will be dependent on the neighborhood you choose for the business. Counseling centers with just one or two people in the practice can sometimes be run out of a home, which can save you a considerable amount of overhead. In this case, you’ll need to visit your local authorities to ensure that your home meets the safety regulations of the area.

What are the ongoing expenses for a counseling center?

Owners should budget in the following expenses:

• Rent/license renewals

• Administration supplies

• Utilities

• Commercial insurance

• Office equipment replacement

• Website costs

Who is the target market?

There are few people who won’t benefit from seeing a counselor. The unbiased advice and opinions can be priceless to people who can’t see past their next move in life. Persons who are wrestling with depression, anxiety, anger issues, or other emotional or interpersonal problems can all get relief from regular counseling. However, there is still a stigma when it comes to counseling services in certain areas of the country. The target market is composed of those who are open to the idea of getting outside help for self-improvement, parents who hope to stem behavioral issues when kids are young, or those who were mandated by the courts to receive counseling.

How does a counseling center make money?

Counselors make money by charging for their time. All entrepreneurs need to set their fees based on the therapist’s experience, as well as the overhead costs of the business.

How much can you charge customers?

Therapists can charge anywhere from $20 to $120 or more for a one-hour session. The amount is generally based on experience, education level, and the demand for services. Beware of charging too low for services. Offering a sliding scale for those with low incomes typically devalues the work done, and can sometimes give people an excuse to skip their sessions.

How much profit can a counseling center make?

Because therapists primarily pay for the therapist’s time rather than fancy offices or equipment, profit can be considerable. Charging $60 an hour with a $10 overhead can lead to a $300 day of pure profit.

How can you make your business more profitable?

Expanding your services to include online sessions can be a smart move for any counseling center. Should you choose to do so, you’ll need to ensure that your computer software follows HIPAA rules. Consider giving sessions to current patients before branching out to strangers over the virtual space.

Day-to-Day and Growth

What happens during a typical day at a counseling center?

A typical day for an owner will involve the following:

• Registering patients

• Counseling patients

• Reviewing past treatment plans

• Follow-ups with previous medical professionals

• Advertising the business

What are some skills and experiences that will help you build a successful counseling center?

Those who wish to start this business should have a professional background. All employees will need to have at least a Master’s degree before they can become licensed counselors, and they’ll need their Doctorate degree to be considered a licensed psychologist.

Theoretically, an entrepreneur can start the business merely by finding the space and then hiring licensed professionals to do the actual counseling. In that case, a person would need to have the capital, people skills, and drive behind them to attract the clients necessary to attract quality business partners and employees.

What is the growth potential for a counseling center?

While counselors may be more popular in certain neighborhoods, there is still a lot of growth potential for counseling centers regardless of where you live. In addition to traditional offices and private one-on-one therapy, there are a number of other ways that clients can get mental health services. Between group therapy, online counseling, and regular private sessions, counseling centers have a variety of ways to reach their target market.

What are some insider tips for jump starting a counseling center?

Professionals will tell you to consider who you want your patients to be before you get started. You may want to focus solely on those with chemical dependency issues, or those who are dealing with the loss of a loved one. Narrowing down your practice also helps you to create a brand, which can make it easier for the public to remember your demographic. If you’re planning to partner with the courts, you need to know that all of your therapists are comfortable with counseling criminal offenders. You may also want to consider joining professional networks and organizations. These not only keep you informed of new trends in the world of counseling, but can also help you network and expand your business.

How and when to build a team

A counseling center may consist of anywhere from one to 10 or more counselors. For brand new practices, a counselor may want to start on their own out of their home. If there’s a large need for counselors in any given area, then it may make sense to hire a team right away. When you’re hiring, look for professionals who have similar philosophies to your own. Practices that run with a religious slant may not be compatible with a secular counselor. Having a consistent overall mission and brand for your organization will help to attract regular clients.

Part 2 - Is a Counseling Center business the right fit for you?

Part 3 - Action plan to launch your Counseling Center business in 90 days