How to Recession-Proof Your Therapy Practice
As a therapist, you may be concerned about the potential impact of a recession on your practice. While economic downturns can be challenging, there are steps you can take to recession-proof your therapy practice and ensure its long-term sustainability.
Here are some strategies to consider:
Diversify your client base: If your practice is heavily dependent on clients who may be vulnerable to financial hardship, such as those in low-wage jobs or those without stable employment, consider expanding your client base to include those in more stable industries or with more secure financial situations. This can help to mitigate the impact of any economic fluctuations.
Offer flexible payment options: During a recession, clients may be more hesitant to spend money on therapy. To make your services more accessible, consider offering sliding scale fees or consider accepting insurance if you are private pay (I'd recommend just the highest paying panel in your area or an EAP) .
Build a strong online presence: With more people turning to online resources during the pandemic, having a strong online presence can help you reach a wider audience. If you don’t already use social media, this can be a way to promote your practice and share helpful resources for potential clients. This can also help you build an audience to diversify the type of services you offer (and add more income streams!).
Focus on your referral sources: continue to nurture your referral sources, and create new ones! If you see a drop in clients, make sure your referral sources know you have available space.
Plan for contingencies: No one can predict the future, but you can prepare for unforeseen circumstances by having a plan in place. Consider setting aside a reserve fund to cover unexpected expenses, and develop a contingency plan for how you would handle a sudden drop in client demand. Apply for capital before you need it. There are loans available through the Small Business Administration, and lots of grants out there for small business owners!
By implementing these strategies, you can recession-proof your therapy practice and ensure its long-term success. Try to focus on your “why” and create new opportunities for growth instead of getting sucked into a scarcity mindset (easy to do on social media these days!). You’ve made it through hard times before and healthcare continues to be a growing industry. These are just a few ideas but reach out if you need more help.
Want more tips? Schedule a free discovery call with me here to learn how I can help you (or your team) move through burnout