OPA Pre-Conference Workshop The Essentials of Private Practice Starting a Practice and Choosing a Business Model Dr. Jane Storrie Dr. Diana Velikonja

 Advantages and Disadvantages of Private Practice  Choosing a Business Model  Are You Ready for Private Practice?  Developing a Business Plan OUTLINE

AUTONOMY Pros:Independence Freedom to determine business and professional direction Ability to aspire to work/life balance Cons:You are the boss – no one to turn to for assistance Totally responsible for all areas of the practice Risk of isolation ADVANTAGES & DISADVANTAGES OF PRIVATE PRACTICE

FLEXIBILITY Pros:Set own work hours and caseload Make quick decisions and respond to changes Choose which services will be provided Develop policies and procedures Cons:Pressure to bring in money to sustain business & lifestyle Can be difficult to schedule vacations Billable vs. non-billable hours (billing, filing, record keeping) ADVANTAGES & DISADVANTAGES OF PRIVATE PRACTICE

ENVIRONMENT Pro:Control over office and working environment Con:Ongoing overhead expenses FINANCES Pro:Set fees Con:Exposure to fluctuating market, bad debts and cash flow problems PROFESSIONAL SKILLS Pro:Total control over professional development Con:Cost of continuing professional development ADVANTAGES & DISADVANTAGES OF PRIVATE PRACTICE

ACCOUNTABILITY Pros:Ability to provide best possible service Total control over success of practice Cons:Total responsibility for errors Issues of time management and self-motivation ADVANTAGES & DISADVANTAGES OF PRIVATE PRACTICE

TYPE OF PRACTICE  Sole Practitioner  General Partnership  Group  Multidisciplinary  Corporation CHOOSING A BUSINESS MODEL

PROFESSIONALLY  Professional experience, competence and skills  Knowledge of and experience in treatment modalities and presenting issues  External referral networks  Access to individual or peer consultation  Familiarity with relevant legislation, standards, ethical guidelines  Caseload management GETTING PREPARED

PERSONALLY  Running a business  Time and commitment  Confidence  Physically and mentally able to meet the demands  Undertaking risk GETTING PREPARED

 Business model  Business plan  Vision/Mission statement  Professional identity (who you are, services you offer)  Assists strategic planning and decision-making  Keeps staff and partners on the same page  Sense of direction  Master Business Licence  Registering business name BUSINESS-READY?

 Insurance (professional liability/office and contents/public liability/income protection)  Accounting  Salary  Taxation/GST  Cash flow  Bookkeeping  Legislation  Occupational health and safety  Location (privacy, welcoming) BASIC REQUIREMENTS

 Fees and expenses  Time management skills  Practice management tools  Hiring clinicians and administrative staff  Contracts/Third-party payers  Marketing/Advertising/Referral sources  Processes (ie., referrals)  Policies and procedures BASIC REQUIREMENTS

 Hire a professional or do the research (books, software or small- business development seminars at your local chamber of commerce)  Develop a Vision DEVELOPING A BUSINESS PLAN

 Market analysis  Hire a professional  Informal surveys  Focus groups (potential patients and referral sources)  Look for unfilled market needs  What the market will bear in terms of fees and services CONDUCT MARKET RESEARCH

 Availability and affordability of services  Reputation ANALYZE COMPETITION

 Create a Marketing Plan  Advertising  Promotional materials and opportunities  Networking SET FINANCIAL GOALS

 Accountant  Professional colleagues  Potential referral sources GET FEEDBACK

Business plans should be living documents REVISE!

 Private practice can be rewarding and lucrative  Planning and preparation is key  Seek good advice and professional services  Choose partners carefully  Get it in writing  Hire excellent clinicians and staff  Reputation is everything SUMMARY