Individual Assignment 03

Personal Mission Statement:

            My mission is to promote emotional and psychological health through psychotherapy and counseling services to maximize growth and development in every client.

Business Environment:

             As a licensed psychologist, I would be competing in the mental health industry. Within the global market, mental health is highly under-diagnosed. But, practicing as a psychologist can be tricky. You can’t go to another state or country and begin practicing, you have to be qualified in that area. Mental health and support is a global issue and professionals are needed everywhere, but you have to go through the process to be licensed in the area you are choosing to practice in. Obviously, the prominence of mental health varies by country. Globally, mental health and substance use disorders account for about 15.5% of the population. Within the United States, that number is higher at 21.56%, one of the highest rates in the world (Ritchie & Roser, 2018). With these growing statistics, mental health professionals are becoming more of a demand, but specifically, insurance companies are making mental health care less affordable. Insurance companies are controlling the mental health system, which reduces the affordability of mental services. The public demand of mental health services is increasing, but the supply of mental health professionals is becoming a shortage (Krans, 2015).

Entrepreneurship and Strategy:

            When considering potential start-up strategies for becoming an entrepreneur, I would put my focus towards marketing and reputation. Maintaining a business website, and perhaps even a private practice blog, would increase awareness of myself and my small business greatly. I would also consider my reputation as a start-up strategy. I would not start a private practice directly out of school, but instead work for a couple years and then transfer to a private practice. This would help me build a good reputation and experience, as well as allow me time to begin saving for the expenses of starting a private practice. Starting a private practice would also involve various challenges. Promoting my private practice will be a major time commitment. It will be like a waiting game. While trying to sell my service, I may also find challenges with insurance companies. The challenges that may present themselves while working with insurances companies are explained more in-depth under “Marketing.”

Management:

           Being a general manager entails many responsibilities. According to Drucker, knowing how to manage yourself is the first step to learning how to manage others (Drucker, 2005). Being a good manager means taking advantage of your strengths to not only motivate yourself, but also others. In a private psychotherapy practice, I will likely not have many employees, so managing those few employees is important because each person is crucial to the business. I would manage and motivate my employees primarily with consistency and sincerity. When managing, it is important to show people that you are reliable and that your expectations and requirements remain the same (Zenger & Folkman, 2018). Sincerity is also important to establish connections and relationships with employees (Granville). Establishing those relationships will also help motivate my employees. They will be more likely to work when they have comfortable surroundings and relationships. I would also set goals by encouraging problem solving and time management. Encouraging my employees to “drive for results” with require my own motivational mindset and time management skills (Zenger & Folkman, 2018). Communication will also be a key factor for success. To work well in teams and to work with other people in general, there needs to be a certain level of respect, understanding, and acceptance. Without these factors, especially respect and professionalism, working with other will be a difficult task.

            As the general manager of a private practice, I would be in charge of planning, organizing, directing, and controlling my practice. Planning would involve setting goals and planning how to achieve those goals effectively. In this case, my plan would be to open a private clinical psychotherapy practice. Within organizing, I would find the resources for this plan. This included finding an office location, employees, and clients. If I were an employee trying to make myself attractive to a private practice employer, I would make myself prominent, knowledgeable and valuable. It is important to know where you would stand within a company, as in which characteristics, what knowledge, and what type of reputation do you want to present for the best outcome. You must remain yourself, but also be flexible enough to understand what is appropriate in various workplace settings. Once I have established my employees and organization, I would be capable to begin directing. During this process, I would begin guiding employees, teaching them expectations, and motivating them individually and as a team. And finally, the longest portion of management is to control the employees. This would include assuring that tasks are fulfilled acceptably and fully.

Marketing:

            Most of my marketing and promotion will occur through referrals. Other doctors and counselors will be able to refer their clients to me for psychological treatment as necessary. I will also need to establish myself as a licensed psychologist. Having a good reputation and establishing credit will come through experience and public and professional relations. My potential client will consist of those who are wanting or needing extra psychological assistance. Their need for my services will most likely root from a motivation to improve serious mental health impairments. I will also accept my patients based on how I believe I can help them best. The goal is to improve the mental health and well-being of patients, but if the rapport is not right, or I believe the client would better thrive with another psychologist, I would direct them towards a better option. A psychologist wants to pick clients with whom they have good rapport.

            My marketing mix would consist of the Four P’s of Marketing: product, price, promotion, and place. My product would be psychotherapy and counseling services, an intangible service. The price of these services is based on insurance coverage. Insurance coverage for psychotherapy varies for each person depending on their insurance, diagnosis, and type of treatment.  I believe that the best way to price my product is by using the sliding scale fee schedule. This would set the service fee for each session based on the client’s income. Using this form of pricing would also allow me to see a wider range of patients and would make psychotherapy and counseling services more available to a variety of incomes. Now that I have a product and a price, promotion would be the next step. Most of my promotion would occur through public relations and by recommendations or referrals. Once I have established myself and have formed a good reputation with the public and with other medical and mental health professionals, I will be able to maintain good clientele as well. As a licensed psychologist, I will also need an office place, or location. Some psychologists work out of their homes, while others prefer to own office spaces. Personally, I believe I would provide better services from an out-of-home office space. I would like to open a practice in a small town, similar to where I grew up. I would have an out-of-home private practice to better separate the boundaries between work and home. Although this would be the more expensive option, it would allow me to be a better psychologist.

            Although therapy is not a recently innovated service, my purpose would be to attract clients by being a welcoming and effective therapist. The layout of my office would be a crucial factor when trying to gain clients. During the initial intake interview, potential clients are making just as many observations as the psychologist. Having a welcoming, home-like office would make clients feel welcomed, safe, and more likely to open up emotionally. A company website would be a good way establish a first impression with clients. Numerous times, I have attempted to look up a business to find no website or information. Having a well-designed website with pictures of the office, pictures of the employees, information about the employees, office hours and scheduling information would potentially increase my clientele list.

Accounting and Finance:

            The hypothetical balance sheet below represents the estimated initial costs to start a private 
            practice in terms of assets, liabilities, and equity:

Assets

Cash…………………………………..$2,325

Accounts Receivable………….$125

Total Assets………………………$2,450

Liabilities

Accounts Payable…………..….$125

Other Liabilities…………..…….$1,700

Total Liabilities…………………$1,825

Stockholders’ Equity

Retained Earnings……………….$125

Common stock…………………...$500

Total Stockholders’ Equity….$625

Total Liabilities & Stockholders’ Equity….$2,450

           

            When looking at my balance sheet, my assets equal my liabilities plus equity. This is important when creating a balance sheets. To manage my investments, I would either use an investment app or hire an investment advisor to guide me. I am not very good at investing. As for my financial plan, TheraNest would helpful. The program is explained in further detail in the “Information Systems and Operations” section. TheraNest would help me track my billing, payments, and cash flows (TheraNest).

Information Systems and Operations:

            As the CIO of my private practice, I would implement the use a specialized information system, such as TheraNest, to electronically keep track of patient data and notes. TheraNest is a Health Insurance Portability and Accountability Act (HIPAA) compliant application software that would allow me to electronically save patient files and session notes. The encrypted software also keeps track of payments, billing, and has a private calendar (TheraNest). This software combines scheduling, billing, note taking, and much more into one secure database to optimize efficiency and productivity.

References:

Drucker, P. (2005, January). Managing oneself. Harvard Business Review, 83(1), 100-

      109.

Granville, K. Career guide. New York Times Business. Retrieved November 17, 2018 

      from, https://www.nytimes.com/guides/business/manage-your-career?smid=fb-

      nytimes&smtyp=pay&smvar=guides

Krans, B. (2015, November 12). Shortage of therapists disrupting mental healthcare. 

      Healthline, Retrieved November 17, 2018 from, https://www.healthline.com/health-

      news/shortage-of-therapists-disrupting-mental-health-care-111215#6

Ritchie, H. & Roser, M. (2018, April). Mental health. Our World in Data. Retrieved 

      November 16, 2018, from https://ourworldindata.org/mental-health#prevalence-

      of-mental-health-and-substance-use-disorders

TheraNest gives you the tools you need to streamline your practice. TheraNest. 

      Retrieved from November 15, 2018 from, https://www.healthline.com/health-

      news/shortage-of-therapists-disrupting-mental-health-care-111215#6

Zenger, J. & Folkman, J. (2018, April 20). 7 Traits of super-productive people. 

      Harvard Business Review. Retrieved November 17, 2018 from, https://hbr.org/

      2018/04/7-traits-of-super-productive-people?utm_medium=email&utm_source= 

      newsletter_weekly& utm_campaign=weeklyhotlist&referral=00202&delivery

      Name=DM4392