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9+ SAMPLE Mental Health Business Plan in PDF | MS Word
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Psychological Health Center Business Plan
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Amesbury Psychological Center
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
Amesbury Psychological Center (the Center) is a multidisciplinary behavioral health care practice that offers mental health and substance abuse services to the communities of the Merrimack Valley. Our focus is to provide cost-effective, quality treatment. Our mission is to create, promote, and maintain a positive customer relationship with our clients, Anna Jaques Hospital (AJH), payors, associates and staff, and our community.
The market for behavioral health services is healthy, as will be shown by the growth the existing Center has experienced during the past two and a half years. Massachusetts has recently passed a mental health parity bill that will become effective in month one. The bill requires insurance companies to develop benefits for biologically based behavioral health disorders similar to those provided for health disorders. This should help sustain the anticipated projected growth. Currently, the Outpatient Psychiatric Center is referring approximately four phone calls a day to other providers.
The key to success for this turnkey project includes:
- An ability to transfer existing hospital behavioral health contracts to the Center.
- Credentialing clinicians in a timely manner.
- Obtaining initial working capital.
- Contracting with clinicians using reasonable rates.
- Developing and implementing a successful billing and collection system.
- Listening to all customers and attempting to meet their needs.
- Obtaining a medicaid provider number.
The business plan provides a map for sustaining growth, improving revenue collections, and increasing our bottom line to produce a profit.
Goal 1: To continuously develop, strengthen, and improve services offered by the Center.
- Strengthen the current payor mix by developing and maintaining strategic alliances with five major behavioral health managed care companies.
- Identify and develop strategic alliances with three community human service and addiction agencies.
- Identify and foster strategic alliances and networks with eight community medical group practices.
- Transfer and/or hire 80% of staff two months before starting date.
- Identify and implement a billing system two months before starting date.
- Improve the expected receipts rate by 40% over the previous year.
- Increase all services offered through the Center by 80% over the previous year.
- Arrange working capital for the initial phase of the turnkey venture.
Goal 2: To strengthen the Center’s commitment to excellence.
- Enhance customer service by offering three in-service trainings related to client satisfaction with treatment, accessibility, and staff-client interactions.
- Continuously assess referral base satisfaction through the use of a referral base satisfaction survey.
- Continuously assess client satisfaction from three perspectives: accessibility, environmental factors, and treatment-related factors.
To promote the well-being of the individuals and families in the Merrimack Valley community by providing accessible, quality mental health and substance abuse/addiction care for children, adolescents, adults, and their families, utilizing a service system that emphasizes trust, respect, confidentiality, and compassion. We are committed to quality mental health care that is provided in a collaborative effort with consumers’ overall health strategies and an array of medical services. We are further committed to the philosophy that we exist for the customer/client.
1.3 Keys to Success
- Secure working capital by start of project.
- Be profitable on a forward basis by the seventh month of the first fiscal year.
- Be cash flow positive by the seventh month of operation.
- Being affiliated with a well-respected community acute-care hospital.
- Managed Care friendliness through cooperation, accessibility, and clinical focus.
- Community awareness of services provided by the Center.
- Ascertain a medicaid provider number and developing an interim plan to function during the application phase.
- Staff commitment to excellence as evidenced by the Center’s growth and customer satisfaction.
- Accessibility and responsiveness to the needs of the Center’s customers.
- Functioning as an organization that is fluid, responsive, and willing to change in order to meet the frequent shifts of the behavioral health industry.
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How to Write a Mental Health Counseling Business Plan [Sample Template]
Are you about starting a mental health counseling firm? If YES, here is a complete sample mental health counseling business plan template & FREE feasibility report. Mental health counselors work as primary caregivers for their patients. Duties of a mental health counselors include conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals.
Mental health counselors may work for a school, for a government department or an agency, as part of a social outreach agency or for another entity. To start and run a successful mental health counselling business, you will first have to obtain your college degree in behavioral science (e.g., psychiatrist, psychology, counselling, social work, sociology) with workshops, certificate classes and symposia that fill voids in your areas of expertise like geriatric, pediatric, adolescent and other segments of society with special mental health needs and issues.
Take general business classes if time allows. If you intend starting this business, just make sure you conduct your personal research and acquire licenses required by state, city and/or community mental health agencies and authorities. Take your time to draft a budget covering start-up expense. Writing a business plan will help you focus your practice’s future direction.
Below is a sample mental health counseling business plan template that will help you successfully write yours without much stress.
A Sample Mental Health Counseling Business Plan Template
Table of Content
1. Industry Overview
3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.
Mental health counselling business is part of the Mental Health and Substance Abuse Centers industry and the industry is made up of organizations that provide long-term residential care and treatment for patients with mental health and substance abuse illnesses.
These establishments offer long-term housing, supervision and counseling services. Please note that this industry does not include hospitals with inpatient and outpatient care or facilities that primarily provide services for adults with intellectual and developmental disabilities.
A close study of the Mental health and substance abuse Centers industry shows that in the last half a decade, the industry has grown consistently. Mental health counseling services are needed regardless of economic conditions, which insulate the industry from economic fluctuations.
Going forward, as people continue to be employed and regain a steady income, private health insurance will become more affordable, prompting consumers to seek mental health counseling services when needed.
The Mental Health & Substance Abuse Centers industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 8,658 registered and licensed Mental Health & Substance Abuse Centers and Counselors scattered all around the United States of America.
The industry is responsible for the employment of over 226,576 people. Experts project the industry to grow at a 3.4 percent annual rate within 2014 and 2019. It is important to state that there is no single organization that has a lion share of the market in the Mental Health & Substance Abuse Centers industry.
A recent report published by IBISWorld shows that over the past five years, Mental Health & Substance Abuse Centers in the US has grown by 5.0 percent to reach a revenue of $18 billion in 2019. In the same time – frame, the number of businesses have grown by 3.1 percent and the number of employees have grown by 3.6 percent.
Please note that the requirements to become a mental health counselor in all states in the US, include a master’s degree and a state license. Bachelor’s degree programs can be completed in a variety of fields and usually take 4 years to complete, and master’s degree programs in counseling take 2-3 years.
In order to become successful as a mental health counselor, you should be able to connect with people and constructively discuss their problems and issues. Excellent written and verbal communications skills and an analytical approach will serve you well in mental health counseling industry.
2. Executive Summary
Mind Pro® Mental Health Counseling Firm, LLP is a licensed counseling (private practice) firm that is specialized in helping her clients overcome their mental health challenges.
The scope of our business offerings covers areas such as conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals, online counseling services and retailing of self-help books and materials.
Our business will be located in between a well – populated residential estate and a business district in in Spring Valley – Nevada, United States of America. We are intentional in choosing this location because Nevada has the highest prevalence of mental illness and lowest access to care among youths. 2 out of 3 Nevadan adults with mental illness received no treatment.
According to MHAScreening.org, Nevada had the highest percentage of people who scored in the severe level for depression (33.72 percent). Nevada also had the highest rate of thoughts of self-harm and suicide reported among mental health screeners.
Mind Pro® Mental Health Counseling Firm, LLP is a client-focused and result driven mental health counseling organization that provides broad – based counseling at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will ensure that we work hard to meet and surpass all our clients’ expectations as it relates to their mental health and overall wellbeing whenever they hire our services.
At Mind Pro® Mental Health Counseling Firm, LLP, our clients’ overall best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professional and certified psychiatrist, psychologists, social workers and counselors with various skill sets who are experienced and passionate in helping our clients overcome their mental health challenges within record time.
Mind Pro® Mental Health Counseling Firm, LLP will at all times demonstrate her commitment to sustainability, both individually and as a mental health counseling organization, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely.
Mind Pro® Mental Health Counseling Firm, LLP is founded by Dr. John Lakewood and he will run the business with his business partner Dr. Mercy Williams. Dr. John Lakewood is a certified and renowned psychiatrist and mental health counselor. He has over 20 years’ experience working with top government officials, corporate executives, celebrities and sports people in the United States of America.
Mind Pro® Mental Health Counseling Firm, LLP is going to offer varieties of mental health counseling services within the scope of the mental health and substance abuse industry in the United States of America.
Our intention of starting our mental health counseling business is to help our clients overcome their challenges, achieve their personal goals and improve their competence, capacity and productivity and of course to also make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
- Conducting mental health assessments and counselling
- Developing individualized treatment plans
- Leading individual or group therapy sessions
- Running preventative mental wellness classes or workshops
- Making treatment referrals
- Online mental health counselling services
- Retailing of self – help books and materials
- Our vision is to build a highly competitive and effective mental health counseling business that will become the number one choice for both individuals and corporate organizations in Spring Valley – Nevada and the whole of the United States of America.
- Our mission is to provide affordable, professional and highly effective mental counseling services to a wide range of clients. We want to position Mind Pro® Mental Health Counseling Firm, LLP to become one of the leading mental health counseling brands in the industry in the whole of Spring Valley – Nevada, and also to be amongst the top 5 mental health counseling firms in the United States of America within the first 10 years of operation.
Our Business Structure
Mind Pro® Mental Health Counseling Firm, LLP, is a mental health counseling firm that intends starting small in Spring Valley – Nevada, but hopes to grow big in order to compete favorably with leading firms in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.
At Mind Pro® Mental Health Counseling Firm, LLP, we will ensure that we hire people that are qualified, hardworking, creative, passionate, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff / partners and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Principal Partner/Chief Executive Officer
- Psychiatrist and Mental Health Counselors
- Marketing Executives
Client Service Executive
Principal Partner / Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Psychiatrist and Mental Health Counselor
- Work with individuals, groups and communities to improve mental health
- Encourage clients to discuss emotions and experiences
- Examine issues including substance abuse, aging, bullying, anger management, careers, depression, stress and suicide
- Work with families
- Help clients define goals, plan action and gain insight
- Develop therapeutic processes
- Refer clients to psychologists and other services
- Take a holistic (mind and body) approach to mental health care
- Handle any other duty as assigned by the Principal Partner / CEO.
- Responsible for overseeing the smooth running of HR and administrative tasks for Mind Pro® Mental Health Counseling Firm, LLP
- Regularly hold meetings with key stakeholders to review the effectiveness of the organizations’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily activities of Mind Pro® Mental Health Counseling Firm, LLP.
- Identify, prioritize, and reach out to new business opportunities
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represent Mind Pro® Mental Health Counseling Firm, LLP in strategic meetings
- Help increase sales and growth for Mind Pro® Mental Health Counseling Firm, LLP
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides management with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Mind Pro® Mental Health Counseling Firm, LLP
- Serves as internal auditor for Mind Pro® Mental Health Counseling Firm, LLP.
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the principal partners in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for Mind Pro® Mental Health Counseling Firm, LLP
Mind Pro® Mental Health Counseling Firm, LLP engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured mental health counseling business that can favorably compete in the highly competitive industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Mind Pro® Mental Health Counseling Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mind Pro® Mental Health Counseling Firm, LLP;
Our essential strength lies in the power of our team; our workforce. We have a team of experts in the industry, a team with excellent qualifications and experience in mental counseling practice. Aside from the synergy that exists in our carefully selected team and our strong online presence, Mind Pro® Mental Health Counseling Firm, LLP is well positioned in a community with the right demography of people with mental health challenges and we know we will attract loads of clients from the first day we open our doors for business.
As a new mental health counseling organization in Spring Valley – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive mental health and substance abuse Centers industry; that is perhaps our major weakness.
The mental health and substance abuse industry has grown in response to increased awareness of mental health and substance abuse issues. So also, expanded federal funding for Medicare and Medicaid has benefited industry operators hence encouraging people with mental health challenges to seek the services of mental health counseling practitioners. As a standard mental health counseling organization, we are ready to take advantage of these opportunities.
Persons seeking treatment for mental health or substance use disorders have several options with regards to types of providers and treatment models. As a result, mental health counsellors experience external competition from numerous sources, including from short-term inpatient and outpatient service providers in the Mental Health and Substance Abuse Clinics Industry. External competition is anticipated to remain high in 2019, posing a potential threat to operators in the industry.
7. MARKET ANALYSIS
- Market Trends
The latest trend shows that the business opportunities and of course career outlook for mental health counseling is excellent, with the U.S. Bureau of Labor Statistics (BLS) projecting 23 percent growth from 2016 up to 2026. Job growth is expected because people are more willing to seek mental health help, and it is becoming a less expensive form of treatment.
So also, in the United States of America, Federal funding for Medicare and Medicaid has increased during the period as states have expanded Medicaid coverage to a greater number of low-income individuals. An increase in coverage enables more individuals struggling with substance use and mental illness to access industry services.
Currently, an estimated 41.9 percent of industry revenue is derived from Medicaid and Medicare reimbursement payments. In 2019, federal funding for Medicare and Medicaid is expected to increase, presenting a potential opportunity for the industry.
A notable trend in this industry is the influence of technology; the advent of technology is responsible for the increase in income generated by mental health counselors all over the world. With technology, it is now easier for mental health counselors to counsel their clients that are thousands of kilometers away from them.
Tools like video calling / Skype, YouTube, live chat and Webcast et al are being used by mental health counselors to counsel clients in different parts of the world.
The target market for mental health counseling firms is all encompassing. Mind Pro® Mental Health Counseling Firm, LLP is a professional mental health counseling firm that is specialized in helping her clients with mental health challenges improve their competence, capacity and productivity.
Our target market as a mental health counseling firm cuts across people of different class and people from all walks of life. We are coming into the mental health and substance abuse Centers industry with a business concept and company’s profile that will enable us work with the clients from different background and status. Below is a list of the clients that we have specifically design our mental health counseling services for;
- People undergoing depression
- Psychiatric patients
- Drug addicts (Substance abusers)
Our competitive advantage
The mental health and substance abuse Centers industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can help them overcome their mental health challenges, and achieve their personal health goals. It is the practice for mental health counselors to acquire as much certifications as it relates to their area of specialization; it is part of what will make them stay competitive in the industry
Mind Pro® Mental Health Counseling Firm, LLP might be a new mental health counseling firm in Spring Valley – Nevada, but our management team are licensed and highly qualified psychiatrists, psychologists and mental health counselors that can help our clients overcome their mental health challenges and achieve their personal health goal within a short period of time. These are part of what will count as a competitive advantage for us.
Aside from our robust experience and the expertise of our psychiatrists, psychologists, social workers and mental health counselors, we have a very strong online presence that will enable us counsel clients in different parts of the world from our online portals.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups mental health counseling businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
- Sources of Income
Mind Pro® Mental Health Counseling Firm, LLP is established with the aim of maximizing profits in the mental health and substance abuse Centers industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.
Mind Pro® Mental Health Counseling Firm, LLP will generate income by offering the following mental health counseling services;
- Retailing of self -help books and materials
One thing is certain, there would always be corporate organization (schools, rehab centers and clinics) and individuals who would need the services of mental health counselors. This is the major reason why the services of mental health counseling firms will always be needed.
We are well positioned to take on the available market in Spring Valley – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our mental health counseling business and our clientele base.
We have been able to examine the mental health counseling market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Mind Pro® Mental Health Counseling Firm, LLP, it is based on the location of our mental health counseling company and of course the wide range of mental health counseling services that we will be offering;
- First Fiscal Year: $150,000
- Second Fiscal Year: $300,000
- Third Fiscal Year: $550,000
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiffer competitions amongst mental health counseling firms in the United States of America; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Mind Pro® Mental Health Counseling Firm, LLP. We will also ensure that our clients overcome their mental health challenges in record time; we want to build a standard mental health counseling business that will leverage on word of mouth advertisement from satisfied clients.
Our goal is to grow Mind Pro® Mental Health Counseling Firm, LLP to become one of the top 5 mental health counseling organizations in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Spring Valley – Nevada but also in other cities in the United States of America.
Mind Pro® Mental Health Counseling Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our mental health counseling firm by sending introductory letters alongside our brochure to mental health clinics, hospitals, rehab centers, corporate organizations, religious organizations, households and key stake holders in Spring Valley – Nevada.
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our mental health counseling firm
- Post information about our mental health counseling firm on bulletin boards in places like schools, libraries, and local coffee shops.
- Placing a small or classified advertisement in the newspaper, or local publication about our mental health counseling firm
- Advertise our mental health counseling firm in relevant educational magazines, newspapers, TV and radio station.
- Attend relevant mental health and substance abuse expos, seminars, and business fairs et al
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients.
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of Spring Valley – Nevada which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote and advertise Mind Pro® Mental Health Counseling Firm, LLP;
- Place adverts on both print (community – based newspapers and health related magazines) and electronic media platforms
- Sponsor relevant community – based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our brand
- Install our Billboards in strategic locations all around Spring Valley – Nevada.
- Engage in roadshow from time to time in targeted neighborhoods around Spring Valley – Nevada
- Distribute our fliers and handbills in target areas
- Contact corporate organizations by calling them up and informing them of Mind Pro® Mental Health Counseling Firm, LLP and the services we offer
- List our mental health counseling firm in local directories / yellow pages
- Advertise our life mental health counseling firm in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our logo
Generally, counseling and consulting services are billed on per hour billing rate and flat fees on a weekly or monthly basis. As a result of this, Mind Pro® Mental Health Counseling Firm, LLP will charge our clients flat fees except for few occasions where there will be need for us to charge special clients on hourly basis.
At Mind Pro® Mental Health Counseling Firm, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our clients at regular intervals.
We are aware that there are some clients that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.
- Payment Options
The payment policy adopted by Mind Pro® Mental Health Counseling Firm, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Mind Pro® Mental Health Counseling Firm, LLP will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for mental health counseling services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
From our market research and feasibility studies, we were able to come up with the following financial projections and costing as it relates to establishing our mental health counseling business in the United States of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for liability insurance, permits and license will cost – $3,500
- Acquiring an office space that will accommodate the number of employees we intend employing for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
- Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- The cost for accounting software, CRM software and Payroll Software – $3,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Launching an official website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (120,000) U.S. dollars to successfully set up a medium scale but standard mental health counseling firm in the United States of America.
Generating Funds/Startup Capital for Mind Pro® Mental Health Counseling Firm, LLP
Mind Pro® Mental Health Counseling Firm, LLP is a partnership business that will be owned by Dr. John Lakewood and he will run the business with his business partner, Dr. Mercy Williams. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $70,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Mind Pro® Mental Health Counseling Firm, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our mental health counseling services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Mind Pro® Mental Health Counseling Firm, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check : Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing a standard office facility in a good location plus reconstruction: In progress
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the school: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating awareness for the business in Spring Valley – Nevada: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress
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Mental Health Private Practice Business Plan Template
Written by Dave Lavinsky
Mental Health Private Practice Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their mental health private practice companies.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a mental health private practice business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your mental health private practice business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a mental health private practice business or grow your existing mental health private practice company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your mental health private practice business to improve your chances of success. Your mental health private practice business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Mental Health Private Practice Businesses
With regards to funding, the main sources of funding for a mental health private practice business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for mental health private practice companies.
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How to write a business plan for a mental health private practice business.
If you want to start a mental health private practice business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your mental health private practice business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of mental health private practice business you are running and the status. For example, are you a startup, do you have a mental health private practice business that you would like to grow, or are you operating a chain of mental health private practice businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overv iew of the mental health private practice industry.
- Discuss the type of mental health private practice business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of mental health private practice business you are operating.
For example, you m ight specialize in one of the following types of mental health private practice businesses:
- Cognitive Therapy : Focusing on psychotherapy that challenges negative patterns of thought about oneself and the world, cognitive therapy brings the patient to a better understanding of personal value in the world.
- Behavioral Therapy: This therapy is one that focuses on retraining one’s reactions to stimuli, thus removing neurotic symptoms.
- Holistic Therapy: A mental health private practice that centers therapy on a holistic platform is one that treats each individual as a multi-faceted being with all needs seen as equally important and in need of therapeutic healing.
- Interpersonal Therapy: Treatment of mood disorders and difficult inter-relational issues is the main focus of interpersonal therapy.
In addition to explaining the type of mental health private practice business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of patients served, the number of cases with positive outcomes, reaching X number of clients served, etc.
- What is your legal business structure? Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the mental health private practice industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the mental health private practice industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your mental health private practice business plan:
- How big is the mental health private practice industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your mental health private practice business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your mental health private practice business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, couples or families.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of mental health private practice business you operate. Individuals would respond to different marketing promotions versus families, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are othe r mental health private practice businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes psychiatrists, other healthcare providers, or members of the clergy. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of mental health private practice business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide options for the uninsured?
- Will you offer services that your competition doesn’t?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a mental health private practice business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type o f mental health private practice company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide on-call emergency therapy sessions, client referral incentives, or group behavioral therapy retreats?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the services you offer and their prices.
Place : Place refers to the site of your mental health private practice company. Document where your company is situated and mention how the site will impact your success. For example, is your mental health private practice business located in a quiet neighborhood office, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your mental health private practice marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and/or magazines
- Reach out to websites
- Speak in community forums or blog as an expert
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your mental health private practice business, including answering calls, planning and providing therapy sessions, billing insurance and/or patients, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth session, or when you hope to reach $X in revenue. It could also be when you expect to expand your mental health private practice business to a new city.
To demonstrate your mental health private practice business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing mental health private practice businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a mental health private practice business or successfully running a small therapy clinic.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you see 5 patients per day, and/or offer group therapy sessions ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your mental health private practice business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a mental health private practice business:
- Cost of equipment and office supplies
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your 5-year office location lease or a list of insurance plans you accept.
Writing a business plan for your mental health private practice business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the mental health private practice industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful mental health private practice business.
Mental Health Private Practice Business Plan FAQs
What is the easiest way to complete my mental health private practice business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your mental health private practice business plan.
How Do You Start a Mental Health Private Practice Business?
Starting a mental health private practice business is easy with these 14 steps:
- Choose the Name for Your Mental Health Private Practice Business
- Create Your Mental Health Private Practice Business Plan
- Choose the Legal Structure for Your Mental Health Private Practice Business
- Secure Startup Funding for Your Mental Health Private Practice Business (If Needed)
- Secure a Location for Your Business
- Register Your Mental Health Private Practice Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Mental Health Private Practice Business
- Buy or Lease the Right Mobile Mechanic Business Equipment
- Develop Your Mental Health Private Practice Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Mental Health Private Practice Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
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OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan writers can create your business plan for you.
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Mental Health Center Business Plan
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Despite the increasing prevalence of mental health concerns, there are not enough mental health centers in Lexington, Kentucky that offer affordable and quality services. As a result, there is a significant gap between those who are in need of mental health resources and the availability of reliable, accessible support systems. Happy Hearts Mental Health Center will work to address this need in our community and fill this gap by providing quality and affordable services to individuals and families regardless of their age, gender, ethnicity, or financial condition.
Happy Hearts Mental Health Center provides affordable, high-quality mental health services to the Lexington, Kentucky area. These services range from individual and family therapy, group therapy, psychiatric medications management, and educational outreach and community resources. With the aim of being financially self-sustaining within two years, the center offers its services at a fair price while also committing to acquiring necessary funds from grants, donations, and investors. In addition, Happy Hearts Mental Health Center’s long-term financial goal is to achieve a minimum of $500,000 in revenue, an operating budget of $3,000,000, and net profit of no less than 10% by the end of year five.
Happy Hearts Mental Health Center will target members of the Lexington, Kentucky community regardless of age, gender, ethnicity, or financial condition who require mental health care. This population includes individuals, families, and groups seeking care in an effort to reduce the suffering associated with mental health issues. The center will also provide educational outreach and community resources to aid in the prevention of mental health problems. As such, the target market will be impacted individuals, their family members, and other persons seeking treatments and resources for mental health problems.
Happy Hearts Mental Health Center will face competition from existing mental health providers in the Lexington area, as well as potential substitutes that could provide alternatives to its services. Currently, there are multiple providers in the area that offer similar services such as individual and family therapy, group therapy, and psychiatric medication management. Additionally, there are various direct substitutes such as tele-mental health, peer support programs, and self-help books and websites, which can provide further support beyond clinical services.
The financial and funding goals of Happy Hearts Mental Health Center are to achieve financial self-sustainability within two years and to secure necessary funds from grants, donations, and potential investors. Below is a summary of the financial highlights in the hypothetical plan:
- Projected budget of expenses includes: staff hiring costs, medical supplies and equipment, office spaces, and marketing materials.
- At the end of year five, the projected net profit should be no less than 10% with a minimum revenue of $500,000.
- The operating budget should be $3,000,000.
Happy Hearts Mental Health Center requires an estimated total of $4,500,000 in funding to reach its business and financial targets within the first five years of operation. This includes:
- $2,000,000 for start-up costs, seed capital and working capital
- $1,000,000 for the hiring of staff, medical supplies and equipment
- $500,000 for office spaces, marketing materials and community outreach programs
- $1,000,000 as contingency funds for unexpected expenses
The funds needed to initiate the operations of Happy Hearts Mental Health Center will come from grants, donations, and private investors. The center is aiming to be financially self-sustainable within its first two years of operation, targeting revenue of $500,000 and an operating budget of $3,000,000 with a net profit of no less than 10% by the fifth year.
Milestones and Traction
Happy Hearts Mental Health Center has several milestones and objectives to achieve that will help take the organization from pre-opening to self-sustainability. Initially the center will focus on acquiring funds to cover startup costs, recruiting staff members, and obtaining office space and medical supplies. When Happy Hearts Mental Health Center opens in 2023, the center will have set and achieved the following goals:
- Provision of affordable, quality mental health services
- Contributing to the prevention of mental health issues and reduce associated suffering
- Supporting the community through mental health care
- Raising the total funds necessary to cover startup costs
- Formally launching the center before the end of 2023
- At least $2 million in revenue by the end of year one
- Striving for a 10% minimum net profit by the end of year five
- Reaching a total operating budget of $3 million by the end of year five
By achieving these goals, Happy Hearts Mental Health Center will be well placed to continue providing high quality mental health services for years to come.
Problem Worth Solving
Mental health services such as individual and family therapy, group therapy, and psychiatric medication management are needed but often overlooked services in our nation. Too often, individuals and families are in need of these services but are not able to access them due to financial constraints, lack of information, or stigma surrounding mental health services. The mission of Happy Hearts Mental Health Center is to provide quality mental health care to all members of the community, regardless of age, gender, ethnicity, or financial condition. Through our unique services, we aim to reduce the suffering and improve the lives of those within our community by addressing their mental health needs in a safe and nurturing environment.
Happy Hearts Mental Health Center provides comprehensive mental health care services to members of the Lexington community at an affordable price. Our suite of services includes individual and family therapy, group therapy, psychiatric medications management, educational outreach, and community resources.
Our mission is to reduce sufferings associated with mental health issues for individuals and families. Our team of psychiatrists, therapists, and nurses is experienced in treating a variety of mental health issues. We take a holistic approach to care, providing our clients with comprehensive, personalized care plans.
Our services are designed to be accessible and affordable, with payment options to fit every budget. We accept insurance, grants, and other forms of payment. Services are available in-person and through telehealth, making it accessible to all regardless of age, gender, ethnicity, or financial condition.
Our team will equip individuals and their families with the resources and tools they need to deliver the highest quality of care and patient experience. We provide customized treatment plans and ongoing support for each of our patients to ensure the best outcomes for their mental well-being.
Validation of Problem and Solution
Mental health issues have a widespread impact in communities around the country. According to a study from the National Alliance on Mental Illness (NAMI), an estimated 1 in 5 adults in the U.S. experiences mental illness in a given year. It is also estimated that 1 in 10 young people in the United States live with a serious mental health issue. These numbers demonstrate the magnitude of the mental health crisis in the U.S., and the need for quality mental health services in communities to close the existing gap.
The development of Happy Hearts Mental Health Center will provide a much-needed service to the local Lexington community. Since quality mental health care services are expensive, the center’s mission to provide accessible and affordable mental health care services will be a great benefit to community members who may not otherwise be able to afford these services. By offering community outreach, educational programs, and support resources, the center will also be an asset to its local area.
The financial goals are realistic and achievable. With an estimated start-up budget of $1,000,000, a minimum of $500,000 in projected revenue for Year 5, and an operating budget of $3,000,000, the center has taken into account the estimated expenses required to staff, equip, and maintain a mental health center. With careful financial management and fundraising efforts, the center should be able to meet its financial goals and support the mental health community in the Lexington area for years to come.
Happy Hearts Mental Health Center seeks to provide members of the Lexington community with comprehensive mental health care services regardless of age, gender, ethnicity, or financial condition. This care is designed to cater to the wide range of needs of our patients, including individual and family therapy, group therapy, and medication management, as well as educational programs and community resources for prevention.
We are dedicated to providing quality mental health care services that are accessible and affordable for all members of the community. Through our services and programs, we hope to alleviate suffering associated with mental health issues and equip individuals and families with the knowledge and resources to cope with these challenges.
Happy Hearts Mental Health Center will face competition from other mental health centers in the Lexington area, both public and private. As such, the center needs to distinguish its offerings from those of its competitors in terms of services, cost, and convenience. Our services are among the most comprehensive in the region, covering individual and family therapy, group therapy, psychiatric medications management, and educational outreach and community resources. We also offer some of the most competitive rates in the area, and our convenient location will make it easy for clients to access our services. Our mission to make mental health care services accessible to all members of the community, regardless of age, gender, ethnicity, or financial condition distinguishes us from other providers in the area.
Happy Hearts Mental Health Center is diligently working towards opening its doors in 2023. Several steps have already been taken, including: writing a business plan, developing a budget, and researching potential funders. Moving forward, we plan to conduct market research, build out a website, and add necessary staff and equipment.
By the end of year two, our financial goals are twofold: to be self-sustainable and to acquire any necessary funds from grants, donations, and potential investors. We plan to reach these goals by optimizing our business and marketing strategies.
By the end of year five, the center plans to have a minimum of $500,000 in revenue; an operating budget of $3,000,000; and a net profit of at least 10%. These financial targets are necessary to ensure that the center continues to provide quality mental health services and to remain a strong resource for the Lexington, KY community.
Our mental health center plans to cater to a wide range of potential customers, each with their own distinct sets of characteristics and needs. To better serve these customers, we are proposing to use the practice of market segmentation to individually target these groups.
Market segmentation allows us to divide potential customers into distinct and homogenous groups, allowing for greater customization and direction of our available services. In order to perform market segmentation, our mental health center focus on the following characteristics: age, gender, socioeconomic status, and mental health condition.
By figuring out the different groups, we can then design specific services and targets for each group, increasing our potential market. We believe that this segmentation process will help us better allocate our resources in order to maximize our overall market share.
Target Market Segment Strategy
Our ideal customer is someone who is experiencing mental health issues, either severe or mild, who is actively searching for and ready to take part in a personalized mental health diagnostic and treatment program. Our target market will consist of individuals and families who are 18-65 years of age, who live in the surrounding area and face real and often difficult mental health challenges. Our services will be tailored to meet the needs of this population, covering a range of mental health topics.
We also want to build relationships with members of our surrounding community. By offering screenings, education, counseling, and support to individuals in our area, we will be able to contribute to their overall mental wellness. Our ultimate goal is to foster a safe and supportive environment for individuals who are struggling with their mental health and create a more informed and supportive society.
The ideal customer for the Mental Health Center is an individual or family who values the importance of mental health and proactively prioritizes the topic. This could include those who have experienced a crisis such as depression, anxiety or stress, those who experienced trauma, or those with disabilities or chronic conditions that impede their ability to function at their highest level. We also anticipate that the majority of our customers are likely from white-collar, middle-class families in the local area. The Mental Health Center will strive to build a strong sense of trust through reassuring customers that their need is understood and that the right support is available and accessible.
We will focus on creating an empathetic and supportive approach to our customer service, ensuring that the customer's needs are listened to and respected. We will also strive to create an environment that encourages customers to reach out should their needs not be met. Furthermore, we strive to create a sense of community and connection amongst our customers, encouraging them to share their stories and experiences with one another in a safe and supportive environment.
A snapshot of the potential market based on the last few sections indicates that the mental health center business plan will focus on serving a market composed primarily of an estimated 1.75 million people in the Greater Birmingham area. This market consists of individuals aged 18-85 with primarily mild to moderate mental health issues. Of these individuals, 40% are expected to represent Millennials, while 35% Gen-Xers and 25% Baby Boomers. The plan involves positioning the center as a comprehensive full-service mental health resource that incorporates a variety of preventive, diagnostic, and therapeutic approaches to benefit the community. The center’s objective is to create an environment of accountability and compassion by reaching out to potential and existing clients to build a trusting relationship. Through this relationship, the center’s mental health professionals aim to foster an equitable, efficient, and inclusive environment that encourages physical, psychological, and social well-being. This business strategy places the center in a unique position to capitalize on the growing demand for mental health services in the Greater Birmingham area. By leveraging its comprehensive network of professionals and comprehensive range of services, the center will be able to provide comprehensive mental health solutions that are tailored to the needs of clients. This strategy also positions the center to capitalize on the capabilities of technology to provide efficient, cost-effective solutions that will benefit clients in both the short and long term. By implementing this plan, the center will be able to create a highly successful environment that focuses on providing a comprehensive, quality mental health service to its clients. This will enable the center to maximize its potential, remain competitive in the local market, and continue to grow in the future.
In conducting our market analysis, we compiled a table of potential competitors. The table includes the names of the competitors, their services offered, the average cost of the services, and other relevant information.
We concluded that our services would be competitive in the current market. Our services, however, have some advantages that differentiate us from our competitors, such as more convenient location, a larger and more diverse team of mental health counselors, and lower costs for our services.
Marketing and Sales Plan
The marketing plan for the Mental Health Center will involve a comprehensive and coordinated approach designed to create an effective, interactive, and comprehensive strategy. Our main goal is to increase both the visibility of our center and the number of clients who seek our services on a regular basis. To accomplish this, we plan to utilize a variety of cost-effective advertising channels, as outlined below.
Advertising Channels and Costs
- Radio Ads: Radio ads will be targeted to a variety of demographic groups and will cost approximately $3,000 per month.
- Newspaper Ads: Newspaper ads will appear in a variety of local newspapers and will cost approximately $2,500 per month.
- Online Ads: Online ads will be placed on a variety of websites, including the center's website, and will cost approximately $1,000 per month.
- Social Media: We plan to maintain an active presence on Facebook and Twitter, as well as other social media platforms. This will include content creation, advertising campaigns, and direct outreach. We anticipate spending approximately $500 per month.
- Direct Mail: Direct mail campaigns will target potential clients in specific zip codes on a quarterly basis, with costs estimated at around $2,000 per quarter.
The goals of this marketing and advertising plan are to:
- Increase the visibility of the Mental Health Center in the local community.
- Encourage more people to seek the services offered by the Mental Health Center.
- Develop sustainable relationships with clients.
- Increase referrals from existing clients.
- Develop a larger digital presence through social media and website optimization.
Happy Hearts Mental Health Center anticipates attracting a large client base of individuals and families from the Lexington area. We intend to set a fair and competitive pricing strategy that allows quality care to remain accessible and affordable for all, including uninsured and those on a limited budget. We will be actively marketing and advertising the mental health services we are offering to the public, in order to achieve an estimate of 100 new clients in the first year, 200 in the second year, and 500 in the fifth year. The marketing and advertising budget is proposed to be no more than 20% of the total operating budget.
In order to reach our desired sales goals, Happy Hearts Mental Health Center will leverage a variety of methods. This includes utilizing our existing resources and investing in new such as a website design, SEO tools, and paid advertising campaigns. Additionally, word-of-mouth referrals and connecting with potential customers through community events will be critical in achieving the set objectives.
Location and Facilities
Happy Hearts Mental Health Center will be located in Lexington, Kentucky, and is planned to open in 2023. The center will have facilities for multiple services, including office spaces for individual and group therapy, spaces for educational outreach, as well as psychiatric medication management. The facility will also have a space for recreational and social activities, providing respite for those in need. The allotted budget for renting and/or constructing the center is $1,000,000.
Given the importance of providing access to mental health services to those who may not be financially able to afford traditional services, the center offers reduced rates and payment plans to those who cannot afford full-priced services. Happy Hearts Mental Health Center will also seek to provide extended hours on nights and weekends to meet the increasing demand for mental health services.
At Happy Hearts Mental Health Center, we intend to take advantage of the wide range of modern technology available to efficiently deliver the best services in the mental health care field. The latest technology will be incorporated with our communications and management system to provide secure access to patient data and to promote consumer safety. We intend to develop and implement a comprehensive electronic medical record (EMR) system that complies with all industry standards and regulations. The EMR system will enable our team to collect, process, manage, and store important client data and documentation. Additionally, the system will enable us to establish administrator-specific access controls for patient and system management, as well as engage clients via digital communications, such as targeted email and text campaigns.
Furthermore, our team will leverage other marketing and communication technologies, such as video conferencing and chat applications. Our intention is to combine modern technology to provide consumers with faster, more comprehensive access to our mental health care services. By leveraging technology, we will be able to effectively reach and engage a wider range of clients and deliver continued quality services within our standard operating budget.
Equipment and Tools
A complete list of the equipment and tools needed to run the Mental Health Center is outlined below. Where applicable, the estimated cost for purchase or rental of the items is provided. All the necessary items, from furniture and computers to medical supplies, have been included to ensure an appropriate and efficient patient experience.
Management and Organization
The Mental Health Center (MHC) will be organized into three tiers: leadership, management, and team. The organizational chart will show each level's hierarchy – this will display key information such as roles and responsibilities, reporting lines and the flow of information between levels. A brief overview of each tier is outlined below.
The leadership tier will be headed by an executive director and a board of six members. The executive director is responsible for overall oversight and strategy of MHC. The board of directors will report to the executive director and will be responsible for providing advice and support. The leadership tier is primarily responsible for setting the overall direction of MHC.
This tier is made up of six department heads, each with twelve team members. These department heads are responsible for coordination within the departments and between the leadership tier and the team tier. Each department is specialized in either treatments, community outreach, administrative services, client services, or research.
This tier is made up of 60 team members, who are responsible for providing services and daily operations. These team members are dedicated to providing excellent mental health care services to the clients, and are supervised and supported by the managerial tier.
The management team for the mental health center will consist of a group of individuals with a range of experience and qualifications who bring the skills and knowledge necessary to provide the highest quality services. We anticipate that the following key personnel may be part of the leadership team:
Table of Potential Candidates:
The management team is committed to providing comprehensive, evidence-based treatments and will look to recruit staff with expertise in treating and managing mental health problems, as well as providing administrative and operational oversight.
Management Team Gaps
The current management team for our mental health center is as follows: a director, three counselors and two administrative staff. While this team is capable of helping clients within their areas of expertise, there are a few management lacunas that must be addressed in order for our business plan to be successful. These include any positions or areas of expertise that we currently do not have candidates ready to fill those roles. Specifically, we are lacking candidates to fill the roles of a finance manager, an IT specialist and an executive assistant.
The lack of these positions suggests that our mental health center is not yet ready to operate at maximum efficiency or take on additional clients. In order to properly serve our clients and maintain a high-quality standards, we must emphasize the recruitment and onboarding of qualified personnel to fill these roles. This will ensure that all our goals and objectives are achievable in the most efficient manner and that our clients continue to receive the best care possible.
The personnel plan of our mental health center business should include the right set of professionals to ensure the success of our business operations. To operate effectively, the personnel plan should include a range of qualified and experienced personnel in a variety of positions. Here is a table that outlines the positions that are necessary to adequately run our business:
Table of Personnel Positions
In addition to the listed positions, we may need to hire additional staff depending on the changing needs of our business.
Company History and Ownership
Happy Hearts Mental Health Center was founded in 2021 by a group of mental health professionals with the goal of bringing quality mental health services to the people of Lexington, Kentucky. The founders have extensive experience in the mental health profession and are dedicated to providing the highest quality of care to those in need. The Center is owned by its founder and board of directors, who have developed an ambitious business plan to open the Center's doors in 2023.
The vision of the Center is to provide mental health care to members of the community regardless of age, gender, ethnicity, or financial condition and to contribute to the prevention and reduction of suffering associated with mental health issues. The founders are committed to creating an environment that is safe and welcoming for clients, enabling them to feel comfortable in discussing their mental health and emotional needs.
In order to effectively manage and steer the Happy Hearts Mental Health Center towards its long-term objectives, a roadmap must be designed. This roadmap will include specific goals and objectives to be achieved in the lead-up to the opening of the center in 2023 and beyond.
For example, over the next two years leading up to the opening of Happy Hearts Mental Health Center in 2023, our financial goals are to be financially self-sustainable. Additionally, to acquire necessary funds from grants, donations and potential investors.
Financial goals by the end of the fifth year include a minimum of $500,000 in revenue; an operating budget of $3,000,000; and net profit of no less than 10%.
Furthermore, our community outreach goals include educating the community about mental health services, connecting potential patients to Happy Hearts Mental Health Center, and ultimately increasing the number of patients receiving care from the center.
The timeline below provides a snapshot of the essential milestones and goals to be achieved in order to effectively implement our business plan and operational objectives:
At our mental health center, we use key performance indicators (KPIs) to measure our progress and performance. Specifically, we track the number of patients served, our operating costs, and our cash flow. This way, we are able to measure our efficiency and profitability, and be held accountable for our results.
Moreover, we pay particular attention to our customer satisfaction ratings. By monitoring customer reviews as well as survey responses, we can ensure that our service offerings are meeting the needs of our clients and improving over time. This is our highest priority, and we strive to provide an excellent experience for each and every patient.
Finally, we monitor our marketing and outreach efforts. By tracking the number of referrals we receive and our website traffic, we can gauge the efficacy of our marketing campaigns and adapt our strategies accordingly.
Financial Plan and Metrics
The sales forecast for Happy Hearts Mental Health Center over the next three years projects growth in both funded services and private fee-for-service clientele. The total projected sales of the center are shown in the table below:
A large portion of the sales will come from Medicaid, Medicare and other forms of public funding. However, it is also slated that 10-20 percent of annual sales will come from private fee-for-service clientele.
The expenses associated with setting up and managing our mental health center are split into two main categories: startup costs and operational expenses. The tables below provide a detailed breakdown of the respective costs, along with pertinent information about each.
Operational expenses, projected profit and loss.
Happy Hearts Mental Health Center's projected Profit and Loss Statement will serve as a roadmap for its financial success. By measuring the amount of gross revenue it will bring in, the cost of goods sold (COGS), and other associated expenses, the Center will be able to determine if it is reaching its overall financial objectives. The following table summarizes the Center’s Financial Plan and Metrics for the first, third, and fifth year of operation below.
By Year 5, Happy Hearts Mental Health Center aims to achieve the following goals: a minimum of $500,000 in revenue, an operating budget of $3,000,000, and net profits of no less than 10%. As evidenced in the projected profit and loss statement, the Center will likely surpass these goals if it continues to provide quality services and garner clientele.
Projected Cash Flow
Happy Hearts Mental Health Center (HMHC) needs to build a projected cash flow statement for the first three years of operations in order to map out its expected sources of income and projected expenses. This statement will illustrate HMHC's financial position, cash flow, and net profit over the course of the three years.
The following table shows the projected cash flow statement of HMHC for the first three years:
The projected cash flow statement reflects the expected amounts of income and expenses for the first three years and is based on HMHC's projected budget of expenses. At the end of year three, HMHC anticipate a net cash flow of approximately 210,000, with a cumulative net cash flow of $210,000.
Projected Balance Sheet
The following table outlines the three-year projected balance sheet for the mental health center business plan. The figures shown are expected asset, liability, and equity balances for each year.
Our mental health center will require a qualified team to provide quality customer service and support. We intend to hire a total of 8 employees for the center: 1 Clinical Psychologist, 1 Psychiatrist, 1 Administrative Assistant, 1 Registered Nurse, 1 Patient Care Coordinator, 2 Behavioral Health Technicians, and 1 Social Worker. The Clinical Psychologist and Psychiatrist will both work on-site on a full-time basis with a salary of $80,000. The Administrative Assistant will have a salary of $50,000 and will be on-site full-time. The Registered Nurse will also be full-time with a salary of $60,000. The Patient Care Coordinator will be part-time and will have a salary of $45,000. The Behavioral Health Technicians will both have a salary of $30,000 and will be part-time. Finally, the Social Worker will have a salary of $50,000 and will also be part-time. Additionally, we intend to offer health insurance benefits to full-time employees.
The team will work together to provide comprehensive mental health services and support. The Psychiatrist, Clinical Psychologist, and Social Worker will provide psychotherapy and other direct services to clients. The Registered Nurse, Patient Care Coordinator, and Behavioral Health Technicians will provide supportive services and follow-up care. The Administrative Assistant will be responsible for managing scheduling and administrative tasks. All employees will be held to strict standards of professionalism and quality.
Use of Funds
At the initial stages, Happy Hearts Mental Health Center will seek funding from grants, donations, and potential investors to help finance the launch of the center. Once funded, the monies will be used to cover the cost of hiring staff, medical supplies and equipment, office spaces, and marketing materials. At the end of year two, it is expected that the center will become financially self-sustainable.
The budget of expenses will include costs associated with personnel such as salaries, benefits, and training; equipment and supplies such as medical, administrative, and furniture; office spaces rental and repair, and marketing materials. All funds raised through grants, donations and investments will be used to cover operational costs until the center is able to sustain itself financially.
At the end of five years, the center's financial goals are to have a minimum of $500,000 in revenue, an operating budget of $3,000,000, and net profit of no less than 10%. This will allow the center to continue providing affordable, quality mental health services to the community and support individuals and families to cope with their mental health needs.
Our Mental Health Center sees exit as a natural and important part of the business. Through M&A (mergers and acquisitions) or a partial or complete sale, we plan on exiting the business when our goals have been achieved. Our primary goal is to achieve a return on our investments, and this is a long-term plan. Our timeline is five years from now and we intend to either merge with another mental health center or sell our stake in the business to a potential buyer.
In our exit strategy protocol, we include evaluating potential buyers and understanding the tax implications of our exit plan. We also include stakeholders’ agreement and safeguarding our non-disclosure. We value our hard work and dedication, and so careful consideration and planning is necessary whenever we create an exit plan.
We understand that in the mental health industry, one of our most valuable assets is our reputation with our clients and employees. We will aim to keep our reputation by ensuring a smooth transition that remains confidential to maintain the trust of our existing clientele.
5-Year Financial Model
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Behavioral Health Business Plan for New Level of Treatment Program
This business plan is a quick and dirty example of one that I wrote which helped secure $250k in investor money to help build an integrated mental health and substance abuse treatment center.
The federal Mental Health Parity Act of 1996 requires insurers to offer the same benefits for mental disorders and substance abuse as they would for physical disorders, including any annual or lifetime limitations and restrictions placed upon such coverage. This report examines actuarial studies, the current state of parity legislation across the nation, cost of treatment issues, and the impact on Florida should parity legislation be passed. Suggested Citation Bruce Lubotsky Levin, Ardis Hanson, and Richard Coe. "Mental health parity: National and state perspectives 2001: A report to the Florida Legislature" Tampa, FL: The Louis de la Parte Florida Mental Health Institute Jul. 2001. Available at: http://works.bepress.com/ardis_hanson/77
Administration and Policy in Mental Health
Donald Shepard , Gail Strickler
The Milbank Quarterly
NIDA research monograph
Minnesota funds a range of services designed to prevent, identify, treat, and promote recovery from substance use disorders. Minnesota Management & Budget (MMB) worked with state and local partners to identify and estimate the benefits and costs of services currently provided in Minnesota. Overall, the analysis recognizes that substance use disorder is a chronic disease that can be both prevented and treated. Using evidence-based practices can generate positive, cost-effective outcomes for Minnesotans. While many of these proven services are effective, our current substance use prevention and treatment system has gaps in access to services. These gaps are often caused by a lack of integration between substance use and primary healthcare, stigma, and workforce shortages, and are especially acute for special populations and rural residents. Moreover, our analysis reveals we do not always properly implement practices. If we fail to deliver services to the right person at the right intensity and for the right time we may not receive the anticipated returns on our investment in the program. This may also contribute to the perception that substance use disorder is not treatable. Report by: Weston Merrick, Tesia Elder, and Pete Bernardy. For more information, contact: [email protected]
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Developing A Business Plan for Your Mental Health Private Practice
Business plans act as the foundation for any type of business and are important for setting benchmarks to measure success. But how do you write a business plan for a mental health private practice? Valant takes a look at the components of a business plan and translates it into an easy-to-use framework for both mental health professionals looking to start their own private practice and those looking to expand their current practice. Check out our guide to creating an effective private mental health practice business plan below.
Mission Statement / Vision Statement:
As behavioral health providers, you all are in the business of saving lives. But what makes your services unique? What value are you bringing? Make sure when you are drafting your mission statement you answer these four questions:
- What does my practice do?
- How do we do it?
- Whom do we do it for?
- What value does your practice bring?
Description of your Practice and Service:
What is your service delivery model? What kinds of patients do you want to see, including age range and presenting problems? How many hours per week do you wish to work and on what days? What types of services will you provide (e.g. therapy versus medication management)?
The three basic choices for your psychiatric business entity are: sole proprietorship, LLC, and S corporation . The choice is based mainly on relative costs, tax implications, and general business liability (rather than professional liability). If you do plan to expand to a group practice, you should probably consider an LLC or S corporation so you have the option of continuing under the same tax ID number, but we recommend consulting with a local accountant and lawyer with experience working for other health care providers before deciding.
Mental Health Practice – Operations Model:
Operating processes can be broken up into four categories: facilities, front office, back office, and insurance.
Facilities refers to your plan for location, furniture, phone, internet, hardware, and any other tangible item or service that enables you to provide your clinical services.
Front-office refers to your plan for handling non-clinical patient facing interactions such as your intake process, administrative phone calls, reception and scheduling, eligibility and verification checking, handling of patient payments, no show and cancellation policies, and prescription management policies and procedures.
Back-office functions are dominated by medical billing but could also include transcription services and handling of documents.
Insurance refers to the package of insurance that you’ll need, including general liability, professional liability, or any other insurance you might want for you or your staff (medical, dental, and long and short term disability).
An electronic health record has the potential to influence and streamline all operation models, so it is important to have the right EHR in place.
Watch our product videos to see how Valant’s EHR and practice management system streamlines operations for mental health private practice
Team refers to internal staff and outside consultants such as a lawyer, accountant, bookkeeper and medical biller. We recommend developing a strategic employee incentive system that addresses benefits, compensation, appreciation, and recognition. One of the most costly expenses your practice can endure is staff turnover. Want to learn more including recruiting tips? Watch our webinar “How to Recruit and Retain Top Talent in your Mental Healthcare Practice”
Marketing Strategy / Generating Patient Flow:
Especially for new practices, it’s important to dedicate a certain number of hours each week to marketing your private practice , generating patient flow, and supporting your practice’s capacity goals. Many practitioners find that word-of-mouth marketing and/or referrals are their most effective sources of new patients; in today’s saturated therapeutic market, however, establishing a digital presence may also be necessary.
Building A Website
With that in mind, building a website (or hiring a professional to build one for you) is the natural first step in promoting your practice online. Your website will act as the home base for all of your digital marketing efforts — meaning, every other digital marketing initiative you try should direct traffic back to your website. As the foundational piece of your marketing strategy, your website should be intuitive, attractive, and optimized for search engine visibility.
It will also be important to support your website with new, high-quality content once it is built out and launched. Starting an informative, active blog can be a fantastic way to highlight your expertise, reach engaged audiences, and support your positioning in search engine results.
Referrals & Directories
In most cases, the two most common means for finding new patients are to 1) utilize and nurture a referral network and 2) be on insurance contracts. This makes sense in practice; people trust other people to give honest referrals of a practitioner and their practice. They also want to ensure the provider is on their insurance network before moving forward.
With that in mind, you will need to develop referral sources to generate patient flow and to build the kind of practice that you want. Your referral sources will know your strengths and weaknesses and will refer accordingly.
In the online space, users often look to directories, insurance networks, and review sites to determine whether a provider is a right fit for them. Having active, complete profiles or listings on as many directories as applicable ensures you’re considered in the most relevant patient-provider searches possible. Additionally, directories and review sites act as an opportunity for current patients to leave reviews, providing invaluable feedback to support your practice’s long-term success.
A few examples of relevant, high-traffic directories you could sign up for include Google My Business , Psychology Today , GoodTherapy , or most social media platforms. Depending on the supply and demand characteristics in your area, however, being on insurance contracts and having profiles on insurance networks is sometimes all that is needed.
Generating Patient Flow:
The two most common means for finding new patients are to utilize and nurture a referral network and to be on insurance contracts. Depending on the supply and demand characteristics in your area, being on insurance contracts is sometimes all that is needed. But, in most cases, you will need to develop referral sources to generate patient flow and to build the kind of practice that you want. Your referral sources will know your strengths and weaknesses and will refer accordingly.
It is not necessary to have fancy financial projections to start and successfully operate a small psychiatric private practice, but it’s important to have an idea of what your net income will be and to understand the variables. Let’s break down the equation: net income = revenue – expenses.
Revenue Revenue = Average fee per face to face hour x hours worked It’s easy to overestimate this number by overestimating collections rates, fees paid by insurance for a unit of service, show rate, and patient flow. We recommend budgeting for 20% less than whatever you come up with in your plan, at least until you get validation from real revenue.
Expenses Expenses = Facilities + Front Office + Back Office + Insurance
A basic rule of thumb for expenses is that they represent anywhere from 15-30% of total revenue for a solo practice. If you employ staff or outside services for front office and back-office work, they tend to be divided pretty equally between the three. If you do not employ staff, then these expenses are more heavily loaded on facilities. Make no mistake, you are paying for those front office and back-office functions with your time. This is where the concept of opportunity cost applies. The cost of your time is dependent upon either the value you place on your time or the revenue you could generate by seeing patients during that time. However, opportunity cost does not explicitly appear in your financial statements.
If you would like to learn more about these financial metrics, we recommend reading our blog Financial Metrics 101
Private Therapy Practice Tips:
- Don’t sweat excessively about location. You will probably move within 2 years. At that point, you’ll better understand your needs. You’ll also better understand the nature of your local market and the level of competitor saturation ; especially in areas where therapy is popular, it’s important to identify your niche and find an area where you can assert yourself as the local expert, rather than offer the same expertise as competitors in your neighborhood. Modern telehealth technology also makes the location of your practice less important. By offering virtual sessions in addition to in-person visits, you can reach a larger network of patients, regardless of their proximity to your practice. Learn more about Valant’s telehealth software .
- Networking always pays off in terms of building the type of practice you want. Start early since that is when you will have the most time.
- Most small business owners overestimate revenue, especially during transitions. Make sure that you have other sources of cash during your ramp up including other part-time work, savings, or a line of credit.
- Understand the opportunity cost. There are many things in life that you love and do well. If you don’t love medical billing, don’t do it. That time could be better spent elsewhere.
- Start with a behavioral health care focused Electronic Health Record. By using an EHR focused on your specialty, you’re eliminating spend on features and functionality that is not going to be pertinent to your practice, plus gaining efficiencies in having technology workflows that are intuitive for your discipline. It’s easier to build it into the fabric of your practice from the beginning rather than switching later.
At Valant, we’re focused on providing great technology — as well as the business knowledge you need — to help your practice run smoothly and profitably. Want to learn more about Valant’s EHR and practice management suite for behavioral health?
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Mission Statement / Vision Statement: · Description of your Practice and Service: · Legal Framework: · Mental Health Practice – Operations Model:.
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