The business of counselling
Can understanding the nitty-gritty drive a better future for you, and your clients?
Let’s be honest, very few of us got into counselling because we were excited about spreadsheets, targets, or business strategies. Most of us were drawn to the work because we care deeply about helping people rather than the burning desire to be the next corporate powerhouse.
However, despite an often very real reluctance to embrace the more operational side of proceedings, there’s no getting away from the fact that if you’re working as an independent counsellor or therapist, you are running a business. And running a business - even one you love - brings with it un-get-out-of-able administration.
However unlikely the thought may be, embracing business administration can really make life simpler… and far more profitable. But aside from the standard ‘buy more stamps’ sort of admin, what business tools should a time-poor business owner be focusing on perfecting, if they want to really feel the benefits?
The answer lies in data…
Redefining what data means to you
‘Data’ doesn’t exactly inspire excitement, does it? Don’t worry though, we’re not suggesting trudging through lines and lines of dreary numbers in an endless Spreadsheet of Doom.
No, we’re talking about understanding your own organisation’s data story, and building confidence in interpreting it can be key to guiding the future of your business.
You’re collecting and recording data every single day. Invaluable insights that weave the story of your organisation, and when pulled together, help paint a picture of its strengths, weaknesses and areas for immediate support.
Chances are, you may already be fully aware of some of these areas, but it’s all too easy to bury your head in the sand and ignore warning signals if there’s no glaring red light atop them. You may know in the back of your mind you have had an increase in late payments, but without a clear information showing exactly how long you’re waiting for payment, if you have any serial offenders, when the trend started, and exactly how much it is now costing you… well, it’s easy to brush it under the carpet as no big deal, isn’t it?
Looking the other way isn’t a method that’s exactly advisable in business, though. Tackling issues can feel scary, but with proper facts backing up your decisions, making changes can feel a lot less daunting.
The helpful analysis of trends
Of course, much of the data you record is linked exclusively to your client’s journey, rather than just that of your business.
Ensuring that this data is held securely and confidentially, in a format that you can easily refer to should be your upmost priority, of course. Whilst it is unlikely that the details of their therapeutic journey are going to be much use when you are analysing the ups and downs of your organisation, there are definitely some aspects of the client pathway that are absolutely integral to understanding your own business journey.
Such as:
Where did your client find you originally?
Understanding your acquisition pathway will help you better plan where to spend both money and time on your marketing efforts.
Consider that you have space to work with ten clients. You are currently at capacity with ten, nine of whom found you through a recommendation from the local GP practice, one via an expensive online directory which costs you a pricy membership fee every year.
In this instance, it would be safe to assume that additional GP referrals are likely in the future and you may feel confident enough to consider cutting the costs of the directory from your overheads. It may seem like a no-brainer to be advertising alongside all of your peers on costly databases, but if they’re not working for you or your client base… it may be time to reassess.
How are clients funding their therapy?
If a counsellor knows whether clients are paying for their sessions themselves, via insurance or receiving support through their employer, it is a little simpler to gauge the length of the client’s journey (although of course, this isn’t an exact science)!
You cannot ever predict exactly how things will play out, however, understanding the dynamics of your income streams can really help you with income forecasting, and also help you consider integrating a little financial diversity into your client mix if needed.
If you have a full client list of people who are self-funding, you may be particularly vulnerable to changes to external financial pressures. If the mortgage rates suddenly shoot through the roof and people have to choose between their sessions or their bills, chances are you could see a lot of client loss. Similarly, if you are heavily reliant on one corporate funder, you’re at risk of one HR change seeing your client list drop off quickly too.
Having clear, relevant data providing fiscal predictions (funding stream, reliability of payment, length of contract agreement etc) can not only give you a clear view of your income diversity, but also allow you to plot a revenue forecast. Worrying about income streams should you have an unexpected bill, or the aforementioned mortgage rates hike is highly stressful – having a clear forecast showing what to expect, backed up by data – may help put your mind at ease a little.
Does their therapeutic journey have a final end date?
There are not many types of organisation who are delighted to wave goodbye to a fee-paying client … however when a client comes to the end of their therapeutic journey, it’s generally a very positive day, that both parties should be rightly proud of.
Knowing when this day is nearing is important for a number of reasons, but from a business perspective, saying goodbye to one client provides a natural opening in your diary to start the cycle with someone new.
Of course, building a new relationship takes time, and there are plenty of tasks to complete before undertaking the first paid session. It is important to factor this in before the final session of your existing client if you don’t want to experience a revenue drop. Onboarding a new client can be hard work… managing the admin of such, and still being short at the end of the month can feel a bit baffling if you haven’t planned accordingly!
By managing and analysing this data within your client notes with your ‘business head’ on, you may find that you are able to plan a little better for your own future, whilst still very much helping your client move forward with theirs. The Grounded App helps you see data points like these at a glance, placing all of your strategic planning admin neatly in the palm of your hand.
Your business is your container…
… but you can’t pour from an empty cup.
Focusing efforts on improving, developing and sustaining your business is vital to allowing you to carry on doing what you do best, helping your clients.
Using data to inform business strategy and development sounds daunting, but consider this: you are an expert at reading people, noting complex nuances and seeing how they impact ongoing processes. Reading a few bits of information about an organisation you know inside-out, and understanding how they could help shape your own future is nothing in comparison – as long as you have the tools to make the proper assessment.
Data helps remove the guesswork, leaving you with a well-managed business – able to provide you with a stable income today and a positive horizon for tomorrow –and allowing you to move forward from a place of stability, not stress.
