December is traditionally the time for private practice therapists to put together their 2008 business plan.
The first step is anticipating revenues. Calculate your hourly rate (not how much you bill, but how much you expect to collect), how many clients you will see, and how many days you will work per year and multiply these amounts. This is your projected revenue per year
From that, you'll need to calculate your expenses--malpractice insurance, rent, electricity, materials, association dues, and marketing. Your overhead will likely equal 30% of your income. Also calculate projected taxes and set aside funds for retirement and capital improvements (new office equipment or furniture, etc.).
