Setting up in private practice

[Jenny]

Found this article (http://www.counsellingatwork.org.uk/journal_pdf/acw_winter06_g.pdf) (pdf document) which may be helpful for anyone interested in setting up in private practice as a counsellor :)

[Jenny]

And the BACP guide to setting up as a counsellor in private practice can be found here (http://www.bacp.co.uk/members/info_sheets/E1.html)


E1: Practical aspects of setting up a counselling service
By Lynne Gabriel and Roger Casemore
This Information Sheet is also available in PDF format – click here (http://www.bacp.co.uk/members/info_sheets/pdf/E1_web.pdf)

Aims

This Information Sheet aims to provide practitioners with a simple and logical procedure to follow in setting up a counselling service, comprising a set of key questions to consider, as well as pointers to further guidance, information and business support. The material in the Information Sheet will be revised from time to time, to reflect relevant professional and corporate developments.

Introduction

This Information Sheet is intended for those who are considering or in the process of setting up a counselling service. The key principles and questions in the Information Sheet are intended to provide a structured and systematic approach to setting up the service, assisting practitioners to take all relevant issues into consideration.
This is a broad and complex subject area, so please regard the information presented here as guidance for supporting and informing the necessary planning and decision-making.

Key principles and questions to consider when setting up a counselling service

The principles involved in setting up any new business apply to a new counselling service, whether you are setting up as a sole trader or private practitioner, as a small partnership business of private practitioners, or as a voluntary or charitable organisation. In this guidance we regard the setting up of a counselling service as a business venture. Setting up any new business or organisation demands considerable time and energy before you even start, in identifying the feasibility of the organisation, investigating market needs and designing appropriate services to meet those needs.

These key questions can provide a systematic approach to thinking about the process of setting up the counselling service and increase its chances of success. An important planning rule is that form must always follow function and not the other way around.

1. Where can you access advice on setting up the service?

Before taking any action to set up the service, whatever kind it is going to be, ensure that you get proper advice. Advice is usually free and can save you making costly mistakes. For example, free financial and business start-up advice is available through most high street banks. Business information is also available through local Chambers of Commerce, including information on Business Link and Business Start-up. Ask yourself 'How do I construct a business plan?' Clearly, you need to identify ways to approach business strategy, financial and strategic forecasting, and risk management. You may also be able to access special grants through these sources, to help you get started. If you are setting up a charitable or voluntary organisation, rather than a business, you would be wise to contact the National Council for Voluntary Organisations and the Charity Commissioners, for their information packs.

2. What exactly do you want to do?

This is an important question when considering setting up a counselling service and it helps to clarify the purpose of the venture and define which services will be offered, and how the service will function. As part of this process, consider as many 'how', 'why', 'what', 'when', 'where', 'who' questions associated with the proposed venture as possible.
Consider:


Whether it is realistic, feasible and viable.
Whether there is a need for the proposed service(s).
How the service will be funded, e.g. through personal finance, corporate funding, bank loans, grants from other funding bodies, or a combination of these?

Some sample questions might be:


Who will my clients be?
Where will my clients come from?
Who might refer clients to me?
Will counselling be free at the point of delivery?
If charging, what rate will the market bear?
What income can I generate?
What will my costs be and how much do I need to earn gross/net above these costs?

3. What is the context in which the counselling service will be offered?

For instance, will it be a:


private practice.
volunteer-run agency.
free-standing charitable organisation.
service set in a corporate context?

Will you be working as a sole trader or a small partnership?
Will the organisation be a:


collaborative or co-operative venture?
hierarchical structure with, say, line managers and devolved authority and responsibility?
profit-sharing venture?

Will it be a company with:


public liability?
a charitable company limited by guarantee?

4. How will the service be marketed?

It would be a good idea to carry out a short feasibility study to answer these market research questions and any others you can identify, including the following:
Consider:


'Who is your target audience?' and how you will define them and investigate/research their real needs.
Identify your probable competitors/rivals and be clear about your service and its leading edge over and above your competitors in the same or similar fields.
What other similar services are available?
What does yours offer that is better/different, etc?
How you might network to enhance the prospects of your venture.
Advertising in professional journals and local/national press and radio, but be aware you may get inappropriate calls if you make your phone number public.


5. What are the professional and organisational issues in the counselling field?
Consider:


What are the minimum counselling qualifications required of the counsellors?
What are the supervision requirements likely to be and the costs attached to these?
Will you take out organisational membership of BACP?
What are the requirements of BACP which should be met in relation to policies and procedures for staff and/or volunteers?
What policies and procedures are required by law – e.g. in relation to employment, health and safety, equal opportunities and human rights legislation?
What insurances will you need to have e.g. public liability, professional indemnity, accident, etc?
How you will ensure that the service reflects the values and principles contained in the BACP Ethical Framework for Good Practice in Counselling and Psychotherapy1?

Be clear about minimum levels of practitioner qualifications for those delivering the service. If you are going to set up a voluntary organisation, perhaps using volunteer counsellors, contact your local Council for Voluntary Service (CVS) for information on policies and procedures. Another useful source of information is the National Council for Voluntary Organisations, which will give you good, free advice on setting up as a charity and on setting up a management committee and structure. In addition, where trainee counsellors are involved, liaise with their training institution to ensure that your placement provision meets theirs and any BACP criteria.

6. How will you handle the service's successes and/or failures?


Can you deal with a very high level of demand for the service?
What strategies do you need to have in place to help you cope with a very slow and/or a very low response to the service?


7. How will you deal with quality issues?


How will you manage the administrative side of the service?
What assessment and review procedures might you put in place?
What statistics do you need to keep (for instance, for funding providers)?
What business accounts and financial planning and monitoring processes will you need?
Will you need a book-keeper to do your accounts?
Will you need to register for VAT?
Will you need to register as self-employed?


8. What qualities do you need for setting up the service?
The following skills, knowledge, abilities and qualities for running a business are needed:


Numeracy skills might be important and some knowledge of book-keeping/accounts, although most of this may need to be delegated.
Good communication and marketing skills
Ability to remain focused in order to build the business
Ability to cope with the rather different ethics of the business world, compared to the ethics of counselling
Ability to deal with the ethical and organisational conflicts between running a business/making a profit and providing an ethical service to clients


9. Financial perspectives to take into account
Consider:


Do you want to earn money and make a profit, or just to break even?
Have you ever managed accounts before?
Are you going to be employing other people either paid or in a voluntary capacity?
Do you know anything about tax law and the various aspects of employment law and the differences between employing paid and volunteer staff?
Have you ever filled in a self assessment form for the Inland Revenue?
Have you ever produced a balance sheet and a set of accounts?
Do you have any experience of being self-employed?

Avoid getting into trouble with the Inland Revenue, or with your bank manager! Even if you are relatively experienced in financial matters, it is still a good idea to take advice from an accountant but if you are inexperienced in these matters, you should seriously consider employing the services of an accountant or other suitably qualified professional.
The main benefits of using an accountant are that it will save you a lot of heartache and offer you some real protection and support in dealing with the tax authorities.
An accountant should be able to help you with:


Informing the Inland Revenue about your new service, when to inform them and what they will need to know
What is taxable and what may be classed as expenses
Whether you need to register for VAT purposes
What you can claim against tax
How to pay self-employed national insurance
What pension arrangements you may need to make
How to keep accounts and what receipts and documentation should be kept

Accountants will also be able to advise you on the various aspects of working from home and what expenses you can claim for that. Importantly, they will also be able to advise you on what to do with any profit you may make, and how to pay yourself.
Most accountancy companies will offer you a small insurance policy to cover costs incurred on your behalf as a result of any investigation by the Inland Revenue.
There are a number of drawbacks in using an accountant:


You will still have much work to do in keeping your records for your accounts.
You will have to pay them and you will have to put some time and effort into developing a good working relationship with them.
They will charge you a fee based partly on the amount of work they have to do for you, and partly on the amount of money you turn over.

In spite of these drawbacks and the fees they charge, accountants can help you reduce the amount of tax you have to pay.
Choose an accountant who is qualified, registered and experienced, and do not use friends informally for this purpose. Your bank manager will not recommend a specific accountant to you, but will provide you with a list you can choose from. Just like choosing a therapist, it is a good idea to check out two or three, to find one you feel you can trust and with whom you can work. Again, just like good therapists, good accountants will establish a clear and explicit written contract describing what they will do for you and what they expect from you, so make sure you get a contract.

Concluding comments
The key questions set out above are not the only ones to think about and they are not in any order of merit – each one is significant and they will interact to shape the provision that is unique to you and your counselling service. Once you begin to start asking yourself these questions you will discover a host of others that also need to be considered. A key thing to remember is 'if in doubt, question, consider and consult, consult, consult'.
If you do decide to go ahead with setting up your organisation, don't try to do it on your own. Don't go re-inventing the wheel! Keep talking with others, keep taking advice and maybe a little therapy wouldn't go amiss either.

References


BACP Ethical Framework for Good Practice in Counselling and Psychotherapy, Rugby, BACP, 2002


Further Reading and Resources
BACP Information Sheets on the following topics can provide useful in particular: Gabriel L, P5: Working in a Multitask Job. Rugby, BACP, 2002
Gabriel L and Casemore R, P4: Guidance for Ethical Decision-making: a Suggested Model for Practitioners. Rugby, BACP, 2003
Bond T and Jamieson A, Confidentiality, Counselling and the Law. Rugby, BACP, 2003
Your local Chamber of Commerce will have a small business unit (Business Link) with free advice and access to grants and other financial support – check Thomson Directory and BT Business Pages for their address and telephone number.
Local banks usually provide a free small business advisory service and will also give you a list of local accountants who can help with income tax, VAT and other financial advice. Most accountancy firms will give you a free session of advice before setting up your business.
Web resources – in particular, the BACP website: www.bacp.co.uk (http://www.bacp.co.uk/)
The National Council for Voluntary Organisations can advise on organisational structures, setting up management committees etc. Tel 020 7713 6161. www.ncvo-vol.org.uk (http://www.ncvo-vol.org.uk/)
The Charity Commissioners. Tel 0870 333 0123