The benefit of telehealth as a business model

The key to success for any business is to keep revenue high and overhead costs low. For new business owners, the uncertainty of unexpected costs may feel daunting. In fact, the first feedback I received from a colleague who heard I was starting a business was, “I heard new businesses don’t make money in the first year.”

Luckily for me, I had already done my due diligence and had created a spreadsheet all my potential costs along with my potential income. I was cautious and left plenty of room for unknown expenses. And still, the proof was in the data – a psychotherapy business can see a profit right away. A cost-loss analysis prior to starting your business is as simple as gathering financial data. Yet, there are additional “costs” to your business beyond the bottom line that need to be considered. Keeping inventory on your emotional and energetic wellbeing is also part of your bottom line.

Of course, your main priority as a business owner is to earn a good living, but for the psychotherapist, it is also wise to create a business that supports your energy, morale, and mental wellness. Because of this, it is important to analyze both financial costs – as well as energetic costs – when building your private practice.

The biggest cost to any private practitioner is office space. And now, with the normalization of telehealth, you can decrease your overhead and save yourself some unneeded stress.

Prior to COVID, I had worked in private practice offices for 10 years, including two sublets and three full-time rentals. Subletting a fully-furnished office space was the most cost-effective and easy. I paid an hourly fee and received the benefit of someone else footing the bill for furniture and décor.

When it was time for me to rent a full-time, it required the extra costs of furniture, rugs, tissues, décor, and appropriate sound barriers. Some offices spaces did not include heating, cooling, garbage removal, internet, and electricity in the rent.

Although each office space I rented was better than the last, I still found the lack of control over my space was a large cost to my business. Repairs, construction, and maintenance issues were regular occurrences. Repair people and property managers were often not informed about the type of work I was doing and might bang on my door, or even walk into my room, completely ignoring the “in session” sign that was on my door.

In one instance, exterior repair people unexpectedly appeared outside of my window looking straight into my session. These are just a few of many disruptions I juggled while trying to maintain confidentiality for my clients as well as supportive space for them.

Giving up an office space has proven to have more advantages however, including an overall increase of time. Telehealth negates commuting times, meaning you will have more time for your care of yourself, family, and household.

No commuting time also means that you will have lower cancellation rates. Clients are more able to log online even when in a rush from a child’s drop off or caught in between errands. When cancellations or missed appointments do happen, because I am home, I am more easily able to shift into an activity that benefits me.

Finally, telehealth has helped limit evening appointments. While I once regularly scheduled appointments until seven or eight in the evening. I now have many full-time working clients able to meet on their lunch break or as soon as they get out of work.

Telehealth offers benefits for the private practitioner both as a low cost “office” space but also additional benefits for a better work-life balance. This does not mean telehealth is the best option for all private practitioners, however.

In next month’s column, I will explore the disadvantages to the telehealth business model.