Self-employed counsellor

Tats22

I've recently finished my counselling Masters and have been looking around at the counselling jobs available in my area. As my kids are still school age, the jobs I've seen don't give me enough flexibility so instead I'm thinking of setting up in private practice. But I'm a bit concerned about being self-employed and what I'd need to do in terms of setting up, accounting, marketing, websites etc, is it really complicated for someone with no business experience? Would I need to put together a business plan or just start with what I have? What type of things would count as expenses I could offset eg insurance, professional memberships, supervision, counselling books/resources/materials, CPD courses, even refreshments offered to clients, or walking boots (I hope to take my practice outdoors into nature)? Would I be best to get a separate phone or use my personal mobile. I have an outhouse I was thinking of converting to an office space/ counselling room, would the renovation and furnishing costs be deductible? Any advice gratefully received, thanks.

MattMattMattUK

Tats22 said:

I've recently finished my counselling Masters and have been looking around at the counselling jobs available in my area. As my kids are still school age, the jobs I've seen don't give me enough flexibility so instead I'm thinking of setting up in private practice. But I'm a bit concerned about being self-employed and what I'd need to do in terms of setting up, accounting, marketing, websites etc, is it really complicated for someone with no business experience? Would I need to put together a business plan or just start with what I have? What type of things would count as expenses I could offset eg insurance, professional memberships, supervision, counselling books/resources/materials, CPD courses, even refreshments offered to clients, or walking boots (I hope to take my practice outdoors into nature)? Would I be best to get a separate phone or use my personal mobile. I have an outhouse I was thinking of converting to an office space/ counselling room, would the renovation and furnishing costs be deductible? Any advice gratefully received, thanks.

All the business stuff is pretty easy really, but I would advise you to get an accountant and let them talk you through all this. Are you registered with the professional bodies (UKCP and BACP) as they will offer some advice, especially in terms of the correct insurance, safeguarding, suitable locations etc. (eg. walking around outside on public land may well not be regarded as acceptable due to safeguarding issues, privacy issues etc.) You also need to establish what kind of therapy you wish to offer and to what kind of patients. 

A quick skim though your list.

Tats22 said:

But I'm a bit concerned about being self-employed and what I'd need to do in terms of setting up, accounting, marketing, websites etc, is it really complicated for someone with no business experience? 

All of that is easy, the the only difficulty is marketing, which can be hard to get right and also there are specific requirements for an accredited therapist in relation to advertising.

Tats22 said:

Would I need to put together a business plan or just start with what I have? 

It is always a good idea as it gives you an idea of potential outgoings, it lets you see gaps in your plan, how you plan to proceed over the short and medium term etc. 

Tats22 said:

What type of things would count as expenses I could offset eg insurance, professional memberships, supervision, counselling books/resources/materials, CPD courses, even refreshments offered to clients, or walking boots (I hope to take my practice outdoors into nature)? 

Likely all of those apart from the walking boots. 

Tats22 said:

Would I be best to get a separate phone or use my personal mobile. 

From a separation of work and life basis I would absolutely get a separate work phone. 

Tats22 said:

I have an outhouse I was thinking of converting to an office space/ counselling room, would the renovation and furnishing costs be deductible?

In theory they could be, yes, but that has other implications, especially when you come to sell the property (capital gains), I would recommend you talk this through with an accountant. On the note of an accountant go with a small individual one, not a firm, you will get a much more personal service. 

Tats22 said:

Any advice gratefully received, thanks.

My advice would be to really consider if this is the right course of action. Many people go into private practice after several years of employment in the role. That has several advantages, firstly they will often pay for a variety of the costs whilst you learn, secondly you gain valuable experience in the role whilst surrounded by experienced people and thirdly you generate credibility, not many private patients are going to be willing to choose someone with limited to no experience, where as in employed practice you will gain experience over time. Finally you are unlikely be able to become an approved practitioner for private healthcare providers, or GP referrals without several years experience first.

Have you looked on NHS jobs for roles as there seem to be quite a few counsellor jobs available (although some are higher pay bands so may not be an option yet). Private health providers also offer in practice options. 

I can see why you like the idea of self employment for this, but it does very much feel like you might be jumping in at the deep end. 

Tats22

That's really helpful, thanks. I've been counselling in a voluntary capacity for many years, and my plan was to continue a few hours a week whilst building up a private caseload because as you say it's great to be around an experienced team and the training available keeps my skills updated. I was fortunate to have got a grant as a volunteer to have done a course on walk and talk therapy hence why I was hoping to use it in practice. Professional registration is my next task, good point I'm sure they would have some useful pointers. I applied for an NHS counselling role and the feedback I got was I needed to have healthcare experience in order to get the job, which I don't have, I even offered to volunteer for a while to get that experience, but they said that wasn't something they'd consider, so catch-22 there! Or it seems a lot of the jobs on offer only want accredited counsellors, but how are you meant to get that accreditation without yet more volunteering, how are counsellors meant to earn a living? I've already studied for 7 years at university to get to this stage! We hear so many people are struggling with their mental health particularly living through pandemic so I thought I could join some dots even if it does mean jumping in at the deep end! Thanks again for your helpful advice 

Marcon

It's getting the clients that will be your major challenge. Plenty of online help in terms of setting up and running a business https://www.gov.uk/browse/business  plus professional assistance from a good accountant should go a long way. The problem is that you're going to make a living doing this, you'll need to charge sensible rates - and people aren't going to be keen on paying that sort of money for someone without a proven track record. Academic study/placements/volunteering are all excellent, but unless you have a website which includes something to demonstrate you've been in a fairly high profile work environment, you could struggle to get things off the ground. As you say - can be catch-22.

Have you thought of contacting local GP surgeries and seeing if they might welcome your services? You may need to agree 'special rates' (i.e. lower than you hoped), but if it gives you the background you need, could be worth considering.

You are indeed going to be offering a valuable service, so I hope you can find a way to make it work.

MattMattMattUK

Tats22 said:

That's really helpful, thanks. I've been counselling in a voluntary capacity for many years, and my plan was to continue a few hours a week whilst building up a private caseload because as you say it's great to be around an experienced team and the training available keeps my skills updated. I was fortunate to have got a grant as a volunteer to have done a course on walk and talk therapy hence why I was hoping to use it in practice. 

It is good you have a idea of the direction you want to do, in terms of grants it may be worth looking at grants charities can use to offer counselling and then approach them to offer your services. 

Tats22 said:

Professional registration is my next task, good point I'm sure they would have some useful pointers. 

I would make this the key, they will have a lot of advice, probably recommended and discounted insurers, advisors, I think they may have a mentoring program, things like that.

Tats22 said:

I applied for an NHS counselling role and the feedback I got was I needed to have healthcare experience in order to get the job, which I don't have, I even offered to volunteer for a while to get that experience, but they said that wasn't something they'd consider, so catch-22 there! 

That does seem a bit of a pain, also seems illogical as they are desperate for more people.

Tats22 said:

Or it seems a lot of the jobs on offer only want accredited counsellors, but how are you meant to get that accreditation without yet more volunteering, how are counsellors meant to earn a living? I've already studied for 7 years at university to get to this stage!

I think some people get lucky with entry placements into the NHS, others get employed placements from university connections etc. Others will do it later in life and be able to live of a partners income whilst they become accredited via the volunteering route. 

Tats22 said:

We hear so many people are struggling with their mental health particularly living through pandemic so I thought I could join some dots even if it does mean jumping in at the deep end! Thanks again for your helpful advice 

I think that many people were struggling before, there has just been more of a focus on it now. 

One other thing, do you think you want to offer counselling, usually more short term, or psychotherapy, more long term? The former might be easier starting out, be the latter could be more rewarding, although similarly more challenging as well.

I did three years of therapy, I started off doing a short term bit of counselling as I felt a bit down and that worked, but rather than end it there I decided to keep going as we did some exploration, found out a lot about myself and I am much better for it, even though I did not really feel that there was anything wrong in the first place, I now recognise that a lot has improved and it has given me the tools to keep improving throughout the remainder of my life. I also recognise that not everyone has the luxury of being able to pay for private therapy every week for three years. It gave me a greater interest in the human mind and how people work, I did an A-level in psychology and an looking at further courses, not because I would ever be a counsellor or therapist, I don't have the patience for it, but gaining a deeper understanding of people is always beneficial. 

Sandtree

Having customers coming into your home can cause all sorts of headaches with insurance, mortgages, planning permission, council tax -v- business rates etc. Plenty of people do it without declaring it but I've also seen claims over £500k on home insurance being declined because investigations showed they were running an undeclared business at home.

Anything that is purely business use generally can be deducted from your income but there are special rules around certain things like training, a discussion with an accountant would be sensible.

You also need to consider you liability exposure, if someone sues you for bad advice etc. Insurance is one avenue for helping to mitigate that. You may also want to consider others like operating via a company so you separate your personal assets from your business assets and so you cant lose your house (again potential complexity if you have claimed building a treatment room as a business expense)

Tats22

Thanks for your advice and for sharing. My practice is integrative and collaborative, tailored to the individual requirements of each client, I don't stick to one modality. As a therapist I feel they are the experts on their own lives and they are the ones responsible for their change, I'm not there to fix them. I just help facilitate the process giving them a safe, reflective, accepting space in which to explore any problems in living they are experiencing and together work out a way to move forward. Research basically shows it doesn't matter the type of therapy on offer, it's the person of the therapist and the therapeutic relationship built between them and the client that are key. I feel extra-therapeutic factors are really important as well from the client's own environment - family and friends, local support networks, exercise, nature etc, whatever works for the individual - for instance I rely on things like my family, pets, getting out into the hills and woods, yoga and mindfulness to help keep myself sane! Sometimes the simple things need acknowledging as important resources in one's life that otherwise might be taken for granted, it can definitely help sometimes to have "an attitude for gratitude".  There are lots of headaches you mention there, much to chew over, insurance is a definite must, but as a first step I've set up a meeting with a local accountant next week and started designing a website so will see where it takes me. I've been reading some stuff online too and re catch 22 and the cycle of unpaid counsellors basically being exploited, came across the Counsellors Together UK organisation if anyone's interested in finding out more: https://ukcounsellors.co.uk/

Sandtree

PS, forgot to answer your very first question...

There is a difference between being great at what you do and being great at running a business around what you do. Unfortunately some think that if they are a great kitchen designer it'd be easy to set up their own kitchen design company.

Professional services probably are a little easier than some other business types as generally you dont have to grow and employ staff if you dont want to. You dont have to deal with suppliers or stock etc. There is one fundamental thing that cuts across any type of business however which is... how do you get your customers?

Unfortunately many people have a "build it and they will come" type attitude and really dont think about the marketing, USP etc. We have a small unit on the 3rd floor of a light industrial unit on an industrial estate with no parking in a rough part of town and were surprised when a year ago the neighbouring unit was opened up as a single chair hair salon. Ok the rent is only £400 per month inc utilities but a year on if they have 2-3 customers per week its a good one (unless they do a lot of late night work but his bike is normally gone by the time I am)

I know nothing about counselling, and to be honest dont want to, but realise that what I am about to say is not 100% true as do have a friend who's been seeing their "really good" counsellor for over a decade, but in theory if you are really good you'll lose customers quickly. If a hairdresser is great the customer comes back every couple of months at least... if a therapist is great their customers quickly stop coming back because they're cured.  Acquiring new customers is always more costly than retaining existing ones

Tats22

Fair points. I suppose sadly there are always people needing help with their mental health. I already have 2 clients lined up who through my charity work with them have asked if they can come and see me privately, and 2 that other therapists I know want to refer on once their time-limited services come to an end within the charitable organisations where they work, so that's a start. There is always sessional work I could take on if need be, and although I plan to take on a client or 2 on a concessional rate, it also fits with my values to continue volunteering, as said above, not everyone can afford private sessions. Like hair though, sometimes with good mental health it's never a destination, always a journey, some people will always need to work at it and attend regular sessions to help maintain it. Building trust is not to be underestimated either, if you gain a good reputation then that eases the process, some clients might prefer to stay with a therapist they trust implicitly then start telling their story again with someone else. But for some maybe a new therapist every so often brings new perspective, so horses for courses.
Unfortunately some people just don't have anyone they can talk to, in a safe way, where their story is kept confidential and no matter what they say they are valued and accepted as they are. I feel it a privilege to walk alongside these brave souls doing their best to get by in the world as s**t flies around them. I'm keeping an open mind though about private practice, will tread cautiously and not be afraid to tweak and change as to what's necessary, if it doesn't work out can always do something else but just keep my hand in as a volunteer if still wanted and needed.

Sandtree

As I say... not an area of my interest and not looking for answers but the question to ask yourself is how do customers find you and why do they choose you over Bob down the road?

Websites are fine but unless you know a lot about SEO, willing to pay someone else to do a lot of SEO work or willing to pay SEM to buy visitors (and again do you have skill in AdWords or are you paying someone else to manage) then it will sit on page 15 of results and no one will ever see it.

Many of the small business I have known that have failed has fundamentally been because they were unable to attract the volume of customers they needed for the budget they predicted. Some have failed quicker than others because they massively overestimated the numbers of customers they'd have so locked into high operating costs that burnt budget when their warehouse on a 3 year lease had just 2 pallets of goods that could fit in anyones garage. 

Tats22

I think I'll just give up now and retire quietly somewhere!