Show Notes

Kayla: Welcome back to the Designer Practice Podcast, and I’m your host, Kayla Das.

In today’s episode, Liane Wood, registered psychotherapist and owner of Build Your Private Practice, will share how to build your private practice with an exit strategy.

Hi, Liane. Welcome back to the show. I’m so glad to have you here again.

Liane: Thank you so much for having me back. I am really excited to be here again. I always love our conversations, and I’m looking forward to diving into today’s topic because there’s so much to talk about when it comes to building and growing a successful private practice, and I know your audience is going to get a lot out of our discussion.

Kayla: A hundred percent. And, I’m even just thinking people are like, Ooh, with an exit strategy, like, why would I start a private practice just to have an exit strategy? So, please continue to listen because you’re going to love this podcast episode.

And Liane was actually on our podcast last year to discuss how to protect your practice from complaints which was episode 55. So, if you haven’t already listened to that episode once you finish this episode feel free to head back and listen to that episode. It was such a great conversation. Just like I know today’s is going to be  

Liane, before we dive into today’s episode, please introduce yourself, where you’re from, and a little bit about you, your practice journey, and a little bit about Build Your Private Practice.

Liane: Absolutely. Thank you. I am Liane Wood, and I’m based in Canada. I’m a registered psychotherapist and the CEO of Build Your Private Practice, and the owner of Rethink Me, a boutique psychotherapy clinic that’s been serving clients since 2017.

But before becoming a therapist, I spent over 25 years in the insurance industry as a business owner running and owning three different insurance brokerages. Entrepreneurship has always been in my blood, and I thought stepping into private practice would be like any other business I built and until I quickly realized it was a completely different world in therapy. So even with all of my business experience, I had to relearn so much to make private practice work from marketing to operations to creating a financially sustainable model that didn’t lead to burnout.

And that’s really what led me to Build Your Private Practice, helping other therapists navigate the challenges of growing the practice in a way that makes sense, both financially and professionally. I know firsthand how overwhelming it can feel, and I love helping practitioners find real practical strategies that make growth feel achievable and sustainable, and I’m so excited to dive into today’s conversation.

Kayla: Amazing! So am I. So, I know there are many listeners thinking to themselves. I’m just starting to build my private practice. Why would I think of selling it or having an exit strategy right now? So, why should therapists even think about selling right from the start?

Liane: That is such a great question. And I totally understand why some therapists don’t even consider selling when they’re just starting out. But here’s the thing, almost every other regulated health professional in private practice, whether we’re talking about dentists, physiotherapists, chiropractors, or even medical professionals, they build their private practices with the long-term goal of selling it.

Their practices are considered assets, and they create succession plans from the start. So, really, why should therapy practices be any different? Especially when you think about the time, the effort and the sheer energy that goes into building a private practice from the start, finding clients, building systems, creating a brand, establishing referral networks. I really think it makes sense to see your practice as something valuable. And something that can be sold when the time comes. Because after all, why wouldn’t you want to get something back for all that sweat equity that you put in?

And then there’s another perspective, and that is that there are therapists out there who would love to skip the hardest parts of launching a private practice and instead buy an established one. Not everyone wants to do that hard work of starting a private practice from scratch and buying a practice means stepping into something that already has momentum, a client base, a reputation, systems in place. It can be a real win-win because the seller gets rewarded for the practice they built and the buyer gets a head start in private practice.

And it doesn’t mean that you have to have loads of money in your pocket either to buy a private practice because there’s so many different ways to structure purchases and sales. So even if selling your practice feels like it’s way far off, it is seriously never too early to think about how you’re building your practice so that you do it in a way that makes it valuable to someone else down the road.

Kayla: I love that. I know that you bought Build Your Private Practice. So what benefits have you seen personally from being able to buy versus say startup from the ground?

Liane: I love that question. And, to be transparent, I’ve done both. I’ve bought businesses. I’ve started businesses from scratch and turn around and sold them. And so, there are bonuses or pros and cons to both. And I love buying a business, especially one that has a good track record. And all those systems are in place. Referrals are in place. Oh, my goodness. It makes life so much easier in so many ways.

And, yeah. There is something to be said, and I think maybe it’s just a serial entrepreneur in me that I was like, yeah, I’ll start it and do the heavy lifting and get things done and build it the way that I want it to be. And so, I think it really comes down to when I think about it, what I’m going to do next, right? It’s like, well, how much time and effort and energy do I want to put in?

Not that buying an existing business doesn’t require time, effort, and energy. It does. Is just a very different time, effort and energy, right? Like when you start something from scratch, there can be a lull between all the work that you’re putting in and when you’re getting paid for it versus hopefully when you buy a business or a practice, you’re stepping into something that’s already generating revenue. Does that make sense?

Kayla: It does. And I love that you connected that it doesn’t mean that you don’t have work to do because I mean, you do. But you said it brilliantly earlier, you said, you’re not having to start from scratch. You’re not having to make those mistakes. Not that you’re not going to make mistakes, but you’re not making those very initial mistakes. You’re not having to wait for lulls because the practice that you buy is going to have already an established reputation. It’s already going to have clients coming in through the doors. It’s already going to have likely an email list or some way that it gets its clients. So those pieces are already there for you. I love that.

So, what’s the difference between a sellable and an unsellable or hard to sell practice?

Liane: Yes. Love this question, too. There’s a real difference between a sellable practice and one that’s difficult or hard to sell. And in my thought process, it really comes down to a few key factors. And we’re talking about a practice, but really this can be applied to almost any business.

But a sellable practice is really one that operates as a true business, rather than just an extension of the therapist themselves. And what I mean by that is the business or the practice has systems, processes, and the client base that aren’t solely dependent on the owner, right?

So ideally it could include things like a strong brand and reputation that clients recognize and trust. Established referral sources that will continue even after the original owner steps away. Consistent revenue streams, whether that’s through client work, group programs, supervision or other offerings.

Another piece of it would be standardized operations. So having clear policies, procedures and either a team or an admin support in place. And I think the other thing that’s really important to have is contracts, documentation and financials that really show stability in the practice.

On the other hand, a hard to sell practice is one that is too closely tied to the therapist’s personal brand. Like it’s too closely tied to that individual therapist because if clients are only coming to the practice because of that one therapist, and if there’s no systems in place to allow a smooth transition to new ownership, then the practice isn’t really an asset. It’s just a job. Which is okay. Don’t get me wrong, but we’re talking about building something that is sellable.

And so. understand that people who are buying practices, they want to step into a practice that has momentum and value beyond the person who’s selling it. So if selling is even a remote possibility in the future, it’s worthwhile thinking about how you’re structuring your practice now to make it a valuable and transferable asset later.

Kayla: I love that and really what’s coming to mind for me is a lot of therapists, and I’m actually going to say even in my business coaching, I use the name kayladas.com and a lot of us will use our own names. And when I started, I really thought about what’s my goals. and really, my goals is kind of to be an influencer for the most part in the therapy world. I know not a lot of people like the word influencer, but that’s really kind of what I want to be. So, in saying, I had to really think about even though I have a business name called Evaspare Inc, even my branding, although it can be changed, but the website, its URL, its SEO is built on kayladas.com.

If I sold my business, I wouldn’t sell my name to somebody because that’s my name. So, I’m not going to sell it to anyone. So, you really have to think about that when you’re doing it, So, you know when you’re starting off and you’re like, oh, I think I’m just going to start off as Kayla Das. It’s thinking about like do I want to sell this in the future because you’re probably not going to sell your name and nobody really wants to have your name.

But if you have a business name and I’m just going to go if I wanted to brand and I do have The URL evaspare.ca, but I don’t use it. If you wanted to build up that, like you said, the systems, the reputation, the SEO, all of that onto a website, you’re going to want to determine what your business name is. So it’s really important to determine what your goals are in the end so that you can make an informed decision of do I want to sell it or Do I not? Because you can use your name then, but people aren’t going to want to buy your name.

Liane: Not usually.

Kayla: So, are there any common pitfalls or mistakes that therapists make that can hurt their practices sale potential?

Liane: Oh, yeah, definitely. There are some common mistakes that can make a practice much harder to sell or even just significantly reduce its value. I think some of the biggest pitfalls can include things like what I mentioned a moment ago, having the practice be too owner dependent. So, if everything in the practice relies on the main therapist, their name, it relies on their reputation, it relies on the reputations they have with clients, it’s hard for a buyer to step in without losing clients and revenue.

A sellable practice should have systems in place so that operations and client retention don’t hinge on one person. The second thing is not having solid business systems, having a well-documented practice with clear policies and procedures, and financial records is far more attractive to buyers than one that runs on intuition and memory. Especially if it’s running on the memory of the previous owner who’s not there anymore, right? So, buyers want to see that the business of the practice can run smoothly without needing constant troubleshooting.

The third thing I would say is lack of having a scalable model because a solo practice that’s built entirely around one therapists’ time and availability is more difficult to sell than, something like a group practice or even a solo practice that has multiple revenue streams, because even if a therapist is solo, if they have admin support, or they have associate clinicians, or they have additional service offerings, that makes the practice a lot more valuable.

The fourth thing I would say is not having long term client retention or referral strategies, right? So, a practice that is consistently brings in new clients and has strong referral partnerships is much more attractive than one that has unpredictable revenue or a high client turnover because buyers really want stability and that comes from having a clear marketing and referral system in place.

Another thing would be maybe weak branding or not having an online presence because in today’s world, having a strong online presence is crucial. So, if a practice lacks an established website or an established SEO strategy, or they don’t have a recognizable brand, to a buyer, that can feel more like a risky investment.

The last thing I’ll mention is not planning early enough. So, you know, many therapists don’t think about selling your practice until they’re either burned out or they’re ready to leave. Like I want to leave in 60 days. And by then it’s often too late to build the systems needed to make it a desirable purchase.

So really seriously, the best time to start thinking about selling is way before you actually want to sell it. But the good news is that so many of these mistakes I’ve just talked about, they can be corrected really easily with some intentional planning, even small changes like building a referral network or creating some clear policies and gradually stepping back from being the face of the practice can make a big difference in increasing your practice’s sale potential.

Kayla: One addition I’d like to add to that too, and this is me being an SEO nerd. I love SEO. Is that the more work you put into your website is going to also improve sellability, because it’s going to constantly be bringing people into that website over and over.

A lot of us think, oh, I’m going to buy Google ads, and there’s nothing wrong with Google ads. But they don’t help your business long term, they help them short term as people are clicking on them. But if you have a very active SEO strategy, making sure that you’re always putting out content and people linking back to you consistently. You are going to build up that asset, it’s going to be longer, but when you’re ready to sell, you can actually show the person that you’re selling to, hey, look, I have X amount of people coming to my website organically.

As of recording this podcast episode, I currently have 89 percent of people come to my website through organic methods alone. And organic meaning finding me somewhere on Google. So, I mean, it really is a sellable asset if you put that time into it.

Liane: Definitely.

Kayla: What considerations or steps should listeners take to make their practice sellable?

Liane: Yeah, if therapists really want to build a practice that is sellable, there are a few considerations or steps that I think that they should focus on. The first one is to start thinking like a business owner, not just a therapist. Really understand that your private practice is a business. And so from the beginning, structure your practice as a business that can operate without you being the sole driver. And what that means is creating systems, branding beyond your personal name, and ensuring that your revenue isn’t entirely tied to you doing individual sessions.

The second thing I would say is to develop strong operational systems. A sellable practice has really clear policies, procedures, and documentation in place. And what that means is somebody can coming in, can look at your office manual, look at your systems and be able to read or watch a video and know exactly how to do everything from. Things like client onboarding to billing to scheduling that should all be streamlined and documented so that someone else could literally step in and run it smoothly.

The third thing I would say is building a referral network and a client attraction system because the practice that is consistently attracting new clients is far more valuable than one that relies on the therapist personal connections. So having those strong referral partnerships and like you mentioned, strong SEO strategies or community outreach ensures that future owners can continue bringing in new clients to the practice.

I’ve touched on this one just a little bit but I’m going to dive into it here for a moment, and that is diversifying revenue streams coming into the practice, because practices that offer more than just one to one therapy sessions tend to be more sellable, whether it’s group therapy, supervision, workshop, courses, or even associate clinicians, those create other revenue streams that continue, even if the original therapist steps away.

So, you really need to start thinking about how to separate your personal brand from the business of the practice, right? Because if your name and reputation are the main draw. It’s much harder to sell. So, focusing on branding the practice itself rather than centering everything around you as the individual and this can mean having a practice name, a strong website, and a recognizable identity that can stand on its own.

Another key piece that buyers will always be looking for is clean and organized financials. Buyers really want to see clear financial records that demonstrate consistent income, manageable expenses and a strong client base. So, working with an accountant to keep your books in order is really important so that you can make sure you can show profitability.

And one of the last things would be that while solo practices can be sold, they’re often a little bit harder to transition, especially when there are no other sources of revenue coming in. So, whether you have a team or you have administrative support, those pieces can make the profits more valuable because it’s not entirely reliant on you.

And then again, I’m going to say it again and again, planning for succession early even if you are years away from selling, thinking about your exit strategy now helps ensure that when the time comes, your practice is really positioned as a valuable and transferable asset. Ultimately, a sellable practice is one that has those systems, has stability and a structure that allows a new owner to step in and take over without having to start from scratch. And so, the more intentional you can be in setting up these elements, the easier it will be to sell when the time comes.

Kayla: Amazing. So, Liane, I know you provide a service to help listeners. Can you tell us what it is and how it can help them?  

Liane: Yeah, for sure. Absolutely. Through Build Your Private Practice, I help mental health professionals build, grow, and scale sustainable private practices. Whether someone is just starting out and looking to refine their systems or they’re wanting to expand their practice beyond one-to-one therapy, we offer support and guidance to make that happen. And one of the biggest challenges therapists face is feeling overwhelmed by the business side of private practice. That’s the thing we’re not taught in our graduate education programs.

Whether it’s marketing, pricing, client attraction, and even planning for an eventual exit strategy, that’s where our programs and coaching come in. We provide practical strategies, mentorship, and a supportive community so therapists can create a practice that not only serves their clients, but also supports their own financial and personal goals.

So, if listeners are thinking about how to structure their practice for long term success, whether that includes selling one day, scaling, or simply making it more sustainable, I’d love to help. They can check out our website at Build Your Private Practice ca to learn more about how we can work together.

Kayla: Amazing. So, to find out more about Build Your Private Practice and to book a one-to-one consultation with Liane, head to buildyourprivatepractice.ca

Or you can simply scroll down to the show notes and click on the link. Liane, thank you so much for joining us on the podcast today to share how to build a private practice that you can ultimately sell.

Liane: Thanks so much for having me. I’ve really enjoyed our conversation.

Kayla: Thank you everyone for tuning into today’s episode and I hope you join me again soon on the Designer Practice Podcast.

Until next time. Bye for now.

Credits & Disclaimers

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