Ways of Building a Successful Private Practice
People are trying to build private practice every now and then. One thing that one needs to realize is that private practice is actually business and not a hobby. By the virtue of it being a business, a number of things are put into a combination for it to flourish. A combination of effective marketing, proper mindset and the right attitude is required. Finances is a key factor in setting a private practice. Financial literacy is one of the most essential factors to a successful practice. What one needs is a healthy relationship with money and know how to manage it. There a lot of things that relate to finances like adjusting beliefs and thoughts around money.
In accounting there is something referred to as a three piece pie accounting section. What is meant by this is that the income that one gets should be divided into three sections which should go into different bank accounts. There is the tax pie and this requires that the income deposited here should not be touched until it comes to the time to pay taxes. In a business one needs to pay bills and therefore the second section of the pie is for paying bills. In a private practice one will definitely need to pay bills which include water and electricity bills, services such as cleaning bills and of course salaries. The pie’s third section is for the personal account. Some of the money can be left after paying taxes and this can be taken to the second section of the pie which is paying bills. If there are some finances left after the bills have been paid they can be taken to the personal account. This three piece pie section is very important as it makes sure that one does not lag behind in paying taxes or other bills. Mingling of personal and professional funds is also restricted by it.
One should know the time for investment and the time for saving in money matters. There should always exist a balance between saving and spending because one can find themselves spending even what they are supposed to pay. Some people at times tend to over-save and this means that they cling on the money so much to an extent of forgetting some of their needs and limiting their chances of growth. There is fear for some people of not having enough. Healthy financial management will ensure that there is enough to spend and save in private practice. Good management of the finances is ensured by the three piece pie accounting section. One can be led to overspend or to over-save by having an unhealthy money mindset .