Starting a private practice is scary, especially when you begin to make the important decisions to allocate scarce resources to grow your new business.

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If I only have $2,000 to distribute across my private practice, how should I know how much to allocate where? What if I over allocate? Under allocate? Should I really be spending $1,000 on marketing or investing it elsewhere?

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All these questions and concerns are valid, but this resource frenzied philosophy, known as the scarcity mindset, can often hinder your new business from growing and becoming sustainable. 

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What is the scarcity mindset?

The scarcity mindset is a philosophy in which one views everything as limited. In a scarcity mindset, the future is dark and unforgiving. One will experience tunnel vision and often be unwilling to take a step back and think outside the box about how to achieve their goals.

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The scarcity mindset can be challenging to break out of when starting a private practice in counseling, particularly when you are at the helm of your business and must watch as your cash is continually expensed and exits your private practice. Many new private practice owners find themselves in this resource-driven mindset when handling finances.

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After all, a lot of finance has to do with the proper management and placement of a set amount of money. In the worst instances, this negative mindset and potential anxiety could even influence your client sessions if scarcity occupies too much of your headspace.

The remedy: the abundance mindset

To remedy the scarcity mindset, allow us to introduce the abundance mindset. The abundance mindset is an inverse philosophy, where you welcome change in life and seek to focus on the future. While you understand that resources are limited when starting a private practice, you also look forward and understand that devoting money to certain areas of your business will generate a return, whether monetary or through a learning moment.

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When building a therapy private practice, forward thinking with an abundance mindset is integral for your new business to thrive and prosper as you will need to overcome unforeseen obstacles, cultivate a client network, and settle any extraordinary expenses that could emerge. With this mindset, you understand that the activities you are distributing your limited resources to will ultimately expand your private practice and lead to you managing a more successful private practice.

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While walking down the path of starting a private practice, keeping track of where you put your money is important but always remember that in order to make more money, you need to be willing to invest in the future and activities that can generate income for your private practice.

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If you are having difficulty escaping the scarcity mindset, we recommend checking out tips towards embracing an abundance philosophy here.

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This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post.

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