Cost of online therapy

The first year's cost of using online therapy. I will have to pay for a business license, an appropriate technological platform, a website for the therapist, marketing, a business line, a practice management system, and liability insurance before I can begin my internet therapy practice. The practice has been authorized by a business license. I might need to sublet a workspace in some circumstances. An initial monthly contribution of $200 would be needed to cover the expense of all of them. Likewise, I would require an adequate technological platform. HIPAA compliant video conferencing technology is the ideal platform. A webcam-equipped PC would be needed for the system, which would cost $600. Wherever the client is situated, this technology will facilitate live communication with them (Palmer, 2014). The third cost would involve creating a website with voice and practicing vision. The site would help in marketing by listing the services offered as well as any other additional services. The cost would be approximately $400.

The fourth area that involves cost is an advertisement for the online therapy. It would be necessary to inform people of the online site. The cost of the ads includes the cost of creating a business card and indicate that there is a video session. The professional business card would cost $50. The next areas would be the buying a business line through clients can reach for consultation services (Palmer, 2014). The business number would allow clients would be forwarded to my phone number so that client can call and get services even during odd hours. The cost of HIPAA compliant business line would be approximately $10 a month. The same would apply to HIPAA secure email account at $50 per year. The email account proved a platform to communicate with customers.

I would also need a practice management system which is HIPAA secure. The system would help in keeping financial information organized, provide access to clinical notes, lower no-show rates and allow for taking credit cards. The cost of this investment would be approximately $40 a month. Since the business would be mostly online, it would also require a monthly internet fee (Palmer, 2014). The cost of the internet would be approximately $30 a month. Finally, I would incur cost in obtaining liability insurance at the cost of $450 annually. The table 1 below shows the summary of the cost in the first year of operation.

Item

Cost

Business license

$200

Computer

$ 600

Therapist website

$400

Liability insurance

$450

Business card

$50

Business line

$1200

Secure email account

$50

Practice management system

$480

Internet charges

$ 360

Total

$5,170



Table1: Cost summary in the first year.

Sources of the needed Funds

There are many avenues through a business entity can raise funds for investment purposes. However, the best sources of finance should be less costly as well lead to quick access to capital. I would use the personal saving to raise $ 2500. Personal saving does not require the cost to save. These are amount have accumulated over time from my incomes and other private revenue-generating projects (Sherman & Ebrary, 2012). They also do not need any collateral or any periodic interest. It would be a cheap and convenient source of capital for the investment.

I would also use crowdfunding. The crowdfunding through such site as GoFundMe and Kickstarter. I would use these websites and other social media sites to connect with those willing to invest in the venture. I would set up a financial goal and then post an emerging video to ask those ready to contribute in exchange for one month free services to the community (Sherman & Ebrary, 2012). The crowdfunding is a costless source of raising capital. I expect to get $500 from this platform. The next sources would be to partner with another therapist. The benefit of the partnership is increased services coverage, increased finding and share of risk (The Staff of Entrepreneur Media, 2015). I will for a partner willing to contribute at least $ 300 in the first year.

Another source of finance would be a personal credit card. This card would help me to cover up for expenses or pay up for dry patches. The personal credit card would only offer short-term solutions (The Staff of Entrepreneur Media, 2015). The benefit of the cards is low-interest card charged. I expect to raise approximately $200 in the year through this approach. I would also open up a home equity line of credit to help me create short-term working capital. I would negotiate with the lender to extend a specific limit to me so that when I pay up the amount borrowed, I get the same amount at the disposal. The benefit of this approach is that it is easy for one to qualify for and may come at a low-interest rate. The line credit would help to raise $500 of the needed capital.

The other available option is to seek financial support from angel investors. Angel investor provide funds in exchange for ownership. Accessing finance through this approach would good because it does not require period payment (Sherman & Ebrary, 2012). The investor waits until the business starts off before claiming an interest. The disadvantage of this approach is that it is difficult to get an individual who is willing to invest in new business and if one were available, they would be convinced that the online therapy is good business. I plan to raise $400 through this avenue. Table 2 shows a summary of sources of funds and the expected amount.

Sources of Funds

Amount

Personal saving

$3,000

Crowdfunding

$600

Partnership

$400

Home equity line of credit

$500

Personal credit

$250

Angel investor

$400

Total

$5,150

Table 2: Sources of Funds





























References

Palmer, M. (2014, June 08).Costs for starting a counseling practice. Retrieved from https://www.zynnyme.com/blog/2014/5/1/costs-for-starting-a-counseling-practice

Sherman, A. J., & Ebrary, Inc. (2012). Raising capital: Get the money you need to grow your business. New York: AMACOM.

The Staff of Entrepreneur Media, Inc. (2015). Digging for dollars. Write Your Business Plan: Get Your Plan in Place and Your Business off the Ground. New York: Entrepreneur Press.