You’ll have heard of the fable about the hare and the tortoise, in which the hare keeps running backwards and forwards urging the tortoise to go faster, challenging, criticising, and demeaning the tortoise for being so slow. Remember how it ends? That’s right, the tortoise, slow, ambling and unexciting makes it to the end first, while the arrogant hare, sure of his superiority, comes in second (and last.)

There’s a concept in business called “overtrading.” Like a plant that’s forced out of the ground before its root structure is fully developed, the business that is described as overtrading expands too far, too fast, before the infrastructure, finance or experience that would support its rapid growth is in place. The result is that the business collapses, or is so damaged in the process that it takes years to recover.

There are risks and then there are risks, which to take, and which to pass up? Like that old song says, “Every gambler knows that the secret to surviving, is knowing what to throw away and knowing what to keep…” the trick is to choose your risks wisely. The collapse of the Celtic Tiger is full of examples of people taking risks before the necessary experience and supports were in place. A triumph, perhaps, of confidence and optimism over good sense.
However, if we take no risks at all, there’s a risk in that too, because we may never get to taste the delicious buffet of life!

Risks need to be appropriate to our circumstances and to our ability to handle the inevitable stress that goes along with stretching. Sometimes we stretch ourselves far beyond our comfort zone, far beyond our range of ability, and far beyond the support we have internally. When that happens, often we can just fall over, or collapse, like a ladder or cherry picker reaching out before the base is properly stabilised.

No matter what business you’re in, it takes on average two or three years to get established, and sometimes much longer than that. It takes time to learn how the business works, it takes time to create contacts, it takes time to generate a regular stream of referrals, and it takes time to learn the business of being in business.

Overtrading, in the context of a therapy practice, might be taking on too many clients (or too many clients with a particular issue), or moving too quickly from a level at which the practitioner feels supported in themselves, to a level or style of practice that evokes strong anxiety.

Another type of risk might involve taking on too many overheads or expenses, out of proportion to the number of clients, perhaps by committing to renting a space without the income or potential income to pay for it. A common mistake is to gear up the infrastructure too early before a regular stream of income has been established.

Another example might be where a therapist invests heavily in administrative or other expenses that do not directly generate income, for example, an expensive online presence, or a marketing campaign the results of which will not be seen for some time. It might be taking on full or part time support staff, again before sufficient income is available to support it.

So if you’re starting a therapy practice, you need to weigh up the choices in a measured way, with enough action to create momentum, but not so much that it creates inherent instability, or that it can’t be sustained over a longer period. And if you’d like some help with the choices you need to make, I’d love to help you. Please contact me here for a free 20 minute consultation, or to make an appointment.

 

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