The Testing Psychologist Podcast 537. Diversify or Double Down?
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In this episode, I’m breaking down one of the most tempting moves for private practice owners: diversification. We’ve all felt the pull to add new services like coaching, therapy, or wellness programs, especially when the market slows down. But diversification isn’t always the answer, and it can easily backfire if done reactively or without alignment. I’ll walk you through the data, real-world examples, and a concrete framework to decide whether expanding your services will strengthen or dilute your practice.
Main Topics Covered
- 00:00 Why diversification feels so tempting, and the post-COVID mindset behind it
- 02:12 The hidden costs: brand dilution, operational complexity, and financial lag
- 04:36 Real-world example: what happened when I added a medication prescriber
- 07:01 Culture confusion and team impact during expansion
- 08:24 When diversification does work: shared client journey, high-margin additions, and partnerships
- 11:37 The three-part evaluation lens: alignment, margin, and capacity
- 14:05 Common pitfalls: adding therapy or medical services without infrastructure
- 16:29 Modeling ROI and minimum margin targets for new services
- 18:31 Balancing profitability with personal energy and joy
- 20:45 How to pilot new services, track data, and set a “kill date”
- 22:30 Final takeaway: clarity beats complexity: double down on your niche
Cool Things Mentioned
- The Testing Psychologist mastermind groups and business consulting
- Reverb: the premier AI-powered report-writing platform for testing psychologists
Featured Resources
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About Dr. Jeremy Sharp
I’m a licensed psychologist and Clinical Director at the Colorado Center for Assessment & Counseling, a private practice that I founded in 2009 and have grown to over 20 clinicians. I earned my undergraduate degree in Experimental Psychology from the University of South Carolina before getting my Master’s and PhD in Counseling Psychology from Colorado State University. These days, I specialize in psychological and neuropsychological evaluation with kids and adolescents.
As the host of the Testing Psychologist Podcast, I provide private practice consulting for psychologists and other mental health professionals who want to start or grow psychological testing services in their practices. I live in Fort Collins, Colorado with my wife (also a therapist) and two young kids.
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