A mental health consulting business offers expert guidance to organizations such as corporations, schools, or NGOs on developing and implementing strategies to support mental well-being.

This often includes Employee Assistance Programs (EAPs), wellness initiatives, training, stress-management workshops, virtual counseling, and digital tools like AI-driven assessments.

Organizations invest in these services to enhance workplace productivity, reduce absenteeism, and prioritize holistic health.

Industry data underscores strong growth: the global behavioral health market was valued at approximately USD 162.6 billion in 2023, expected to reach USD 260.1 billion by 2032 at a 5.5 % CAGR.

The broader mental health market stood at around USD 410 billion in 2023, projected to reach USD 573 billion by 2033 (CAGR 3.4 %).

With ongoing digital transformations and rising awareness, demand for consulting services continues to expand rapidly.

Steps on How to Start a Mental Health Consulting Business

1. Conduct Market Research

Conducting market research begins with defining clear objectives identifying who your clients are (e.g., corporations, schools, individuals) and what you need to learn, such as demand levels, pricing norms, and competitors.

Start with secondary research: consult industry reports, government data, and market forecasts.

For example, the global behavioral health market was estimated at USD 162.6 billion in 2023, expected to grow to USD 260.1 billion by 2032 at a 5.5 % CAGR, signaling rising demand for consulting services.

In Canada, the mental health market is projected at around US$1.82 billion in 2025.

Next, use qualitative methods such as interviews and focus groups to uncover client motivations, pain points, and service preferences.

Tools like psychographic segmentation (i.e., grouping potential clients by attitudes and lifestyles) can deepen your understanding of needs beyond demographics.

Add quantitative insights via surveys or questionnaires distributed to target organizations or individuals.

Monitor online analytics (e.g., Google Trends or social media) to assess interest in terms like “employee wellness consulting” or “workplace mental health”.

Finally, analyze direct competition: identify existing mental health consulting providers in relevant markets using tools like Google Maps and company websites.

Evaluate their services, pricing, marketing positioning, and client reviews to spot gaps your business could fill.

a. Who is the Target Market for Mental Health Consulting Business?

• Corporations and Employers – Businesses seeking to improve employee well-being, reduce burnout, and increase productivity through Employee Assistance Programs (EAPs), stress-management training, and mental health policy development.
• Educational Institutions – Schools, colleges, and universities needing mental health programs for students, teachers, and staff, including workshops, early-intervention strategies, and resilience training.
• Healthcare Providers and Clinics – Hospitals, private practices, and allied health organizations that may outsource program development, compliance advice, or specialized workshops.
• Government and Nonprofits – Agencies and NGOs aiming to implement large-scale community mental health initiatives, policy advice, or awareness campaigns.
• Insurance Companies – Firms integrating mental health services into wellness packages, prevention programs, and claims reduction strategies.
• Individuals and Families – Those seeking private consulting for stress management, lifestyle coaching, or tailored mental wellness plans, often via virtual platforms.

b. Is Mental Health Consulting Business a Profitable Business?

Mental health consulting can be profitable, especially when run lean. Private practice owners often achieve net profit margins of 20 to 30%, with gross margins of 40 to 60%, aided by lower overhead via virtual services.

Industry benchmarks for mental health clinics typically show profit margins around 10 to 15%.

Still, sustainability hinges on efficient operations, proper pricing, and managing people costs and overhead effectively.

c. Are There Existing Niches in the Industry?

No, there are no niche ideas when it comes to mental health consulting business.

d. Who are the Major Competitors?

• Mindstrong Health
• Ginger
• AbleTo
• Lyra Health
• Quartet Health
• Spring Health
• Teladoc Health
• Cerebral
• BetterHelp
• 7 Cups
• SonderMind
• Thriveworks
• Arrow Consulting (behavioral health consulting)
• Victory Mental Health Consulting
• Mental Scope Consulting
• Madison Square Mental Health (business consulting)
• Resilient Mind Experts (mental health practice consulting)
• Eating Recovery Center
• Mindfully
• Lifestance Health.

e. Are There County or State Regulations or Zoning Laws for Mental Health Consulting Business in the United States?

Local zoning laws vary widely across the U.S., but most municipalities classify land as residential, commercial, or industrial.

A mental health consulting business especially if it’s based at home may trigger specific use restrictions depending on zoning designations.

For instance, setting up a home-based business often requires confirmation that the activity is permitted under local zoning ordinances, including any limitations on client traffic or signage.

Some areas offer conditional use permits or variances to accommodate professional practices in residential zones.

Separately, licensing and professional regulation fall under state jurisdiction.

Mental health professionals including counselors, social workers, psychologists, and therapists must typically hold state-issued licenses (e.g., LPC, LMHC, LCSW, LMFT) to practice legally.

These licenses require fulfilling educational prerequisites, supervised experience, passing national/state exams, and ongoing continuing education.

Specific states offer exemptions or alternate registration models. For example, Oregon allows some counselors to practice without a license, and Colorado may require registration but not full licensure for psychotherapists.

Consulting businesses offering strategy or advocacy not direct therapy may face fewer regulatory barriers but must still avoid unlicensed clinical practice.

In summary, mental health consulting businesses must navigate dual layers of regulation: local zoning rules for their physical location and comprehensive state licensing requirements if providing clinical services.

If the consultancy focuses solely on nonclinical services (e.g., policy advice, training), licensing may not be necessary but local zoning enforcement should still be verified.

f. Is There a Franchise for Mental Health Consulting Business?

Yes, there are franchise opportunities for mental health consulting businesses and here are some of them:

• Ellie Mental Health
• Kogan Counseling Services
• Lifeologie Counseling
• Humanly (Wellness/Mental Health Space)
• Nowlogy™ Psychology Clinics
• Simple Solutions Behavioral Health
• Success On The Spectrum (ABA services)
• Essential Speech & ABA Therapy
• Focus Point Behavioral Health
• RCG Behavioral Health Franchise (Recognizing Children’s Gifts).

g. What Do You Need to Start a Mental Health Consulting Business?

• Business plan
• Required professional licenses or certifications
• Business registration and permits
• Defined target market and service offerings
• Office space or virtual setup
• Marketing and branding materials
• Professional liability insurance
• Technology tools (e.g., scheduling, teleconferencing)
• Industry research and compliance knowledge
• Networking and referral partnerships.

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a mental health consulting business are;

• McIntosh Jason & Co® Mental Health Consulting, LLC
• Thomas Randel® Mental Health Consulting, LLC
• Sound Mind® Mental Health Consulting Company, LLC
• Ferdinand McFarlane® Mental Health Consulting, LLC
• Larry Tyler© Mental Health Consulting Company, Inc.
• Harrow Smiths & Associates® Mental Health Consulting Company, LLC
• Jude Stevenson® Mental Health Consulting Company, Inc.
• East Coast® Mental Health Consulting, LLC
• Phil Rowland & Co™ Mental Health Consulting Company, LLC
• Globe Cubes® Mental Health Consulting, Inc.
• Shavonne Pearce® Mental Health Consulting, Inc.
• Shannon & Shaun® Mental Health Consulting, LLC
• Global View® Mental Health Consulting Company, LLC
• Nath Nowell® Mental Health Consulting Company, LLC
• Safe Mind® Mental Health Consulting Company, Inc.
• James Leesha® Mental Health Consulting Company, Inc.
• Molly Joules® Mental Health Consulting Company, LLC
• Perfect Mind® Mental Health Consulting Company, Inc.
• Hilton Josh™ Mental Health Consulting Company, LLC
• Jake Murphy® Mental Health Consulting Company, Inc.
• Garry White® Mental Health Consulting Company, Inc.
• Green Rovers® Mental Health Consulting Company, Inc.
• Terry Grey® Mental Health Consulting Company, LLC
• Mike Dean™ Mental Health Consulting Company, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for Mental Health Consulting Business?

The best type of business structure for a mental health consulting business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept.

However, we usually recommend a limited liability company (LLC). An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity.

This means that the profits and losses of the business are passed through to the owners’ personal tax returns, avoiding double taxation.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Mental Health Consulting Business?

• Licensed Professional Counselor (LPC)
• Licensed Clinical Social Worker (LCSW)
• Licensed Marriage and Family Therapist (LMFT)
• Licensed Mental Health Counselor (LMHC)
• Psychologist License (Ph.D. or Psy.D.)
• State Business License
• Home Occupation Permit (if operating from home).

d. What Type of Certification is Needed to Open a Mental Health Consulting Business?

• National Certified Counselor (NCC)
• Certified Clinical Mental Health Counselor (CCMHC)
• Board Certified Coach (BCC) – with a focus on health and wellness
• Certified Employee Assistance Professional (CEAP)
• Mental Health First Aid Certification.

e. What Documents are Needed to Open a Mental Health Consulting Business?

• Business plan
• Business registration/license
• Professional licenses and certifications
• Employer Identification Number (EIN)
• Operating Agreement (for LLCs) or Articles of Incorporation (for corporations)
• Zoning permits/home occupation permit
• Liability insurance policy
• Client intake forms
• Consent and confidentiality agreements
• HIPAA compliance documentation
• Service contracts or agreements
• Financial statements or bank account setup documents
• Marketing materials and branding guidelines
• Tax registration forms
• Employee agreements or contractor contracts.

f. Do You Need a Trademark, Copyright, or Patent?

Whether you need a trademark, copyright, or patent for your mental health consulting business will depend on the specific intellectual property you want to protect.

If you want to protect your business name, logo, or other branding materials, you may want to consider registering a trademark with the US Patent and Trademark Office (USPTO).

If you create original content for your mental health consulting business, such as marketing materials or software, you may want to consider registering a copyright with the US Copyright Office.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Mental Health Consulting Business?

When it comes to starting a mental health consulting business, the startup costs vary, and they could range from as low as $5,000 to over $50,00.

Please note that the cost of securing an office facility, equipment, furnishing and salary of your employees are part of this cost.

b. What are the Costs Involved in Starting a Mental Health Consulting Business

• Business Registration & Licensing Fees – $100 to $500
• Professional Licenses & Certifications – $200 to $1,000
• Office Space Rent (or Home Office Setup) – $500 to $2,000/month
• Insurance (Liability & Professional) – $500 to $2,000/year
• Marketing & Branding – $1,000 to $5,000
• Technology & Software (Scheduling, Telehealth) – $50 to $300/month
• Website Development & Hosting – $500 to $3,000
• Furniture & Office Equipment – $1,000 to $3,000
• Training & Continuing Education – $200 to $1,000/year
• Legal & Accounting Services – $500 to $2,000 initially
• Miscellaneous – $5,000

c. What Factors Determine the Cost of Opening a Mental Health Consulting Business?

• Location – Urban areas or prime commercial spaces usually cost more for rent and permits than suburban or home-based setups.
• Business Model – Offering virtual services can reduce physical office expenses compared to in-person consulting.
• Licensing and Certification Requirements – Different states have varying fees and education/training costs.
• Scope of Services – Providing specialized or comprehensive services (e.g., clinical therapy vs. general wellness coaching) may require a higher startup investment.
• Staffing Needs – Hiring employees or contractors increases payroll, benefits, and insurance costs.
• Marketing Strategy – Extensive marketing campaigns and branding efforts raise initial expenses.
• Technology Infrastructure – Investment in telehealth platforms, scheduling software, and data security affects upfront and ongoing costs.
• Legal and Compliance Costs – Costs for business formation, contracts, HIPAA compliance, and risk management vary by jurisdiction.
• Insurance – Professional liability and general business insurance premiums can vary widely.
• Equipment and Furnishings – Quality and quantity of office furniture, hardware, and supplies influence startup expenses.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No, you do not need to build a new facility for your mental health consulting business because it is a business you can operate from a rented or leased office facility, a shared office facility, or even from your home.

e. What are the Ongoing Expenses of a Mental Health Consulting Business?

• Liability Insurance Premiums
• Continuing Education and Certification Renewals
• Marketing and Advertising Costs
• Website Hosting and Maintenance Fees
• Software and Technology Subscriptions (e.g., mental health analysis tools)
• Office Rent or Utility Payments
• Professional Memberships and Association Dues
• Supplies (e.g., printed materials, office stationery)
• Business Insurance Renewals
• Health and Safety Compliance Costs.

f. What is the Average Salary of your Staff?

• Clinical Director/Licensed Psychologist – $90,000 to $130,000 per year
• Licensed Mental Health Counselor/Therapist – $50,000 to $80,000 per year
• Case Manager/Behavioral Health Specialist – $40,000 to $60,000 per year
• Administrative Manager/Office Manager – $45,000 to $65,000 per year
• Receptionist/Administrative Assistant – $30,000 to $40,000 per year

g. How Do You Get Funding to Start a Mental Health Consulting Business

• Raising money from personal savings and the sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

5. Write a Business Plan

a. Executive Summary

Audrey McPhillips™ Mental Health Consulting Company, Inc. is a Sacramento-based firm dedicated to providing expert mental health consulting services to businesses, educational institutions, and community organizations.

Our core offerings include workplace mental health assessments, Employee Assistance Program (EAP) development, resilience training workshops, and policy consulting.

We combine evidence-based practices with innovative digital tools to deliver measurable outcomes that improve productivity, reduce absenteeism, and foster healthier environments.

Located in Sacramento, a growing metropolitan hub with increasing awareness of mental health, Audrey McPhillips™ is strategically positioned to meet rising demand.

With a focus on customized solutions and expert guidance, we aim to become the region’s leading mental health consulting partner, committed to promoting lasting well-being and organizational success.

b. Products and Services

• Workplace Mental Health Assessments and Organizational Culture Evaluations
• Employee Assistance Program (EAP) Design and Implementation
• Stress Management, Resilience Training, and Mental Wellness Workshops
• Mental Health Policy Development and Compliance Consulting
• Crisis Intervention Planning and Support Services
• Customized Training for Managers, HR Teams, and DEI Mental Health Programs
• Digital Mental Health Tools Integration and Data-Driven Outcome Reporting.

c. Mission Statement

At Audrey McPhillips™ Mental Health Consulting Company, Inc., our mission is to empower organizations and communities in Sacramento to prioritize mental wellness through tailored, evidence-based consulting services.

We are dedicated to fostering healthier work environments by providing innovative solutions, expert guidance, and compassionate support that enhance resilience, reduce stigma, and promote sustainable mental health for individuals and teams alike.

Vision Statement:

Our vision at Audrey McPhillips™ Mental Health Consulting Company, Inc. is to be Sacramento’s leading mental health consulting partner, transforming workplaces and communities into supportive, resilient environments.

We aspire to inspire lasting change by advancing mental wellness, breaking stigma, and delivering innovative, inclusive solutions that empower individuals and organizations to thrive both personally and professionally.

d. Goals and Objectives

The goals of Shavonne Pearce™ Mental Health Consulting Company, Inc. are to promote mental wellness, enhance organizational resilience, and create supportive environments that prioritize psychological health.

We strive to deliver personalized consulting services that address the unique needs of each client, fostering lasting positive impact in workplaces and communities.

Our objectives include developing comprehensive mental health programs, providing expert training for leaders and staff, and leveraging data-driven strategies to measure outcomes.

We are committed to reducing stigma and improving access to mental health resources for all.

e. Organizational Structure

• Clinical Director/Licensed Psychologist
• Licensed Mental Health Counselor/Therapist
• Case Manager/Behavioral Health Specialist
• Administrative Manager/Office Manager
• Receptionist/Administrative Assistant.

Marketing Plan

a. SWOT Analysis

Strength:

• Expertise in mental health consulting and evidence-based practices
• Tailored programs addressing diverse client needs
• Strong network with healthcare providers and community organizations
• Use of digital tools for remote service delivery
• Strategic location with growing demand in mental health services.

Weakness:

• Limited brand recognition as a new business
• Initial dependence on a small client base
• High competition in the mental health consulting industry
• Potential regulatory and licensing complexities.

Opportunities:

• Rising awareness and prioritization of mental health in workplaces
• Expansion into virtual and telehealth consulting services
• Partnerships with corporations, schools, and nonprofits
• Government and private grants for mental health initiatives
• Growing demand for diversity, equity, and inclusion (DEI) mental health programs.

Threat:

• Changing regulations and licensing requirements
• Economic downturns are reducing client budgets
• Competition from established consulting firms and digital platforms
• Privacy and data security challenges in digital mental health services.

b. How Do Mental Health Consulting Businesses Make Money?

Mental health consulting businesses make money by offering services like workplace mental health assessments, Employee Assistance Program (EAP) development, training workshops, and policy consulting. 

They generate revenue through contracts with corporations, schools, and nonprofits, often charging fees per service, retainer agreements, or subscription models for ongoing support and digital tool integration.

c. Payment Options

• Credit or Debit Card
• Cash
• Electronic Payment Systems such as PayPal or Venmo
• Checks
• Bank Transfers.

d. Sales & Advertising Strategies

• Leverage digital platforms such as social media, search engine optimization (SEO), and content marketing to reach a broader audience.
• Encourage satisfied clients, healthcare professionals, and local businesses to refer clients to your mental health consulting services.
• Partner with local gyms, fitness centers, or wellness studios to offer bundled services or exclusive discounts for their members.
• Conduct mental health workshops, seminars, and classes in the community.
• Form alliances with healthcare professionals, physicians, and complementary services providers.
• Maintain an engaging and user-friendly website, and encourage clients to leave positive reviews on platforms like Google and Yelp.
• Introduce limited-time promotions or discounts for initial consultations or package deals.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

Here are general price ranges for different types of mental health consulting services:

• Workplace Mental Health Assessments – $2,000 to $10,000 per assessment, depending on company size
• Employee Assistance Program (EAP) Design – $5,000 to $20,000 for initial setup; $1,000 to $5,000/month for maintenance
• Training Workshops (Stress Management, Resilience) – $1,000 to $5,000 per session (1–2 hours)
• Mental Health Policy Consulting – $100 to $250 per hour
• Crisis Intervention Planning – $3,000 to $15,000 per project
• Customized Manager/HR Training – $2,000 to $7,000 per program
• Digital Mental Health Tool Integration – $500 to $3,000 setup; $100 to $500/month subscription
• Ongoing Consulting Retainer Fees – $1,500 to $7,000 per month based on service scope.

b. How Much Profit Do Mental Health Consulting Business Owners Make a Year?

The profit that mental health consulting business owners make can vary significantly depending on various factors, including the business’s size, the number of clients served, the rates charged, overhead expenses, and the owner’s level of experience and efficiency.

c. What Factors Determine the Amount of Profit to Be Made?

• Client Volume and Retention – More clients and long-term contracts boost revenue.
• Pricing Strategy – Competitive yet profitable pricing affects margins.
• Operating Costs – Rent, salaries, insurance, and technology expenses impact profits.
• Service Efficiency – Streamlined processes reduce costs and improve delivery.
• Market Demand – Higher demand in your region or niche increases profitability.
• Marketing Effectiveness – Successful outreach attracts quality clients.
• Regulatory Compliance Costs – Expenses related to licenses and legal requirements affect net income.

d. What is the Profit Margin of a Mental Health Consulting Business?

The profit margin of a mental health consulting business can vary depending on various factors, including the rates charged, the volume of clients and work, and the expenses incurred.

While it is challenging to provide an exact figure, a typical profit margin for a mental health consulting business can range from 20% to 50% or even higher in some cases.

e. What is the Sales Forecast?

Below is the sales forecast for a mental health consulting business. It is based on the location of the business and other factors as they relate to such startups in the United States.

• First Fiscal Year (FY1): $240,000
• Second Fiscal Year (FY2): $480,000
• Third Fiscal Year (FY3): $750,000

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for a Mental Health Consulting Business?

• Accessibility – Easy access via public transport and parking for clients and staff.
• Demographics – Presence of target clients such as corporations, schools, or community organizations.
• Competition – Evaluate nearby similar providers to find underserved markets or niches.
• Zoning Regulations – Confirm the area permits professional consulting or healthcare services.
• Cost and Amenities – Balance affordable rent with a professional, welcoming environment and necessary facilities.

b. What State and City is Best to Open a Mental Health Consulting Business?

• New York City, New York
• Los Angeles, California
• San Francisco, California
• Washington, DC
• Seattle, Washington
• Miami, Florida
• Chicago, Illinois
• Atlanta, Georgia
• Boston, Massachusetts
• Dallas, Texas.

c. What Equipment is Needed to Operate a Mental Health Consulting Business?

• Office Furniture
• Computers and Laptops
• High-Speed Internet and Wi-Fi Router
• Teleconferencing Equipment
• Secure Data Storage Solutions
• Office Supplies
• Appointment Scheduling Software
• Professional Phone System or VoIP Service
• Whiteboards or Presentation Tools
• Mental Health Assessment Tools –

7. Hire Employees

Hiring employees for a mental health consulting business enhances operational efficiency and expands service capacity.

Trained professionals can handle diverse client needs, allowing for a more comprehensive and personalized approach to mental health counseling.

Moreover, a team enables collaborative efforts, innovative ideas, and broader community outreach, positioning the mental health consulting business for sustained success in a competitive market.

8. Launch the Business Proper

Organizing an opening party for a new mental health consulting business is no doubt a fantastic idea, as it will help you introduce the business to the community and create awareness about your services.

But it is important to note that for a mental health consulting business, you may decide not to organize a launch party, especially if you are operating on a shoestring budget.

But if you have spare cash and you want to go ahead to organize a proper launch for your mental health consulting business, then you must make sure to invite potential clients, key stakeholders, and other members of the community who may be interested in your services.

a. What Makes a Mental Health Consulting Business Successful?

• Being consistently reliable
• Excellent customer service and thoroughness in your research and presentations
• Efficient operations
• Compliance with regulations
• Hiring skilled and knowledgeable employees and providing ongoing training.

b. What Happens During a Typical Day at a Mental Health Consulting Business?

A typical day at a mental health consulting business begins with preparing for client engagements, including reviewing schedules, customizing materials, and coordinating with team members.

Consultants conduct workplace mental health assessments, lead training workshops, and hold strategic meetings with clients to discuss mental wellness programs and policy development.

Administrative tasks such as managing client records, billing, and marketing outreach are also integral.

Throughout the day, consultants may provide crisis intervention planning or virtual consultations, adapting services to client needs.

Continuous professional development and data analysis on program outcomes help refine offerings.

Effective communication, empathy, and problem-solving are essential to ensure clients receive tailored, impactful mental health support.

c. What Skills and Experience Do You Need to Build a Mental Health Consulting Business?

• Clinical Mental Health Knowledge
• Professional Licensure
• Business Management
• Marketing and Sales
• Communication Skills
• Training and Facilitation
• Data Analysis
• Regulatory Compliance
• Networking
• Technology Proficiency