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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: https://thetestingpsychologist.com/ Reverb: the premier AI-powered report-writing platform for testing psychologists: https://reverbreports.com/