[00:00:00] If you're looking to grow your business as a registered dietitian, you've come to the right place. If you're not sure what to do or what steps to take next so that you can create flexibility and freedom in your life, then you're going to learn a lot from tuning into our podcast here at Dietitian Boss.
[00:00:17] I'm Libby Rothschild, the founder of Dietitian Boss, a [00:00:20] fellow registered dietitian and business owner. And in our podcast, I share the highs and the lows, and I talk all about how to grow your business. Get it started. And I interview our clients to date. We've had over 200 interviews from clients who share their journey on our podcast.
[00:00:36] Dietitian boss.
[00:00:37] Libby: Hello and welcome to the dietitian boss [00:00:40] podcast. I'm Libby Rothschild and today we're diving into one of the most important questions for new dietitians. How much should you pay yourself and when? Whether you're just starting a private practice or managing your first year in the field, this is a topic that can feel overwhelming.
[00:00:57] Libby: I'll be breaking it all down. What should you know about [00:01:00] salary expectations, budgeting tips, common pitfalls, and how to create a payment plan that works for you. Plus, I'll share actionable advice and real life stories from dietitians who've been where you are in your shoes. And if you're looking for even more support to build and scale your private practice, I want you to join our monthly membership for exclusive tools, [00:01:20] strategies, and community support.
[00:01:22] Libby: Let's get started. Let's talk about understanding dietitian salary expectations and salary ranges. So let's start with some numbers. You might already know that on average, dietitians earn between 50, 000 and 70, 000 dollars annually, but this depends largely on [00:01:40] factors such as location and setting. If you're in a big city hospital, you might earn closer to 60, 000, but in rural areas, you could see salaries around 45, 000 for dietitians and private practice, especially those online.
[00:01:54] Libby: The first year might look different. Income often ranges between 30,000 and [00:02:00] 50,000 As you build your client base, remember starting a business requires patience and investment and also skills, right? So skill improvement. The one dietitian that I coached spent her first year focusing on building her online presence between social media, learning tech, and focusing on marketing.
[00:02:19] Libby: Her [00:02:20] profits were really lean, but those efforts paid off. In year two, with a steady stream of clients, she was patient. I want you to research the average salaries and startup costs for your specialty, create a simple financial plan that accounts for these factors and set realistic income goals [00:02:40] for your first year.
[00:02:41] Libby: Budgeting is important. So, let's talk about budgeting for your first year. Budgeting is essential, especially in the first year, as you're starting to learn what budgeting looks and feels like. You want to separate your personal and business expenses. Now, tools like QuickBooks can help you stay organized.
[00:02:58] Libby: We use QuickBooks. We [00:03:00] recommend QuickBooks that you would have a different system for your business financials like QuickBooks or Wave and then a separate system for personal. You can allocate funds for essentials like your website hosting. If you have a website, any of your marketing needs and tools like Practice Better or Zoom, liability [00:03:20] insurance, et cetera.
[00:03:21] Libby: Now we do have an entire guest episode dedicated to how to budget with a special tool from one of our amazing guests inside of the library membership. So if you go over and join at dietitianboss. com, you can learn what it looks like to break down this budget step by step in your business. Common pitfalls a lot [00:03:40] of dietitians experience with budgeting for the first year include underestimating costs, specifically marketing costs.
[00:03:47] Libby: A strong digital presence isn't optional, it's necessary. One dietitian that we worked with realized too late that her website wasn't attracting any clients but I think it's [00:04:00] important to really look at the analytics from what is your strategy and how well is your strategy working with the associated tools and platforms?
[00:04:09] Libby: So, set aside a percentage of your revenue for reinvestment. This is something that a lot of dietitians don't practice until. Later, right? So new dietitians, be [00:04:20] aware that reinvesting into your business is important. So if you're bringing in 3, 000 a month, consider allocating 20 percent per business growth.
[00:04:28] Libby: I want you to decide how much to pay yourself. So balancing personal and business needs, of course, is an individualized topic. But I want you to start with a salary that covers your essential living expenses. [00:04:40] So think about rent, utilities, and groceries. Of course, this depends on who's contributing what.
[00:04:46] Libby: So as your revenue grows, you can increase these amounts to reinvest profits into your business for long term growth. This is so important. Such as upgrading tools later. You might decide you want to run ads after you've seen that you've got good [00:05:00] retention in your programs and your services. And that might be something you want to invest in, but your tools are also going to increase with time.
[00:05:08] Libby: So let's say you've got an email list. Your email list becomes more expensive as you have more subscribers. So your tools start to increase as you add on more features. So that's something to consider. That you [00:05:20] want to allocate a budget for tools, especially if you start using tools like the Descript for editing versus a free platform so that your costs are going to increase.
[00:05:29] Libby: And that's normal. So, what comes easier for dietitians in terms of. Deciding how much to pay themselves is a dietitians often find it easier to start small with their salary. [00:05:40] Right? But scaling it up while balancing your business can be really tricky because there's a lot of decisions to make. And there's a lot of skills that we have to learn so we can either take more time or you're going to make a few mistakes.
[00:05:52] Libby: So I want you to create a payment plan. It works for you start modestly and adjust quarterly as your business [00:06:00] grows a really good tip that we had from the owner of simple profits guest on this podcast last year. Jenny from simple profits. She helps therapists with their finances and private practice.
[00:06:11] Libby: She mentioned that you should have a process for reviewing your financials on a regular basis. So that might be weekly or biweekly, but you definitely want to be looking at [00:06:20] those metrics. So you can adjust them quarterly, but make sure that you are understanding how much you're bringing in how many sales you're making and what you need to focus on.
[00:06:29] Libby: Timing of your salary payments. So you want to choose a payment schedule. So consistency is key. So you have a schedule. Maybe it's biweekly, monthly or quarterly that aligns with your business's [00:06:40] cash flow. So cash flow, meaning when you earn monies, and that can vary if you are getting payment plans for cash pay, if you're getting insurance reimbursements, but you're not sure when to expect them from which payer.
[00:06:50] Libby: So this is where it can feel a little tricky in terms of managing your money. So, if clients do pay on the 1st of the month, again, depending on how you've set up your services and products, you can [00:07:00] schedule your salary payments shortly after. So, you're going to have to take a look at those trends and adjust them as things change.
[00:07:07] Libby: So, skipping payments during slow months can lead to personal financial stress. So, you can automate your salary and that can help ensure you stick to your plan. So, set up automatic transfers to pay yourself regularly, and this is going to build financial [00:07:20] stability that helps you plan better for personal expenses.
[00:07:23] Libby: Now, this is quite a lot to manage, so give yourself some patience and grace because it can take some time. Planning for taxes and deductions is also an area that a lot of dietitians struggle with, because there's a lot of responsibilities you might not be aware of. If you want to save, again, this depends on where you live, but about 25 to 30 percent of your [00:07:40] income for taxes, and this can help you avoid surprises during tax season.
[00:07:43] Libby: So keeping detailed records of expenses, like software, home office, and professional development, because these are often deductible expenses. So many new dietitians forget to account for taxes in their budget, especially at 20 to 30%. So one of my [00:08:00] colleagues faced a hefty tax bill because she didn't set aside enough.
[00:08:03] Libby: And I remember talking about this and she's had to learn the lesson by owing a huge bill she wasn't expecting. And that's, that can be really, really frustrating. As a business owner, so open a separate savings account just for taxes. That's a really good tip and consult a tax [00:08:20] professional to maximize your deductions because it can depend on where you live and the nuances of your business structure.
[00:08:26] Libby: Next, you want to evaluate and adjust your salary. So quarterly reviews are a really good place to start. So reviewing your income and expenses every quarter, I would absolutely recommend to do it more regularly, but definitely every quarter, ask yourself, are you hitting your [00:08:40] goals? And if not, you can adjust your salary or your business spending.
[00:08:43] Libby: One dietitian that I coached used quarterly reviews to identify raising expenses. And adjusting her budget before this became a problem. That was probably 1 of the best things that we did together really gain that financial awareness about how to run her business more effectively. [00:09:00] So, set aside time every quarter or more, but at least every quarter for financial check ins.
[00:09:04] Libby: I recommend doing it weekly, but you might want to do a deeper dive once a quarter and you can use this Data that you've learned like a quarter to make informed decisions about your salary and reinvestments, right? And so when you ask questions, like, should I hire an assistant? When do I hire assistant?
[00:09:19] Libby: Should I hire another [00:09:20] dietitian? Those are all questions that can be answered by setting a quarterly financial date to learn about the data and make informed decisions. So your first year as a dietitian is about learning, growing, and building a strong foundation. By budgeting wisely, setting realistic salary goals, and planning for taxes, you're setting yourself up for [00:09:40] long term success. And remember, You don't have to do this alone. I want you to join our monthly membership called the library for exclusive tools, resources, and a supportive community of dietitians.
[00:09:49] Libby: Like you, I offer live monthly coaching calls to support whatever goals you have related to finance, social media, or any sticking points in your business, whether you're just [00:10:00] starting out or you're ready to scale or here to help every step of the way. Go over to dietitianboss. com and join today. And thank you for tuning in.
[00:10:06] Libby: If you enjoyed this episode, share it with your fellow dietitians and subscribe to Dietitian Boss for more tips. We'll see you next time.
[00:10:13] Looking for support to grow your dietitian business or even get started, I invite you to join the [00:10:20] library, our monthly affordable membership that shows you exactly what to do every step of the way so that you can create the business of your dreams. Not sure if it's the right time, the membership gives you an option to.
[00:10:32] Go at your own pace. We have modules, a roadmap to show you exactly what to do and monthly live calls, as well as new content [00:10:40] that we release every single month based on requests inside of the library. We have four stages of business. So whether you come in getting started or you want to enter the membership and grow or scale your business, we have the appropriate resources for you.
[00:10:53] And our team, including myself available to answer your questions, head on over to dietitianboss. com and check out the [00:11:00] library today. We'd love to see you there.
