Preparing to Launch Your Private Therapy Practice
Launching a private therapy practice is a profound and transformative choice that offers a multitude of advantages for therapists. While the path to private practice may initially appear daunting, it is also a unique opportunity for you to sculpt your career, curate deeply personal therapeutic encounters, and make enduring contributions to your clients' well-being. It is an opportunity to become the therapist you dreamed of becoming before getting bogged down by graduate coursework, unpaid internships, and agency burnout.
However, it is imperative to recognize and address common assumptive deterrents that often preclude therapists from launching their practices. I’ve consulted with countless therapists who delay launch while waiting for the right time, sticking it out at a job that is causing stomach ulcers. Some concerns I often hear include their lack of experience, the economic risks, intricacies of marketing, legal and ethical demands, the administrative labyrinth, and the potential for isolation. I had many of these concerns as well, but looking back, there are no regrets, as starting my practice was one of the most important decisions of my professional life. Whether you are a seasoned therapist contemplating the transition to private practice or a recent graduate pondering your career trajectory, take some time to reflect on what makes private practice so appealing, and why so many of us are apprehensive to get started.
Reasons why you should launch your private therapy practice
Autonomy
Autonomy in private practice empowers you to shape your career and the care you provide. Private practitioners relish the freedom to set their working hours, prioritizing a healthier work-life balance while accommodating client schedules. Flexibility in scheduling supports self-care and rest, which can reduce the risk of burnout. Whether you prefer stacking sessions on some days or seeing a specific number of clients daily, the ability to create a customized schedule that aligns with your needs and energy levels is at your disposal.
In private practice, you can choose, adapt, and customize therapeutic methodologies, providing highly personalized care that deeply resonates with your clients. Private practitioners take full ownership of their work, assuming responsibility for all administrative aspects and instilling a profound sense of accountability for care quality. It reflects professional integrity and fosters higher dedication and commitment to your clients' well-being. As a result, you can lean into your sense of purpose and the reasons why you became a therapist, connecting you deeply to the therapeutic process. You have the freedom to authentically express yourself without the constraints of rigid professional standards that might stifle your individuality. Your unmasked self will facilitate trust in your relationships, in particular, with neurodivergent clients.
One of the most tangible ways to embrace your authenticity is through your personal style. Unlike traditional corporate settings with strict dress codes, in your private practice, you are free to choose attire that makes you feel comfortable and confident. Whether you opt for a more casual and relaxed outfit or something that reflects your unique sense of style, you have the autonomy to dress in a way that aligns with your personality. You can feel comfortable taking your shoes off to put your feet on a grounding mat without concern of someone passive-aggressively leaving you a highlighted dress code policy (yes, this happened to me). What is more likely is that clients will perceive you as a genuine, relatable human being, rather than just a formal authority figure adhering to the hierarchy of a doctor-patient relationship.
Your therapy space is an extension of yourself, and in private practice, you possess the creative freedom to design it according to your needs and comforts. You can select colors, decor, and furnishings that resonate with your personality, thereby creating an atmosphere that feels welcoming and safe for both you and your clients. My office is filled with talking pieces that reflect my personality, such as valued books that impacted my life, small gifts from meaningful relationships, hand-selected fidgets, and huggable squishmallows. A customized, personal office reflects your personality and values, making clients feel more connected and at ease during sessions.
Lastly, private practice allows choosing practice locations for convenience and community impact. The autonomy and flexibility to select a suitable office location enhances accessibility for clients and contributes to the therapist's connection with a specific region. Offering sessions in various settings, including teletherapy, extends your reach and accommodates clients' preferences, ultimately improving work-life balance.
Financial Potential and Equity Building
Private practice offers therapists a unique financial landscape with the appeal of increased income and the potential for equity growth.
In cash-pay practices, the autonomy to set your rates aligns your fees with market demand and reflects your expertise, resulting in more substantial compensation that accurately represents the value of your services. For those in insurance-based practices, the ability to select insurance panels, negotiate rates, and make informed decisions about panel participation is a strategic financial advantage.
As your private practice expands and establishes a reputable brand, your income growth can become exponential, contributing significantly to your long-term financial stability. Private practice also offers the opportunity to build equity, which represents the long-term financial value of your practice.
Equity encompasses tangible and intangible assets. Tangible assets include physical items like office equipment, furnishings, and commercial real estate. Your intangible assets include your brand, client relationships, and intellectual property such as treatment programs and publications. These assets collectively contribute to the overall equity of your practice.
As you build a thriving and sustainable practice, your equity can experience substantial growth and become a financial safety net. You may be able to sell your practice in the future or pass it on to a successor, such as a colleague or family member. It serves as a testament to the value you've created through your professional expertise, hard work, and dedication to your practice. This integration of financial potential and equity building underscores the myriad financial benefits of private practice, enhancing your long-term financial well-being and security.
Unlocking your potential through professional growth and creative freedom
Private practice provides a dynamic platform that fosters continuous professional growth and innovation. Operating a private practice necessitates a profound understanding of ethics, legalities, and industry regulations, making you acutely aware of professional standards and responsibilities. It is sometimes anxiety-provoking to spend hours reading through the board actions every month, but this ongoing commitment to compliance and ethical integrity sharpens your knowledge and expertise, ensuring you provide the highest quality of care.
Networking opportunities within the community of private practice therapists further contribute to your professional growth. Meeting other therapists provides unique insights because everyone is in the middle of their own coming-of-age story. These connections expose you to diverse skillsets and therapeutic approaches, enriching your knowledge base and expanding your toolkit for client care. Engaging with peers in this way allows you to learn from each other's experiences and collaborate on innovative ideas. Every therapist I meet has something valuable to show and teach me, which is one of my favorite aspects of consultation.
Specializing in a niche area within private practice is a unique opportunity for growth. Aligning your passion with your professional focus enhances your dedication and leads to better outcomes for your clients. The flexibility to define and target your preferred clientele is particularly beneficial for those with specific expertise. It sets you apart in a competitive market, potentially leading to growth and recognition within your specialized field. For me, I’ve been able to focus on a neurodiversity affirming therapeutic approach that feels deeply personal. I’ve had the opportunity to meet with neurodiversity advocates across the world and grow with the community.
Creative freedom is a hallmark of private practice. Unburdened by institutional policies, you have the autonomy to craft bespoke treatment plans and interventions that foster trust and engagement with your clients. The director of a program I had worked in was against recommendations for animal-assisted therapies because he did not consider it “evidence-based.” In private practice, you have the freedom to explore various modalities and techniques, which encourages innovation and potentially leads to more effective interventions. Staying current with emerging trends ensures that you provide cutting-edge services that enhance your clients' overall treatment experiences.
Reasons that preclude therapists from starting their private practice
Not enough experience
The notion of not having enough experience often emerges as a significant concern during consultations I have with aspiring therapists considering private practice. It's important to acknowledge that many well-intentioned voices in the field recommend delaying the establishment of a private practice until a certain level of experience has been gained. Their guidance often stems from a genuine desire to see fellow clinicians thrive and succeed. However, it's crucial to understand that there is no universally applicable timetable for this transition.
The truth is, that even associate-level clinicians possess a strong foundation of knowledge, skills, and empathy that uniquely equips them for the challenges and opportunities that private practice presents. While the prospect of owning a practice may seem daunting, it's essential to recognize your capacity for growth and the evolutionary nature of your journey.
Imposter syndrome, a phenomenon that affects professionals at all career stages, may cast doubts along your path. Yet, it's paramount to acknowledge that self-doubt does not eclipse your abilities. Instead, it serves as a compass for values and ethics, guiding you toward ongoing self-improvement and a dedication to providing the highest level of care to your clients.
Your training and education have honed your therapeutic skills. The reality is that you are likely well-prepared to begin this journey. As you transition into private practice, you are beginning an awesome adventure that allows you to cultivate your unique professional identity. The decision to initiate your private practice is not defined by a rigid timeline or a fixed set of prerequisites, rather, it’s a quest characterized by your readiness to embrace independence, your commitment to continually enhance your therapeutic skills, and, most importantly, your desire to empower those seeking your guidance. Remember, you are not an imposter, but a passionate advocate for mental health and a catalyst for change in the lives of your clients. Your lived experience that shapes your perspective, dedication to your craft, and compassion for humanity are the foundations upon which your private practice will flourish.
Economic Risk
Entering the realm of private practice introduces significant economic risk compared to salaried positions, where income tends to be stable and predictable. In private practice, income fluctuations make it difficult to estimate earnings, which can be challenging when you have financial obligations to meet. One of my biggest fears, when I started, was that I would have to find another job if I couldn’t get enough clients in a particular timeframe. I spent hours building spreadsheets to estimate what I needed to earn and projecting when I might get to a place of financial stability.
Starting a private practice carries its own financial burdens. Initial investments are required for securing office space, liability insurance, and sometimes launching marketing campaigns to establish your presence. For many, this initial expenditure can feel like a formidable barrier, intensifying the perception of financial risk. A common strategy is to join a small group practice that allows you to slowly learn and build while covering overhead expenses.
In the early stages of private practice, income inconsistency is a common theme. Building a reliable client base unfolds gradually and demands time and dedication, which can significantly impact your income and job security, potentially leading to financial stress and uncertainty. Again, joining a small group may be helpful as they likely have referrals to quickly build your caseload.
The nature of private practice can also involve dealing with lost revenue from client no-shows or cancellations, further affecting income and potentially disrupting your schedule. This unpredictability adds an extra layer of financial uncertainty, though private practice therapists are well aware of the summer and holiday lulls. Typically, private practice therapists will engage in other endeavors that support their practices outside of client-facing work during these times.
Transitioning to private practice also means giving up employment benefits enjoyed in community mental health jobs, including health insurance, retirement plans, and paid time off. Many therapists I’ve consulted with will stick to their current positions solely to maintain health insurance benefits because they do not know another way to obtain it outside of their employer. Most of us have worked as W2 employees our entire lives and have limited understanding of how to secure benefits. I’ve also noticed that many will overvalue their benefits without acknowledging the substantial salary increase they’ll enjoy when working for themselves.
Navigating the economic risks in private practice can lead to anxiety and feelings of defeat. The path to financial stability often involves overcoming numerous obstacles and setbacks. However, with astute financial planning, resilience, and a long-term perspective, you can minimize these uncertainties and achieve your financial goals while pursuing your passion for mental health care. While there may be ups and downs along the way, private practice offers the potential for significantly increased financial rewards and the autonomy to shape your financial future.
Marketing Demands
Establishing a robust client base in private practice entails navigating the realm of marketing and networking, which can prove challenging for therapists who may not possess innate marketing skills or feel uneasy about self-promotion. Many therapists may experience shame around marketing, with thoughts of “no good enough” popping up and difficulty identifying strengths.
Effective marketing in the context of private practice also extends beyond the Field of Dreams approach, in which the creation of something good and worthwhile will naturally draw people to it. Marketing encompasses crafting a professional image, harnessing the power of online platforms, and actively engaging with potential clients. These multifarious marketing demands may require competencies that are not inherently part of your training or skill set. You may need to delve into unfamiliar territories such as establishing an online presence, managing social media platforms, or navigating search engine optimization. These marketing demands can feel overwhelming, particularly when intertwined with the clinical responsibilities of therapy. However, it is important to acknowledge that marketing can take many forms, so market in a way that feels right for you. It is not necessary to develop in all aspects and sometimes can be helpful to focus on areas that align with your interests and strengths.
Marketing may require you to seek out professional development opportunities to enhance your skills, seek guidance from mentors or peers proficient in marketing (I consulted with two of my close childhood friends who work at Scorpion Marketing), or consider outsourcing marketing tasks to seasoned experts. Embracing a growth-oriented mindset and remaining open to ongoing learning can empower you to surmount these perceived marketing hurdles and thrive in private practice. While the initial marketing demands may seem formidable, they present opportunities for personal and professional growth that can significantly contribute to the long-term success and sustainability of your private practice.
Legal and Ethical Considerations
Owning a private practice places you squarely in the role of being the sole custodian of legal and ethical considerations - you are the chief executive. Unlike the structured support systems and teams often present in larger organizations, you are the ultimate guardian of vital aspects such as client confidentiality, potential lawsuits, and adherence to ethical guidelines. Any missteps or legal entanglements can reverberate throughout your career, potentially resulting in severe consequences that extend beyond immediate financial or legal ramifications. The weight of this accountability underscores the gravity of ensuring your practice operates with the utmost integrity and compliance.
Private practice therapists face the continuous challenge of remaining abreast of ever-evolving laws and regulations, such as licensing requirements, intricate privacy laws, and the nuances of insurance regulations. Staying current in these areas demands a significant investment of time and effort. As the legal and ethical landscape continues to evolve, it becomes increasingly complex, requiring practitioners to engage in ongoing education and professional development to effectively navigate this terrain.
The evolving legal and ethical considerations extend to the very core of your business operations. These include matters such as managing client records, adhering to informed consent protocols, and ensuring that your practice remains in compliance with data protection laws. We are required to know and implement security measures to protect health information to minimize risk exposures, even though many have never read the HIPAA Security Rules and are out of compliance with these expectations. A lot of us just don’t know what we are supposed to look for, leading to significant gaps in our ethical and legal knowledge.
Navigating legal and ethical considerations necessitates a steadfast commitment to maintaining the highest standards of professional conduct. It also requires establishing clear policies and procedures within your practice, seeking peer consultation, and potentially legal counsel when confronting complex scenarios. I will also discuss concerns with my liability insurance provider and email our licensing board for clarification on rules and board actions. Embracing this responsibility with diligence and a commitment to ethical excellence is a testament to your dedication to the well-being and trust of your clients.
Administrative demands
Owning a private therapy practice ushers in a set of administrative demands that often feel overwhelming. These demands encompass various aspects of your business, from insurance reimbursement intricacies to the everyday tasks of scheduling, billing, and record-keeping. The administrative work is crucial for the success and sustainability of your practice and may even be considered its backbone – without clean administrative processes, your practice is likely to fall apart.
One crucial aspect that demands careful consideration is the potential blurring of boundaries between work and personal life that private practice can bring about. While the flexibility it offers is undoubtedly appealing, it also comes with the risk of overextending yourself and facing potential burnout if not properly managed. Establishing clear boundaries, implementing effective time management strategies, and prioritizing self-care and rest become imperative to maintain a healthy work-life balance. Try to remember that not every opening has to be filled with a session - you can even use that time for a nap.
Understanding the intricacies of different insurance plans, submitting claims, and addressing payment denials can be a formidable task, often necessitating considerable attention and resources. Consequences for not adhering to insurance expectations, such as ensuring medical necessity, can lead to clawbacks, which can significantly reduce profits. Unfortunately, none of us were taught about insurance billing, so many will avoid it. Insurance reimbursement rates can vary widely depending on your location and specialization, exerting a notable influence on your income. It is important to consistently request increases from insurance payers, but for many counselors, dealing with insurance companies can be a complex and time-consuming endeavor. Some organizations such as Headway are building independent practice organizations to facilitate the insurance billing process by quickly getting therapists paneled and advocating for higher reimbursement rates.
Beyond insurance-related matters, the administrative facets of running a private practice extend to client scheduling, invoicing, and meticulous record-keeping. You will also be responsible for responding to incoming referrals, which can be difficult since much of your time is spent in session. You may face criticism or anger if you are unable to quickly respond. These tasks, while essential, can be substantially time-consuming and detract from the primary focus of client care.
Managing administrative tasks may involve seeking out tools and software to streamline administrative processes (such as a comprehensive EHR like Simple Practice), attending workshops or seeking mentorship to acquire the necessary skills, or even outsourcing specific tasks to administrative professionals. By proactively managing these challenges, you can optimize your ability to focus on what truly matters – providing exceptional care to your clients while fostering the long-term success of your private practice.
Isolation
One of the distinctive aspects of private practice is the potential for isolation. Unlike working in larger organizations or community mental health settings where colleagues are readily available, private practice often places you in a more independent professional landscape. While it offers autonomy, this solitude can sometimes have far-reaching implications for your professional and emotional well-being.
The absence of immediately available colleagues can create a void in terms of professional camaraderie. The informal hallway conversations, collaborative problem-solving, and peer support that come naturally in a communal work environment may become less accessible. Additionally, the rich opportunities for learning and growth that stem from interactions with colleagues may require more intentional effort to cultivate.
If you are transitioning out of a community mental health setting, you've likely developed close relationships with colleagues and clients. The bonds forged in these environments can evoke a deep sense of loyalty and attachment, making the shift emotionally challenging. The prospect of leaving behind familiar faces and a supportive network can trigger feelings of loss, guilt, and separation anxiety. One of the biggest challenges for me was to leave behind a caseload of neurodivergent children and families who I did not believe would receive affirming care in my absence. I also knew my colleagues would be left in a broken system, though one of my missions now is to liberate therapists from the fetters of exploitative organizations.
In community mental health settings, you might have enjoyed ongoing access to training and supervision, which can be invaluable for professional development and ensuring the highest standards of care. Transitioning to private practice may necessitate a greater personal investment in continuing education and consultation. While this presents an opportunity for self-directed growth and specialization, it also requires a proactive approach to ensure that you stay current with best practices and evolving treatment modalities.
It will be important to maintain informal connections with peers and mentors. I try to schedule 1-2 meetups each week. You may also seek out more formal connections through professional organizations, conferences, and peer consultation groups (we have two at our group practice). By acknowledging the potential for isolation and actively taking steps to counter it, you can strike a balance between the autonomy of private practice and the invaluable support and camaraderie found in a community of colleagues.
Key Takeaways
Advantages of Launching Your Private Therapy Practice
Autonomy: Control over working hours and therapeutic approaches.
Financial Potential and Equity Building: Increased income and potential for long-term equity.
Professional Growth and Creative Freedom: Opportunities for continuous learning and specialization.
Authenticity: Freedom to express personal style, design therapy space, and engage authentically with clients.
Practice Location: Ability to choose convenient and impactful office locations.
Considerations Before Starting Your Private Practice
Experience: Self-doubt and imposter syndrome may arise, but recognize your readiness for the journey.
Economic Risk: Fluctuating income, initial expenses, and loss of employment benefits can be challenging.
Marketing Demands: Building a client base may require marketing skills and self-promotion.
Legal and Ethical Considerations: Sole responsibility for legal and ethical aspects, ongoing education, and compliance.
Administrative Demands: Handling insurance, scheduling, billing, and maintaining boundaries is essential.
Isolation: Potential for professional and emotional isolation, requiring proactive efforts to stay connected.
