How to get starting in private practice
I’ve been a licensed mental health therapist since 2016. After I became licensed, I desperately needed a way to be my own boss, have more flexibility in my hours and increase my income. Starting a private practice was one of the best decisions I’ve ever made for my career but not without some bumps along the way.
Let’s start with the basics
Congratulations if you are even thinking about doing this for yourself! There’s something so rewarding and incredible about being your own boss. You have the freedom to work with whomever you choose, whatever hours you choose and how much income you make. Especially right now with telehealth- the flexibility and the job security are ideal. But first let me show you a few things to things to consider as you start thinking about owning your own practice.
Start up costs
You are going to need a little seed money to get you started with the basis-Office space, phone, some basic marketing and/or website. And these things cost money! Profits First by Mike Michalowicz was SO helpful. You aren’t going to be able to start without any money. One big lesson for me-My first office. Although it worked for a short time, I quickly realized so many things I didn’t think about when looking for an office. First, it was cheap BUT I outgrew it quickly, it was also just loud but I had signed a 3-year lease. Mistakes happen. These are just a few things I never thought about and we just areas we aren’t taught in graduate school. We also have this negative mindset about money I remember reading and it changed my whole perspective. You Are a Badass at Making Money: Master the Mindset of Wealth. Get you a copy!
I digress. So, choosing a cheaper office may save you money, but it won’t do much for creating trust with your clients and your own peace of mind. Learn from me what you put into your practice now will pay off in the future.
Here are just a few things you are going to encounter before opening your own private practice:
· Forming your Business entity- LLC vs Scorp
· Saving for taxes- Do you want an accountant?
· Paperwork — Should you hire a lawyer to review your forms?
· Office space rental
· Office utilities
· Marketing-website, networking, etc
· Insurances- Liability, health, renter’s
You can most certainly find ways to save money and make the most of your investment but you have to find ways in the beginning to be creative and resourceful that aren’t going to drastically hurt your business long term.
What to charge clients
Income! That is why you are starting your own business anyway, right? There are many things that go into factoring this. Everyone can give you all kinds of different advice but here is what worked for me. I researched what therapists in my area were charging per hour and I charged little less than that for cash only clients. Mind you not because I thought I was worth less but because I needed to set myself apart and wanted to get some clients quickly. Financially, for me this worked. Also, your best referral source is going to be current clients who tell others about how great you are. Within a few weeks, I had at least a handful of new clients. You can always increase your rates down the road as you should anyway. On one hand, you don’t want to isolate any prospective clients by setting your fee too high clients can’t afford it. On the other hand, you don’t want to undermine your own freedom by offering a unfeasible fee. This would only create resentment towards your business and clients will know.
But keep in mind if you take insurance you have to charge your contracted rate that the company sets. Luckly, I didn’t take insurance.
So a few questions to ask yourself
· What are therapists in my area charge? Does that feel like a good rate for my skills and experience in the field?
· Is it worth to charge the same rate as other therapists or maybe wait a little longer to get more clients?
· Is my town or zip code saturated with new therapists?
· How much do I need to charge to live off of?
· How many clients can I mentally handle in a day/week?
Next, NETWORKING
This is by far the most helpful thing I did for my own practice. A lot of advice says you need to spend lots of money on marketing, creating a website, business cards, psychology today account and the list goes on. I found the opposite to be true even for my introverts out there. Work smarter, not harder If your best friend asked you for a referral for a doctor or a dentist you likely aren’t going to refer her to someone you’ve never even heard of or met, right? Hopefully not.
I found that word of mouth is way more beneficial than any other form of marketing. You create real relationships with real people. Clients need to trust you and they are much more likely to ask a friend or other professional for a therapist name than finding you off some website with 100 other therapists in your zip code. You also get a way better chance of your ideal client finding you because these people know your style. The best way to networking is connecting with just a few local business owners. You work with pregnant woman, connect to local yoga studio and take them for coffee learn about their business. What about business right next door to you? Meet ALL your neighbors tell them what you do and don’t forget to send them a thank you-email or note card. Have questions about this? Let me teach you! Reach out and I will give you more of my insider secrets on networking skills. I’ve created a full practice with VERY little to no marketing or advertising costs.
What about being a contract employee in private practice
This is totally a personal decision- It really depends on your current situation and what makes the most sense for you. Many therapists hire licensed clinicians for a percentage of the client fee most common rates are 60/40 split and if you are lucky you might be able to find a 70/30 split. This is a great option for those who aren’t quite ready to start their own business but want to have a little more flexibility in their hours and work flow than a big company.
Final Thoughts
Starting up your private practice can be a really exciting time in your career as a mental health professional. However, to enjoy your practice for many years to come, be sure to avoid the above mistakes and do your own research. If you’d like to learn more about setting up your practice, I would love to help you get started!
I offer both private practice 101 workshops and consultations which you can find here- www.solutionsbyjv.com.
Additional resources
Best Practice: Everything You Need to Know About Starting Your Successful Private Therapy Practice
Profit First
Starting Your Private Practice: A step-by-step guide for mental health counselors
Jennifer Vincent, LMHC, CSAYC
Licensed Mental Health Counselor Owner of Jennifer Vincent, LLC
