Launching Your Therapy Practice: Tips and Strategies for Success

Starting a private practice can be exciting, but also somewhat overwhelming. You’ve worked hard to get here, but now you may be wondering where to start. With the many local, state and federal regulations governing your field, including HIPAA, launching a private practice can be even more challenging. But remember, you’re not the first to start a private practice from the ground up and there’s lots of accessible information available and great support from experts, who can help. 

Here’s some tips for getting started.

Starting with a Business Plan

Developing and executing a business plan is essential for the successful business launch. It helps keep you focused on your goals and helps to ensure you are considering all the essential elements needed to launch a successful practice. You’ll need to consider items such as:

• Financing
• Marketing and branding
• Legal and accounting services 
• Office location
• Equipment
• Insurance and more!

As you begin executing your business plan, using both your time and money efficiently will be critical. You might think you can cut costs by handling business licensing, designing a website, or making business decisions about incorporation on your own, but do you really have the expertise, or the time? Some clinicians prefer to try and cut costs and handle things themselves, but it may be best to seek professional consultation from an attorney, an accountant, website designer, and a practice building coach. An investment in these services may save you time, money and a lot of headaches down the road.

Let’s take a deeper dive into some of the decisions and actions you’ll have to take as you begin your private practice.

Financing Considerations

There are a host of start-up costs before you counsel your first client in your private practice. So, it takes a real financial investment to make your dream a reality. Here are just a few financial considerations related to starting your private practice. 

• Do you have enough money saved to sublease an office space or lease an office on your own?  
• Will you be able to afford office furniture, pay for insurance, and have an extra phone line? 
• Can you afford to work in your practice full-time?
•  How will you fund your office and living expenses while building your practice? Since most therapists and psychologists do not start out with a full caseload, it may take months to get approved for insurance panels. You will need enough money to keep you afloat until your client base can support you financially. 
• Are you able to open a bank account specifically for your business? 

If you don’t have sufficient savings, you might consider starting part-time and transitioning to full-time. With good credit, small business loans or lines of credit are also available to help give your business the financial boost it may need. There may also be special financial support if you qualify as a woman-owned, veteran-owned, or minority owned business.

Branding and Marketing

Choosing a name for your business

The name you select for your practice is vitally important for marketing and for business growth. Here’s some things to keep in mind as you select your business name:

• Think about your future business goals. For example, deciding to use your own name, such as Jones Counseling, can be a limiting factor for growth. From a marketing perspective, oftentimes selecting a business name that reflects the benefit you provide is a better choice than using your own name.  If you want to add more services or staff later, a name that reflects this benefit, such Horizon Wellness Services, might be a more appropriate choice. Also, if you later decide to sell your successful practice, it might be more enticing to a buyer if it wasn’t named after you.  
• You will also need to register your business name with your state, so you will want to make sure that name is not already taken before you start working on logos, business cards, etc.  
• If you want to have a website, you will also need to determine what website address you want to use.  More common names are already taken, so you may have to be creative. You also want to make it easy for people to remember. Again, search for available domain names for free with domain registry companies like godaddy.

Website Development

Once you select your business name, decide how you want to market.   Oftentimes, it can be very beneficial to have a professional website developed. Although it is possible to set one up yourself with free or low cost options, having your website completed by a professional is a solid investment. A professional website developer will be able to capture your vision, attract your ideal audience, write compelling content, and incorporate your marketing goals. 

Social Media

Next, set up and use social media accounts under your business name. There are so many to choose from, so don’t try to be active on every social media platform. Focus on the one or two that make the most sense for your business-where are your clients most likely to hang out?  Also, use the ones that are more manageable and enjoyable for you to maintain. 

Directories for Therapists

Another way to market your private practice is to complete online directory profiles for your business. Many clients will try to find a counselor using popular directories such as the ones at KIDStherapyfinder, Psychology Today, or Good Therapy. Some are free, like KIDStherapyfinder.com with the ability to upgrade to a premium listing, and some charge a fee to maintain and do not offer free listings. 

Networking

And finally, always be networking. Referrals are a great way to build your start-up. So, look for networking opportunities to help gain new business.  Attend alumni events, bring your business cards to trainings you attend and get to know others who might be a good referral source for you. For example, if you’re a couple’s therapist, take time to get to know some of the child therapists and psychologists in your area who might need referrals for parents.

Legal and Accounting Services

As you make key decisions about how you conduct business, you will likely need professional advice regarding legal decisions and accounting.

As you develop your private practice, you’ll need to research the laws of your state and determine how you are expected to set up your business entity and what the best plan is for your practice.  It may be best to hire an attorney and a certified public account to direct you in these matters, as you consider the legal and tax implications of each type of business structure.  Some of the things you will likely need professional consultation around, include:

• Should my practice be an LLC or a PLLC?
• What’s the difference between a sole proprietorship and a corporation? 
• Should my business be an S-corporation? 
• How do I keep personal and business finances separate? 
• What expenses should I be tracking for my business?
• How often should I pay taxes and how do I know how much to pay?
• How do I register my business name to keep others from using my practice name?
• Do I need a business license? Depending upon your location, you could be facing licensing issues from state, county, and city governments. 

Attorneys and accountants can help you navigate these issues and determine the right course to ensure you get started on the best legal and financial foundation.  If you’re in need of a referral, check out our directory or ask fellow therapists in your community who they recommend. 

Office Location-Where Do You Want To Practice?

With the advent of new technological options and the concerns around COVID, counselors now have more options than ever before on where to conduct their therapy practice.  Online therapy, also known as telehealth, provides you the opportunity to handle therapy virtually. It’s convenient for both the client, who remains in the comfort of his or her home, and the therapist, who doesn’t necessarily need to maintain an office. You’ll need to utilize a HIPAA-compliant online platform if you follow this course.

But, traditional options are also still available. You can travel to your client’s home for sessions, which is convenient for clients. Keep in mind this results in car wear and tear and higher gasoline expenses for you. Plus, it’s not as time-efficient for the counselor. 

Although most counselors prefer a location away from their home and tend to keep their home address private, some counselors work from a home offices, even setting up an area for clients to come to their home for therapy. Home offices still require you to follow local ordinances, as well as be HIPAA compliant. 

Opening a separate office location brings higher operating costs, so subleasing some space from an established therapist can help cut your initial start-up costs. Some practices will lease out space by the hour, day, week or month. 

Today’s consumers like choices, so offering a combination of options to your clients may also be a good marketing decision as you launch your private practice. 

Equipment

Phones, computers, and office equipment costs can add up fast. If you’ve decided to sub-lease office space from a therapist, or lease a keyman suite, you may be able to decrease out-of-pocket costs for equipment.  You also may want to consider practice-related software that automates appointment messaging, allows you to keep client notes, plus handles invoicing and payment processing.  

Insurance

Protecting yourself and your business can require more than one type of insurance.

A therapist needs to have protection from potential allegations of malpractice. There are specialty insurance policies that protect healthcare professionals from liability over disputed mental health services. If you lease an office space, you may also need general liability insurance to cover accidents.  If you are renting an office, renter’s insurance, also known as a business owner’s policy, covers many possible disasters. From fire and theft to lawsuits and loss of income. These policies can give the new therapist peace of mind.  Another consideration is your own health insurance.  How will you manage your own medical treatment and prescriptions?  

Final Thoughts

Although there are many things to consider when starting a business, breaking down your business plan into manageable steps can help you successfully navigate the obstacles toward a rewarding life as a business owner. 

Need help figuring out next steps?  Contact a private practice building professional today. Most offer a free initial consultation, and many have podcasts which offer ideas to help you build the practice of your dreams.