7 Steps to Starting a Private Practice
How do I start my own clinical practice?
Starting a private practice providing therapy to clients can be thrilling. It allows you to help people on your schedule and terms, research and try new therapeutic techniques, and structure your business to work with your lifestyle. But it can also be scary. You might know how to help and counsel clients, but do you know how to build a thriving business?
I know I did not! I had essentially no idea whatsoever!!
I remember thinking it was impossible when I first graduated. Looking back, I waited too long to start. This would be the one thing I would change. Part of why I do consulting work is to make what feels challenging and out of reach. Nothing feels quite like that! Seeing my I want to help you create a successful practice, and it all starts with these seven steps:
Do Your Research
You'll need to know about local and state regulations for mental health providers and what kind of insurance is accepted in your area. Doing your research helps ensure that when you launch, it is easier with support.
The path to success is in taking the steps outlined below. Then, with planning and commitment, you can create a thriving practice that will help many people while allowing you to make a living doing something you love.
Choose the right location.
It's crucial to find an office space that meets your needs. Consider factors such as cost, availability of public transportation, parking, and whether it will be safe for clients.
The expenses of private practice.
Brace yourselves for higher taxes! But don't worry; with the proper planning, you'll also be able to fund your retirement and health insurance. However, there are many benefits to this. You have more control over your retirement plan. If you hire employees, you must pay payroll taxes, offer help, and provide a competitive salary. Office space, phone/phone services, internet, website, and other costs can further affect your budget. These are the monthly fixed expenses. Remember that it will cost money upfront to pay for the furniture. But the good news is that starting a private practice is much less expensive than a typical business.
Market your private practice
Creating a website and social media accounts is essential for attracting new clients. However, it would be best to consider other options, such as joining local counseling networks, attending events in the community, or advertising in print and online.
Get insurance
Professional liability insurance will protect you from legal issues. You may even get insurance that covers your office space, furniture, and equipment.
Know the laws in your state
Laws vary from state to state. You must know and follow the rules, guidelines, and regulations when setting up a private practice. Every state and municipality has its rules governing businesses. You can consult with a business lawyer to follow the laws in your area. State and local zoning laws may limit where you can practice.
Whether or not you need a business license.
How best to incorporate your business as a separate entity.
Malpractice and professional liability insurance.
Create a business plan
This part was the scariest part for me. I didn't know enough to create one, so I avoided it. But creating a solid program, including your business goals and objectives, a budget, and any strategies you may have.
If you want a loan to start your business, you'll likely have to provide a detailed business plan. Even if you're funding everything out of pocket for your private practice, a business plan can help you succeed as early as possible. This evolving document should change as you learn and do more.
Some things to include in your plan include:
How much income must you make each year to keep practicing?
How much must you bring each year to earn a decent living?
Financial goals
Your marketing plan.
Goals.
Form, write down, and share your plans for the first months, first year, and first five years. This will help you track your progress. It will also help you to assess whether your plans are realistic as you hit various benchmarks.
Does owning a clinic make money?
Yes, owning a clinic can make money. You can generate a significant income from running your clinic depending on the type of services you offer, the demand for those services, and how well-run your business is. However, it takes time to build up a successful practice and establish a good reputation to attract more clients. Most people give up too soon. Give yourself a full year before deciding to change your path. It all takes time to build.
If you need any more help making these decisions, please don't hesitate to contact Laurie Groh today. I am here to help! For more information check out The Private Practice Consultant.
