How to Start, Grow, and Manage a Private Therapy Practice: Part 1

Starting a private practice is an exciting yet terrifying journey. Many therapists don’t consider themselves business savvy enough to become their own boss. But the truth is, with a little direction on budgeting, marketing, and planning, anyone can launch a successful private practice. 

We’ve put together a comprehensive guide to help answer questions, detail necessary steps, and warn you of the pitfalls to avoid. You’ll also find helpful worksheets, checklists, and pro tips from experienced practitioners. Are you ready to take the next step toward a rewarding and lucrative career in private practice? Keep reading!

What is a Private Therapy Practice?

A therapy private practice offers mental health services provided by an individual therapist who has their own office and creates their own schedule. This is different from working for a larger practice or institution where you essentially show up, work, and earn a paycheck. There are pros and cons to both models, but before we jump into the good, the bad, and the ugly, let’s start at the beginning: credentials.

Most therapist jobs require a master’s degree or higher. On top of earning a degree, each state has unique licensing and continuing education requirements needed to practice. Research your state’s licensing board to determine what exams and qualifications you’ll need. Check out state licensing boards for counselors, therapists, and social workers or psychologist licensure requirements by state as a starting point.

Now back to the big question: group practice or private practice? As you may have guessed there is no one-size-fits-all answer. Private practice comes with the advantages of flexibility and freedom. You have control over your schedule, location, and the type of clients you want to work with. There is also the potential to make more money than working for someone else. These perks are offset by the added responsibility of being a business owner and those risks can feel scary. Suddenly you must pay for your office, utilities, supplies, and be able to fill your caseload.

When you work for a larger practice, someone else is responsible for the overhead, marketing, and your schedule. You also have a built-in community of mental health professionals and are less likely to feel isolated. Downsides may include less pay, minimal say over your clients, and a greater tendency for burnout (especially if your practice is solely focused on the bottom line). 

A hybrid model, known as a consulting therapist, may offer the best of both worlds. Rather than working as full-time employees, consulting therapists fill their schedules through a third party and meet with clients on-site or virtually. This concept offers flexibility and eliminates some of the financial and mental stress of running a private practice. Drawbacks often include less control over the clients you work with and not collecting a full fee. You may find consulting therapist work at a local practice or through some of the top online therapy services including Better Help, Talkspace, Cerebral, and Lyra.