10 things you need to start a private practice

We believe that mental health is not only cool but crucial for the well-being of this planet.

We want to help therapists get through the perceived stumbling blocks in the way of starting a private practice and reach their business goals. Starting a private practice is not only achievable, but with the right plan and support in place, it’s actually pretty easy.

Here’s how to make your own private practice

How do I start a small private practice?

Here are the ten things you need in place to start your private practice: 

1. Be properly licensed

2. Have necessary paperwork

3. Contact a lawyer in your state who specializes in mental health to review paperwork and establish rapport if a crisis arises. 

4. Get Malpractice Insurance 

5. Get (or find) your National Provider Number (NPI) if you're in the U.S

6. Get an Employee Identification Number (EIN)

7. Establish a relationship with an accountant 

8. Get a business license if your state/city requires one 

9. Open a business bank account 

10. Decide on a money-tracking system

That’s it! It’s really not too challenging.

At PREMADE, we believe you have all the tools you need to start a thriving business and develop the private practice of your dreams. 

Common Q’s about starting your private practice. 

Can anyone start a private practice?

In the United States, generally speaking, anyone can start a private practice. Now, this varies from state to state. In some states, you can start a private practice as a pre-licensed clinician straight out of grad school. In other states, you need to be licensed in order to have a private practice. We suggest checking in with colleagues, your state licensing board, and former professors to see what works for your specific state.

But, besides that, YES anyone can start a private practice. All you need to have in place are the ten things listed above. That’s it, we promise. 

How long does it take to build up a private practice?

The length of time it takes to build a private practice varies. If possible, it’s ideal to work part-time (potentially in your field, or whatever else brings your joy) as you build up your practice and eventually have enough clients to do it full time. 

This could look like working on your private practice website, networking, building up your referral list, getting all your paperwork in order, and only seeing clients 1-2 nights a week. Then, as your caseload starts to grow you can transition to more time within your practice and less at the other jobs.

If you choose to take insurance in your private practice, you can build up your caseload pretty quickly. It can be a lot to do more than 3 intakes in one week, so we recommend giving yourself two months at a minimum to transition into full-time practice.

Can you make money in private practice?

Yes, you can make money in private practice! Let’s do some simple math. In order to set your fees, think through how much money you’d like to make for the year. This includes business expenses, taxes, retirement, health care…all of it. Then, divide that number by 48 (this gives you 4 weeks of vacation and sick time). 

Let’s say your number is $150,000—that’s $3,125 a week. Now, how many people do you want to see a week*? In general, 18 clients a week should be a healthy number for most (but, check in with your own nervous system; you might feel a lot better with a lot more or less). If you see 18 clients a week, you’d need to charge $175 a session to meet your financial goals.

You are a business owner. You are in charge. You have a graduate degree, have received years of supervision, and attended countless trainings and workshops. Know your worth and set your fee appropriately.

*This is KEY to sustaining a healthy private practice. Set your boundaries from the get-go. 

Is private practice profitable?

Yes, private practice is profitable! See the math above. The cool thing about being an entrepreneur and business owner is that you get to explore other things that can bring you income and increase your profit.

Other ways to make private practice profitable:

• Provide training for doctors’ offices, lawyers, schools

• Teach a course in graduate school

• Sell products on your website

• Provide supervision 

• Run groups

How do you run a successful private practice?

There are a lot of moving parts that go into running a successful private practice. First and foremost is SCHEDULING. This takes some time to finesse, but is crucial for your self-care and preventing burnout.

Think about how many clients you’d like to see in a day. Deb Dana, of Polyvagal Theory, recommends you see no more than six clients in a day in order to stay regulated and present with your clients. Julie, of Third Nature Therapy, likes to see no more than four in a day. 

From there, assess what times you are most present. For Julie, she likes to see clients from 10 am-4 pm. Over time she’s realized this is the schedule that keeps her the most present, attentive, and healthy. Other people could thrive working at night. 

In order to run a successful practice, you need to create a schedule that works for you. And then stick to it!

Boundaries are therapeutic, so work on setting your schedule FIRST before moving things around to meet client needs.

Then, set aside time to do all the other things: notes, bookkeeping, networking, and marketing. There is not a one size fits all model for this. Do it in a way that feels good for you. If your day-to-day is in alignment with your well-being, your practice will thrive.

If you are still wondering how you create your own private practice, reach out for a consult call with Julie at Third Nature Therapy. 

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JULIE GOLDBERG is the founder of Third Nature Therapy, a virtual therapy group offering holistic mental health care for people seeking a different perspective on wellbeing. She offers straightforward and easy to implement methods for running a successful private practice.