Getting Started in Private Practice Counseling
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Looking to start your own private practice counseling business? This article and free starting your own counseling practice PDF eBook provide you with all the steps to get started.
First and foremost, a therapy or counseling private practice is a service business that operates just like any other business—with the exception of the ability to accept medical insurance. Just like any other service business, a counseling practice requires you to generate revenue and pay bills to cover costs.
In other words, a therapist or counselor who owns a private practice needs to see enough clients to operate their practice, pay bills, and support their livelihood.
A licensed clinician with the necessary clinical hours can open their own practice at any time.
And, in the United States, demand for therapy and counseling services is currently high. One in 5 Americans experience a mental health condition each year, and many find it challenging to find a therapist who is accepting new clients or a therapist who takes their insurance. According to 1,320 therapists recently surveyed by the New York Times, they are concerned they can't keep up with American consumers’ demand for therapy.
Mental health providers can quickly build their caseloads by generating referrals from insurance companies if they decide to get paneled.
However, even if you choose to stick to an out-of-network model and accept private pay clients only, there are many ways to build your private practice counseling business and grow your revenue.
Keep reading to learn the pros and cons of private practice vs agency counseling—and download the free starting your own counseling practice PDF eBook that contains all the steps to open your own practice.
Private practice vs. agency counseling: Challenges and solutions
Before we dive into the practical steps of starting your practice and building your caseload, let’s define the two paths you can take as a therapist: opening your own private practice counseling business or working for a group clinic or counseling agency.
Becoming an independent counseling practice owner is a responsibility that requires preparation and courage to rely on yourself.
Often, you will also need financial resources to support yourself in the beginning stages of building your business.
Some common expenses include rent if you’ll be seeing clients in person, software (for telehealth and practice management), and marketing services.
This can often feel risky and prevent some clinicians from venturing into private practice. But if you’re up for the challenge, the benefits of freedom and higher income often outweigh the risks.
On the other hand, working for an agency or a group practice allows you to focus on clinical work only— and forego the fiscal responsibility associated with running a business. Similarly, you’ll be offered benefits such as health insurance and retirement programs. Additionally, you won’t need to worry about filling your caseload since it will typically be handled by the agency or a group practice owner.
However, working for an agency can also come with a lack of freedom and flexibility in choosing your clients, managing your calendar, or decreasing your workload. Additionally, when you work for an agency or group practice, your hourly rate is often lower than the rate you would set for yourself as a practice owner.
These factors, along with the high volume of clients each counselor is expected to see, often causes therapists who work in agencies to experience burnout.
Steps to start your own counseling practice
If you choose the private practice counseling route for your career, aim to set yourself up for success from the beginning.
Here are some of the steps to help you get started:
Education and licensure
Although it’s possible to start your own practice as a pre-licensed therapist, you will need to account for your hours of supervision necessary to get your license. If you’re planning to fill your caseload by paneling with an insurance company, be sure to research the specific license required to qualify for credentialing with them.
Create a business plan
Many clinicians skip this important step in the beginning, but I recommend creating a basic plan that outlines your vision for your practice, along with your fees, expenses, and profit projections. This free budget template can help you get started.
Although you can hire a professional to help write your business plan, you can also do it on your own with templates that are available through the U.S. Small Business Administration.
Legal and regulatory considerations
Similar to licensing, you’ll need to establish your business entity before you open your doors to the public. Research the various business structures that align with your vision for your practice. Make sure you know which types of insurance you need to cover your business liabilities.
Set up your physical space
Creating a welcoming environment for your clients is equally important. Whether you decide to see people in-person or remotely via telehealth video sessions, consider the aesthetic elements that make both your physical and virtual space a comfortable therapeutic environment.
Choose furniture and lighting that are helpful for the type of therapy you’re planning to provide. Make sure that your space offers the privacy and safety needed for your clients.
To help you get started, download the free starting your own counseling practice PDF that includes more information on choosing your:
- Business name, structure, and license
- HIPAA-compliant email
- Business phone number
- Business bank account
- Professional website
Marketing strategies for private practice counseling
Even though therapy services are in high demand, you’ll still need to use some marketing strategies to build up your client base.
Whether or not you decide to accept insurance, you’ll still need to come up with a name for your practice, a website, and other fundamental branding and marketing elements that will help you stand out—both online and offline.
Choosing your niche
Identifying the population you enjoy working with the most will help you thrive emotionally. And, it will also make your marketing efforts easier.
By understanding your “target audience,” you’ll be able to craft a message that speaks directly to their experiences and desires to get help. You will be able to build a reputation, connect with potential clients, and build a caseload by focusing on a specific niche instead of talking about therapy in general.
Building an online presence
Many people search for healthcare information online prior to making a decision about seeing a provider. This applies to counseling as well. Being easy to find online will ensure that more people will come across your practice.
Building your website and listing your practice on a therapist directory profile such as Psychology Today are some of the first steps to increasing your online visibility.
Networking and referral partnerships
Many practices rely on referral relationships to attract new clients, and for a good reason. The mental health space has a strong referral culture that you can leverage when you’re building your own counseling practice.
You can start building and fostering referral relationships from day one without the need to financially invest in this strategy. Start by connecting with your network to notify them about your new practice and explaining what your niche is and how you can help them. Connecting with local providers and even networking online and offering cross referrals will also help you in building these relationships and generating new referrals.
Benefits of starting your own private practice in counseling
For those who wish to open a private practice counseling business, the steps in this article and in the starting your own counseling practice PDF provide a useful framework to get started.
Here are the main benefits of moving forward with your own practice:
- Freedom and independence: A private practice allows you to choose your clients, set your fees, and set your own schedule.
- Financial future: Done right, your practice will be able to support your lifestyle and your dreams for the future.
- Work-life balance: As a practice owner, you will be able to define your caseload—helping you reduce the risk of potential burnout.
If you’re ready to get started, download the free starting your own counseling practice PDF now at the link at the top of this article.
Sources
- Mental Health By the Numbers. (2023). https://www.nami.org/about-mental-illness/mental-health-by-the-numbers/
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