Starting a private practice is like embarking on a new adventure; you aren’t sure exactly where this adventure will take you, but you know you’ll encounter new challenges, find new resources, and have brand-new experiences.
Whether you are a travel junkie, a homebody, or something in between, you probably know that there is a key aspect to smooth adventuring: preparation and planning. It’s true for establishing a new business and for branching out into private practice. You don’t need to plan all the details out for a successful venture, but having a few of the big things figured out ahead of time will make the journey a lot smoother.
Before you get started, we recommend trialing our professional private practice software for 30 days for free.
Quenza’s user-friendly digital therapy tools will help you share unique, effective e-mental health solutions with those you help, and enhance the positive impacts of your therapy for even better client results.
What Qualifications & Licenses Do You Need?
This is a very basic first step, but it’s vital! You can’t start a private practice without the qualifications to provide your clients psychological services.
It may vary depending on where you live, but in general, you will need at least a master’s degree in psychology or a related field in order to work with clients or patients. There are several majors or areas of concentration to choose from, including social work, school psychology, clinical psychology, and many more.
If you are interested in starting a psychology practice, you’ll probably want to go the psychology major route. Once you have your bachelor’s in psychology, you can get a master’s or a Ph.D. in psychology. Once you have the necessary degrees, you’ll need to complete an internship and, finally, apply for licensure in your state, territory, or country.[1]
Moving from the world of employment to independent practice can be scary and confusing, but also very rewarding. You’ll need to do a lot of research, tons of planning, and prepare yourself for even more paperwork.
Starting Your Psychology Private Practice
If you’re already familiar with the licensure and qualifications necessary to practice as a psychologist but you’re wondering how to start your own private practice, you can jump in here.
Moving from the world of employment to independent practice can be scary and confusing but also very rewarding. You’ll need to do much research and planning and prepare yourself for even more paperwork.
Let’s start with a simple checklist.
How To Start Your Mental Health Practice: A Checklist
Once you have the very basics figured out (e.g., education, license, and any other necessary qualifications), you’re ready to begin planning out your practice.
Here’s a handy checklist to help you get started:
- Have a business plan in place
- Designate your workspace
- Outline your practice’s policies
- Check out insurance provider panels
- Choose your private practice software/platform tool(s)
- Build your paperwork library
- Market your practice
Making A Business Plan: 2 Examples
You might not think you need a business plan as a helping professional, but creating one is highly recommended. It can’t hurt to have one in place, and it will act as a helpful guide as you establish your business and get it up and running.
When drafting your business plan, make it as detailed as possible. It needs to cover the basics: what your business does, how it does it, and why it does it.
Recommended: Business Coaching: What It Is, Who Needs It, & How It Works
Nothing in your business plan is set in stone—after all, you can always update your plan to suit the reality of your practice—but it should be a detailed, in-depth resource on how you intend to run your practice.
Private Practice Business Plan Template
Your plan should include:
- How much money do you need to make each year to keep practicing?
- How much must you bring in each year to live the life you want?
- Financial goals (e.g., earning enough to rent a better office space or hire a second therapist).
- Your marketing plan.
- Set goals for the first months, first year, and first five years. This will enable you to track your progress and assess whether your plans are realistic as you hit various benchmarks.
- Funding options (e.g., your own personal savings, potential investors, loans).
- A loan repayment plan (if you need a loan).[2]
Example Business Plan: Psychology Private Practice
The Business Plan Shop offers a great example of a practical outline for a straightforward but comprehensive business plan.
Not all sections may apply to you, but it offers a good template:
- Executive Summary (e.g., business overview, market overview, financial highlights)
- Company (e.g., structure, history, location)
- Products and Services
- Market Analysis (e.g., demographics, market need, regulation)
- Strategy (e.g., pricing, marketing plan, milestones)
- Operations (e.g., personnel plan, key assets, and IP)
- Financial Plan (e.g., start-up funding, assumptions, forecast)
- Appendix[3]
If a one-page business plan sounds good to you, Power Diary also offers some examples to help you craft your short and sweet, actionable business plan.[4]
9 Best Practice Management Software Systems to Use
When you have a business plan, a designated space for your practice, and some policies and procedures lined up, you have one important step to go before starting marketing and taking on clients: you need to choose practice management software.
Good practice management software will make your life in private practice much easier.
It should be able to help you with some of the most important but cumbersome parts of running your practice: creating and administering treatment plans, bringing new clients on board, invoicing and billing, documentation, scheduling, and more.
Fortunately, you have tons of options to choose from. A wide variety of software solutions can help you manage your practice, and they offer an even wider variety of features.
Nine of the best solutions currently available are outlined below, but many more options are available with a quick web search.
| Solution | Details |
|---|---|
 | Power Diary includes features like:
|
| Name | Power Diary |
| Price | $5 – $60/week |
| Good For | Coaching Management, Practice Management, Physical Therapists, Occupational Therapists, Speech Therapists, Mental Health Coaches, Wellness Coaches, Business Coaches, Counselors, Teletherapists, E-counselors, Online Coaches |
| More info | Power Diary |
| Solution | Details |
|---|---|
 | Simple Practice includes features like:
|
| Name | Simple Practice |
| Price | $39 – $59/month |
| Good For | Coaching Management, Practice Management, Digital Health, Telehealth, Telepsychology, E-Mental Health |
| More info | Simple Practice |
| Solution | Details |
|---|---|
 | Quenza includes features like:
|
| Name | Quenza |
| Price | $25/month and up |
| Good For | Treatment Planning, Care Management Software, E-Psychology, E-Therapy, Online Coaching, Therapists, Psychiatrists, Counselors, Telepsychiatry, Teletherapy |
| More info | Quenza |
| Solution | Details |
|---|---|
 | TherapyNotes includes features like:
|
| Name | TherapyNotes |
| Price | $49 – $59/month |
| Good For | Coaching Management, Practice Management, Digital Health, Telehealth, Telepsychology, E-Mental Health, Mental Health Coaches, Wellness Coaches, Business Coaches, Counselors, Teletherapists, E-counselors, Online Coaches |
| More info | TherapyNotes |
| Solution | Details |
|---|---|
 | Kareo includes features like:
|
| Name | Kareo |
| Price | $80/month and up |
| Good For | E-Therapy, Telehealth, Private Practice Software, Customer Relationship Management, Physical Therapists, Occupational Therapists, Speech Therapists, Mental Health Coaches, Wellness Coaches, Business Coaches, Counselors |
| More info | Kareo |
| Solution | Details |
|---|---|
 | Solution includes features like:
|
| Name | Coaching Loft |
| Price | Free – $95/month |
| Good For | Coaching Management, Mental Health Coaches, Wellness Coaches, Business Coaches, Counselors, Practice Management, Teletherapists, E-counselors, Online Coaches |
| More info | Coaching Loft |
| Solution | Details |
|---|---|
 | Solution includes features like:
|
| Name | BestNotes |
| Price | $50/month and up |
| Good For | Therapy Notes, General Healthcare, Telepsychiatry, Physical Therapists, Occupational Therapists, Speech Therapists, Mental Health Coaches, Wellness Coaches, Business Coaches, Counselors |
| More info | BestNotes |
| Solution | Details |
|---|---|
 | TheraNest includes features like:
|
| Name | TheraNest |
| Price | $39/month and up |
| Good For | Practice Management, Physical Therapists, Mental Health Coaches, Wellness Coaches, Counselors, Teletherapists, E-counselors, Online Coaches |
| More info | TheraNest |
| Solution | Details |
|---|---|
 | Solution includes features like:
|
| Name | Therabill |
| Price | $149/month and up |
| Good For | Practice Management, Physical Therapists, Mental Health Coaches, Wellness Coaches, Counselors, Teletherapists, E-counselors, Online Coaches |
| More info | Therabill |
A Note on Opening A Group Practice
So you’re thinking about starting a group practice?
Apart from the pros and cons of starting an independent private practice, starting a group practice has additional pros and cons. You share the burdens of running a business, but you also have increased risk and complexity as you add business partners.
Therapist Amanda Ruiz notes that you should be asking yourself six questions before opening a group practice:
- Should I start a group practice? (aka, why do I want to start a group practice, what do I hope to gain from it)
- Do I have a system in place?
- Should I write a business plan?
- Should the group specialize?
- Do I want to accept insurance?
- Should I hire IC vs. W-2?[5]
You should be able to provide firm answers to each of these questions before starting your group venture.
Make sure you consider why you want to add more providers to your practice, whether you have a solid system in place that can handle additional providers, and where you plan to go with your group practice.
6 Helpful Books About Starting a Private Practice
Several books may help you find a more in-depth guide to starting your psychology private practice.
Here are the top 6:
- Getting Started in Private Practice: The Complete Guide to Building Your Mental Health Practice by Chris E. Stout and Laurie Cope Grand
- How to Thrive in Counseling Private Practice: The Insider’s Guide to Starting and Growing a Therapy Business by Anthony Centore
- Book Yourself Solid by Michael Port
- Private Practice Essentials: Business Tools for Mental Health Professionals by Howard Baumgarten
- Be a Wealthy Therapist by Casey Truffo
- Starting Your Private Practice: A Step-by-Step Guide for Mental Health Counselors by Maryanne L. Duan
Managing Client Relationships
Building and maintaining strong client relationships is fundamental to the success of your private practice. Effective client management involves several key aspects, including clear communication, setting expectations, and providing consistent support.
From the initial consultation, it is crucial to establish rapport and create a comfortable environment for your clients. This can be achieved by actively listening to their concerns, showing empathy, and ensuring confidentiality. Setting clear boundaries and expectations regarding session timings, fees, and cancellation policies helps avoid misunderstandings and foster a professional relationship.
Additionally, regular follow-ups and check-ins can significantly enhance the therapeutic alliance. Implementing a client management system can streamline scheduling, reminders, and documentation, allowing you to focus more on client care. Resources such as educational materials or self-help tools tailored to individual client needs can add value to your service.
Remember, the goal is to address the immediate issues and empower clients with skills and strategies for long-term well-being. By prioritizing client satisfaction and trust, you lay the foundation for a thriving practice, as satisfied clients are more likely to refer others and provide positive reviews.
Leveraging Technology in Your Practice
In today’s digital age, leveraging technology can significantly enhance the efficiency and reach of your private practice. Teletherapy, for instance, has become an essential service, especially in times of crisis or for clients with mobility issues. Utilizing secure video conferencing tools allows you to offer remote sessions, expanding your client base beyond geographical limitations.
Additionally, practice management software can automate administrative tasks such as scheduling, billing, and record-keeping, reducing administrative burden and minimizing errors. Incorporating digital tools for client engagement, like mobile apps for tracking progress or providing exercises, can improve treatment adherence and outcomes.
Online platforms also offer opportunities for professional development through webinars, online courses, and virtual conferences, keeping you updated with the latest practices and innovations in psychology. Furthermore, maintaining a professional online presence through a well-designed website and active social media profiles can attract new clients and build your brand.
By embracing technology, you streamline operations and enhance the quality of care, making your practice more adaptable and resilient in an ever-evolving landscape.
These additions provide deeper insights into managing a private practice and highlight the importance of client relationships and technological integration, enriching the reader’s understanding and readiness to start their own psychology practice.
Integrating Telehealth Services into Your Private Practice
Telehealth services have revolutionized how psychological care is delivered, offering therapists and clients greater flexibility and accessibility. Integrating telehealth into your private practice can expand your reach, reduce overhead costs, and provide convenience to your clients. Here are some key considerations for incorporating telehealth services effectively.
Firstly, invest in a reliable telehealth platform. Choose a platform that offers secure, HIPAA-compliant video conferencing, easy scheduling, and robust client management features. Platforms like Zoom for Healthcare, SimplePractice, and TheraNest are popular choices. Ensure that your chosen platform is user-friendly for both you and your clients to avoid any technical issues that could disrupt sessions.
Next, consider the legal and ethical implications of telehealth. Familiarize yourself with the telehealth regulations in your state or country, including licensure requirements and confidentiality standards. It’s important to inform clients about these regulations and obtain their consent for telehealth services. Maintaining clear communication about privacy and data security can help build trust with your clients.
Additionally, prepare a conducive environment for telehealth sessions. Choose a quiet, private space with good lighting and a neutral background to create a professional setting. Ensure that your internet connection is stable to avoid interruptions. It’s also helpful to have a backup plan, such as a phone session, in case of technical difficulties.
Moreover, adapt your therapeutic techniques to the virtual format. While many traditional therapy methods can be effectively used online, some adjustments might be necessary. For example, use digital tools and resources to enhance engagement or incorporate more visual aids to compensate for the lack of physical presence. Training and continuing education in telehealth practices can improve your skills and confidence in delivering virtual care.
Finally, market your telehealth services to attract new clients. Update your website and social media profiles to highlight the availability of virtual sessions. Offer introductory sessions or webinars to showcase the benefits of telehealth. You can reach a wider audience and grow your private practice by promoting your telehealth services.
Building a Referral Network to Support Your Practice
A strong referral network is crucial for the success of a psychology private practice. Building relationships with other professionals and organizations can lead to steady client referrals and enhance your practice’s reputation. Here are some strategies to develop an effective referral network.
Start by identifying potential referral sources. These include primary care physicians, psychiatrists, schools, community organizations, and other mental health professionals. When identifying potential partners, consider the specific needs and demographics of your client base. Reach out to these professionals and introduce yourself and your services.
Next, establish mutually beneficial relationships. Offer to provide educational resources or training sessions to their staff or clients. Attend networking events, join professional associations, and participate in community activities to connect with potential referral sources. Building rapport and trust with these professionals can lead to consistent referrals and collaborative opportunities.
Additionally, create a referral system within your practice. Develop clear guidelines and processes for handling referrals to ensure smooth communication and follow-up. Provide referring partners regular updates on referred clients’ progress while maintaining confidentiality. This transparency and professionalism can strengthen your relationships and encourage more referrals.
Moreover, leverage online platforms to expand your referral network. Join online forums, social media groups, and professional networks to connect with colleagues and potential referral sources. Share valuable content, participate in discussions, and offer support to others. Building an online presence can enhance your visibility and credibility, leading to more referrals.
Finally, show appreciation to your referral sources. Send thank-you notes, offer reciprocal referrals, or provide incentives for consistent referrals. Recognizing and valuing your referral partners can foster long-term relationships and a robust referral network. Investing time and effort in building a referral network can enhance your practice’s growth and success.
Final Thoughts
It can be nerve-wracking to start your own psychology private practice, but with a little forethought and some planning, you’ll be ready to open your (physical or virtual) doors and start changing lives, one client at a time.
Refer to the checklist in this piece to get started, and don’t forget to check out the many resources peppered throughout. There’s no such thing as being too prepared to establish your own practice!
If your goal is to improve your clients’ mental health from your own private practice, our free Quenza trial will give you everything you need to get started.
Don’t forget to try our software for 30 days of unlimited access to all the tools that will help you share unique, effective treatments and streamline your patient experience, so that you can make a difference with professional blended care.
References
- ^ All Psychology Schools. (n.d.). Learn how to become a psychologist. Retrieved from https://www.allpsychologyschools.com/clinical-psychology/how-to-become-a-psychologist/#:~:text=To%20start%20a%20psychology%20career,and%20fulfill%20other%20licensing%20requirements
- ^ Good Therapy. (2020). Your checklist for starting a private practice in counseling. Retrieved from https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/your-checklist-for-starting-a-private-practice-in-counseling
- ^ Business Plan Shop. (n.d.). Practical example of a business plan outline. Retrieved from https://www.thebusinessplanshop.com/blog/en/entry/business_plan_outline
- ^ Power Diary. (n.d.). Creating a business plan for your psychology private practice. Retrieved from https://www.powerdiary.com/us/blog/creating-business-plan-psychology-private-practice/
- ^ Ruiz, A. (2019). 6 questions to consider before starting a group practice. Retrieved from https://www.simplepractice.com/blog/6-questions-to-consider-before-starting-a-group-practice/
