Skip to main content
Headway
Log inJoin as a provider

Starting a practice

5 signs you’re ready for private practice

Building a business as a therapist means wearing multiple hats — here’s how to know if you’re cut out for the challenge.

Your career as a therapist is full of important milestones: earning your degree, getting your license, getting your first job, and maybe even starting your own private practice.

If you’re looking for more autonomy in your schedule or hoping to bolster your income, private practice is a great way to advance your career as you help more clients on their mental health journeys. But working solo can also come with challenges: Building a business as a therapist means wearing multiple hats, which can feel overwhelming if you aren’t prepared.

“Solo practitioners find themselves grappling with the newfound responsibilities of managing a business, all the things your group practice used to provide,” explains Natalia Tague, a licensed counselor in Virginia. 

If you’re wondering whether you’re cut out for the challenge, consider these five signs you might be ready to take steps toward your own private therapy practice.

1. You’re confident about your clinical skills

Private practice means more autonomy, but it also means you’ll be working without the oversight or direct support of more experienced therapists. For that reason, before starting your own practice, Tague says you should feel confident in your clinical skills and your ability to work independently to support your clients (and manage all the administrative tasks that come with it).

2. You have a clear vision and goals for your career

If you’re hazy about what the future might hold for you as a therapist, then sticking with a group practice might be a good idea, because you can figure out what you’re good at, what you like, and what you want to do without taking on financial risk. But if you have your own clear career goals — for example, you’re ready to carve out a very specific niche to reach a particular client population, you’re set on earning a certain amount of money, or you’d eventually like to start a group practice — private practice could be a good fit for you.

3. You’re prepared financially

Even though you could eventually earn more money working in your own practice, starting a business is always a financial risk — one you should make sure you’re ready to take on. This may mean having a certain amount of savings to fall back on as you build your business, but it also includes a mindset shift.

“Along with being ready to track and manage your finances without the safety net of a salary, you should be ready to take on financial planning for your taxes as an independent practitioner, the cost of your marketing tools, and whatever HIPAA-compliant resources you need for communicating with your clients and documenting your sessions,” says Tague.

And don’t forget: Solo providers don’t have benefits like health insurance, retirement, and paid leave, so you’ll need to plan ahead for these to become practice-ready.

4. You’re growing a professional network

Working on your own for the first time can definitely bring a welcome sense of freedom, but private practice can also be isolating — especially when your therapeutic work becomes challenging. If you’re used to working in a group practice, you won’t have other mental health experts down the hall to consult or process your hard day with. 

Before starting a private practice, think about the extent of your professional network. Along with providing case consultations, your network of other mental health providers can also serve as a source of referrals, which is helpful as you’re building your brand-new client base. Just as importantly, you can tap into your professional relationships for support and encouragement when you need it most.

5. You consider yourself business-savvy

Last but not least, to start a private practice, you should have a basic understanding (and enjoyment of!) business. While you can rely on supports like Headway to help grow your practice, you’re still an entrepreneur as a private practice owner — which means it’s still vital to educate yourself on practice management, marketing, and financial planning.

“Before taking the step to being a solo practitioner, you should feel confident in your ability to navigate the business side of therapy,” says Tague.

Headway is a free service that makes it easier and more profitable for therapists and psychiatrists to accept insurance.

Talk to a practice consultant

Starting a practice

How to start a group therapy practice

Pivoting to a group-based model can give you the opportunity to help more clients, gain a sense of community, and even earn more money.

How to start a group therapy practice