Starting a private practice: Pros and cons to inform your decision

Pros of starting a private practice

Earning potential

Starting your own private practice may help increase your earning potential, because you won’t be sharing a portion of your fees to another practice owner. You can also expand your services for additional income — for example, offering group therapy or hosting educational workshops for other therapists. Another bonus: As a private practice therapist, you can write off certain tax-deductible expenses, such as rent, marketing, and EHR subscriptions.

Flexibility

The ability to create your own schedule is one of the most appealing aspects of starting a private practice. “Whether you limit your working hours to avoid burnout or expand the days and hours you’re available to increase your client base, you’ll ultimately have more control of when and how you work as a private practice therapist,” says Grace Dowd, LCSW, a clinical social worker and founder of Grace Therapy & Wellness in Austin, Texas.

Autonomy

Clinically, you’ll also have more freedom working as a private practice therapist. Rather than following group practice policies or quotas, you can work in a way that best suits your therapy style. Along with setting your own hours, in private practice, you can integrate the treatment modalities that help your clients most.

Career growth

Most therapists begin their private practice journeys as solo practitioners. Over time, you may decide to expand into a group practice, hiring like-minded therapists and other healthcare providers. “While you may eventually see clients less often, you’ll be able to impact more in a leadership role as you supervise other providers,” says Dowd.

Cons of starting a private practice

Instability

While starting your own private practice can increase your earning potential, it may take time to get there. You’ll be responsible for building your own client base, rather than relying on a practice to do it for you. “As you build your clientele, you may face some instability at first,” says Dowd. “Staying aligned with your practice values and goals will help attract more clients, but the process can be slow.”

Marketing responsibilities

On the topic of growing your practice: As a business owner, you’ll be tasked with marketing your practice. Marketing basics, like creating an SEO-optimized website and Psychology Today profile, can be a good start in building up your client base.

But to grow your business and ensure profitability, you’ll need to go the extra mile — for example, by attending networking events and conferences or considering being active on social media. It may also be worth participating in more continuing education so you can expand your treatment modalities and, as a result, expand your client base.

Legal considerations

As head of your own practice, you’ll be responsible for legal considerations from forming your own sole proprietorship or LLC and attaining a business license to investing in malpractice insurance that protects you from legal and financial risks. It’s important to consider whether you want to take on these extra responsibilities before venturing out on your own as a therapist.

Extra administrative duties

If you’re coming from a group practice, you may have had administrative staff to take care of tasks like scheduling, credentialing, and billing. On your own, these duties will likely become your responsibility — which can take up time you may be spending in therapy sessions with clients.

“Before venturing into a private practice, therapists should weigh whether they’re OK with shifting their responsibilities,” says Dowd. “Incorporating more administrative work may mean reducing your own case load, but ultimately, you can expand your practice to help more clients.”

Starting a practice