Starting a Private Practice in Counseling Checklist
How to Start a Private Practice
Starting your own private practice for counseling is a massive achievement, one that can come with a ton of exciting new experiences, but some overwhelming or challenging ones as well.
Running your own practice means that you'll be working on your own terms, which means you get to set the terms of your business, create your own policies, manage your own workflow, and define the types of clients you serve best through nicheing and specializing.
However, as many therapists walk down this road, they learn that with the good comes the not-so-good—and even the terrifying, overwhelming, frustrating, or even enraging. This is all to be expected, and many of the challenges you face can be alleviated (at least a little) by having a solid plan in place as you’re figuring out how to get started, how to market yourself, and how to navigate the laws and ethics dictating your profession.
While there are a lot of things to keep in mind as you start a private practice, this brief guide will take you through some important things you need to know about making your private practice startup successful.
Draft a Business Plan for Private Practice
A business plan should be one of the first things you do for your practice. A good business plan will give you clarity and set you up for success.
Your business plan should include several things, such as:
an outline of the clients you plan to work with or the specializations you have
your qualifications, licensure information, and documentation around how you plan to ensure compliance with your licensure (CEUs, ethical requirements, legal requirements, etc)
your schedule, location, availability
your policies (like cancellation policies, payment policies, privacy policies, etc)
your funding source/payment (insurance vs. self-pay)
desired outcomes for your business
1, 5, and 10-year goals
a definition of your business structure—is it a sole proprietorship, a partnership, or a limited company?
Name Your Private Practice
The name of your private practice matters—but don’t freak yourself out about it, or stop yourself from starting because you don’t think the name is “good enough.” Don't make it too complicated or fancy. A simple name that customers can easily relate to is all you need.
A few things to keep in mind:
Avoid naming it your practice after yourself if you eventually want to run a group practice.
Consider a name that includes keywords that will improve SEO ranking.
Consider making your business name location-specific so that people in your local area can find you with ease.
Incorporate Your Private Practice
Get familiar with the different laws and regulations in your area before opening your practice. Check local laws & regulations that determine what type of business you're allowed to incorporate (LLC vs. PLLC vs. S-Corp). Incorporating your practice will protect you and can potentially give you access to tax benefits. You'll be more likely to protect your personal assets and belongings with a separate business entity, rather than just practicing under your own name and social security number. If you're partnering with someone else, consult a lawyer to help with the paperwork.
Gather All the Required Documentation
You'll need several documents for your private practice, and all must be in place before you start. You need all the paperwork related to your business and legal documents to aid your practice. Some of these documents include billing, HIPAA and privacy notifications, consent documents, release of information docs, and intake paperwork, and insurance paperwork.
All healthcare providers also need to get EIN, NPI1 & NPI2. Without these documents, you may not be able to get paneled with insurance, open a business bank account, or provide your clients with the appropriate documentation for out of network reimbursement documentation, among many other things.
Open a Business Bank Account
You’ll want a separate business account to manage your business funds appropriately. Your business bank account should be separate from your personal account for security and accountability purposes.
Remember, the bank will be like your business partner. You'll need financing from time to time, and the bank you choose to open should be able to provide that. Choose a bank that will grow with your business. Get recommendations from other private practice therapists and small business owners in your area. I, personally, like using Novo Bank.
Get an Electronic Health Record (EHR) System—Ideally with Scheduling & Documentation Capabilities
A good EHR is a private practice must for client communication, scheduling, HIPAA-compliant documentation, and billing for your operations. Make sure the software you choose has scheduling and documentation capabilities to make your work easier—especially if it comes with automatic appointment reminders and giving clients the ability to request, cancel, or reschedule appointments on their own.
Software such as Simple Practice will ensure you have everything taken care of, from booking to billing. You can also consider Therapynotes to help you manage records, schedule appointments, and meet with patients, among other things.
Market Your Private Practice
If you're just a private practice startup, you'll need to make yourself available and “findable” for your potential clients. Remember, they don't know about your existence, and it's upon you to market yourself, especially at the beginning. There are different ways to market your services, and there are a number of platforms that may help. Some ways to get the word out there are through:
Therapy directories
An SEO-optimized therapist website
Networking
Social media
Hire a Business Coach for Therapists
One thing you gotta understand when starting your private practice is that you're not going to have everything figured out at the beginning. Your private practice startup efforts may need some extra support when it comes to marketing, financial planning, or client management. That's where a business coach for therapists comes in.
Coaching for therapists will help you get on your feet and can help you stay on track, especially when things get challenging. So, if you're ready to get someone to help you take your private practice to the next level, book a free consultation for business coaching today.