Whether you are fresh out of your residency or stuck in a job that drains you, the decision to go into private practice is not an easy one. The biggest question is: Will you make enough money to support you and your family? This post will help you decide whether opening your own private practice is right for you.
For therapists who are currently employed:
If you have been licensed for a while and have been working for someone else since that time, you might feel hesitant to branch out on your own. It’s hard to give up job security. But the reality is that no job is secure. And the benefit of private practice is that you are in charge of your own job security. You don’t need to rely on someone else to be honest with you about whether you will have enough clients next month or whether you will have a job at all.
The easiest way to get started with your own practice is to start out doing it part-time while maintaining your existing job. Of course, you will want to make sure that your employment contract does not prohibit you from seeing clients on the side. And you will want to be careful not to poach clients from your existing job. By starting out seeing clients in the evenings or weekends (or even try talking your boss into allowing you to work a 4-day week), you will be able to test the waters for your own practice without giving up the security of your existing position. Set a goal revenue to work toward, and once you hit that number, you will be able to step back from your full-time job and focus all of your efforts on growing your practice.
If working two jobs isn’t an option for you, another possibility is to save at least 3-6 months of living expenses to support you and your family while you start your practice (a business loan is another option but I don’t recommend it). Before you quit your current job, at least work on a business plan and getting your new business formed (choose a name, create a website, get an EIN, etc). You may also want to move forward with getting credentialed with insurance companies if you plan to take insurance. Get all of your ducks in a row so that you are ready to start seeing clients as soon as you leave your other job. You could even start marketing for new clients and create a wait list, so you have a list of clients ready to see for when you are ready.
For newly-licensed therapists:
If you are fresh out of your residency, you may find yourself confronted with the choice of whether to work with an existing practice or organization or whether to try to go out on your own. One benefit to working with an existing practice is that you have a network of professionals who can help guide and train you – an invaluable tool for someone who is fairly new to practicing. However, you can find outside consultation groups or create your own network of peers if you are willing to be proactive and put in a little extra effort. Reach out to someone in the community who you respect and ask if they would be willing to mentor or consult with you. You would be surprised how many mental health professionals would be open to that relationship.
Another benefit to working as an employee is that you are more likely to receive benefits such as health insurance, retirement plans, and paid leave. But don’t let that dissuade you from practicing on your own. With the Affordable Healthcare Act, private health insurance is more affordable and easier to get than ever. And you can start your own retirement plan – you just have to be a little more self-motivated and do your research. And employee benefits are not guaranteed even if you are working for someone else.
You could also always try to find a part-time job so you have some income while working on starting your own practice. When you feel confident in your ability to find clients on a consistent basis, then you can phase our your part-time job. And that part-time job doesn’t have to be in mental health. Working in a different field might be preferable so that you don’t become burned out.
There is no doubt about it, starting your own practice requires confidence and courage. But it’s not unrealistic to think that you could be looking at a full schedule within 6 months or even sooner depending on your level of commitment and the amount of time that you dedicate to helping your practice thrive. If you are ready to start your own practice, but you aren’t sure where to start, contact me for a free consultation. I can walk you through all of the steps needed to get your practice up and running and on its way to a full client load.
Contact me for a free 30-minute consultation if you would like more information on working with an experienced private practice consultant who can walk you through every step of starting your own private therapy practice. Or sign up to be notified of the release of my Step-by-Step Program for Starting Your Own Therapy Practice (Coming Soon!).
Next: 3 Ways to Save Money When Starting a New Therapy Practice