10 things for therapists to consider when transitioning to full time private practice
As mental health therapists, we've witnessed numerous colleagues embark on the journey of transitioning from a full-time job to running their own private therapy practice. It's a decision laden with excitement, apprehension, and uncertainty. While the prospect of autonomy and flexibility is alluring, the transition requires careful planning, self-reflection, and a solid strategy. In this blog, we'll share insights and tips from our experience to guide therapists through this significant career shift.
Clarify Your Motivation: Understanding why you want to transition to private practice is crucial. Is it to have more control over your schedule? Do you yearn for creative freedom in your therapeutic approach? Are you seeking greater financial independence? Clarifying your motivations will serve as a guide when you are setting goals and developing the structure of your business.
For instance, one of our biggest motivations for transitioning to private practice was to combat the burnout working for a tradition 9-5 therapy gig produced. This motivation influences who and how we serve, structure of our business, the systems we put in place, and how much we charge for our services.
Assess Your Readiness: Assessing your readiness involves evaluating both your clinical skills and business acumen. Are you confident in your therapeutic abilities? Do you have a solid understanding of ethical and legal considerations in private practice? It's essential to feel competent not only in providing therapy but also in managing the administrative and financial aspects of running a business.
If you find yourself not ready in either of these areas, we suggest you develop a plan to increase your readiness. Find a mentor. Hire a coach that specializes in running a private practice. Listen to podcasts like the Private Practice Start Up to educate yourself further your readiness.
Create a Business Plan: A well-thought-out business plan serves as a roadmap for your private practice. Define your target market, outline your services and pricing structure, and develop a marketing strategy to attract clients. Consider financial projections, including start-up costs, operating expenses, and revenue goals. While flexibility is essential, having a clear plan will increase your chances of success.
While this step may not be the most exciting and may feel intimidating at first, it’s a worthwhile exercise in beginning to articulate your why, who, and how for your business that will translate into how your market, network, and convey your services to your future clients.
Build Your Network: Networking is invaluable when transitioning to private practice. Connect with fellow therapists, physicians, community organizations, and potential referral sources. Attend conferences, workshops, and networking events to expand your professional circle and establish collaborative relationships. Word-of-mouth referrals can be a powerful source of clients in private practice.
Not sure where to start? Find a treatment facility in your area that serves a portion of the population you plan to serve. Sign up for their mailing list to receive notifications about networking events and sometimes even free trainings they offer to practitioners in the community. Request to meet with someone from their marketing team to learn more about what they do and establish a collaborative relationship with them. If you tend to shy away from big crowds, show up and be a wallflower - even if it’s just for a small portion of the event. Just don’t leave without getting a few business cards to follow up with a 1:1 meeting later.
Manage Finances Wisely: Financial considerations are paramount when transitioning to private practice. Save a financial buffer to cover initial expenses and account for fluctuations in income during the transition period. Set up a separate business bank account, track expenses meticulously, and consider consulting with a financial advisor or accountant to ensure sound financial management. We use Heard for our bookkeeping. It’s been great for us as they specialize in bookkeeping and tax prep for therapists specifically (message us to receive our referral code for $100 back upon you signing up).
Some things we did to financially prepare for private practice was to pay for pay for the things you KNOW you will need up front while your have “dependable” income coming in from your 9-5. This may include the cost of building and/or hosting your website, getting on therapy directories, registering your business with the state your business is in, liability insurance, or your electronic medical record. That way, paying for these things while the practice is slow or still building is not as much as a burden.
Navigate Legal and Ethical Obligations: Familiarize yourself with the legal and ethical obligations of practicing independently. Obtain the necessary licenses and credentials, secure professional liability insurance, and establish policies and procedures for maintaining client confidentiality and informed consent. Compliance with regulations not only protects your clients but also safeguards your professional reputation.
Embrace Continuous Learning: The journey to private practice is a continuous learning process. Stay updated on advancements in therapy techniques, emerging research, and changes in regulations that may impact your practice. Seek supervision or consultation when encountering complex cases, and invest in ongoing professional development to enhance your clinical skills and knowledge.
Prioritize Self-Care: Transitioning to private practice can be demanding, both emotionally and physically. Prioritize self-care to prevent burnout and maintain your well-being. Set boundaries around your work hours, engage in activities that replenish your energy, and seek support from peers, mentors, or a therapist if needed. Remember, taking care of yourself is essential for providing quality care to your clients.
We cannot stress enough, continue to allow your initial motivations to open the practice, guide your decisions in the practice. Let’s continue along with the example of burnout. If you are leaving your full time job due to burn out, don’t bring the same burnout to your private practice. While it may seem counterintuitive when you are first starting, don’t make yourself available to see just any client, any day, any time. There are enough clients for you to see within the parameters you set. When you start compromising on your plans, it leaves you susceptible for the fatigue, resentment, and burnout to begin creeping back in.
Embrace the Journey: Embrace the journey with an open mind and a willingness to adapt. Transitioning to private practice may involve challenges and setbacks, but it also offers opportunities for growth, fulfillment, and professional autonomy. Celebrate your achievements along the way and remain resilient in the face of obstacles.
One of the greatest things we were able to lean into was the concept of not needing to start out at our ultimate goal. Essentially, we set a vision for ourselves and gave ourself the time and space for our business to evolve into the ultimate goal.
Test it Out: Finally, you are almost ready to take the leap. Start putting yourself out there and build a small caseload before you hand in your resignation letter. You can do this by carving out a few hours a week to see even 2-3 clients. This can be on one weekend day per week or every other week, an hour 2-3 evenings, 2-3 lunch breaks, or a hybrid of all of the above. Doing so will give you proof of concept and let you iron out your systems and processes before diving all the way in.
In conclusion, transitioning from a full-time job to running a private therapy practice is a significant career move that requires careful planning, self-reflection, and determination. By clarifying your motivations, assessing your readiness, creating a solid business plan, building a network, managing finances wisely, navigating legal and ethical obligations, embracing continuous learning, prioritizing self-care, and embracing the journey, you can navigate this transition successfully and build a thriving private practice that aligns with your professional goals and values.
Here’s a motto we would like to share: If I work half as hard for myself, as I did for my 9-5, I cannot fail!
For more guidance on this transition, we are here to help. Book a complimentary discovery call here.
