What are the start up costs of a private practice?
If you are a baby therapist or someone looking for a career change- you have come to the right blog! Personally, private practice is where it is at! While it has it’s own set of challenges, for many people the pro’s outweigh the con’s.
Start Up Essentials:
No matter where or how you are choosing to conduct your practice, there are essentials that we all need to keep things legal- and streamlined.
Business Licenses
Clinical Licenses
EHR Platform
Business bank account(s)
Billing platform (either within the EHR or separately)
BAA or HIPAA Compliant communication platform (eg. a business phone number, email, etc)
A secure location to provide services
A tablet, computer or device for work
Wifi & Power
A website
Professional memberships (depending on if they are required by your state board)
Start Up Non-Essentials
An office space to rent
Work attire
A note-taking system/secure option for storing notes if not within your EHR.
Marketing tools
A locking briefcase or file cabinet for your tablet or work items.
Additional trainings or certification programs
Snacks (for me this is essential)
Additional office supplies (eg. printer, art supplies, skill sheets, emotion cards, fidgets, etc.)
An insurance biller (Could be free via Headway- check out more here)
A cute pet that sits on your lap during tele-therapy
Personal health insurance
PTO bank
Books or workbooks to scan for clients to utilize
Cost Depends on What is At Your Disposal
This is the cut and dry list of the essentials and “main” non-essentials you may run into while starting your business. Cost may vary depending on what you already have access to. For example, my first year of practice I was using my college laptop as my tele-therapy office- because it was still very new and didn’t need to be upgraded yet. Later on in my practice I was able to add another computer when it was time to upgrade. Or if you have a home office, and are choosing not to have an in person office- you are deducting the office rent from your home, not adding additional cost of a rental.
Think about how to save early, to spend well later. No one wants to pay for things twice- and as someone who tried a LOT of paid marketing options early on, I wish I could get that money back.
Find as many free opportunities as you can! Some referral based options are out there to save money on new platforms- you can find the affiliate links that give you free or money back options on our Therapist Support page here. So far, we can provide options for discounts on Psychology Today, Simple Practice and Headway enrollment!
For additional resources, on our shop page you can find cheap and helpful items such as marketing for a FULL year via Canva templates, time management tools, and Launching Your Private Practice ebook with step by step from graduating all the way to Day 1 launching your business!
Think About Your Long Term Plan
Something I wish I had started to think about earlier was my PTO bank. I have had several family members pass away over the first few years of my practice being open, and because I didn’t have a PTO system set up all of those leaves were unpaid to go to funerals and be with family. It is up to you how much you can set aside each month, especially is a new business- but keeping your future in mind is essential. Additionally, looking in to your states FMLA or paid leave for business owners is helpful to know your options.
I totally understand that as a new business, every dollar counts. Which is why keeping costs as low as possible until you are ready to grow is essential to sustaining a practice. I knew when I started that I did not want to be tele-health only forever, and it took years of building up my business and searching for the right office to be able to make the jump into hybrid with my additional office space. Create a 5 year business plan for yourself with the goals you are hoping to hit to give yourself guidelines on what you should be monitoring throughout each fiscal year.
Want more?
I hope this blog is helpful in understanding the basics of starting a new private practice! If you would like one on one support, please feel free to contact me for business consulting. We offer a variety of sliding scale options for new therapists looking to be successful in business.
The more we are all successful as therapists, the more people we can help- and that is what truly matters.
