How to Start a Private Practice on the Side
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If you’re wondering how to start a private practice on the side, you’ve come to the right place. To help make the process more straightforward, SimplePractice teamed up with successful private practitioners to create this helpful guide on how to start a private practice therapy business.
There’s a lot that goes into building a private practice—including finding clients, choosing a practice management software, marketing your practice, and more.
Keep reading to learn more and download the free ‘How to Start a Private Practice on the Side’ eBook to find out what it takes to get started building your business.
Start with the fundamentals
Let’s start with the essentials. In order to legally, ethically, and functionally begin seeing clients in your new therapy practice, it’s essential to have some foundational components of your business in place.
This includes things like a:
- Business name, structure, and license
- HIPAA-compliant email
- Business phone number
- Business bank account
- Professional website
Learning how to start a private practice on the side can sometimes feel lonely. Therefore, cultivating a community you can turn to for support and guidance is crucial. There’s a lot you can learn about how to start a private practice from other entrepreneurs. Joining an entrepreneur group or seeking private practice consulting will provide you with the support and accountability you need.
Download chapter 1 of the eBook: The fundamentals
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Your friends and family may not understand the stress of running a private practice. Having a like-minded community to commiserate and vent with can be very comforting, especially in the early stages of private practice.
You don’t necessarily need to limit your networking efforts to private practice owners in your field or specialty. If you join a group with many different kinds of private practice professionals, you’ll be able to learn tips on how to run your business from unique and different perspectives.
This could be an opportunity to build referral networks with speech-language pathologists (SLPs), occupational therapists (OTs), as well as with psychiatrists and psychiatric mental health nurse practitioners (PMHNPs).
Finding your ideal clients
Another critical step when learning how to start a private practice therapy business is determining who your ideal clients are. When you first open your practice, it’s easy to feel pressured to fill your schedule with appointments right away, but taking on every client can actually backfire.
Finding clients to work with isn’t just about clients choosing you—you also have to choose the people who are best-suited for your style of care. If you want to provide the best results, you need to be the right fit. When you’re not the right fit, it can result in extra work, poor results, and bad reviews for your new practice.
To avoid these pitfalls, make sure that when you’re building your private practice, you create an authentic therapy brand that reflects the kind of clients you wish to attract.
If you’re not sure what niche is right for you, begin by thinking about all the clients that you’ve worked with over the years, including in your rotations, at previous jobs, ones you’re currently working with, or the clients you really loved and felt good about helping.
Download chapter 2 of the eBook: Decisions to make
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Determining your private practice setting
After you’ve determined your ideal client, the next step in how to start a private practice on the side is to find your private practice setting. You have a lot of choices, including clients’ homes, your home, a traditional office, or telehealth.
Think about how the requirements of each space will work with your business and therapeutic techniques before choosing a setting.
If you decide to use telehealth in your private practice, you’ll want to ensure you’re using a secure, HIPAA-compliant platform that has all of the features you need—including a virtual whiteboard to increase engagement with clients and the ability to customize your background for privacy.
For an in-person office space, not only will you have to weigh the cost of leasing or renting it, but you will want to ensure it’s accessible, HIPAA-compliant, and in an ideal location. You’ll also want to think about decor and artwork to make your office inviting and calming for clients.
Insurance or private pay?
When going through the steps of how to start a private practice on the side, an important question to consider is whether or not you will accept health insurance through a specific insurance payer panel.
There’s no one right way to bill clients in your private practice, but there are some considerations for insurance vs. private pay.
Consider the demographic makeup of your community or neighborhood and what your competition is doing.
Because insurance company websites can help with your marketing and visibility to their subscribers, one of the benefits to accepting insurance is you may get a steady stream of clients without the need to do much of your own marketing.
Download chapter 3 of the eBook: Getting organized
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Choosing an EHR solution
Once you’ve completed the fundamentals for how to start a private practice therapy business and are ready to start seeing clients, you’ll want to decide on an electronic health record (EHR).
An EHR can help you manage your time efficiently and streamline administrative tasks.
Carefully evaluate your EHR solution options, and consider the following:
- Can new and existing clients request appointments online?
- Can you automate appointment reminders to reduce no-shows and cancellations?
- Do you want a secure messaging system to communicate with clients?
- Can you customize paperwork, documents, progress notes, and templates?
- Is billing and insurance claim filing integrated into the system?
- Does the EHR have a mobile app that allows you to access your schedule on-the-go?
- Is there email, video, or chat support in place should you have questions?
Marketing your private practice
If you need to market your own practice, there are a couple of questions to consider.
First, ask yourself—are you an introvert or an extrovert? Depending on your answer, there are different tactics to help you grow your private practice based on your personality type.
If you’re more introverted, you may work better in one-on-one settings.
Create a list of professionals in your area that work with your ideal client. Then, send an email introducing yourself and inviting them to meet up to learn more about their professional experience and practice. Doing so is important for networking and can help you receive client referrals.
If you’re more of an extrovert, you should still reach out to individuals in your area, and you may also want to consider giving lectures or hosting meet-ups for professionals in your area.
Social media marketing is another avenue you may want to consider. An active online presence can increase your visibility with potential clients, build trust and loyalty, and improve client retention.
Download chapter 4: Marketing your practice
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Growing your practice
Now that you’ve learned how to start a private practice on the side for mental health, you may be considering making the leap to full-time or hiring staff for your practice. But first, it’s important to take a close look at your budget and make sure you are meeting your goals.
Growing your private practice will take time, however, by following these steps to build a private practice, you can make the transition seamlessly.
Download the free eBook today to learn more about how to start a private practice on the side.
How SimplePractice streamlines running your practice
SimplePractice is HIPAA-compliant practice management software with everything you need to run your practice built into the platform—from booking and scheduling to insurance and client billing.
If you’ve been considering switching to an EHR system, SimplePractice empowers you to streamline appointment bookings, reminders, and rescheduling and simplify the billing and coding process—so you get more time for the things that matter most to you.
Try SimplePractice free for 30 days. No credit card required.