1. Lack of a Financial Plan

According to the United States Small Business Administration, only about two-thirds of businesses make it past the two-year mark and it’s often due to poor financial planning.

Creating a comprehensive financial plan is crucial when starting your private practice. Clearly outline all initial expenses like the equipment needed for private practice, office rent, and legal fees to avoid underestimating costs and experiencing financial stress.

Therapists often feel uneasy about setting or raising fees, but recognizing the value of your services is important. Set a realistic target income and determine how many clients you need weekly to avoid burnout and ensure stability.

Regularly revisiting your financial plan and fee structure ensures sustainable growth and long-term success.

2. Taking on Too Much

Managing every aspect of your practice alone can be overwhelming. According to Owl Practice’s 2019 report, the average Canadian therapist sees 41 to 49 clients a month, with most sessions lasting an hour.

But their work doesn’t end there. Scheduling, billing, and note-taking often fill up the rest of their day. These non-billable tasks add up, often spilling into evenings and weekends and impacting work-life balance.

Hiring an accountant to manage finances, ensure tax compliance, and offer strategic advice will allow you to concentrate on client care and business development. Outsourcing these tasks reduces your workload and enhances overall service quality.

3. Starting Too Big

While it might be tempting to launch your practice on a large scale, understand the financial implications. Solo practices often face inconsistent client flow and unforeseen expenses.

Starting small allows you to gauge client needs, adapt your services, and manage expenses more effectively. A gradual build allows better cost management and flexibility to adjust as you gain experience, helping you develop a clear understanding of your niche and refine your offerings based on client feedback.

4. Trying to Serve Everyone

Attempting to serve a broad range of clients can be overwhelming, especially when you are just starting. Instead, focus on a specific clientele. Specializing hones your skills and allows you to offer targeted services.

Identify the clients you’re passionate about, whether it’s children, couples, or those facing particular challenges like trauma or adolescence. Specializing can set you apart and build a strong referral network.

A clear focus enhances credibility and attracts clients genuinely interested in your services.

5. Neglecting Marketing

Effective marketing is crucial for attracting and retaining clients. Up to half of your clients might not return after initial visits, so continuous promotion is essential.

Social media and online profiles are low-cost and effective platforms for increasing visibility and promoting your services. Some therapists hesitate to engage in social marketing, but research shows it helps reduce stigma and raise mental health awareness.

Networking with local therapists and participating in community events builds connections. Sites like Psychology Today and Google Business Profile can enhance your presence.

A strategic marketing plan ensures a steady client flow and fosters long-term relationships. By proactively promoting your practice, you can build a thriving business.

6. Delaying Your Start

While many successful therapists gain initial experience in group practices, these setups often involve revenue sharing and increased liability.

Starting your private practice early provides opportunities for growth, allowing you to build expertise, establish a niche, and develop long-term relationships. Owning your practice offers autonomy and the ability to shape your business according to your values.