Starting a private practice can feel overwhelming, but breaking it into clear steps makes it manageable. Here’s a quick guide to get started:

• Set Up the Basics: Register your business, get licenses, and secure insurance.
• Choose a Space: Decide between a shared office (lower cost, part-time use) or a private office (full-time access, higher control).
• Tools & Equipment: Use HIPAA-compliant systems, comfortable furniture, and essential software like EHR and billing tools.
• Legal & Financial Setup: Pick a business structure (LLC, sole proprietorship, etc.), open business accounts, and track finances with accounting tools.
• Attract Clients: Define your niche, build an online presence, network professionally, and optimize local visibility.
• Retention Strategies: Use automated reminders, loyalty programs, and client feedback to keep existing clients engaged.
• Stay Compliant: Follow privacy laws (like HIPAA) and maintain continuing education to uphold professional standards.

Quick Tip: Starting with a shared office or hourly rental can save costs while you build your client base.

This checklist ensures you’re prepared for both the practical and legal aspects of running a successful practice. Let’s dive deeper into each step.

How to START a PRIVATE PRACTICE (Step-By-Step Guide)

Finding Your Practice Space

The space you choose for your therapy practice plays a big role in both your success and your clients’ experience. Your office’s location and setup can affect how comfortable clients feel, how likely they are to return, and even your overall expenses.

Shared vs. Private Office Space Options

When deciding between shared and private office spaces, think about where your practice is now and where you want it to go. Here’s a quick comparison of the two options:

Feature	Shared Office	Private Office
Cost	Lower upfront costs	Higher investment
Access	Limited to reserved hours	Full-time, 24/7 access
Setup	Furnished and ready-to-use	Requires customization
Networking	Built-in peer connections	Independent environment
Privacy	Adequate in shared setting	Complete control

Shared offices work well for therapists who:

• See clients part-time
• Want to keep overhead low
• Enjoy networking with peers
• Need flexibility in scheduling

Private offices are better suited for therapists who:

• Have a steady client base
• Need a specific layout or design
• Work full-time
• Want full control over the space

Space Rental Options and Terms

Flexible rental options make it easier to find a space that fits your needs. For example, Humanly offers the following choices:

• Hourly Rentals: Starting at $2.50 per hour, perfect for part-time schedules.
• Daily Bookings: $50 per day, ideal for therapists with consistent weekly sessions.
• Monthly Leases: Custom rates for those who need a dedicated private space.

When reviewing rental terms, focus on these key factors:

• Location Accessibility: Look for spaces near public transit with parking options.
• Sound Privacy: Ensure the space is soundproof enough for confidential sessions.
• Included Amenities: Features like furnished waiting areas and reliable Wi-Fi can make a big difference.
• Lease Flexibility: Opt for terms that allow you to scale your practice as it grows.

Aim for a location that balances visibility with client privacy and has enough room for your therapy style. Once your space is sorted, you’re ready to gather the tools and resources you’ll need to start your practice.

Required Tools and Equipment

Once your practice space is ready, it’s time to outfit your office for secure and efficient operations. You’ll need two key things: thorough documentation and the right office tools.

Forms and Documentation

Accurate documentation is essential for staying compliant with legal requirements and running your practice smoothly. Here’s a breakdown of what you’ll need:

Document Type	Purpose	Required Elements
Intake Forms	Assess new clients	Demographics, medical history, insurance details
Consent Forms	Legal coverage	Treatment consent, privacy policies, cancellation rules
HIPAA Forms	Privacy compliance	Notice of privacy practices, authorization forms
Progress Notes	Track treatment progress	Session details, treatment plans

To manage these documents securely, a HIPAA-compliant system is a must. Digital platforms like Healthie simplify this process by offering customizable therapy notes and a library of mental health forms. These tools can streamline your workflow while ensuring top-notch security standards.

Office Setup and Software

Your office should be a blend of functional physical equipment and reliable digital tools, creating a professional yet welcoming environment.

Physical Equipment Essentials:

• A supportive, comfortable therapist chair
• Client seating, such as a couch or chairs
• Desk for administrative tasks
• Filing cabinets or other storage solutions
• Soft white lighting with floor and table lamps
• Rugs and textiles to reduce noise and enhance comfort

Key Software and Digital Tools:

• Electronic Health Records (EHR) system
• Practice management software
• HIPAA-compliant scheduling tools
• Medical billing software
• Password management solution
• Cloud storage for secure backups
• HIPAA-compliant email service
• Telehealth platform for virtual sessions

Choose furniture that balances comfort with practicality. For lighting, keep it at eye level to improve visibility. Adding rugs and pillows can make the space cozier while improving acoustics.

When selecting digital tools, prioritize security and integration. Many modern practice management systems combine scheduling, billing, and client communication features, reducing the need for multiple subscriptions and simplifying your operations.

Legal and Financial Setup

Once you’ve secured your practice space and tools, it’s time to establish the legal and financial groundwork for your business.

Business Registration and Licensing

Start by choosing the right business structure for your practice. This decision impacts everything from liability to taxes. Here’s a quick comparison:

Business Structure	Benefits	Considerations
LLC	Protects personal assets, offers tax flexibility	Higher setup costs, requires annual filings
Sole Proprietorship	Simple and low-cost setup	You’re personally liable for business debts
Corporation	Offers the most liability protection	Complex setup, potential double taxation

Once you’ve selected a structure, follow these steps to formalize your business:

• Get an Employer Identification Number (EIN) from the IRS.
• Register your business with your state.
• Apply for any required state and local business licenses.
• Confirm your therapy license status for every state where you plan to operate.

Insurance and Money Management

Insurance is a must to safeguard your practice. Basic general liability insurance typically costs under $500 annually, making it a smart, affordable move.

Key Insurance Types to Consider:

• Professional liability insurance (malpractice coverage)
• General liability insurance
• Cyber liability insurance for securing client data
• Business Owner’s Policy (BOP) for bundled coverage

For managing your finances effectively, follow these steps:

1. Set Up Separate Business Accounts
   Open dedicated business checking and credit card accounts. This keeps your personal and business finances separate, which simplifies tracking and reporting.
2. Use Accounting Tools
   Invest in accounting software to monitor income and expenses. Plan monthly reviews to stay on top of your financial health.
3. Plan for Taxes
   • Save a portion of your income specifically for taxes.
   • Make quarterly estimated tax payments.
   • Keep records of potential deductions, including vehicle and home office expenses.
4. Monitor Cash Flow
   Regularly review financial reports like profit and loss statements, cash flow projections, and outstanding receivables. Keep an eye on operating expenses to avoid surprises.

“The goal of business insurance is to protect everything you’ve worked for.”
– Jennifer Cromly, Director of Strategic Partnerships at Insureon

Once you’ve laid this foundation, you’re ready to focus on growing your client base.

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Client Acquisition and Retention

Acquiring a new client costs about five times more than keeping an existing one. To succeed, you need to focus on both areas.

Specialization and Target Market

Defining your niche helps you stand out. Just like finding the right office space, building a strong client base requires a clear, well-thought-out plan.

Steps to Establish Your Specialty:

1. Define Your Ideal Client Profile

Identify the characteristics of your target clients, such as:

• Demographics and location
• Common challenges and pain points
• Treatment goals and preferences
• Financial situation and insurance considerations

2. Build an Online Presence

Create a professional, mobile-friendly website. Include clear calls-to-action, online scheduling options, and client testimonials (with proper consent).

3. Boost Local Visibility

With over 80% of patients booking appointments online, it’s crucial to improve your local presence. Here’s how:

• Optimize your Google Business Profile
• Use location-specific keywords
• Publish content tailored to your area
• List your practice on healthcare directories

Building Professional Networks

Strong connections with other professionals can significantly grow your practice.

Networking Strategies That Work:

Strategy	How to Implement	Benefits
Local Partnerships	Collaborate with physicians, gyms, and wellness centers	Establish a steady referral stream
Professional Events	Host seminars or workshops	Boost visibility and credibility
Digital Presence	Engage on social media and through email	Expand your reach
Community Involvement	Join health fairs or wellness initiatives	Strengthen your local reputation

To keep referral relationships strong:

• Share updates on client progress with referring providers
• Create informative service brochures
• Track where referrals come from
• Send thank-you notes and return referrals when possible

“A robust referral network can be a significant growth engine for your wellness practice, bringing in new patients, enhancing your reputation, and fostering a community of collaborative care.” – Holbie

Client Retention Best Practices

Existing clients account for more than 65% of all appointments. To keep them coming back:

• Clearly outline expectations during consultations
• Use automated appointment reminders
• Check in regularly on their progress
• Offer loyalty programs to reward repeat visits
• Actively gather and implement client feedback

Professional Standards and Rules

Maintaining professional standards is key to building trust and staying compliant with regulations. As your client base grows, these standards become even more important. Use this checklist to ensure your practice meets privacy and continuing education requirements, protecting client information and adhering to industry rules.

Privacy and Ethics Requirements

Following privacy and ethical guidelines goes beyond legal registration and insurance – it’s about building trust. For example, HIPAA compliance is crucial, with potential civil penalties as high as $50,000 per violation and an annual cap of $1.5 million.

Set Up Privacy Safeguards

Your privacy policies should address:

• Physical security for patient records
• Protection of electronic data
• Staff training on privacy protocols
• Controlled access to sensitive information

You’ll also need clear procedures for record keeping, sharing information, handling patient access requests, and managing breach notifications.

Requirement	Implementation	Timeline
Privacy Officer	Assign a responsible team member	Before opening
Risk Assessment	Identify and document risks	Every 6 months
Staff Training	Conduct HIPAA training sessions	Quarterly
Policy Review	Update privacy documentation	Annually

Continuing Education

Ongoing education is just as important as setting up your practice. Requirements will vary depending on your certification, but staying up-to-date ensures quality and credibility.

• HRCI Credentials: Earn recertification credits through approved programs.
• NCHEC Health Education: Complete Category I continuing education contact hours.
• NBC-HWC: Attend board-approved continuing education courses.

To stay on top of continuing education:

• Review certification requirements every quarter.
• Track completion dates and renewal deadlines.
• Keep digital copies of all certificates.
• Allocate an annual budget for required courses.

Checklist for Practice Protection:

• Perform annual HIPAA self-audits.
• Maintain active Business Associate Agreements (BAAs) and document any privacy incidents.
• Keep accurate records of all continuing education activities.

Conclusion

Starting a private practice takes careful planning and solid execution. As Marie points out:

“The key aspect that’s important to ask yourself about private practice is whether you’re ready to tackle the business aspect of starting a private practice in counseling”

To set yourself up for success, focus on these key areas:

• Legal and compliance requirements: Make sure your practice meets all legal obligations.
• Financial systems: Set up clear processes for managing income, expenses, and taxes.
• Client management: Organize how you’ll handle client scheduling, records, and communication.
• Marketing strategies: Develop a plan to attract and retain clients.

Marie also highlights the importance of mindset:

“The biggest thing that stands between you and having a successful business is not lack of talent, information, time, or even money…It’s your mindset”

Once your practice is up and running, shift your attention to growth and long-term stability by focusing on:

• Continuing education: Stay updated on best practices and new developments in your field.
• Marketing improvements: Keep refining your approach to reach more clients effectively.
• Policy updates: Regularly review and adjust your procedures to stay efficient and compliant.
• Self-care: Avoid burnout by taking care of your mental and physical well-being.

Building a private practice is a step-by-step process. Each piece you put in place strengthens your foundation, making the journey smoother and more rewarding over time.

FAQs

What are the pros and cons of choosing a shared office space versus a private office for my wellness practice?

Deciding between a shared office space and a private office for your wellness practice depends on your budget, priorities, and work style.

Shared office spaces are typically more affordable and foster collaboration with other professionals, which can create a sense of community. However, they may lack privacy, and soundproofing can be an issue, which might affect client confidentiality.

Private offices, on the other hand, give you full control over the environment, allowing you to design a space that reflects your brand and ensures privacy for your clients. The downside is that they are usually more expensive and come with additional responsibilities like utilities and maintenance.

Ultimately, consider your budget, client needs, and the atmosphere you want to create to determine which option best aligns with your goals.

How can I make sure my private practice complies with HIPAA and protects client privacy?

To ensure your private practice complies with HIPAA and safeguards client privacy, follow these key steps:

• Use HIPAA-compliant software for storing and managing client records, communication, and video therapy.
• Encrypt client data, including emails, and secure your Wi-Fi network with WPA2 or higher.
• Sign Business Associate Agreements (BAAs) with all third-party providers handling protected health information (PHI).
• Establish physical, administrative, and technical safeguards to protect sensitive information.
• Provide clients with a clear Notice of Privacy Practices outlining their rights and how their data is used.
• Conduct regular staff training on HIPAA compliance and update your policies as needed.

By taking these steps, you can protect your clients’ privacy while staying compliant with legal requirements.

What are the best ways to attract new clients and keep existing ones in a private practice?

Building a strong client base and retaining clients in a private practice involves a combination of smart marketing, personalized care, and excellent service. Start by optimizing your online presence with a professional website, local SEO, and active social media engagement. Make it easy for potential clients to find and contact you.

Focus on creating a welcoming and seamless experience for your clients. Offer personalized care plans, follow up consistently, and communicate between sessions to show your commitment to their well-being. Clear communication about treatment expectations and progress can also build trust and loyalty.

Finally, consider implementing referral programs to encourage word-of-mouth recommendations and collaborating with other professionals to expand your network. By combining these strategies, you can grow your practice while fostering long-term client relationships.

Related posts

• 7 Essential Tips for Starting a Private Therapy Practice
• Cost Guide: Setting Up Your First Therapy Office
• Common Questions About Shared Wellness Spaces Answered
• How to Add Wellness Features to Therapy Offices