Starting a Private Practice Checklist (Including PDF Download)
Starting a Private Practice Checklist
(Including PDF Download)
Starting your own private practice is a huge step toward professional independence and the opportunity to make a meaningful impact on your patients' lives. Many folks get intimidated by the logistics of launching a private practice because doing so means running a business—which is not something any clinicians are taught in school, unfortunately.
This checklist will help close this knowledge gap and guide you through the essential steps of starting a private practice.
1. Define Your Areas of Expertise & Therapeutic Approach
Before you open your private practice, it's important to articulate to future clients your areas of expertise and your therapeutic approach. Ask yourself the following questions:
What are your areas of expertise?
What type of patients or clients do you want to serve?
What unique services or approaches will you offer?
What is your style and/or philosophy when working with clients in your private practice?
2. Create a Business Plan
A business plan is the roadmap for your private practice. It doesn’t have to be longer than a page or two to start—but it should outline your monthly financial needs, and expand out from there. How many clients will you need to see at your current rates to meet your financial needs? Or, is it time to raise your rates so that you can have a more manageable caseload and provide your clients higher quality care?
Other items to include in your business plan may be:
Mission and vision statements
Services offered
Ideal client description (this isn’t to lock down the 1 kind of client you want to work with, but rather just get into the mindset of the kind of client you’re looking to serve)
Marketing and branding strategy (Branding: This can also be a brief description of what niche challenges you work with, your specific expertise, and professional personality. Marketing: This can simply be a 5-item list of things you will do to find new clients)
Legal structure (sole proprietorship, LLC, etc.)
A well-structured business plan will serve as a valuable reference and guide as you build your practice.
3. Get Your Legal Ducks in a Row
Establishing the legal framework for your private practice is essential to protect your business and personal assets. Here are some key legal considerations:
Choose a legal structure (e.g., sole proprietorship, LLC, corporation) and register your business.
Set up a system for record-keeping and taxes; we recommend working with an accountant on this.
Consider malpractice insurance (details in the checklist).
Consult with an attorney or legal advisor who knows the ins and outs of law and ethics surrounding mental health/private practice, HIPAA, and confidential record keeping.
4. Get Financially Ready to Take the Leap of Not-so-Steady Income
Starting a private practice is a bit of a financial risk when starting out. Building a stable of clients can be slowgoing at first, so having a healthy savings or another source of income can help you have the financial padding you need to get going. This process can be costly and may take longer than you’d like, so just plan ahead as best you can.
5. Secure Location and Office Setup
Selecting the right location for your private practice is crucial. Factors to consider include:
Accessibility for your ideal clients
Competitive rental or purchase costs
Sufficient space and layout for your needs
Local competition and market saturation
Once you've secured your location, set up your office with the necessary equipment, furniture, and technology to provide quality care to your patients or clients.
If your private practice will be strictly through telehealth, of course you won’t have to worry about office space or office location. However, be sure that your office background is calming and completely confidential, where there is zero chance for anyone to be walking around in the background or able to see your computer screen through a window.
6. Create Your Financial Systems
Establish a system for financial management and billing. This includes setting your pricing, creating a fee schedule, and deciding on payment methods. We strongly suggest that you consider hiring an accountant and using practice management software such as Simple Practice to ensure efficient billing and HIPAA compliant practice management with clients.
7. Carefully Consider Patient or Client Experience
Create a welcoming and comfortable environment for your patients or clients. Consider the following aspects:
Waiting room and reception area
Communication and scheduling processes
Privacy and confidentiality measures
Follow-up and feedback procedures
A positive patient or client experience can lead to referrals and repeat business.
8. Compliance and Regulations
Stay up-to-date with healthcare regulations and compliance standards relevant to your field. This includes HIPAA (Health Insurance Portability and Accountability Act) compliance, informed consent processes, and other legal requirements for healthcare providers.
9. Implement a Referral Machine Strategy
As we discuss in our 5 Myths About Running a Private Practice article and more in depth in our online course, creating a steady stream of client referrals isn’t as hard as it seems. In our course we discuss practical strategies for this, most notably connecting with clinicians whose practices are full and likely have overflow.
Reach out to them and establish an authentic and genuine connection, and inquire whether they would be interested in sending their client overflow your way for your areas of expertise. Offer to be helpful in whatever ways might be meaningful to them, such as connecting them with other colleagues or attending a workshop of theirs, for example.
10. Evaluate and Adapt
As your private practice grows, it's important to regularly check in with yourself and/or your accountant about your progress. Celebrate your wins as they come, no matter how small they are. Fully celebrating your independence and success as a business owner, especially in the early stages, is crucial. As the inevitable lows come, you’ll want to lean on the times where you felt like you were succeeding to help keep your spirits high, and more importantly, to help you keep going.
Learn from any mistakes or missteps you make in your business. While they may feel painful as they happen, having them happen and living through them is a blessing in disguise. The best business strategists are the best simply because they have overcome their failures and learned from them.
Set Goals and Reflect
Do a monthly reflection about your business. Set goals every month, and check in about how they went at the end of the month. This will automatically transform you into a better business owner and private practictioner.
11. Seek Support and Professional Development
Join professional organizations related to your field. To the extent possible, attend conferences, workshops, and training sessions to stay updated on the latest developments in mental health and improve your skills.
If you would like to have a downloadable checklist of these items and more, you can sign up to receive your free checklist. We hope this is helpful as you start up your private practice!
Conclusion
Starting a private practice is a significant undertaking, but with careful planning and dedication, it can be a fulfilling and successful venture. Use this checklist as a guide to help you navigate the process, from the initial stages of defining your niche and creating a business plan to the ongoing management and growth of your practice. Remember that building a private practice takes time and effort, so stay patient, adaptable, and committed to providing the best care for your patients or clients.
