Starting a Therapy Practice: 10 Steps To Go From Burnout to 6-Figure Queen In Your Career

If you’re dreaming of starting a therapy practice and leaving the burnout of agency work behind, you’re in the right place. Imagine being your own boss, making a 6-figure income, and having the flexibility to design your ideal schedule. Starting a therapy practice is the first step toward creating a business that aligns with your vision and values. Ready to go from overwhelmed to empowered? Here are the 10 essential steps you need to take to build a successful private practice.

1. Register Your Business

The first step in building your private practice is to get official. Choose a business structure that fits your needs, such as an LLC or sole proprietorship, and register it with your state. This process can feel daunting, but it’s key to protecting your personal assets and giving your business a legal foundation. An LLC is a popular choice among therapists because it offers liability protection and is relatively simple to set up. Once you surpass a certain income per year, you can transition to an S-Corp to save on taxes. Check with your accountant for more details. 

Pro Tip: Check your state’s specific requirements and file for an Employer Identification Number (EIN) from the IRS—it’s free and necessary for taxes and opening a business bank account. You can typically find information at www.[yourstate].SOS.gov.

2. Open a Business Bank Account

Keep your business and personal finances separate by opening a dedicated business bank account. DO NOT MIX MONEY! This makes tracking income and expenses easier, helps with tax prep, and ensures you’re running your practice like a pro. It’s also a great way to establish legitimacy and maintain a clean financial record.

Banking Tip: Look for business accounts that offer low fees and support small businesses. I use a local credit union and have been very happy with their support. 

Pro Tip: For personal budgeting and saving (which you can start with and need to start saving to open a private practice) I like to use YNAB or You Need A Budget. You can check them out HERE.

3. Find an Accounting Software You Love

Managing your money doesn’t have to be stressful. Invest in accounting software that makes it easy to track income, expenses, and profit. QuickBooks, FreshBooks, and Wave are popular options among therapists. The right software can save you time, keep you organized, and help you plan for taxes without the last-minute scramble. Quickbooks was my choice as a solo private practice therapist and, once it was set up, took about 1-2 hours a month of maintenance. You can get started with a major discount for Quickbooks here.

Money Hack: A good rule of thumb is to set aside 25-30% of your income for taxes right from the start, so you’re prepared when tax season rolls around. This can vary per state and business entity, but as you start out in your practice, get in the habit of setting aside 30%. It’s better to set aside more than not enough come tax time. 

4. Determine Your Fees with Confidence

Pricing your services can feel intimidating, but it’s crucial to set fees that reflect your value and support a sustainable business. Don’t do what I did and figure out what the average fee in your area is and then set yours lower (rookie mistake). Research the average rates in your area, consider your experience, and calculate the income you need to meet your financial goals. Remember: you’re not just charging for your time—you’re charging for alllll the things you do in your business behind the scenes. Not to mention, your expertise, education, and the transformative results you help your clients achieve.

Mindset Tip: If you struggle with fee-setting, consider the value you bring to your clients’ lives. Also remind yourself of the thousands of dollars you’ve invested in your education and the years you worked for low or no pay that got you to where you are today. Don’t undersell yourself—you deserve to be compensated fairly.

5. Obtain Malpractice Insurance

As a therapist in private practice, protecting yourself with malpractice insurance is non-negotiable. Malpractice insurance covers you in case of legal claims and ensures you’re covered if something goes wrong. Most policies are affordable and offer peace of mind as you step into your role as a business owner.

Coverage Tip: Compare policies from different providers like HPSO or CPH & Associates to find a plan that fits your needs and budget. I’ve used CPH & Associates for the last 5 years and they have supported me through a couple of legal calls as well as changes in my business. 

6. Determine Your Office Location (In-Person or Virtual)

Decide if you want to work in-person, virtually, or offer a hybrid model. If you’re going in-person, find a location that’s convenient for your ideal clients and offers a welcoming, comfortable atmosphere. If you’re virtual, set up a private, professional space in your home with good lighting, a quality webcam, and a soothing background.

Office Vibes: Consider co-working spaces or subletting from other therapists if you’re not ready to commit to a full lease. This can help keep costs low in the beginning.

7. Research and Choose an EHR (Electronic Health Record) System

An EHR system is essential for managing client records, scheduling, and billing. It helps you stay organized, keep client information secure, and streamline your workflow. Popular options include SimplePractice, TherapyNotes, Jane, and TheraNest. Take advantage of free trials to find the system that best suits your needs.

Pro Tip: Use my Simple Practice code HERE to try out Simple Practice EHR for free for 7 days, then upon sign-up, get 40% off for six months. Yes, I am an affiliate, but I’ve used many EHRs in my day and Simple Practice is hands down my favorite. It helps me streamline everything from notes, to treatment plans, to insurance billing, to tracking income, and much much more. 

8. Start Building Your Website

Your website is often the first impression potential clients will have of you, so make it count. Create a professional, user-friendly site that showcases your services, highlights your niche, and makes it easy for clients to contact you. Include a home page that speaks directly to your ideal client, a personable “About” page, and descriptions of your various services and offerings. Blogging on your website can be great if you plan on creating content for SEO (search engine optimization). If you’re low on funds to start, use the included website builder offered by Simple Practice EHR, and start saving for a fancier website down the line. There are also several companies that offer Squarespace templates for therapists at a relatively low price.

SEO Tip: People tend to search for “counselor” more than they search for “therapist.” Make sure you are using both terms in your website copy, but page titles and keywords should be primarily geared toward counseling. 

9. Create a Business Email and Phone Number

Establishing a separate business email and phone number keeps your personal life private and ensures you present a professional image. Use a secure email service like Google Workspace (my personal choice), Spruce, or iPlum. In order for these services to be HIPAA compliant, you need to sign a BAA (Business Associate Agreement). 

Communication Tip: Set clear boundaries for when you respond to emails and calls to avoid burnout and maintain work-life balance. I like to use Boomerang for Gmail to schedule emails to send in the future or remind me to follow up with someone after I’ve already sent an email. I also set office hours for my Google Voice line so my work number will not ring outside of 9am-5pm. All about those #goodbizboundaries

10. Establish Your Online Presence and Start Marketing

You’re ready to launch, but clients won’t find you unless you put yourself out there. Establish your presence on social media platforms like Instagram, Facebook, or LinkedIn where your ideal clients spend time. Share valuable content, engage with your audience, and show up consistently. Marketing your private practice is all about building relationships and showcasing your expertise.

Marketing Idea: Community connections and networking can be immensely powerful for your business. Don’t be afraid to shout your new practice from the rooftops! Tell your friends, family, personal providers, former colleagues – and try to set up a coffee meeting with one new private practice therapist in your area every week! The coffee is a #businessexpense and you’ll be creating a solid foundation of supporters for your business that will benefit you for years to come. 

Ready to Go from Burnout to 6-Figure Boss?

Starting a therapy practice can feel overwhelming, but by following these 10 steps, you’ll be well on your way to building a thriving business that aligns with your vision of a badass and super rewarding career. Remember, you’re stepping into this new chapter because you want more freedom, flexibility, and fulfillment as a therapist. Trust yourself, invest in your growth, and don’t be afraid to charge what you’re worth. It’s time to build the life and practice you deserve!

Next Steps: My Aligned Practice Blueprint course walks you through all of these steps and way more to get you up, running, and 100% ready in your very own private practice. What took me 3 years of trial and error to find true success in my practice, I teach you from the start! No more hustle, no more burnout, just a simple strategy to get you well on your way to your first $100k year as a brand new business owner. Find out more how I can support you in making this your reality here.