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Writer's pictureWellSpace Psychology

How to become a private practice therapist

Updated: May 3, 2023

Dream of having greater autonomy in your work? Unsure where to begin? Here's a roadmap of how to launch your private practice

There's never been a better time to transition into private practice


Abundant Client Referrals

With unprecedented client demand (seriously, we're more sought after than ever. Case in point: a new client request came through to my inbox right-this-very-second) therapists are questioning the need to operate under a large group practice. Commission fees typically range from 30-50% of a therapists' hourly income, and part of that fee covers marketing and referral scouting.


These days, a therapist need not do much more than stand on the street corner and yell I'm a therapist! to fill their books. Failing that, online directories, local GPs, word-of-mouth referrals, and sponsored online ads are a great way fill one's books in no time at all. Many therapists realise and are seizing the moment to make the leap into private practice.


Simple and Affordable Software Making Admin a Breeze

Traditionally, therapists relied on group practices to share in costs of administrative overheads: reception staff, expensive client management systems, hard-copy assessment kits, landline telephones, copiers, fax machines, storage rooms full of filing cabinets (sounding old school, right?).


These days, administrative tasks have been streamlined, are paperless, and fool-proof! Plenty of free or low cost online tools exist, detailed below.


So let's make like good Cognitive Therapists and explore the benefits and opportunities of private practice

Benefits:
  • See more of your hard earned money Without paying 30-50% of your money back to the group practice, you will see your income grow rapidly. Sure, you might have additional overheads such a room rental, but guaranteed this will cost you far less than your commission rates.

  • Pass financial benefits onto your clients Without the financial pressure of commission fees you will be able to lower your fees or offer sliding scale appointments for clients in need. Enjoy offering reduced rate fees from a place of genuine abundance, without compromising your business and potentially straining the therapeutic relationship.

  • See only the clients you want to work with Enjoy narrowing your niche and accepting only those clients whom you desire to work with. Simple screening practices such as a 15 minute free phone call with potential clients, or asking new intakes to complete a therapist matching survey will help you flag therapeutic misalignments.

  • Your diary on your own terms No more 10 minute breaks to: breathe, write a case note, fluff cushions, have a snack, respond to messages, aaaaand oh dang it I don't have time to pee because my next client is here. Work the days and times you choose to, and schedule breaks as they suit you. Game changer.


Think co-work, but for therapists; where you are free to run your own practice in a consulting suite, but can connect with other therapists.

Opportunities:

Private practice can potentially be isolating, so it's important you operate out of a shared space. Think co-work, but for therapists; where you are free to run your own practice in a consulting suite, but can connect with fellow therapists. Therapy co-work spaces are paid by a daily fee, coming in far lower than typical per-session commission fees. WellSpace Psychology is changing the game of therapy room rentals. Elevating the quality of therapy room rental services, their consulting suites have been designed and crafted by a team of Melbourne's luxury architects, designers, builders and stylists. Suites include state of the art insulation for acoustic reduction, high end furniture that exudes style and comfort, soft tones and textures to create calm, and custom artwork by a local artist. Beyond the style and comfort, WellSpace Psychology's Co-Work Space is all about offering therapists a social and supportive work environment. With communal work spaces, there are plenty of opportunities for formal and informal connections with colleagues.


WWBBD (What Would Brené Brown Do)? You're tapping into Courage and have decided to take the leap into private practice. What are the steps?

  1. Recognise and reconcile doubts and fears There won't ever be a perfect time to launch your private practice. You will be taking a brave step into the unknown. But with good planning, you take take that leap with confidence and enjoy the rewards. You will hear from your Imposter Part. Be patient and compassionate, and sit with the facts: you are taking a meaningful and measured risk to improve your career and work-life balance.

  2. Establish your niche Identify your preferred clientele and speak directly to them in your profile bio. With so many therapists to choose from, clients are looking for the right therapist for them. So take a minute to think about who you work best with, what kinds of client presentations you enjoy most, and establish your brand around that. Follow @privatepracticepro for more on this.

  3. Financial assessment It's important you get your head around a basic Cash Flow Analysis for your business, whether you're working in a group practice or as a solo therapist. A cash flow analysis looks at all incoming (e.g., consulting fees, supervision, teaching, etc.) and outgoing (e.g., commission fees, registration fees, insurance, rent, taxation, superannuation, etc.) expenses. Work out your Break Even Point (the point at which incoming minus outgoing = $0), and be empowered to make decisions about your practice from there.

  4. Establish procedures How will your practice run? Here's the opportunity to incorporate your values along with ethical and practice guidelines to create your ideal practice. The Australian Psychological Society offers several excellent trainings on supporting therapists to develop their private practices in line with changing policies and professional requirements. Personally, I got a lot out of this course (not sponsored, just a good resource).

  5. Work smarter, not harder It's never been easier to operate a sole practitioner business. Know your worth and ditch the inefficient spreadsheet. I beg you. Calculate your hourly rate and compare that to the time you spend on inefficient administrative procedures. Can you streamline your admin and dedicate your time to seeing another client instead? There are so so so many great free or low cost subscriptions available to help you run your practice, including*: > Client management software (e.g., Power Diary, Halaxy) > Phone, SMS and fax services (e.g., GoFax, Aircall) > Bookkeeping and accounting subscriptions (e.g., MYOB, Xero) (*Not paid partnerships, just some services I know and rate).

  6. Contact referral sources Now that you've established the foundations of your practice, it's time to open the gates to referrals. There are many potential referral sources, some of which provide instant clients, and others which take time to build. You may choose a range of advertising methods, including: > building relationships with local GPs, Psychiatrists and other allied health professionals > advertising your niche among fellow therapists > listing your practice on online directories (e.g., PsychologyToday or APS Find a Psychologist) > building a social media profile > making a website (and utilising Search Engine Optimisation) > paid ads (e.g., Google Ads, social media)

Good luck on your private practice journey! You won't look back.




WellSpace Psychology Co-Work Space

Studio 17, First Floor, 105 Victoria Street, Fitzroy/Ngár-go, Victoria, 3065

t: 0481 591 515


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