How to Start a Private Practice as a Therapist: A Step-by-Step Guide

Confession: When we started our private practices we were CLUELESS.

We basically figured it out by talking to each other, googling, and making a shit ton of mistakes…And now we each make over $200k a year in our businesses.

For real, real - If we could figure it out. You can too.

And we’re not going to gatekeep. We’re here to help you so you don’t have to make the same mistakes we did.

ake a deep breath, my friend. This guide will walk you through every step of building a successful therapy practice without the overwhelm. Grab your coffee, and let’s get into it.

You can make $200k per year as a therapist. Let us help you

Step 1: Define Your Vision and Goals

Before you worry about paperwork or office space, let’s start with the big picture. Ask yourself:

  • Do I want to work solo, or would I eventually like to grow into a group practice?

  • Do I want to be 100% virtual, in-person, or a mix of both?

  • How many clients do I want to see each week? (Hot tip: More is not always better.)

  • What income do I need to live comfortably and hit my financial goals?

Getting clear on these now will save you from scrambling later.

Step 2: Handle the Legal and Financial Basics

No one loves this part, but skipping it can land you in hot water. Here’s what you need to do:

Pick a business structure – LLC, S-Corp, or sole proprietorship? Talk to an accountant or lawyer about what’s best for taxes and liability protection.
Get liability insurance – This is non-negotiable. Look into companies like HPSO or CPH & Associates.
Open a business bank account – Keep your personal and business finances separate (your future accountant will thank you).
Understand your taxes – You’ll likely need to pay quarterly estimated taxes. Get an accountant now and save yourself a headache later.

Step 3: Choose a Niche (or at Least a Target Market)

Therapists resist niching because they don’t want to turn people away. But here’s the thing: When you market to everyone, you attract no one.

You don’t have to get hyper-specific (like “I help left-handed, gluten-free millennials with existential crises”), but you should have a general focus. Some ideas:

  • Anxiety therapy for high-achieving professionals

  • Couples counseling for new parents

  • Trauma recovery for first responders

A niche makes marketing easier, builds your reputation faster, and helps you get fully booked with the right clients.

And while we’re on the subject. We’re just gonna leave this free niche quiz right here for you…

Step 4: Set Your Pricing and Payment Structure

You didn’t go through years of education and training to barely make ends meet. Here’s how to price yourself appropriately:

  • Calculate your costs. Factor in rent, insurance, EHR software, marketing, and taxes (set aside 30% for Uncle Sam!).

  • Research the market. Look at what therapists in your area charge—but don’t race to the bottom.

  • Decide on insurance or private pay. Insurance = more clients but lower rates. Private pay = fewer clients but higher income per session.

  • Set a cancellation policy. Clients will cancel—make sure you have a policy in place to protect your income.

Step 5: Find an Office Space (Or Set Up a Virtual Practice)

If you’re in-person, your options include:

  • Renting your own office space

  • Subletting from another therapist

  • Using a coworking space (some have therapy-friendly setups!)

If you’re virtual:

  • Use a HIPAA-compliant platform like SimplePractice or TherapyNotes.

  • Make sure your background is professional (no clutter or weird lighting!).

  • Get a good microphone and webcam—bad audio will drive clients away.

Step 6: Create a Business Plan and Budget

No, you don’t need a fancy 20-page business plan. Just outline:

Your mission and values – What do you want to be known for?
Your services and pricing – Individual therapy, couples counseling, workshops?
Marketing plan – How will you get clients?
Financial goals – How much do you need to make monthly? What are your expenses?

Step 7: Build Your Online Presence

Welcome to the era where Google is your new best friend. Clients WILL search for you, so make sure they can find you:

  • Website – Include your bio, services, fees, and contact info. Wix and Squarespace make this easy.

  • Psychology Today profile – This is like Tinder for therapy clients—except people are actually looking for something serious.

  • SEO basics – Make sure your website includes terms like “anxiety therapy in [Your City]” so people can actually find you.

Did we mention you don’t need to market on social media to make 6-figures in private practice? CLICK HERE to steal our secrets to getting high-ticket clients without posting.

Step 8: Market Your Practice and Get Your First Clients

You don’t need to dance on TikTok to get clients (unless you want to). Here’s what actually works:

  • Networking – Build relationships with doctors, schools, and other therapists. Referrals = gold.

  • Social media (optional) – Instagram, LinkedIn, and YouTube are great for therapists. Share value, not just “call me for a session” posts.

  • Blogging or podcasting – This boosts your SEO and positions you as an expert.

  • Speaking gigs – Workshops and webinars build your authority and attract clients.

Step 9: Streamline Systems and Operations

If you’re doing everything manually, you’ll burn out fast. Set up systems to make your life easier:

  • EHR software – Automate scheduling, billing, and notes (SimplePractice, TherapyNotes, or TheraNest).

  • Intake process – Use online forms so clients don’t have to print and scan paperwork.

  • Email templates – Have canned responses for inquiries, cancellations, and FAQs.

Step 10: Plan for Growth and Sustainability

You’re booked out—now what? Time to scale smartly.

  • Expand your services – Offer group therapy, courses, or consulting.

  • Hire an assistant – Offload admin work so you can focus on clients.

  • Raise your rates – Demand is high? Time for a price adjustment.

  • Take care of yourself – Set boundaries, take vacations, and don’t overfill your schedule. Burnout helps no one.

How to start your therapy private practice

Starting a private practice isn’t easy—but it’s 100% possible. And the freedom, fulfillment, and financial security? Totally worth it.

If you’re serious about making this happen but want expert guidance every step of the way, check out our Total Freedom Private Practice. This program gives you EVERYTHING you need to build and scale a 6-figure (and beyond) private practice—without the guesswork. From marketing strategies to financial planning, we cover it all.

👉 Join the Program Now and take the first step toward the thriving practice you deserve

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