Starting a practice
The pros and cons of starting a private practice
Owning your own practice can be rewarding, but it’s important to consider the benefits and drawbacks.
March 7, 2025
3 min read
Much like your approach to treating clients, the business side of your therapy practice isn’t one-size-fits-all. While many therapists are content working in the supportive environment of a group practice, you may be considering starting your own private practice.
Owning your own practice can be rewarding and beneficial, but as with any career move, it’s important to consider the potential benefits and drawbacks. Keep reading to learn more about the pros and cons of starting a private practice, so you can determine the best option for you.
Pros of starting a private practice
Earning potential
Starting your own private practice may help increase your earning potential, because you won’t be sharing a portion of your fees to another practice owner. You can also expand your services for additional income — for example, offering group therapy or hosting educational workshops for other therapists. Another bonus: As a private practice therapist, you can write off certain tax-deductible expenses, such as rent, marketing, and EHR subscriptions.
Flexibility
The ability to create your own schedule is one of the most appealing aspects of starting a private practice. “Whether you limit your working hours to avoid burnout or expand the days and hours you’re available to increase your client base, you’ll ultimately have more control of when and how you work as a private practice therapist,” says Grace Dowd, LCSW, a clinical social worker and founder of Grace Therapy & Wellness in Austin, Texas.
Autonomy
Clinically, you’ll also have more freedom working as a private practice therapist. Rather than following group practice policies or quotas, you can work in a way that best suits your therapy style. Along with setting your own hours, in private practice, you can integrate the treatment modalities that help your clients most.
Career growth
Most therapists begin their private practice journeys as solo practitioners. Over time, you may decide to expand into a group practice, hiring like-minded therapists and other healthcare providers. “While you may eventually see clients less often, you’ll be able to impact more in a leadership role as you supervise other providers,” says Dowd.
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Cons of starting a private practice
Instability
While starting your own private practice can increase your earning potential, it may take time to get there. You’ll be responsible for building your own client base, rather than relying on a practice to do it for you. “As you build your clientele, you may face some instability at first,” says Dowd. “Staying aligned with your practice values and goals will help attract more clients, but the process can be slow.”
Marketing responsibilities
On the topic of growing your practice: As a business owner, you’ll be tasked with marketing your practice. Marketing basics, like creating an SEO-optimized website and Psychology Today profile, can be a good start in building up your client base.
But to grow your business and ensure profitability, you’ll need to go the extra mile — for example, by attending networking events and conferences or considering being active on social media. It may also be worth participating in more continuing education so you can expand your treatment modalities and, as a result, expand your client base.
Legal considerations
As head of your own practice, you’ll be responsible for legal considerations from forming your own sole proprietorship or LLC and attaining a business license to investing in malpractice insurance that protects you from legal and financial risks. It’s important to consider whether you want to take on these extra responsibilities before venturing out on your own as a therapist.
Extra administrative duties
If you’re coming from a group practice, you may have had administrative staff to take care of tasks like scheduling, credentialing, and billing. On your own, these duties will likely become your responsibility — which can take up time you may be spending in therapy sessions with clients.
“Before venturing into a private practice, therapists should weigh whether they’re OK with shifting their responsibilities,” says Dowd. “Incorporating more administrative work may mean reducing your own case load, but ultimately, you can expand your practice to help more clients.”
Practice in-network with confidence
Simplify insurance and save time on your entire workflow — from compliance and billing to credentialing and admin.
This content is for general informational and educational purposes only and does not constitute clinical, legal, financial, or professional advice. All decisions should be made at the discretion of the individual or organization, in consultation with qualified clinical, legal, or other appropriate professionals.
© 2025 Therapymatch, Inc. dba Headway. All rights reserved. No part of this publication may be reproduced without permission.
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