Penny Pinchers Unite! -- Money Saving Tips to Start Your Private Practice
I was raised to be frugal (some might say cheap). My Barbies, as well as their clothes, cars, and homes came from garage sales. My clothes never had whales or polo players or names of any recognition embroidered on the front. If it wasn’t on sale, we didn’t need it.
When I began in private practice, I asked myself the same thing I always did when it came to getting something new - how can I do this as cheaply as possible? I started by retaining my full time job, moving all my clients at the center to Monday-Thursday so I could try out private practice on Fridays. I had a friend who already had a comfortable practice and was not using her office on Fridays. I rented this cozy space from her one day a week for under $250 a month and eventually built my practice to the point of leaving my full time job and renting my own space.
My first office was small and windowless but well located. It was furnished with used furniture found on Craig’s List, clearance section knickknacks, and random items from my basement. I did everything I could to pinch pennies. I created my own paperwork templates, used free apps for my phone services, and did my own accounting using a simple excel spreadsheet.
A therapy or counseling private practice is one of the few businesses you can start with practically no overhead or startup costs. Other wellness professions, like chiropractic, medical, or physical therapy require an initial investment in expensive equipment, but they aren’t too far behind when it comes to reasonable start-up costs.
If you have little to no capital to start your practice, here are some tips for saving money in the beginning.
Save on legal fees — You do not need to hire a lawyer to get your business papers. Most practices start out as LLCs. Services like LegalZoom charge fees upwards of $150+ to do something you can do yourself for practically nothing and in only 15 minutes. Save your time and money. Go to your state’s Secretary of State website, create a free account, search for your ideal business name and, if it is available, continue on to the registration process.
Save on Accounting Fees — You will need to do some basic accounting for your business. Unless you have a documented learning disability with math, when it comes to tracking finances, this is likely a fear and deficit you NEED to overcome by forcing yourself to do this on your own. You are not running a Fortune 500 company with billions of dollars in annual revenue. You just need to track income and expenses well enough that you know about how much to pay in estimated taxes each quarter and what your end of year profit and losses are. Start with free basic software that you can connect to your bank. The software gathers information on your spending, helps you categorize it according to IRS standards, and can even offer invoicing services so you can collect your fees easily. Click here for some great options.
Save on Overhead and Rent — Whether you are starting small like I did — trying out private practice to see if it is for you while holding down your safety job — or jumping in with both feet, ready to conquer your fears of entrepreneurship one learning opportunity at a time, consider beginning with sharing a space with others who have already taken the leap. Furniture and decor (even used or clearance stuff) is a big expense and a lease (office leases tend to be 3-5 years) is a huge commitment. Add to that office supplies like printer, ink, paper, pens, and tissues, and services like janitorial, billing, and reception, and the overhead costs rise and rise. Subletting a therapy office space means less commitment to the location and more flexibility as you grow at your own pace.
Save on Time and Mental Health — Money is not the only thing you can save by sharing an office with another therapy or wellness professional. Most new practices fail due to isolation. When a clinician has no support system, no consultants, and no referral network, they drown in self-doubt and loneliness. You do not need to reinvent the wheel. Be around others who have started a practice. They are willing to share their foibles and triumphs, their referrals and warnings, their couches and tissues. If you are in the St. Louis area, check out Gateway Wellness Associates for your office needs. A co-op or group setting can be a great place to start a practice.
Save on Systems — You will need systems for taking client calls, tracking leads, keeping your medical records secure, billing patients, etc. If you are pinching all the pennies, you can cobble together free services like Google Voice for your phone, an excel spreadsheet to track incoming calls and client caseloads, and use word docs for client notes. You will need to password protect both your documents and your computer to be HIPAA compliant and even this is not considered best practice. However, this is the area that I recommend investing a bit. Electronic Health Records (EHR) applications are a great investment in your business. Rather than starting off with several different systems, you can have it all in one place. EHRs typically include paperwork, encrypted HIPAA compliant storage, billing and credit card processing, appointment scheduling, account tracking, and much more. Most provide a free 30 day trial to determine if the service is right for you. I personally use TheraNest and love it. Simple Practice and TherapyNotes are other big names in the space.
Save on Marketing — There are plenty of free ways to market your practice. Start with a Linked-In page and a Facebook Page. Make sure you also have a professional Facebook profile. Join local professional Facebook groups where people request and share referrals. Create a Psychology Today profile — email me for a discount code to get 6 months free! Bonus — Psychology Today now offers FREE HIPAA compliant teletherapy platform as part of membership! Find professional networking events in your area on Eventbrite. Many events are free and you can meet other entrepreneurs from various fields looking to cross refer.
Moral of the story — you don’t need to be independently wealthy to start a private practice. You can be fiscally responsible and create the practice of your dreams!
Written by Casey Limmer, MSW, LCSW, owner and founder of St. Louis DBT, LLC and Gateway Wellness Associates, LLC. Casey has a passion for helping wellness professionals, therapists, and counselors to access their inner entrepreneur and start the practice of their dreams. If you are interested in Business mentorship with Casey, click here for more information.