How Do I Start a New Private Practice as a Psychological Counselor

How Do I Start a New Private Practice as a Psychological Counselor

In the United States alone, there are about 140,000 psychological counselors. That is because a psychology degree is fairly popular.

However, that does not take away from the necessity of psychologists in our society. With so many people suffering from mental illnesses like depression, psychologists are always in demand.

So, what do you do when you get out of college and want to start your very own private practice? It is daunting to begin from scratch, but you can do it so long as you follow these critical steps. 

Develop a Business Plan

The first thing to do when entering the healthcare industry is formulating your business plan. This plan will tell you everything you need to know about your finances, budget, and even your competition.

So, sit down and think first about whether you need a loan or pay out of pocket. Either way, you need to write down every expense you will have to pay.

That includes things like:

  • Rent
  • Utilities
  • Office equipment 
  • Furniture
  • Software programs
  • Amenities (coffee, food, etc.)

Once you calculate your overall expenses, you can begin to budget your money. A pro tip is to separate your personal finances from your business finances.

That way, you don’t let the two overlap and end up getting confused. After that, you can lay out your short and long-term goals in your business plan.

Again, use these to estimate your finances and to set mile-markers for yourself. You can also add a loan re-payment plan or schedule into this document. 

Research Legal Requirements

After you have your business plan fleshed out, research the legal requirements for a practicing psychological counselor in your area. These may change from state to state, so you should know the qualifications and rules.

For instance, look into whether you need a business license to open a practice in the medical industry. Along with that, research the local zoning laws to ensure you are not overstepping any boundaries. 

Understand HIPAA Requirements

The Health Insurance Portability and Accountability At (HIPAA) ensures that all sensitive patient data remains confidential. The Privacy Rule is in place for everything in the medical industry, including psychological counselors.

That means you should keep up-to-date with HIPAA rules and regulations. You can even take a course to ensure you understand everything about HIPAA and get top-of-the-line psychology practice management software.

Plus, if you have a staff in your office, they must also become HIPAA compliant. Having a client’s information spread or leak to other people can result in a lawsuit. 

Find an Office Space 

Search around for an office space that is both welcoming and private. You don’t want an office in a busy area.

When people seek psychological counseling, they want a confidential, quiet atmosphere. Along with that, try to envision your office set-up in the space.

Think about how you would set up the waiting room, desk, and other furniture. By doing this, you will surely locate a space that feels right. 

For More Tips on Starting a Private Practice 

As you can tell, you have several things to do before officially opening a private practice. As long as you stick to the tips above, your new medical practice will thrive.

Did you enjoy this article? If so, keep reading the rest of our blog for more medical tips and tricks. 


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