Private Practice Startup Podcast

Episode 154: Starting and Thriving in Private Practice on a Shoestring Budget

Hosts: Dr. Kate Campbell & Katie Lemieux
Guest: Michael Noel
Date: September 21, 2019

Episode Overview

In this episode, Kate and Katie interview Michael Noel, a private practice therapist who successfully launched and grew his own practice on a minimal budget. The episode is rich with practical tips, resource suggestions, and firsthand advice for therapists looking to start or streamline their private practice without breaking the bank. Michael shares his journey, creative cost-cutting strategies, essential budget items, and resourceful solutions for technology, office space, furnishings, record-keeping, and marketing.

Key Discussion Points & Insights

1. Michael’s Beginnings in Private Practice

• Michael started his practice after years in agency work, seeking more fulfillment.
• He began “on the ultimate shoestring budget”—paying nothing initially by sharing a professor's office on available evenings and weekends.
• Timestamp [03:09]:

  “I was very, very fortunate to have a professor of psychology who actually took me in and let me use her office Fridays and any night I wanted to after six. So that was like the ultimate shoestring budget. Right. No cost whatsoever.” – Michael

2. Overcoming Loneliness & Building a Network

• Private practice can feel isolating. Michael created a networking group for camaraderie and referrals.
• Timestamp [04:29]:

  “Private practice can be very, very lonely. So we need some other people to talk to…that was one of my reasons for that group…” – Michael

3. Budgeting & First Office

• Michael set a strict budget of $250/month.
• He faced sticker shock with local office rents but eventually found a small, affordable office: 156 sq. ft. at $1 per sq. ft. per month ($156/month).
• Michael prioritized client accessibility and privacy in location selection.
• Timestamp [07:21]:

  “156 square feet. So like a 12 by 13 is what it was. Okay. Little box, really? But it was perfect…. And it was ready made.” – Michael

4. Furnishing the Office on the Cheap

• Michael furnished his office with items from thrift stores, Facebook Marketplace, and Craigslist. He purchased a matching sofa, loveseat, and chair for under $100 during a 50% off thrift store sale.

• He kept costs further down by accepting donated items from family, e.g., a cherry wood desk.

• Timestamp [09:02]:

  “The furniture...it was under $100 for this.” – Michael

• He recommends asking family for contributions—likening it to an “entrepreneur shower.”

• Timestamp [10:26]:

  “Maybe we should create something like that. Like the entrepreneur shower. Helping people get into business.” – Katie

5. Keeping It Authentic

• Michael’s office style is authentic to who he is and matches his clientele.
• He notes clients appreciate a comfortable, down-to-earth atmosphere rather than a stuffy, high-end office.
• Timestamp [10:59]:

  “I think a lot of my clients appreciate that I don't have ultra high end stuff in my office. And...I'm not the guy with the tie and the suit and very stuffy because it's not me.” – Michael

6. Tech, Tools, and Software

• Printer: Bought a discounted laser printer ($125 instead of $199).
• Rugs/Furnishings: Used deals from Wayfair and Overstock.
• EHR (Electronic Health Records): Started with Office Ally (free/low cost), currently transitioning to Simple Practice for its integrated features.
• Scheduling: Used free versions of Calendly and 10to8.com (free for 100 appointments/month).
  • Note: Full HIPAA compliance in 10to8 requires a paid tier.
• Notes: Used yellow legal pads, then switched to Rocketbook (reusable, $30), and explored digital writing tablets for paperless note-taking.
• Cloud Storage: Encrypted files locally and considered Microsoft OneDrive and Dropbox as affordable, encrypted options.
• Timestamp [16:16]:

  “I went with Office Ally originally...I'm actually currently switching over to Simple Practice.” – Michael

• Timestamp [18:43]:

  “I was just using the old yellow pads for a long, long time... then I found the Rocketbook... it takes a picture and it does transcription... and then you wipe it away with water.” – Michael

7. Business Basics: Cards, Website, Insurance

• Business Cards: Used Vistaprint for low-cost cards (500 for $10 with a promo code).
• Website: Built WordPress site for $60/year; recommends WordPress themes for the non-tech-savvy. Suggests outsourcing or using services like Brighter Vision ($59/month) for those less comfortable with tech.
• Liability Insurance: Chose CPH & Associates ($119/year for solo), also recommends HPSO.
• Renter’s Insurance: Used The Hartford for affordable rates ($250-$275/year).
• Timestamp [22:11]:

  “Vistaprint is my best friend as far as business cards go...500 for 10 bucks.” – Michael

• Timestamp [23:32]:

  “I found a good WordPress site and I think I paid, I think it was half off for the first year. So it was like 60 bucks and they had the WordPress all that crap. So it was real easy.” – Michael

• Timestamp [26:44]:

  “You're going to need liability insurance. Of course. As a therapist, that's your malpractice. So I have found that CPH and Associates out of Chicago is probably the cheapest.” – Michael

8. Total Startup Cost & Final Advice

• Michael started his solo practice for under $400.
• Practitioners should focus on getting started, keeping expenses low and being flexible: “Version one is better than version none.”
• Save for marketing, since “if you don’t have clients coming in your door, you aren't going to be in business long.”
• Timestamp [29:23]:

  “You know, my whole business started on under $400 is what it comes down to.” – Michael

Notable Quotes & Memorable Moments

• On the reality of building on a budget:

  “You don't need much to get your therapy practice up and running and going.” – Michael ([10:26])

• On authenticity and connecting with clients:

  “It's so important to really authentically be who you are to attract the clients that you want.” – Katie ([11:19])

• On note-taking innovation:

  “After you use it, you can scan it...and then you wipe it away with water.” – Michael on Rocketbook ([19:24])

• On getting started:

  “Version one is better than version none.” – Shared by Katie ([30:29])

Recommended Resources (from Michael’s “Shoestring” List)

• Office Space: Look for affordable spaces in your area; don’t overlook unconventional/shared/part-time options.
• Furnishings: Thrift stores, Facebook Marketplace, Craigslist, family donations.
• EHR: Office Ally, Simple Practice (moving from DIY to integrated as budget allows).
• Scheduling: Calendly (free), 10to8.com (free for up to 100 appointments/month).
• Note-taking: Rocketbook, digital writing tablets.
• Cloud/storage: Encrypt files locally, consider affordable encrypted cloud storage.
• Insurance: CPH & Associates, HPSO for liability; The Hartford for renter’s.
• Business Cards: Vistaprint.
• Website: WordPress (DIY), Create My Therapist Website (DIY support/e-course), Brighter Vision (outsourcing).
• Other: Wayfair, Overstock for affordable office décor.

Free Listener Giveaway

• Michael shares a custom income/expense tracking spreadsheet (created by his accountant brother), helpful for solo practitioners to easily track practice finances—available in the show notes.

Takeaways for Listeners

• Start small, be resourceful. Use what you have, seek deals, and build incrementally.
• Focus on needs over wants in the early stages.
• Invest in essentials: liability insurance, a comfortable and welcoming office space, basic technology for scheduling and records.
• Don’t wait for perfection: Launch with what you can afford—iterate and upgrade as you grow.
• Community and networking are key to combat isolation and secure referrals.

Timestamps for Key Segments

• 03:09 – Michael’s first office and true shoestring setup
• 07:21 – Finding affordable office space
• 09:02 – Ultra-cheap office furnishings
• 10:26 – The “entrepreneur shower” concept
• 16:16 – EHR and scheduling software
• 18:43 – Digital/paperless note-taking solutions
• 22:11 – Budget printing and business cards
• 23:32 – Website DIY tips
• 26:44 – Affordable liability and renter’s insurance
• 29:23 – Michael’s total startup budget

Final Thoughts

Michael’s story demonstrates that launching a private practice doesn’t require deep pockets—just creativity, resourcefulness, and authenticity. From hunting for bargain furniture to using free or cheap tech tools and focusing on essentials, this episode is packed with actionable strategies for new and growing therapists on a tight budget.

For more details and the full resource list, visit the show notes on the Private Practice Startup’s website.