Podcast Summary: Private Practice Startup Podcast

Episode 84: How to Start a Private Practice

Hosts: Dr. Kate Campbell & Katie Lemieux
Original Air Date: May 5, 2018

Overview

This episode, led by hosts Dr. Kate Campbell and Katie Lemieux, is a dedicated deep-dive into the step-by-step process of starting a private therapy practice. Drawing from their own journeys, the hosts focus on the "big picture" foundational steps, common mistakes, practical tips, and essential resources for mental health professionals beginning their entrepreneurial paths. Their approach is casual, validating, and resource-heavy, aiming to help therapists move from overwhelm to clarity as they launch their dream practices.

Key Discussion Points and Insights

1. Start With a Plan, Not a Name

• Most Common Mistake: Many new therapists get emotionally attached to a practice name before building a foundational plan.
  • “Most people don’t plan to fail, it’s that they fail to plan.” (Katie, 04:00)
• Essential First Steps:
  • Create a business plan or use a goal planning worksheet—plan first, name later.
  • Don’t make a business with the intention of finding more freedom only to become a “slave to your business.” (Katie, 06:24)
• Plan for Lifestyle:
  • Consider vacation days, sick days, and business seasonality.
  • Decide how many weeks you want to work and work backwards to calculate financial needs.

2. Financial Planning and Market Research

• Establish a profit and loss (P&L) statement to understand financial requirements.
  • Calculate ideal salary and necessary rates based on desired work style and market.
  • Include marketing and savings in your plan.
    “If you don’t have a marketing strategy… you’re going to be sitting on your couch with a few or not many clients like we did.” (Katie, 09:44)
• Hosts recommend revisiting Amanda Patterson’s episode on business planning and another with Joe Sanok on creating a “lifestyle business.”

3. Branding and Knowing Your Ideal Client

• Absolute Core Step: Figure out your “ideal client” before naming or marketing your business.
  • Get intimate with their pain points, both internal and external, and understand their dreams.
  • “You are your brand, and your brand is the essence of who you are.” (Kate, 11:19)
• Brand Experience:
  • “The brand is the complete experience that someone has with every touch of your company.” (Katie, 12:41)
  • For those seeking to expand (group practices, etc.), focus on culture, vision, and mission as part of branding.
• Resource: Brand Values Assessment worksheet available in episode show notes.

4. Naming Your Practice (and When to Do It)

• Only choose a name after you truly understand your client and brand.
• The name should be simple, clear, and communicate value or outcome.
  • “Assure your name stands the length of time…” (Katie, 14:05, citing Guerrilla Marketing by Seth Godin)
• Solo vs. Group Practice Consideration:
  • If you plan to expand or sell, avoid using your personal name.
  • Legal implications and SEO tips: Include “counseling,” “therapy,” etc., for clarity and searchability.
• Verify availability (GoDaddy, business registry) before registering.
  • “Before you ever incorporate or choose your domain name… you have to make sure no one else has that.” (Katie, 15:34)

5. Legal and Financial Foundations

• Incorporation: Consult an accountant and/or attorney on S corp, LLC, or PA depending on state and business goals.
  • Not every state allows all forms (e.g., no LLC for private practices in California).
• Tax Structure Evolution:
  • “When I got over the $100,000 mark, my accountant said: we need to make your LLC an S Corp...that saves me about five grand a year.” (Katie, 17:13)
• Benefits to Incorporating: Legal protection, ability to claim expenses, and tax advantages.

Notable Tax Tips & Podcasts:

• Episodes with CPA Suzanne Dacobo and Craig Cody recommended for tax strategies.
• Side tip: Secure loans/mortgages before transitioning away from W2 income, if relevant.
  • “If you are in the market to buy a house, I would definitely recommend doing that while you’re still in your job.” (Katie, 21:01)

6. Critical Administrative Setup

• Obtain EIN (Employer Identification Number): Get from IRS.gov—necessary for banking and tax filings. (Kate, 21:47)
• Business Bank Accounts and Credit Cards:
  • Always keep business and personal finances separate.
  • Look for accounts with no/minimum fees and consider getting a business credit card for easier tracking and rewards. (Kate, 21:47)
• Liability/Malpractice Insurance:
  • Non-negotiable! Protects you from lawsuits and client claims. “You want to make sure you have that malpractice insurance.” (Kate, 21:47)
  • Providers recommended: CPH & Associates, HSPO.com, American Professional.
  • Many professional associations offer member discounts. (Katie, 23:03)
  • Story: Katie shares a real scare about a client accident and not having general liability coverage initiated—emphasizing importance. (Katie, 19:18)

7. Client Paperwork and Record Keeping

• Legal, HIPAA-compliant paperwork is required (consents, releases, etc.).
  • “I’ve actually met therapists who say, I don’t need paperwork. By them coming, they verbally consent. I had to take a deep breath…” (Katie, 23:49)
• Hosts promote their attorney-reviewed forms, with discounts/coupons in this episode.

8. Practice Management & Tech Tools

• Electronic Health Records (EHR): Strongly recommended for insurance billing and efficiency.
  • Partners: Therapy Partner, Therapy Notes, Simple Practice.
• Merchant Services:
  • Accept credit cards—majority of clients prefer electronic payment.
  • Options: Square, Ivy, PayPal, and bank merchant services. Avoid long contracts; research fees and terms. “Raise your therapy fee $5 per session and that will cover the [credit card] fees.” (Kate, 27:16)

9. Choosing a Location

• Should fit the needs, preferences, and geography of your ideal client.
  • Both hosts chose locations for affluence, community feel, and accessibility to target populations (families, schools, etc.).
  • “Be very strategic. Think about where your ideal clients are.” (Kate, 28:53)
• Online practice: Can offer additional write-offs; check with your accountant.

10. Website and Online Presence

• Essential for credibility, client conversion, and as a digital resume.
  • “Automatically as consumers… no website or a bad website gives us the feeling they’re not credible, not trustworthy…” (Katie, 30:41)
• Options discussed: Brighter Vision, Daniel Fava’s WordPress course, Wix, Empathy Sites (Kat Love).
• Tip: Don’t DIY unless you truly have the time and skill—outsourcing saves lost time.
• Therapy Directories: Psychology Today and others can be major referral streams if profiles are written with ideal clients in mind.

Notable Quotes & Memorable Moments

• On Planning and Avoiding Burnout:
  “A lot of times they jump into private practice and they become a slave to their business. Most of us don’t intend to do that...and in fact, we become a slave to the business. We're working on weekends. We're working 12 hours a day, and that's just crazy.”
  (Katie, 06:24)

• On the Field of Dreams Fallacy:
  “Let me create my business entity…get beautiful furniture and an office decorated…and I’ll be able to build and grow my practice. Just like that. Boom. And the people will just come running in.”
  (Kate followed by Katie, 04:18–04:39)

• On Branding and Naming Sequence:
  “Once you actually know who your ideal client is and you begin to niche and brand, you’ll actually get closer to a name. So that would be after we talk about branding.”
  (Katie, 10:53)

• On Selling a Practice Named After Yourself:
  “Even if you see yourself being a solo practitioner… at the end of your career, when you want to sell your practice to someone else, it’s not going to work. They’re going to have to rebrand the whole thing.”
  (Kate, 15:03)

• Practical Payment Advice:
  “Raise your therapy fee $5 per session and that will cover the fees. You don’t have to worry about it. People like convenience…”
  (Kate, 27:16)

• Funny and Real Moment:
  [As sirens pass by during the liability insurance discussion]
  “You don’t want those coming for you. Exactly. Cue the sirens.”
  (Kate & Katie, 22:41–22:44)

Timestamps for Key Segments

• [04:00] - Importance of Planning and Not Jumping Directly to Naming
• [06:24] - Planning for Lifestyle; Avoiding Burnout & “Slave to the Business”
• [09:44] - Financial Planning: Savings and Marketing Strategy
• [11:19] - Branding & Understanding Your Ideal Client
• [14:05] - How to Choose a Name; Advice from Guerrilla Marketing
• [15:34] - Verifying Practice Name and Domain
• [16:51] - Incorporation and Legal Structure Advice
• [19:18] - Katie’s General Liability Story (“Chair incident”)
• [21:47] - Business Banking, Credit Cards, EIN
• [23:49] - Paperwork is Legally Required—No Exceptions!
• [27:16] - Merchant Services, Credit Card Processing Fees
• [28:53] - Strategic Location Choice
• [30:41] - Websites and Credibility; Platform Options
• [33:37] - Therapy Directories & High-Level Marketing
• [34:07 – 35:22] - Wrap-up and Invitation to Join Community

Resources and Offers

• Show Notes: Hosts repeatedly urge listeners to consult show notes for:
  • Business plan worksheets
  • Branding worksheets (Brand Values Assessment)
  • Discount codes for paperwork packages
  • Recommended podcasts (taxes, business planning, etc.)
  • Links to electronic health record partners, website designers, and merchant services

Final Thoughts

This episode is both practical and motivational, emphasizing that starting a successful practice takes deliberate planning, not just passion. The hosts’ own stories of “field of dreams” thinking and hard-won lessons create a supportive, non-judgmental tone, making the daunting process approachable.
Listeners leave with a clear roadmap, actionable steps, and encouragement to utilize the resources—and community—available through Private Practice Startup.