5 things I wish I knew when I started my private practice
Picture this: you’re a therapist stepping into the wild world of private practice. Here are five things I wish I knew to do (thanks grad school for all the business knowledge you gave me…).
1. Sub to newsletters (sounds boring AF but….)
Subscribe to those state and federal newsletters for small businesses. It’s like getting a heads-up on the latest gossip – except it’s about filings and regulations. If that's not your vibe, find a trusty CPA to be your gossip buddy.
I know it sounds lame..but recently a new filing requirement was issued from FinCEN (you don’t need to know who they are, but they are kinda a big deal in the government world) that if you didn’t file this new report within 90 calendar days of opening your business, you would face a $500 a day penalty. A DAY.
So sign up for those newsletters even if it sounds dreadful. (And make sure not to just glance and delete…read them).
2. BUDGET like your life depends on it.
Budgeting is like setting a menu for your money. Before diving in, get an idea of what your anticipated start up expenses will be (those things like malpractice, EHR, HIPAA compliance…ya know..all that stuff).
If you need help, I have a budget template that can help with this (and it’s almost error proof!).
You also want to have a sense of what your initial monthly income is. It is smart to have savings to cover from 3-6 months while you are getting started.
Or if private practice is going to be a side hustle to start, that can give you an even better idea of income/expenses.
3. Branding, baby!
Let’s talk branding! Pick a color palette that screams “you.” It’s not just about looking pretty; it’s about being consistent and accessible. Your colors should pop, even for our visually impaired friends. And same with fonts.
Pick a brand and imagine their logo, their text - you can picture it in your mind and associate that brand with it, right? I recommend going to a hardware store and looking at color palettes to get an idea what matches.
4. Network NOW!
Rome wasn’t built in a day, and neither is your client base. Network like your practice depends on it – because it does! Coffee dates, Facebook groups, carrier pigeons – get creative!
And start like YESTERDAY. But seriously, the earlier you start, the better off it is for your practice :)
5. Tax Time (ew…)
Chat up your friendly neighborhood CPA about taxes. Quarterlies? Estimated income? They’ll help you navigate the money maze so you don’t end up with a tax bill that’s scarier than a horror movie finale.
Trust me, you do NOT want the IRS knocking on your door (not to scare you because they have bigger fish to fry than us..but still).
Taxes aren’t sexy, but owing the IRS a big tax bill is less sexy.
Find a trustworthy CPA early on and plan for taxes. This might look like a separate savings account that you can’t touch until tax time.
If these were helpful, consider subbing to my newsletter so you don’t miss the next blog. & keep killing it, your services are truly needed fellow mental health worker.
