How much does it cost to open a therapy private practice?

how much does it cost investment overhead start up costs therapy Feb 08, 2022
Private Practice Startup Costs

How much does it cost to start a private therapy practice? 

Care to take a guess what question I get asked the most? If you said... How much does it cost to launch a private practice? ...then pat yourself on the back.

The truth is that the cost of launching a private practice is quite lower than you might think.

In fact, you’ve already made the biggest investment in your private practice:

Your education is your largest private practice startup cost. 

Regardless of whether you’re a counselor, psychologist, social worker, marriage & family therapist, or a mental health clinician. You can open a private practice with low startup costs.

The only exception to this notion would be those who need to purchase testing materials for a psychological assessment-based practice. Unfortunately, this handout doesn’t include guidance for psychological assessment startup costs. The secret to having a financially stable private practice is planning and budgeting.

Private Practice Start Up Costs

  • An Office: Remember, you don’t have to lease a full-time office. You can start by renting an office by the hour, subletting a few days per week, or providing teletherapy services. In my experience, you can get away with only paying about $100/month by subletting an office for a few hours per week, when you’re starting out in private practice. If you are starting a virtual private practice your rent will be $0.
  • Business License Fees: Your need for a business license will depend on the city where your practice is located. The average cost of a business license is typically under $150.
  • Malpractice Insurance: YOU MUST have malpractice insurance. Regardless of the size of your private practice. Before you see a single client, make sure you get liability insurance. This will likely cost you between $300-500 per year.
  • Simple Practice Subscription: Between $50-100/month depending on the level of service you select.
  • Business Phone Number: In this course, I recommend getting a business phone that is separate from your personal one. But there are free services available too.
  • HIPPA Compliant email account: Should be around 50-100 per year. 
  • DIY Website or Website Design - This can range in cost greatly. You can spend thousands on a custom-built site or build a template site on Squarespace or WordPress for just 30-ish bucks a month.
  • Website hosting fee: Usually around $5 per month.

>>Click here to download my Private Practice Start-Up Cost Worksheet!

 

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