Starting a Private Practice can be overwhelming but I want to help by outlining some of the set-up costs in Private Practice. Below are things you will either need or need to consider when starting out. You do not need the best of everything when you first start. Get the basics taken care of and ensure that you are operating legally. You can always upgrade as you get more clients and start earning profit.
Business Set-Up
The majority of what you’ll need to do to get your business set up is free. You can download my Private Practice Business Set Up Guide & Checklist which outlines everything you need to set up your Private Practice.
Bank Account
Before purchasing anything for your business it is important to set up a new bank account separate from your other finances. If you are a Sole Trader you can open a personal account however, if you are a Limited Company this will need to be a Business Account. Speak to your current bank to see if they can give you better rates.
I would highly recommend an online bank called Starling. It is quick and easy to set up and you can manage everything from their app on your phone. I also like that you get a notification when someone makes a payment into the account and when you have a direct debit payment due.
Systems
Systems are my thing and although there are 8 I recommend for Private Practice this isn't where you need to start.
You will need an email address to be able to contact clients. I always recommend Google and you can read about the benefits HERE. You can set this up for free if you use an @gmail.com address. If you want it to look more professional and use an @yourbusiness.com address you will need to register for a domain with GoDaddy or similar and then sign up for Google Workspace. The domain price will vary but should start out quite cheap. Google Workspace starts from around £4 a month and is well worth it.
Zoom
To be a therapist in 2021 an online video conferencing platform is essential. I recommend Zoom and if you only work with individuals you won’t even need to pay for it. You get unlimited time for two participants.
E-Signature
Sending clients paperwork is so much easier and more professional when you use an e-signature platform. The one I wholeheartedly recommend is Signable. This is a pay as you go system and each send will currently cost you £1.20. There are loads of benefits to this system and all my clients currently use this.
Marketing
Logo
A logo isn’t necessary when you first start in Private Practice. You can however create your own for free on platforms like Canva which I highly recommend giving a go before paying someone to create for you. Alternatively, you can outsource this. I used UK Logo Designs who you can contact here: support@uklogodesigns.co.uk. They were very reasonably priced and were quick to respond but there are lots of logo designers if you look online.
Website (Domain / Host)
Creating a home for the details of your Private Practice is important.
You want somewhere to direct people to once they have found you on social media, directories or via a referral. It will also help you to explain who you are for, show your fees and answer some frequently asked questions.
Buying domains is relatively cheap and easy to do. Check out Go Daddy or 123-Reg for prices but they will start from as little as £1.
You can of course create your website yourself using WordPress or Squarespace amongst others. If this is something you are not confident in I would recommend outsourcing this. This can be a big expense for you at the start but will save you lots of time. A professional will also help you with SEO and content.
Directories
Signing up to Counselling Directories like Counselling Directory or Psychology Today is a good way for potential clients to find you. Fees do change but you may be able to get a free trial and it’s well worth signing up at the beginning of your Private Practice journey.
There are other types of directories like Harley Therapy or Inquire Talk that you work alongside. They will take a cut of your fee for each session that the client has with you. There may be a monthly subscription to be listed and a fee taken from each appointment but the benefit of these directories is that they do all the marketing, administration, invoicing, scheduling and paperwork for you.
Insurance
Insurance is essential when you start your Private Practice.
Business Insurance
The next thing to set up is your insurance. Some providers for Private Practice are Balens, Hiscox and Towergate. You should speak to them to discuss your insurance needs but the minimum you should have in place is Professional Indemnity and Public Liability. Ensure to get quotes from multiple sources and get the appropriate advice for your practice.
ICO Membership
You will need to become a member of the ICO when you start in Private Practice. You can take the quiz to see if you are required to become a member and what fee level you will need to pay. I would suggest doing this the first time you register. The minimum level is £40 per year and this is what most therapists in Private Practice will need to pay. You can register for the first time here.
Professional Body Membership
Professional organisations offer development and connections with others in your field and enhance your business profile. Being registered with an industry association says you are very committed to your profession and actively participating in its advancement.
In addition, if you want to work with medical insurance companies you will need accreditation with professional bodies relative to your speciality. Fees will depend on who you choose and the level of your membership.
Resources
There are some items you will need upfront to set up your Private Practice. You can start with cheaper items and then upgrade as you grow.
Laptop or Computer
Whether you choose to work online or not, having a laptop or a computer is essential for Private Practice.
Mobile Phone
I would suggest getting a second phone for your practice. That way you can have a second number that is listed all over the internet and it can also help you with boundaries during the times you are not in working hours.
You can get good second-hand smartphones and have a SIM from a company like Smarty which starts at £10.00 a month and has unlimited calls and texts and a very good amount of mobile data which most of the high street retailers won't offer you.
Headphones
If you are working online or over the phone headphones are essential for client privacy and ensuring the best sound quality. There are loads on the market depending on the type of headphones you prefer.
Blue Light Blocking Glasses
Blue light blocking glasses are a good way for you to protect your eyes from glare and can help reduce potential damage to your retina from prolonged exposure to blue light from computer and phone screens.
USB Sticks
It never hurts to have some USB sticks to back up your data from your computer. You can buy these quite cheaply and it is one of the easiest ways to keep your data safe.
Clock or Countdown Timer
So you can keep track of your session times and wrap up on time.
Conclusion
I have outlined the set-up requirements for you in Private Practice. There are lots of things you can do right at the beginning that are either free or low cost and you can improve and upgrade once you start earning profit. I have recently invested in a customer relationship management system to organise my appointments and projects. I did this via email and google workspace successfully for a year beforehand though.
If you are just starting to set up your Private practice I would highly recommend you download my Private Practice Business Set Up Guide & Checklist.
This not only talks about costs but gives you a step-by-step guide into setting up your Practice.
If you’d like help with your bookkeeping for your sole trader practice you can purchase and download our bookkeeping template. This includes everything you’ll need to complete a cash-based accounting spreadsheet ready for an easy self-assessment at the end of the tax year. There is a video tutorial to explain how to set up and complete the spreadsheet each month. I use this template in my own business and also for clients.
