How Do You Know When It's Time to Start a Private Practice?

Key Takeaways

• Most therapists transition to private practice gradually, not all at once.
• Financial readiness, a professional network, and a business owner mindset are the three clearest signs you are ready.
• Building a full client list typically takes two to five years, so having cash or a financial plan is non-negotiable.
• You do not have to figure it out alone. A strong peer network makes the difference.
• Free resources like The Psychotherapist Success Guide by Bill Whitehead, PhD can help you prepare.

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So you're deciding if you want to start a private practice, but you're not sure if this is the right time. Wouldn't it be helpful to see into the future? You could see your successful, confident,  future-self with a thriving private practice and know with certainty you are ready.

Well, the bad news is that we don't have a crystal ball to tell you if private practice is the right path or when to take that journey.

The good news? We don't need one. With the knowledge gathered from our collective years in private practice, we believe that as intimidating as this decision can be, there are always bigger-picture signs you can look for to know you're ready.

3 Sure Signs You Are Ready to Make the Leap

For some therapists, owning a practice was always the goal. These folks have been making decisions since grad school with that vision in mind. If that is not you, don't panic. You're in the majority! For most, the idea of going into private practice comes along gradually. Over time, practitioners begin to look for more flexibility and control over their schedules, higher earning potential, and more autonomy.

Regardless of the compelling reasons, going into private practice always includes some level of anxiety. Becoming a business owner is a big decision and is more than just a job change: it is a major life event. Therefore, it is important to be honest with yourself about your reasons for going solo to help set expectations, boundaries, and goals for your practice.

These are just a few common themes we see among practitioners who make the leap:

1. You have cash or a plan (or both!)

The earning potential is higher in private practice, but it can take two to five years to build a full client list. According to data from tens of millions of billing transactions processed through TherapyAppointment, full-time therapists in private practice who see an average of 24 clients per week earned an average of $143,000 annually in 2025. Part-time therapists averaging 10 clients per week earn around $64,700 annually. The earning potential is real, but so is the ramp-up time.

In the meantime, be prepared to cover overhead: office space, technical equipment, insurance, and potentially staff or outside experts for billing, web development, or accounting.

2. You have a network of other private practitioners to rely on

Running a solo practice does not have to mean being alone. In addition to knowing how to build your referral network, you'll also have to build your professional network.

A network of other solo practitioners to turn to for support and guidance as you navigate this new venture is priceless. They can help point you in the right direction when you have questions about billing, figuring out insurance, and getting into the right office space. Some networks even share referrals when a client is not a fit for them.

Plus, you'll want to talk to someone who gets it after having one of those days. Other therapists can commiserate and celebrate the ups and downs of owning a practice. (We also recommend... getting therapy. Of course!)

You can find events and groups through local chapters of therapist associations like the APA or ACA. Facebook groups are a free option for finding local communities. If you're new to an area and can't find a group, reach out to a practice owner in your community directly and ask if they would like to meet up.

3. You WANT to run a business

This one is important. Being a boss is great. You work when it makes sense for you. You can opt out of nights and weekends. You can select the clients you want to work with. It's all within your power.

But being a boss also means a markedly increased level of responsibility. As a practice owner, you're responsible for marketing, sales, accounting, and all the other gears in the therapy practice machine you've never had to worry about before. It's not simply seeing clients on your own terms. You own and operate a business and are ultimately responsible for its successes and struggles.

Everyone starts somewhere. Don't let fear of what you do not know get in your way. The best way to learn is by rolling up your sleeves and getting your hands dirty. If a task is currently outside your capabilities, go back to number 2 -- your network -- and ask for a referral.

Start building your solo therapy practice slowly

Many therapists start their private practice on the side, slowly building up to full-time when they feel financially and mentally prepared. If you've been saving up to cover these costs and feel financially secure, you might be ready to go solo. If you don't have cash to float the business, have a plan for getting it! (Actually, please have a plan either way.)

If you're the kind of person who loves a plug-and-chug framework, the Small Business Administration has already created a business plan template for you. It's a traditional, tried-and-true framework that forces you to think through marketing (where will your clients come from?), finances (where will money come from when you need it?), and much more. It's also the document most financial institutions want to see when providing loans, so it is worth the effort.

Ready to Make the Leap?

As a therapist, deciding to go out on your own can be a lot of things at once: terrifying, exciting, even a little sad as you think about saying goodbye to your co-workers and some of your clients.

If you want to know more about the process of going solo, download your free copy of The Psychotherapist Success Guide by Bill Whitehead, PhD, Founder and CEO of TherapyAppointment. This is no one-page scam to get your email address. It's a full-length book, re-released in 2025 with updated stats, packed with shared knowledge, tips, and wisdom.