Many therapists come across courses, books, and social media posts claiming you can start your practice in just 30-90 days, and think, “If they can do it, so can I.” Heck, we even have a Private Practice Checklist you can download and follow! But having a checklist isn’t enough to guarantee success when starting a private practice. What often happens is that therapists dive in headfirst, only to realize it’s far more complex than just registering a business, setting up a website, and printing business cards. From understanding regulations and staying on top of healthcare changes to learning billing and figuring out how to scale and grow, new business owners face steep learning curves.
Over the past six years of supporting therapists in starting private practices through our Therapy Business Builder Program, we’ve observed a wide range of challenges. Even those who join our program with comprehensive resources at their disposal sometimes face difficulties. Why? The reasons are varied: the process is often more complex than anticipated, expectations for rapid success can lead to frustration, and there’s often a misconception that clients will arrive simply because the business exists. Additionally, some struggle to adopt the necessary entrepreneurial mindset, fail to delegate effectively, underutilize the tools and resources available to them, or encounter unforeseen obstacles along the way.
To help demystify the process and set you on the right path, check out our video where experienced and successful business owners – Kara Welke, Steve Glukh, Anthony Miano, and Megan Dooley discuss what therapists really need when starting their own private practice. Here’s an overview of what you’ll learn:
Understand your community – You need to figure out what their biggest problem is
Before starting your private practice, take time to understand your community’s needs. While your passion for a particular service is essential, it’s crucial to ensure that the community shares that interest. Kara recommends researching your community thoroughly to ensure there’s demand for the services you plan to offer.
Megan also emphasizes the importance of basing decisions on facts, not feelings. Researching your area and understanding the specific demographics you’ll be serving is key to building a successful business. Client needs can vary widely, even within the same state. For example, Megan’s practice in a busy state capital, serving political and corporate clients, is vastly different from Kara’s practice near the Canadian border in a more rural area. These differences in target demographics mean their business models need to be tailored accordingly.
Megan recalls how, in the early days of the Therapy Business Builder program, participants often compared themselves to others in different niches. The result? Distraction and anxiety. Her advice? “Stick to a plan that aligns with your area and goals. Trying to replicate someone else’s success will only lead to confusion. Focus on what works for you and your community to build long-term success.”
The Importance of Tailored Guidance When Starting a Private Practice
Establishing a healthcare private practice is far more complex than starting a typical small business. Unfortunately, many therapists underestimate these complexities, often relying on generic legal or business advice that fails to address the unique challenges of the healthcare sector. Some attempt to navigate the process independently or follow guidance found on social media, while others consult with legal or business professionals who lack expertise in healthcare regulations.
Kara shares a cautionary example of a therapist who invested significantly in legal advice, only to later discover that the attorney was unfamiliar with the nuanced requirements of the healthcare industry. This oversight led to costly errors, including the need to restart the entire process of establishing their practice.
To avoid such pitfalls, it is crucial to seek guidance from professionals with specialized knowledge of healthcare laws and regulations. Working with experts who understand the intricacies of the industry ensures compliance from the outset, mitigates risks, and prevents unnecessary complications down the line.
Knowing What to Invest In (And What to Skip) When Starting a Private Practice
Many therapists fall into the trap of spending money on things that don’t directly contribute to building a sustainable business, such as elaborate websites, professionally designed rack cards, or unnecessary certifications. In fact, we’ve seen therapists invest thousands in these areas without securing a single client.
Far too often, therapists pour countless hours and significant money into building a website before they’ve even secured a single client or stabilized their business. Kara Welke reflects on her own experience, stating, “I didn’t have a website for the first several years of my business, and it was still successful.”
While a website can be a helpful tool down the line, it’s not the priority many believe it to be at the beginning. Instead, your energy is better spent connecting with potential clients, building relationships, and establishing a presence in your community. Focus on laying the groundwork for a thriving business before worrying about a perfect website—it’s relationships, not websites, that bring clients through the door.
One of the most frequent questions new therapy business owners ask is, “When should I hire a biller?” The answer may surprise you: don’t hire one just yet! Instead, take the time to learn the billing process yourself first. One of the biggest pitfalls Steve G. has observed is therapists obsessing over billing systems before they’ve even secured their first patient. While having a reliable billing process is crucial, it’s not something you need to master before you start seeing clients. “Some people hire billers before they even have patients,” Steve notes. Instead, focus on building your client base first.
Having a solid understanding of how billing works will better equip you to address issues when they arise and help you avoid costly mistakes down the road. Megan also stressed the importance of understanding billing, even if you plan to outsource it later. Learning the process will allow you to spot errors, maintain control, and keep your practice running smoothly.
Kara frequently hears from therapists who have faced billing nightmares—issues like inaccurate claims, mismanagement, or missed reimbursements. These problems could have been avoided if the therapist had a basic understanding of the billing process. By investing time in learning and managing your billing early on, you’ll not only save money but also build confidence in this critical aspect of your business.
Laying a Solid Foundation: Protecting Your Practice
“Starting my own business and setting up the foundations to do things the right way is a lot more work than I expected. TBB has given me structure and helped me focus on the important steps, so I don’t get too overwhelmed. TBB has been awesome at helping me troubleshoot and getting back on track with I hit roadblocks.” ~Jennifer, PT
One of the most common mistakes new business owners make when starting their private practice is neglecting the foundational elements that safeguard their practice—forms, policies, and procedures. While they may not feel exciting, these critical components protect your business and professional license. Overlooking them can lead to costly legal or financial consequences down the road.
Running a business, much like earning your therapy degree, requires effort, commitment, and ongoing learning. As Megan wisely noted, business ownership isn’t a “pay and play” endeavor. It involves building systems, adhering to regulations, and managing every aspect of your business.
Key Reminder: Success Requires Focus and Support
Many therapists attempt to manage too many aspects of their business at once, which can lead to a loss of focus. It is essential to establish a clear vision for your practice and avoid distractions, such as adding new services or pursuing additional certifications, until the foundational elements of your business are firmly in place. This is exactly why we’ve structured our Therapy Business Builder program into distinct levels, helping therapists stay focused and progress through key steps efficiently and effectively.
Entrepreneurship in healthcare extends beyond client care. It also involves managing critical components such as HIPAA compliance, billing accuracy, and ensuring long-term sustainability. With the right mindset, careful preparation, and a strong support system, you can position yourself for success. As Megan wisely noted, “You invested in becoming a therapist and worked diligently to earn your degree. Starting a business requires the same level of commitment, effort, and focus to succeed.”
Delegating for Growth: Building a Strong Support System
As Anthony Miano wisely puts it, you can’t just expect clients to walk through the door—it takes time, effort, and strategic planning. But here’s the key: you don’t have to do it all on your own.
Starting a therapy business often means wearing multiple hats—business manager, provider, marketer. However, it’s crucial to recognize when you need help. Delegating tasks outside your core expertise lets you focus on what you do best, whether that’s physical therapy, occupational therapy, or another field. By building a reliable support team, you can navigate the challenges of entrepreneurship more effectively.
A strong support system also prevents the isolation that can come with business ownership. As Megan points out, “It’s great to have a team around you because it gets lonely, stressful, and hard sometimes.” Whether it’s a coach, mentor, or network of peers, having people to lean on makes all the difference.
Kara adds that a lack of focus and support often leads to costly mistakes. Social media can amplify these struggles, making it easy to compare your journey to others without understanding the full context behind their success.
At the Therapy Business Builder program, we recognize that every stage of business ownership requires different support. Whether you’re just starting your private practice or are ready to expand, having the right team and resources in place will allow you to approach challenges with confidence and set your business up for sustainable growth.
Key Takeaways for Starting a Private Practice as an OT, PT, or SLP professional:
- Understand your community’s needs: Research the demographics and demands in your area to ensure there is a market for your services.
- Tailored guidance is essential: Seek professional advice specific to healthcare regulations to avoid costly mistakes.
- Know where to invest: Focus on building relationships and understanding the basics of billing before investing in things like elaborate websites or certifications.
- Lay a solid foundation: Healthcare businesses are different. Avoid relying on social media for advice and seek expert help to ensure you are following regulations and maintaining compliance. There are essential forms, policies, and procedures that protect both your business and professional license.
- Commitment is key: Just as you invested time and effort into becoming a therapist, invest the same in building your business.
- Delegate for growth: Recognize when you need help and build a reliable support system to prevent burnout and increase your chances for success.
- Success requires focus and ongoing learning: Business ownership isn’t a “pay and play” endeavor—it’s about managing various responsibilities effectively to ensure long-term sustainability.
As Kara says, “Being a great therapist doesn’t automatically make you a great business owner. If you’re ready to take your practice to the next level, remember: The most successful business owners invest in their growth, focus on their goals, and surround themselves with the right support.”
Ready to take the next step? Contact us today to learn how we can help you grow your therapy business effectively.
Kara Welke, OTD, OTR/L, CLT CEO Next Level Occupational Therapy & CEO Home Therapy Solutions kara@nextlevelot.com
