3 Mistakes to Avoid in Private Practice
1: Overspending on Trainings
We all want to provide the best clinical care to our clients, and trainings are an excellent way to improve our skills. However, spending excess money on trainings and certifications can actually decrease from your overall business productivity and success. Let me explain:
Trainings are an important part of your growth. But relying on a new certificate or certification to build your business is misguided. No matter how well trained you are, you will still have to put in the work to manage your business and market your practice. Make sure to establish trainings as a part of your private practice budget and decide how much you plan to spend on trainings each year. Be sure to stick to that financial goal to avoid overspending.
2: Hiring Associates/Interns Without Thinking It Through
Now hear me out on this one. I completely support taking on interns or associates. While hiring others is an excellent way to give back to the profession, make extra money, and contribute to the growth and development of another therapist, many therapists do it because it is the “next thing” they “should be” doing to earn passive income. What they don’t realize is that taking on a budding therapist requires you to commit time and effort to training that individual. While there are no guarantees that your associate will make money, there are guarantees that your associate will increase liability. I challenge my clients to take on interns and associates firstly because they want to mentor, teach, and grow with a new therapist and secondly because they might make extra money doing so. If you have decided to take on an intern ONLY because you want to make extra money doing so…then I’d challenge you to think about easier forms of passive income.
3. Aligning Yourself with Therapists with Bad Reputations
Let’s face it, not all therapists have a great reputation. One of the most important things you can do is begin to align yourself with therapists who provide excellent care, have exemplary ethical standards, and are kind to other therapists in your community. One of the easiest ways to align yourself with these types of clinicians is to sublet an office in a therapy suite of clinicians who you respect and admire. When you first enter the world of private practice, be sure to keep a watchful eye out for therapists with poor ethics or therapists who appear more focused on superficial relationships than lasting business connections. Surround yourself with clinical and business excellence and you’ll be surprised by the results.
Frequently Asked Questions
What are the most common mistakes therapists make in private practice?
Common mistakes include overspending on clinical training, hiring associates without understanding the responsibility involved, and building professional relationships with therapists whose ethics or reputations may harm your practice. These decisions can affect your finances, workload, liability, and credibility.
Can too much clinical training hurt a private practice?
Clinical training can improve your skills, but excessive spending on courses and certifications can drain money and time from other business priorities. Another certification will not automatically bring clients into your practice. Therapists still need to develop their marketing, financial, and practice management skills.
How much should therapists budget for professional training?
There is no single amount that works for every therapist. Review your projected revenue, operating expenses, taxes, savings goals, and required continuing education before choosing an annual training budget. The important step is setting a limit in advance rather than purchasing every appealing course that appears in your inbox.
Do therapists need additional certifications to attract clients?
Not always. Additional training may be valuable when it strengthens the services you already provide or supports a clear specialty. However, certifications cannot replace clear positioning, consistent marketing, strong referral relationships, and a client experience that earns trust.
Is hiring an associate a good way to create passive income?
Hiring an associate is not truly passive. Practice owners must invest time in recruitment, onboarding, supervision, training, administration, and problem solving. The article recommends prioritizing mentorship and professional development rather than hiring someone solely to generate additional income.
How do I know whether I am ready to hire an associate?
You may be ready when your practice has consistent demand, reliable systems, sufficient financial reserves, clear policies, and enough time to support another clinician. You should also genuinely want to mentor and manage people. Hiring because it feels like the next expected stage of growth is a weak reason to expand.
What should therapists consider before hiring interns or associates?
Consider the time required for supervision, training, documentation, payroll, scheduling, marketing, and quality control. You should also evaluate whether your systems can support another therapist and whether the potential revenue justifies the added responsibility and liability.
Can another therapist’s reputation affect my private practice?
Yes. Referrals, office arrangements, partnerships, and public collaborations can connect your reputation with another clinician’s behavior. Working closely with therapists who demonstrate strong ethics, excellent care, and professional kindness can strengthen trust in your practice.
How should I evaluate a therapist before entering a professional partnership?
Look beyond follower counts, polished branding, or friendly networking conversations. Pay attention to how the therapist treats clients, colleagues, employees, and referral partners. Consider their ethical judgment, communication habits, reliability, and reputation within the professional community.
Is subletting an office from another therapist a good idea?
It can be a valuable way to reduce overhead and build professional relationships. However, choose the office community carefully. Sharing space with respected clinicians may lead to consultation, referrals, and stronger professional connections, while associating with poorly regarded providers may create unnecessary reputational risk.
Should every private practice therapist grow into a group practice?
No. A larger practice is not automatically a better business. Some therapists prefer a solo practice because it offers greater simplicity, flexibility, and control. Growth should support your financial and personal goals rather than follow someone else’s definition of success.
How can therapists avoid costly private practice mistakes?
Create a budget, evaluate the purpose behind each major decision, and seek advice before making expensive commitments. Ask whether a purchase, hire, or partnership supports your actual goals or simply feels like something a successful practice owner is supposed to do. Thoughtful growth usually beats impressive looking growth.
If you found this article useful, consider taking my course The Private Practice Roadmap to access more tips and resources to ensure you are optimizing your private practice potential.
This article was written by Kelley Stevens, LMFT. Kelley is a private practice business coach for therapists. Kelley specializes in helping therapists launch a cash-pay private practice from the ground up.
Frequently Asked Questions
What are the most common mistakes therapists make in private practice?
Common mistakes include overspending on clinical training, hiring associates without understanding the responsibilities, and building professional relationships with therapists whose ethics or reputations may harm your practice. These decisions can affect your finances, workload, liability, and credibility.
Can too much clinical training hurt a private practice?
Clinical training can improve your skills, but excessive spending on courses and certifications can drain money and time from other business priorities. Another certification will not automatically bring clients into your practice. Therapists still need to develop their marketing, financial, and practice management skills.
How much should therapists budget for professional training?
There is no single amount that works for every therapist. Review your projected revenue, operating expenses, taxes, savings goals, and required continuing education before choosing an annual training budget. The important step is setting a limit in advance rather than purchasing every appealing course that appears in your inbox.
Do therapists need additional certifications to attract clients?
Not always. Additional training may be valuable when it strengthens the services you already provide or supports a clear specialty. However, certifications cannot replace clear positioning, consistent marketing, strong referral relationships, and a client experience that earns trust.
Is hiring an associate a good way to create passive income?
Hiring an associate is not truly passive. Practice owners must invest time in recruitment, onboarding, supervision, training, administration, and problem-solving. The article recommends prioritizing mentorship and professional development rather than hiring someone solely to generate additional income.
How do I know whether I am ready to hire an associate?
You may be ready when your practice has consistent demand, reliable systems, sufficient financial reserves, clear policies, and enough time to support another clinician. You should also genuinely want to mentor and manage people. Hiring because it feels like the next expected stage of growth is a weak reason to expand.
What should therapists consider before hiring interns or associates?
Consider the time required for supervision, training, documentation, payroll, scheduling, marketing, and quality control. You should also evaluate whether your systems can support another therapist and whether the potential revenue justifies the added responsibility and liability.
Can another therapist’s reputation affect my private practice?
Yes. Referrals, office arrangements, partnerships, and public collaborations can connect your reputation with another clinician’s behavior. Working closely with therapists who demonstrate strong ethics, excellent care, and professional kindness can strengthen trust in your practice.
How should I evaluate a therapist before entering a professional partnership?
Look beyond follower counts, polished branding, or friendly networking conversations. Pay attention to how the therapist treats clients, colleagues, employees, and referral partners. Consider their ethical judgment, communication habits, reliability, and reputation within the professional community.
Is subletting an office from another therapist a good idea?
It can be a valuable way to reduce overhead and build professional relationships. However, choose the office community carefully. Sharing space with respected clinicians may lead to consultation, referrals, and stronger professional connections, while associating with poorly regarded providers may create unnecessary reputational risk.
Should every private practice therapist grow into a group practice?
No. A larger practice is not automatically a better business. Some therapists prefer a solo practice because it offers greater simplicity, flexibility, and control. Growth should support your financial and personal goals rather than follow someone else’s definition of success.
How can therapists avoid costly private practice mistakes?
Create a budget, evaluate the purpose behind each major decision, and seek advice before making expensive commitments. Ask whether a purchase, hire, or partnership supports your actual goals or simply feels like something a successful practice owner is supposed to do. Thoughtful growth usually beats impressive-looking growth.
