6 Tips Every Therapist Should Know Before Launching Their Practice (If They Want It to Be Profitable from Day One)
Launching a private practice is one of the most exciting and overwhelming steps you can take as a therapist. Whether you're pre-licensed or fully licensed, most of us enter this phase without ever being taught the business side of therapy. And the biggest fear I hear over and over? Money.
Can I make enough to support myself? How will I find clients? What about time off, taxes, or retirement?
In this post, I sat down with five expert therapists and business coaches who shared their best insights on not just launching a private practice, but building one that is profitable and sustainable from day one. I'm also sharing my own tip that forms the foundation of everything I teach.
This is Part 2 of my three-part series on growing a profitable business in 2026. Part 1 covered building a business that supports travel and freedom. Part 3 will cover how to see fewer clients and still grow financially.
Tip #1: Learn to Understand Your Numbers
Jennie Schottmiller, CPA, LMFT, Founder of Simple Profit
Jennie brings a rare combination to the table: she's both a CPA and a licensed marriage and family therapist. An accountant turned therapist turned therapist-accountant, she built Simple Profit specifically to support therapists, coaches and small business owners understand accounting in a way that empowers them to run their business without needing a business degree.
"To be a business owner, you need to develop a few skills around managing your money, understanding your numbers, and your taxes."
Jennie is quick to reassure therapists that understanding your finances isn't as hard as it sounds. In fact, she jokes that it's easier to figure out your numbers than to navigate family dynamics at Thanksgiving.
Her main message: don't completely hand this off.
"Don't offload this completely and say, my accountant takes care of that. It's your business and your life. You can get support, but you also need to understand what's happening."
Jennie encourages therapists to build a system that works with how their brain operates. The goal isn't perfection. It's consistency and a willingness to learn.
Simple Profit offers an affordable membership with tutorials on bookkeeping, estimating taxes, owner pay, hiring, and more, along with unlimited questions answered by a CPA and live office hours.
Learn more about Jennie: Website | Simple Profit for Mental Health Clinicians Facebook Group
Tip #2: Know What You Need to Thrive
DJ Burr, LMHC, LPC, Private Practice Consultant and Author of the #1 Bestseller in Practice Management
DJ has helped thousands of therapists build thriving private pay practices. He's the founder of Private Pay Practitioners, a community of over 17,000 mental health professionals, and the author of The Private Pay Practitioners Playbook. I had the privilege of being on his podcast recently, and our values around money in private practice aligned immediately.
His tips go beyond strategy. They start with the inner work.
"Do your own work and prepare to continue doing that work throughout your private practice journey."
"Know what you need to thrive, not just survive."
That means getting honest about the cost of being you. Know your numbers, be mindful of your expenses, understand what you're offering, and factor in what you need for self-care. DJ also emphasizes building real referral relationships, not just transactional ones.
Let referral partners get to know you as a person, not just your niche. The more they know you, the more confidently they can send the right clients your way.
Learn more about DJ: Website | The Private Pay Practitioners Playbook: Systems, Scripts & Strategies for Financial Freedom in Private Pay Practice | Private Pay Practitioners Community
Tip #3: Build a Simple System for Your Numbers
Sara Walls, LCSW, Therapist and Bookkeeper, Founder of Little Frog Financial
Sara is a licensed clinical social worker who also happens to love bookkeeping. After launching her own private practice in 2021 and discovering that doing the books was one of her favorite tasks, she got certified as a QuickBooks ProAdvisor and built Little Frog Financial to support other therapists with the financial side of running a practice.
Her core message is simple: stop treating your numbers like an annual tax project.
"So many therapists treat money like a once-a-year project. But building an ongoing relationship with your numbers can give you clarity and reduce shame."
She recommends:
A system that works with your brain, whether that's a spreadsheet, an app, or a visual tool
Weekly or monthly check-ins so nothing sneaks up on you
Streamlining expenses so you know exactly what's going out
Getting support when you need it rather than trying to figure it out alone
Sara's own success in private practice came after her second attempt, when she finally implemented a simple financial system. It didn't need to be complicated. It just needed to exist.
Learn more about Sara: Website
Tip #4: Do the Math
Audrey Schoen, LMFT, Private Practice Coach and Founder of Balanced Private Practice
Audrey launched her private practice when her twins were nine months old because the math on staying at her agency simply didn't work. Commuting, childcare costs, and pumping were consuming more than she was bringing home. So she built her practice around her life instead of the other way around.
That experience shaped everything she now teaches.
"When it comes to your rate, how many clients you see, or how many weeks you work, there's a hard number tied to viability. You can't feel your way through it. You have to do the math."
That means knowing:
What you need to charge
What your life actually costs
What your business needs to generate to fully support both
Audrey also recommends treating your home finances like a business. Track everything. Know what's going out. The clarity that comes from this is often the turning point between scraping by and building real financial margin.
Learn more about Audrey: Website| Balanced Private Practice Facebook Group
Tip #5: Set Your Rate for You, Not the Market
Dr. Brittany Bate, Pd.D, Licensed Psychologist, Private Pay Group Practice Owner, and Private Practice Strategy Coach
Brittany launched Be BOLD Psychology and Consulting in November 2020. By August 2022 she had seven clinicians. By 2023, ten clinicians, two administrative staff, and a social media manager. She now also runs BOLD Practice Builders, where she coaches other therapist entrepreneurs on building practices that support the lives they want.
Her tip for new practice owners is one of the most common mistakes she sees.
"You have to have an idea of what number you want to make before taxes to be able to set your rates."
Too many therapists set their rates based on what everyone else in their area is charging rather than what they actually need. Brittany is clear: start with your own numbers. Factor in time off, how many days you want to work, how many clients you want to carry, and what it actually costs to take care of yourself.
She also flags one of the most common traps new practice owners fall into: taking on too many sliding scale clients too soon.
"You end up getting stuck. If you've let six or seven spots get filled at a rate significantly lower than what you set based on your own needs, you're not going to be able to meet those needs."
At Be BOLD, every clinician keeps about 15% of their caseload as sliding scale, structured in tiers. Sliding scale is a gift offered intentionally, not a default when you're afraid no one else will come. And it should be reevaluated every three to six months.
Brittany's final piece of advice: get clear on your messaging before you try to fill your caseload. Know what you want to be known for. Pick three things. Make sure every referral partner can describe who you help and why you're the right person for that client.
Learn more about Brittany: Be Bold Psychology & Consulting | Bold Practice Builders
Tip #6: Start With a Financial Foundation
Maren Londahl-Smidt, LCSW | Private Practice Therapist | Cash flow Strategist for Therapists | Profit for Keeps® Certified Coach
Every tip in this post comes back to the same thing: your numbers.
Before you set your rate, before you take on sliding scale clients, before you build your referral network, you need to know what your practice actually has to generate to support your life. Not a generic target. Your actual life.
That means asking:
What does it cost to be me?
How much do I need to set aside for taxes?
What does my business need to bring in to fully support me and my family?
What needs to shift to make that number realistic?
This is the foundation of the Profit for Keeps® framework. We reverse-engineer your revenue goals so your financial plan reflects your actual life, not the other way around. Sometimes that means adjusting your caseload. Sometimes it means raising your rates. Sometimes it means realizing you're closer than you thought.
But you can't make any of those decisions without first knowing your number.
Learn more about Maren:Website | Instagram | ADHD Practice & Profit Cohort: A Profit for Keeps® Experience
Closing Thoughts
If you're considering launching a private practice, I hope this post shows you it is possible to start with clarity, intention, and profit from day one. It doesn't have to be a guessing game.
And if you're already in practice but still struggling with the financial side, these same principles apply. It's not too late to build the foundation.
Time to Implement
Start by getting clear on your number. The free Profitable Therapist Calculator will show you exactly what your practice needs to bring in to support the life you want to build.
P.S. My free 5-day Predictable Pay Challenge with Amber Dugger is coming July 27 through 31. Keep an eye out, details soon.
This is Part 2 of a three-part series on therapist profitability in 2026. Part 1 covered how to build a business that supports travel and freedom. Part 3 covers how to see fewer clients and still grow financially.
Here's to profit, purpose, and a practice built to last.
This is financial education, not financial advice.
