3 common financial challenges in private practice and what to do about them
5 August 2025
Working in private practice is professional and personally rewarding, but it comes with challenges most clinicians don’t expect. We tackle three of the biggest challenges and how to navigate them.
Setting your fees and charging what you’re worth
The challenge
Most new private practice owners struggle with pricing. They either charge too little because they’re afraid of pricing themselves out of the market, or feel guilty about asking clients to pay their full fee, or base their prices on what others charge instead of what they actually need.
The fix
Firstly, work on your money mindset. Your fears will influence the success of your business until you address them. Many people go into private practice to help people, but that’s only half of it. Being in business means learning to manage a sustainable cash flow and being remunerated well for your time, training, and contribution.
Research industry rates, but don’t just copy them. You get to determine what the most appropriate fees are for you to charge your clients.
Calculate your actual expenses (rent, supervision, software, CPD, admin support, tax, super, savings, etc.) and set your fees based on your financial needs, not just what allows you to avoid feeling the discomfort of learning and growing in business.
💡 Pro tip: Consider having tiered pricing options (e.g. full-fee, concession rates, and bulk-billing clients) to create a sustainable fee structure.
Managing cancellations without losing income
The challenge
You book out your week, excited for a full caseload… and then the cancellations start rolling in. Last-minute cancellations mean wasted time and lost income. No-shows result in frustration and uncertainty. Clients expect flexibility, but that often means boundaries become blurred.
The fix
Establish a clear cancellation policy from day one. For example, for cancellations with less than 24 hours’ notice, a full fee applies.
Communicate your policy upfront. Include it on your website, intake forms, and email/SMS reminders.
Enforce your policy consistently. If you don’t, clients will assume it’s optional. Sure, life throws curve balls from time to time and you may waive cancellation fees in certain circumstances, but the decision to waive fees should remain with you.
💡 Pro tip: Automate your appointment reminders to reduce last-minute cancellations.
Attracting clients consistently without relying on luck
The challenge
One of the biggest myths about private practice is that clients will just ‘find’ you once you’re open for business. You launch your practice… but the referrals don’t start rolling in. You list yourself on directories… but your inbox stays empty. You wait for word-of-mouth… but it takes way longer than expected.
The fix
Start building your referral network early. Connect with GPs, allied health professionals, and community groups. The world needs to know that you exist!
Create an online presence. A website and some social media posts can boost visibility and generate interest from prospective clients.
Diversify where clients find you. Don’t rely on just one referral source. Aim for a mix of directories plus networking and content marketing.
💡 Pro tip: Track where clients are coming from so you can double down on what works (Google Analytics, directory insights, referral tracking).
Private practice is rewarding, but the learning curve is real
Transitioning to private practice requires you to be a therapist…
and an admin team…
and a scheduler…
and a bookkeeper…
and a marketing department.
You can do it the hard way, or you can take the smart road and have a clear (but flexible) strategy, systems and automation, and professional guidance and support from someone who understands the successes and potential pitfalls.
You don’t have to do it alone. At Virtual Vibrance, our motto is ‘Work for yourself, not by yourself’. Book a free Virtual Needs Assessment today to find out how we can help you set yourself and your business up for success from the outset.
