4 things to consider when starting a private practice
6 October 2025
The idea of private practice is exciting: flexibility, freedom, and the ability to work on your own terms. No more agency burnout, no more back-to-back clients without a say in your schedule. But there’s a lot that no one talks about before you leap.
We’ve worked with many therapists, social workers, and psychologists who stepped into private practice expecting one thing and quickly realised it’s a whole different ball game.
Before you jump in, let’s talk about the four biggest surprises that catch new practice owners off guard and how you can prepare for them like a pro.
1. The admin overload
It’s not just about seeing clients anymore. Suddenly, you’re also the administrator, receptionist, billing department, and marketing team, all rolled into one.
That means:
Responding to emails, managing bookings, and chasing invoices
Keeping track of progress notes, reports, and client records, and
Navigating Medicare, private health fund rebates, and third-party referrals.
If you’re not careful, admin can take over your entire week, leaving little time or energy for the therapeutic work you love.
What to do instead
Set up a practice management system from day one, whether it’s Halaxy, Zanda (previously Power Diary), Cliniko, or Splose
Automate what you can: online bookings, appointment reminders, and invoicing, and
If your admin load feels overwhelming, consider outsourcing to a virtual assistant who knows the mental health space. (Hint: This is exactly what we do at Virtual Vibrance!)
2. The Income Rollercoaster
One of the biggest adjustments? No more steady paycheck. Instead of a predictable weekly or fortnightly salary, your income now depends on client bookings, invoices getting paid on time, and building a full caseload. And in the early days, that can feel like a financial rollercoaster.
Here’s what many new practice owners don’t recognise:
Gaps in your schedule mean gaps in your income.
Clients cancel. Payments get delayed. And not every session is billable.
It can take months to establish a steady and reliable client base.
What to do instead
Plan for an adjustment period and have a financial buffer before going ‘all-in’.
Set up clear payment policies from the start, including cancellation fees.
Diversify your income streams. Instead of relying on Medicare/Better Access referrals from GPs, consider seeing clients through other referral means. Think: Open Arms, NDIS, DVA, Bupa ADF, EAP, etc. If you work with children, think about providing your details to local schools.
Also, begin to think (and plan) beyond 1:1 client sessions (things like online resources, workshops, or group programs).
3. The Referral Drought
You’ve set up your practice, launched your website, and updated your Psychology Today profile, but the phone isn’t ringing.
Here’s a truth bomb. Just because you’ve opened your doors doesn’t mean clients will magically appear. Many therapists underestimate how long it actually takes to build a solid caseload.
What to do instead
Start networking early: connect with other practitioners, GP clinics, and referral networks.
Create a strong online presence: social media, a well-optimised website, and a Google Business Profile.
Make it easy for people to find and refer to you: have a clear, professional website that answers client questions upfront. (Need help with that? Virtual Vibrance offers website and branding packages designed specifically for mental health professionals.)
4. The Work-Life Blur
One of the biggest reasons therapists move into private practice is to achieve a better work-life balance. But without structure, it can quickly feel like you’re working all the time: evenings spent catching up on admin, weekends used to finish notes. There is zero separation between “work you” and “home you.” Sound familiar?
What to do instead
Set actual work hours and stick to them.
Schedule admin time into your calendar (instead of letting it spill into personal time).
Have boundaries with email, phone calls, and direct messages. You don’t need to be online or available 24/7 – and you shouldn’t be!
Thinking of taking the leap?
Private practice can be incredibly rewarding, but only if you set things up the right way from the start. Aim to get your systems in place before you hit the overwhelm stage.
If you’re in the early stages of planning your transition, check out our free Set-Up Costs Calculator to map out exactly what you’ll need to invest before going all-in.
And if you want 1:1 support for setting up (or streamlining) your practice? Let’s chat! Virtual Vibrance is here to help.
