The 5 Biggest Mistakes Therapists Make When Starting Their Private Practice

Most of us became therapists because we wanted to help others, not because we were passionate about business.  And, topics like business management, finances, and marketing are rarely covered in our education and training. So, when it comes time to start a private practice, it can feel overwhelming—like stepping into the unknown without a roadmap.  Doubts can easily creep in like, “can I really run my own business?” “how do I make sure I’m successful?” “what if I’m not good at the business side of things?” “what if I do it all wrong?”

I know how terrifying it can feel—I’ve been there! Taking the leap into private practice was one of the scariest (but most rewarding) decisions I’ve ever made. Now, I’m passionate about helping other therapists make that transition with confidence. If you’re thinking about starting your own practice, here are some common pitfalls to watch out for:

1.       Waiting Until Everything is Perfect

One of the most common mistakes new therapists make is waiting until everything is 'perfect' before launching their private practice. Whether it's a flawless website, polished branding, or a perfect set of systems, the pressure to have it all figured out can be overwhelming. The truth is, you’ll learn and grow as you go. Starting where you are, even if it’s not perfect, is the best way to gain momentum. The most successful practices evolve over time, and you can refine your systems and marketing along the way as you gain experience. Don’t let perfectionism hold you back—take that first step, and let progress be your guide.

Remember, you can’t learn and grow if you’re not actively doing the thing. Allow yourself to make mistakes and view them as opportunities for growth. Every mistake is a lesson that will help you improve, whether it’s refining your processes or figuring out what works best for you and your clients. The key is to embrace the journey, knowing that it’s through action—and yes, even failure—that you build the foundation for long-term success.

2.       Taking Anyone and Everyone

When starting out, it’s tempting to take on anyone and everyone just to fill your caseload and stay financially afloat. And honestly, I get it—there’s nothing wrong with needing to pay the bills. In fact, seeing a variety of clients can help you gain experience and figure out what you enjoy. But long-term? This approach is a fast track to burnout—the very thing you’re likely trying to escape by going into private practice.

Plus, taking on every client who comes your way can lead to situations that a solo provider may not be fully equipped to handle, especially when working with high-risk cases or populations outside your scope of expertise. Without the built-in support of an agency setting, this can quickly become overwhelming.

Finding your niche isn’t about turning people away; it’s about aligning your work with your strengths and passion. When you specialize, you build confidence in your skills, develop deeper expertise, and deliver better outcomes for your clients. Over time, this positions you as the go-to therapist in your field, making marketing easier and increasing word-of-mouth referrals. The sooner you define your niche, the sooner you’ll create a practice that feels both fulfilling and sustainable.

3.       Undercharging and Overworking

One of the biggest mistakes new therapists make is undercharging for their services, often out of fear that higher rates will drive clients away. But setting your fees too low doesn’t just undervalue your expertise—it also sets you up for exhaustion. When you’re overworked and underpaid, burnout happens fast, and the quality of care you provide can suffer. You don’t have to buy into the expectation that you must be a martyr to help others. You can passionately work to support your clients while still maintaining financial stability and personal well-being. Instead of basing your rates on fear, set them based on the value you bring, your level of experience, and the financial sustainability of your practice. Clients who truly value your work will invest in it, and by charging appropriately, you ensure that you can continue to do the work you love without feeling depleted.

4.       Not Establishing Boundaries in the Beginning

One of the most important lessons in private practice is learning to set boundaries early on. Without clear boundaries, your practice can quickly become all-consuming, leaving you overwhelmed and burned out. Establishing work hours, enforcing cancellation policies, and protecting your personal time from client demands is essential for long-term sustainability. At first, it might feel uncomfortable to say no or stick to your policies, but trust me, your future self will thank you. Setting boundaries isn’t just about protecting your time—it’s about ensuring you can show up fully for your clients without compromising your own well-being. And the best part? Setting and maintaining boundaries gets easier as you go. The more consistently you enforce them, the more natural it becomes, helping you show up confidently and consistently as your business grows.

However, relaxing your boundaries even once can set off a snowball effect. If you allow clients to push limits once, it becomes easier to do it again, and soon, you’re in a situation where you’re overextending yourself, not making enough money, and burning out. Being consistent with your boundaries from the start helps you avoid this slippery slope and ensures your practice remains both sustainable and rewarding.

5.       Letting the Daily Tasks Slip When you are Trying to Keep Up with it All

Especially in the beginning, it is hard to keep up with everything you need to be on top of as a business owner. With so many tasks to manage—client care, billing, marketing, compliance—it’s easy to feel overwhelmed and unsure of what to prioritize. It can be hard to know where to start, and without the right systems in place, it’s easy to get lost in the chaos. Don’t let things like client notes, taxes, and finances slip by—these are crucial to keeping your practice running smoothly and legally compliant. Set up a system that ensures you’re regularly completing chart audits, maintaining HIPAA compliance, and staying on top of all necessary documentation. Establishing systems early on not only helps you stay organized but also frees up your mental space so you can focus on what you do best—helping your clients. Remember, the more organized and consistent you are behind the scenes, the more efficient and sustainable your practice will be in the long run.  We know this is a very challenging aspect of running your own business, so we have your back!

The great news is that these mistakes are completely avoidable with the right support. That’s where Practice Pursuit for Therapists comes in. We’re here to help new therapists navigate the complexities of private practice with confidence and ease. To make the journey smoother, we’ve developed streamlined checklists, Excel trackers, templates, and a variety of other affordable tools designed to simplify the process and help you take that leap into private practice with clarity and purpose. 

What’s one mistake you made (or almost made) when starting out? Let’s help each other out in the comments! 👇