Therapists in private practice in the United States earn an average of $96,695 annually. The actual income can fluctuate significantly based on whether the therapist is independently practicing or part of a group.
But a lot of other factors, in addition to potential earnings, come into play when deciding between the two. There’s your work style, risk tolerance, career goals, and others.
Each option—solo or group private practice—comes with its own unique set of advantages and challenges. Let’s break it down together!
Solo Private Practice: Flying Alone With Full Control
PROS:
Complete Autonomy
The number one perk you have in mind when it comes to complete autonomy might be the flexibility of your schedule. We all love that, don’t we?
Added to that, you also have the flexibility to choose your own clients and even create a brand of practice that aligns with your personal values.
When we say “complete” autonomy, we mean it. From the choice of decor in your office to the style of therapy you offer, all of it is yours.
Personalized Client Experience
Because you’re the sole provider, developing a strong and deep connection with your clients almost comes out naturally in your practice.
This skips the potential for mixed messages that can happen in larger group settings. Plus, it can also be incredibly rewarding and beneficial for therapeutic outcomes.
Financial Independence
Having only one head in the game, you have the power to set your own rates to see clients. That’s a potential to earn more per hour since you can directly translate the value of your expertise into your income, without any portion being deducted as a salary for others.
If it’s not clear yet, yes you get to keep all the profit!
CONS:
Full Responsibility
Keeping all that profit to yourself also means shouldering all the risks, liabilities, and other responsibilities like accounting, marketing, and administrative tasks.
This often sounds overwhelming but there’s always some help around the corner like hiring an assistant or accountant to lighten the load. *winks
Isolation
Ironically, the advantage of working independently can also be a significant challenge.
Therapists operating alone may experience loneliness and are more prone to burnout, which can lead to decreased motivation.
Without colleagues to bounce ideas off of or collaborate with, you might miss out on the camaraderie and support that comes with working in a group setting.
Limited Scalability
As a solo practitioner, your earning capacity is directly linked to the number of hours you work.
While there’s often a potential for higher earnings, being in a solo practice will make it challenging for you to increase your earnings beyond a certain point.
Group Private Practice: Strength in Numbers
PROS:
Shared Responsibilities
A bunch of helping hands are available to carry out various operational responsibilities when you work with a group.
This means freeing you up from administrative burdens and allowing you more time for client care.
Furthermore, you will also have a built-in support system in the form of colleagues you can collaborate with, seek advice from, and lean on during challenging times. This is your invaluable therapy against feelings of loneliness and isolation.
Opportunity for Specialization
With diversity in the group, you can focus on your area of expertise while your colleagues cover other specialties.
Not only do you get to hone your skills, but also sharpen your edge of becoming known for a particular type of therapy. Down the line, you’re able to attract more clients who need exactly what you offer.
Established Business Foundation
Instead of starting from scratch, working with a group means you benefit from existing systems, processes, and infrastructure that are already in place.
An established business foundation can also include a solid client base, a recognizable brand, and a professional reputation that can help you hit the ground running, reducing the stress and uncertainty of building a practice on your own.
Easy Source of Referrals
Because business has been established, clients often flow like a steady stream within the practice, saving you time and effort from doing marketing and outreach on your own.
CONS:
Less Control
While the shared responsibilities are a perk, they also mean you’ll have less control over certain aspects of the practice. Decisions often require group consensus, which can sometimes slow things down or lead to compromises that don’t fully align with your vision.
Potential for Conflict
Anytime you’re working closely with others, there’s the potential for disagreements. Whether it’s about business decisions, client care, or even office dynamics, navigating these conflicts requires strong communication and collaboration skills.
Profit Sharing
While profit sharing can lead to more stability, it also means that you might take home less money than you would if you were running a solo practice, depending on the group’s financial structure.
Solo vs Group Private Practice Quick Guide
Use the checklist below to see how different aspects of running a therapy practice align with your preferences. Mark the column that resonates most with you, then tally your score at the bottom to see which practice type may be the best fit.
| Aspect | Solo | Group | ||
| Decision-Making | [] | Full control over all decisions | [] | Shared decision-making with colleagues |
| Financial Risk | [] | Higher financial risk but potential for higher earnings | [] | Lower financial risk with shared profits |
| Administrative Tasks | [] | Personally handle all administrative tasks | [] | Administrative tasks often managed by dedicated staff |
| Work Environment | [] | Independent, working alone | [] | Collaborative, working with a team |
| Flexibility | [] | Maximum flexibility to set own schedule | [] | Some flexibility within a structured environment |
| Specialization | [] | Focus on a niche area of expertise | [] | Collaborate with specialists in different areas |
| Conflict Management | [] | Less conflict, with independent decision-making | [] | Potential for conflicts, requiring strong collaboration |
| Support System | [] | Minimal, self-reliant | [] | Built-in support from colleagues and shared resources |
| Client Base | [] | Build and manage your own client base | [] | Established client base with easier referrals |
| Long-Term Goal | [] | Build a practice that fully reflects personal vision | [] | Grow within a supportive group with shared reputation |
| TOTAL | ||||
Final Thoughts
Whether your total score was higher for solo practice or group practice, our team is here to help you navigate the financial complexities of running a practice.
If you need help with anything accounting – bookkeeping, taxation, or financial health check– you’ve come to the right place.
Let’s chat and see how we can help you!
