Private Practice vs. Group Practice In 2025 → Which is Right for You?
Key Takeaways:
Group practices and solo private practices are distinct business structures that therapists can leverage to craft a profitable practice that they love.
It’s important to carefully consider the pros and cons of a solo vs. group practice to make an informed decision about your business.
Working with a business coach for therapists can provide the expert guidance and personalized support you need to build the practice of your dreams–whether it’s a group or solo private practice.
Are you a solo practice owner looking for a way to make more money, diversify your work, see fewer clients, and mentor newer therapists? Chances are you've had your fair share of challenges--burnout, low income, and trouble maintaining your own work-life balance--and you are ready for something different.
Many mental health professionals see opening their own group practice as the ticket to more freedom, more money, and more variety. And they aren't wrong! However, there are several factors to consider in order to make the transition from your own solo practice to group practice worth it.
I'll tell you what I tell my clients-- If you aren't making money by hiring another therapist, then you haven't set up a functional business. You're just doing that therapist a favor. And don't get me wrong, if you've got more than enough money and time to spare, go for it!
But most group practice owners aren't taking on the additional responsibility and costs of starting a group practice thinking they'd be seeing more clients than their employee while paying them double what they pay themselves. (And yes, this is a real example from a group practice owner before she came to work with me.)
In this blog post, we’ll explore the key differences between solo private practice and group practice ownership. And most importantly, I'll help you evaluate if you're in the right place to reap the benefits of opening your own group therapy practice.
Understanding the Differences Between a Solo Private Practice and a Group Practice
Before diving into the pros and cons of each practice model, let’s clarify the terms.
Solo private practice is where a single therapist runs their own business. While they may contract other professionals such as a private practice business coach, marketing professionals, accountants, or billing assistants, they do not employ or contract other therapists to provide therapy sessions.
Group practice, on the other hand, involves multiple therapists working together under one business entity. Though therapists can co-own a group therapy practice, typically there is a sole owner who employs or contracts other therapists.
Here’s how these two practice models compare across several key areas:
| Business Area | Solo Practice | Group Practice |
|---|---|---|
| Financial responsibilities | Responsible for all overhead expenses like rent, utilities, and administrative costs | Business costs are distributed across therapists, owner earns a portion of all session fees |
| Administrative tasks | Tend to have a lower administrative burden | Tend to have a greater administrative burden due to greater number of clients and complexity of business model |
| Client base | Smaller, more focused client base | Potential for more diverse client base, may need to spend more money on your EHR system and possibly hire dedicated staff to handle client onboarding and billing |
| Marketing & advertising | Fewer marketing costs | Greater need for marketing, though higher revenue and can invest more in marketing |
| Income potential | Income is only generated through your own work with clients | Income potential is much higher, essentially unlimited |
| Support system | May be lonely at times without intentional networking and mentorship | Good opportunity for built-in collaboration, often helpful to have a business coach |
| Work-life balance | Focus is solely on direct client work, though there is plenty of free time in a high-fee practice | May require more work up front but can allow you to step back from client work over time |
Pros and Cons of Solo Private Practice
Having your own solo private practice may be the right fit for where you're at in your journey. Here's a look at some of the main pros and cons that come with being in business for yourself and by yourself.
Pros of Solo Private Practice:
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A solo practice style is a very simple business structure. You can realistically earn 6 figures working 4 days per week seeing clients.
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Due to the simplicity of your business model, your overhead costs are lower than they will be with a group practice.
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You can build deep, long-term relationships with your own clients, without competing priorities.
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As a solo practitioner, you retain all profits, potentially leading to significantly more income since there’s no need to split session fees or share earnings with colleagues.
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You have the freedom to focus on your ideal clients and preferred therapeutic modalities, making your own private practice highly specialized and niche-focused.
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Running your own practice has likely led to substantial professional development, sharpening both your clinical and business savvy.
Cons of Solo Private Practice:
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Growing your solo practice beyond a certain point can be challenging without additional help, particularly when managing overhead expenses like office space and administrative costs.
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Many solo practitioners report feeling isolated without the daily support of colleagues or co-workers.
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Your earnings are directly tied to how many therapy sessions you can offer, which places a natural limit on your income.
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Seeing a caseload of 10 to 20 therapy clients every week can not only lead to burn out, it can be downright boring.
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Working alone means you may miss out on the potential benefits of collaboration and diverse viewpoints that come from working in a group setting with other clinicians.
Pros and Cons of Scaling to a Group Practice
Moving from being a solo practitioner to a group practice owner requires you to adjust your role and career goals. Here's what you should consider in the private practice vs group practice debate.
Pros of Scaling to a Group Practice:
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With multiple therapists working under you, your therapy practice can serve more clients, leading to significantly more income and higher overall revenue.
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Expanding into a group private practice allows you to offer a wider range of services by bringing in therapists with different specialties, giving potential clients more options.
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Shared resources like office space, administrative tasks, and marketing efforts can increase the efficiency of your overhead expenses, making the practice more cost-efficient.
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As a group practice owner, you may find it easier to achieve a better work-life balance by delegating more tasks and reducing the number of therapy sessions you personally need to take on.
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Once systems for managing multiple therapists are in place, further expansion becomes easier. Scaling a successful group practice can open new doors, potentially allowing your business to grow beyond a single location or service.
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A well-established group practice can become a long-term asset, continuing to generate income even if you decide to reduce your involvement in direct clinical work.
Cons of Scaling to a Group Practice:
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As a group practice owner, you’ll need to oversee clinicians working in your practice, manage hiring, training, and deal with human resources issues.
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Managing a group practice requires more sophisticated systems for scheduling, billing, and ensuring quality control across your team of clinicians.
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With increased staff comes higher overhead expenses like payroll, office supplies, and rent, raising your financial situation’s stakes.
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Managing a team means dealing with potential personality clashes or disagreements among staff. Navigating these challenges is part of leading a group practice.
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As a group practice owner, your role will shift toward management, reducing the time you spend in direct therapy sessions. Many therapists welcome this change!
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You'll bear responsibility for ensuring that all therapists in your practice adhere to professional standards and legal requirements, increasing the responsibility on your end.
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Transitioning from a solo practice to running a group practice involves acquiring new skills in management, finance, and leadership—things that many therapists may not have initially considered when they started their own practice.
Solo Practice vs. Scaling to Group Practice: Making the Right Choice for You
As a solo practitioner considering the leap to a group practice, you're facing a pivotal decision that will significantly impact your career trajectory, financial outlook, and day-to-day work life. To help you navigate this important choice, consider the following questions:
Are you ready to shift from being solely a clinician to also being a mentor and manager?
How comfortable are you with taking on increased financial risk and responsibility?
Do you have the desire and skills to lead and manage a team of therapists?
Do you want to spend less time on direct client care and more on leadership and practice management?
How important is it for you to expand your practice's services and reach?
Are you excited about the potential for greater income and business growth?
Do you have the systems and processes in place (or the willingness to develop them) to support a larger practice?
Take the time to deeply reflect on these questions before making the leap.
Overcoming Private Practice Challenges
No matter which path you choose, challenges will arise. Solo practitioners often face isolation and burnout, while group practice owners may deal with managing interpersonal dynamics. Whether you run a solo practice or a group private practice, it’s essential to seek support, set boundaries, and establish a solid business model to navigate challenges effectively.
For solo practitioners, consider joining professional networks and outsourcing administrative tasks to ease the burden. For group practice owners, regular meetings and clear communication can help manage the business smoothly.
Listen to Episode 80 of The Bad Therapist Show to hear a story of how a solo practice owner transformed her practice and doubled her income. Listen to Episode 82 to hear how this group practice owner made a key change that filled his clinician's caseload, took an international vacation with his family, and increased his practice's monthly revenue by $10k without hiring another clinician.
Final Thoughts
Choosing between group practice vs private practice is a deeply personal decision. Solo practices offer autonomy and potentially higher income, while group practices unlimited income potential, leadership opportunities and shared responsibilities. Ultimately, your choice depends on your career goals, personal preferences, and lifestyle.
As a private practice business coach, I’ve guided many therapists in navigating this choice and building their ideal practice. I've also helped group practice owners go from bleeding money and struggling to fill caseloads to increasing monthly revenue by $10,000 without adding clinicians, generating over $225,000 during our coaching period, and successfully expanding their practices while improving work-life balance.
Whether you’re looking to start a solo private practice or expand into an established group practice, my Liberated Business™ method and coaching services can provide the support you need to thrive.
Take time to reflect on what matters most to you in your career, and don’t hesitate to seek expert guidance along the way. With the right support, you can build the practice of your dreams.
