I would LOVE to someday have a private practice in my home, simply because of the short commute! I would like to know more about the pros and cons of this, especially if privacy is a problem, and what kind of house do you have. do you keep the office on the first floor and live on the second? Do you worry because clients"know where you live?"
as for isolation, I can understand how that could be a problem. do you have contact with other counselors that maybe are running a practice out of home? Any former professors or supervisors that you can maintain some contact with? There must be some sort of professional association geared towards private practitioners. As for me, I would prefer small-group practice over going it alone. For example, what kind of interim support do you have for clients if you go on vacation?
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