how to make a business plan for physiotherapy

Physical Therapy Business Plan Template

Written by Dave Lavinsky

Physical Therapy Private Practice Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their physical therapy businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a physical therapy private practice business plan template step-by-step so you can create your plan today.

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What is a Physical Therapy Business Plan?

A business plan provides a snapshot of your physical therapy private practice as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Physical Therapy Practice

If you’re looking to start a physical therapy practice, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your physical therapy business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Physical Therapy Businesses

With regards to funding, the main sources of funding for a physical therapy business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for physical therapy businesses.

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How to write a business plan for a physical therapy private practice.

If you want to start a physical therapy business or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of physical therapy private practice you are operating and the status. For example, are you a startup, do you have a physical therapy business that you would like to grow, or are you operating a chain of physical therapy businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the physical therapy industry. Discuss the type of physical therapy business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of physical therapy business you are operating.

For example, you might operate one of the following types of physical therapy businesses:

• Sports Physical Therapy : this type of private practice focuses on providing therapy for sports-related injuries and performance issues.
• Pediatric Physical Therapy: this type of practice focuses on physical therapy for children.
• Geriatric Physical Therapy: this type of physical therapy practice focuses on helping elderly people with issues related to aging.

In addition to explaining the type of physical therapy business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served or number of positive reviews, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the physical therapy industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the physical therapy industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the physical therapy industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your physical therapy private practice? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: hospitals and rehabilitation centers, the elderly, parents of young children and athletes.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of physical therapy practice you operate. Clearly, elderly customers would respond to different marketing promotions than athletes, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most physical therapy businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other physical therapy businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes hospitals, orthopedic doctors and chiropractors. You need to mention such competition as well.

With regards to direct competition, you want to describe the other physical therapy businesses with which you compete. Most likely, your direct competitors will be practices located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of physical therapy do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better physical therapy services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a physical therapist, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of physical therapy company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to physical therapy, will you provide personal training or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your physical therapy company. Document your location and mention how the location will impact your success. For example, is your physical therapy business located in a busy retail district or shopping plaza, near a large medical center, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your physical therapy marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your physical therapy business, including scheduling new patients, treating patients, writing reports and billing.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to schedule your 100th customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your physical therapy business to a new location or city.  

Management Team

To demonstrate your physical therapy business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing physical therapy businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing physical therapy clinics or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you gain ten new clients per week or per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your physical therapy business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a physical therapy business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a schedule of your daily operations.  

Putting together a business plan for your physical therapy business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the physical therapy industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful physical therapy business.  

Physical Therapy Practice Business Plan FAQs

What is the easiest way to complete my physical therapy business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your business plan.

Where Can I Download a Physical Therapy Business Plan PDF?

You can download our physical therapy business plan PDF here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of physical therapy practice you are operating and the status; for example, are you a startup, do you have a physical therapy practice that you would like to grow, or are you operating a chain of physical therapy private practices?

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Other Helpful Business Plan Articles & Templates

The 9 Essentials For A Cash-Based Physical Therapy Business Plan

As a lot of cash-based physical therapists go through the Mentorship Program … they see their clinics grow… And so, something I always get asked is…

‘How do I create the perfect business plan?’

In this article, I’ll lay out the advice I give them…

Keep reading to find out just how simple it can be to create the perfect business plan.

What Is A Physical Therapy Business Plan?

Running your own physical therapy private practice isn’t easy… But your business plan should make it a lot easier.

Your business plan is your map to success…. It is an executive summary of what you’re going to do and how you’re going to do it.

If you’re in cash-based physical therapy and don’t have the luxury of insurance contracts to fall back on it’s going to be the key to growing your clinic and attracting patients.

Why Do I Need A Business Plan For A Cash-Based Physical Therapy Clinic?

You wouldn’t have a patient sign up for ten sessions without giving them a treatment plan ? So why would you run your physical therapy clinic without a business plan?

Just like your treatment plan is a roadmap to a pain-free life… your business plan is a roadmap to a successful clinic…

It will outline the steps you need to take to get where you want to be…

But you shouldn’t be fooled into thinking a business plan is just for start ups…

No matter where you are in your career… whether you’re already running a physical therapy practice or you’re just beginning, the perfect business plan will help take your private practice to the top.

The Critical Components To Include In Your Physical Therapy Business Plan

1) do your research….

Before you sit down to write your business plan… Do your research.

It is important to know your target market, clients, and competition inside out…

What is the state of the market? How do you fit in?

Speak to friends, patients, people in the community , and other practices.

Taking these steps will make sure you have the information you need to start writing.

2) Mission Statement

Your mission statement is a picture of your end goal… but you should also make this act as an executive summary.

Yes… set out your goals… but try to spell out exactly how you’re going to achieve those goals…

How will you get your practice to the top? This should be an overview but also is an opportunity to go into the finer details.

For example…

What is the vision? Describe your goals. What are you offering? Use this section to lay out how you fit into the wider market.

If you’re looking for funding or to bring investors on board, this information should be your elevator pitch….

If you can show them in detail just how great your physical therapy business will be then it will set you apart from others.

Tip – If you’re finding this hard look at some case studies. Case studies of your competitors or physical therapists you admire will help you visualise the future.

3) Practice Description

This section is the ideal place to get you and your story across. Even if you aren’t presenting this to people it can cement your vision in your mind…

What do you need? Well, start with…

Your business name. How does your practice look now and how will it look? What are you providing and how is it different from other practices? What problems do you solve for potential patients?

4) Marketing Strategy

A marketing strategy or marketing plan is essential…

If you’re like me, you didn’t spend years at university studying for a marketing degree…

But this shouldn’t be hard… you’re selling your business to new clients.

Here are a few basic questions to ask yourself… They will help you discover how you can market your business…

Why you? Why not your competition? Do you have a niche? What is your unique selling point? Know your referral sources.

Tip – If you’re struggling with this… make a detailed list of why you and your therapy practice are the best choice for a potential patient. How can you help them in a way that no one else can?

5) Finances

This should be an executive summary of all financial parts of your business…

It goes without saying that this area of your business plan is incredibly important…

It will give you clarity on your financing… but also allows you to share that information with others…

Baby boomers will remember how easy it used to be to get investors on board… Not anymore… You need a watertight financial section to secure funding…

For a small business approaching lenders, this section could make or break their decision on whether they take the steps to help your clinic grow.

Here’s what you’ll need to cover…

Expenses – Everything from purchasing equipment to wages and site rental should be covered here. Forecast – This will be an estimate of your future financial outcomes monthly and annually. Include pricing information. Cash Flow – Explain how much money is coming in and out of your clinic. Funding – How are you financing the project? Are there investors? If you’re approaching lenders then you need to have a strong business and financial plan. Projection – Gather all of the information above and project your profits and losses. Factor in investor reimbursement rate.

Tip – Statistics are your friend here. Take the current numbers from your practice and use statistics to make effective estimations.

6) Management And Operations

You have to decide how your physical therapy practice will run.

Remember you’re in the rehabilitation market, most practice owners forget that. You offer rehab solutions to get people fit and healthy… How will this work on a day-to-day basis?

Systems you will put in place to make everything happen. Who is doing what in your clinic? Will you hire a physical therapist, massage therapists, or a PT to help? If you are, what credentialing process will you use to hire?

Go into real detail here… Even to the point of, will you have your own custom email address?

The more you plan the fewer surprises there will be.

This section can get overwhelming… But don’t panic… There is help out there…

7) Use Small Business Administration Help

There are plenty of obstacles when running your own physical therapy practice…

One big hurdle I see people fall at is administration.

Your business grows and your clinic is busy… But not everyone has the luxury of an office manager…

Whether it’s answering an email or getting patients in the diary, there are plenty of systems for any start up or small business to use…

For example, Asana can help you with productivity and team management.

Don’t be afraid to use the technology available.

8) Use Your Plan

It may sound stupid… and I’m going to state the obvious but… use your business plan .

There is no use spending time writing an excellent business plan for it to sit in a draw and collect dust.

It will be a positive addition to the way your therapy clinic works.

The information in the plan will be your map to success, so use it…

Memorise it… Base your daily routine around it… And consult it to make sure you’re hitting targets…

It can become an issue in physical therapy practices when someone doesn’t understand their role… Make sure your employees and partners know your business plan…

If they know their goals and roles then you can create an effective working environment and a real community.

9) Update Your Plan

Running a business is fluid but your objectives should be concrete…

Stick to your objectives but as your practice grows, update your plan to fit…

Things will come up… so tweaking your plan along the way is worth your time and effort.

Final Thoughts

Whether you’re a start up or one of the bigger physical therapy practices, writing your business plan can get overwhelming…

Spending hours at the computer away from your clinic and your patients will get old… You’re in the rehab market, right? You should be treating patients? Well just remember…

Your business plan is a tool to get you where you want to be…

Once you have mastered your business plan, you can go on to master your private practice…

Here Is My Own Physical therapy Business Plan Strategy…

If you’re looking for help on creating your own physical therapy practice business plan…

Download mine below and start writing.

If you want more help turning your practice into the Go-To clinic , click the button below, and we will give you the exact plan we use to build a profitable and sustainable clinic.

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Hurry secure your place on the free challenge before this page is taken down forever, hurry this free training is strictly limited to first 500 therapists that sign up, enroll your team in the ‘go-to’ private practice clinician accelerator today, register your interest in the confident clinician membership, mastermind application.

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Physical Therapy Business Plan

Starting a physical therapy clinic is one of the most rewarding and profitable business ventures for any professional physiotherapist.

However, being an excellent physiotherapist isn’t enough to start a physical therapy clinic. You need to understand business dynamics, hone your business skills, and create a business plan.

A business plan is not just about raising funding; it also provides a framework for your daily operations and keeps you on the right track.

Need help writing a business plan for your physical therapy business? You’re at the right place. Our physical therapy business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Physical Therapy Business Plan?

Writing a physical therapy business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your physical therapy business, its location, when it was founded, the type of physical therapy business (E.g., outpatient rehabilitation center, pediatric physical therapy, geriatric physical therapy.), etc.

Market opportunity:

Product & services:.

• For example, a geriatric physical therapist treats elderly patients to help them improve mobility and prevent falls.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Industrial physical therapy
• Integrative physical therapy
• Geriatric physical therapy
• Pediatric physical therapy
• Sports physical therapy
• Describe the legal structure of your physical therapy clinic, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, a geriatric physical therapy clinic may target elderly patients 65 years and above suffering from mobility and joint pain.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, remote monitoring systems are in trend nowadays.

Regulatory environment:

Here are a few tips for writing the market analysis section of your physical therapy clinic business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products offered to patients. To write this section should include the following:

Mention your services:

Mention the physical therapy services your business will offer. This list may include services like,

• Exercise therapy
• Sports injury management
• Rehabilitation and recovery services
• Education and counseling
• Providing assistive devices (E.g., crutches, wheelchairs, etc.)

Describe each service:

• For example, if you’re describing the process of sports injury management, it may include injury assessment, diagnosis, treatment, rehabilitation, and returning to the sport.

Service packages:

Insurance & payment options:.

• In addition to these payment options, describe if your clinic offers any regular patient discounts or membership plans.

Additional services:

In short, this section of your physical therapy plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, state-of-art equipment, specialized services, and convenient clinic location could be some of the great USPs for a physical therapy clinic.

Pricing strategy:

Marketing strategies:, sales strategies:, patient retention:.

Overall, this section of your physiotherapist clinic business plan should focus on patient acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your physical therapy business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, equipment & machinery:.

• In addition, provide details on the sourcing and maintenance of these instruments and equipment. Explain how these technologies benefit your patients and help you stand out as a physical therapy service provider.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your physical therapy business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include key executives, physical therapists, and other department managers (e.g., office managers) involved in the business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your physical therapy services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.\
• Provide data derived from market research, including stats about the physical therapy industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your physical or sports therapy business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample physical therapy business plan will provide an idea for writing a successful physical therapy plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our physical therapy business plan pdf .

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Step by Step Guide for Writing Business Plan

Frequently asked questions, why do you need a physical therapy business plan.

A business plan is an essential tool for anyone looking to start or run a successful physical therapy business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your physical therapy clinic.

How to get funding for your physical therapy business?

There are several ways to get funding for your physical therapy business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your physical therapy business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your physical therapy business plan and outline your vision as you have in your mind.

What is the easiest way to write your physical therapy business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any physical therapy business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

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10 Steps to Launching and Growing a Profitable Physiotherapy Business

Related blogs.

• Unleashing the Profit Potential of Physiotherapy: A Deep Dive into the Lucrative World of Rehabilitation Medicine
• Breaking Down the Costs of Starting a Physiotherapy Business: How to Budget for Success
• 7 Essential Physiotherapy KPIs for Clinic Success

1. Research The Market

The first step in opening a successful physiotherapy business is to research the market. This will help you understand who your potential customers are and what they need.

Start by identifying the demographics of your target market. Consider factors such as age, gender, income, and location. You can use online tools such as Google Analytics to gain insights into the demographics of people searching for physiotherapy services in your area.

Next, look into your competitors. Analyze the services they offer, prices, and marketing strategies. This information will help you determine what sets you apart from the competition and how to position your business to attract customers.

Finally, consider the demand for physiotherapy services in your area. Is there a significant need for physical therapy, or is the market oversaturated? Look into government statistics on healthcare spending and the number of active physiotherapists in your area.

• Tip 1: Conduct surveys or interviews with potential customers to get feedback on what they look for in a physiotherapy business.
• Tip 2: Attend local healthcare conferences or events to network with industry professionals and stay updated on industry trends and regulations.
• Tip 3: Consider hiring a professional market research firm to gather data and insights on your target market.

Tips & Tricks:

• Conduct surveys or interviews with potential customers to get feedback on what they look for in a physiotherapy business.
• Attend local healthcare conferences or events to network with industry professionals and stay updated on industry trends and regulations.
• Consider hiring a professional market research firm to gather data and insights on your target market.

2. Develop Business Plan & Financial Model

Developing a solid business plan and financial model is a critical step when starting a physiotherapy business. This will help you understand the target market, identify potential competitors, and plan your finances for the future. Here are key chapters to include in your business plan:

• Executive Summary: This should provide an overview of your business, mission statement, and goals.
• Market Analysis: You need to research and analyze the industry trends, identify the target market, and determine the potential demand for your services.
• Service Offerings: Describe the types of services you will offer and how they will help your potential clients.
• Marketing and Sales: Detail how you will attract and retain clients, promotional strategies, and pricing.
• Operations: Describe your daily operations, staffing needs, office space, equipment, and supplies.
• Financial Plan: Outline the costs involved in launching and running your physiotherapy business, including projected revenues, profits, and cash flow.

Creating a financial model allows you to estimate the start-up and ongoing costs.

• Start-up Costs: One-time costs, such as setting up your office space, equipment, and supplies.
• Ongoing Costs: Fixed and variable monthly expenses, such as rent, utilities, employee salaries and benefits, and marketing expenses.
• Revenue Projections: Estimate your revenue based on the number of clients you expect to see and the services offered.
• Be realistic when projecting revenue, and consider various factors, such as industry trends, client demand, and competition.
• It's crucial to have a contingency plan ready in the event that unforeseen circumstances arise.
• You can save money by purchasing used equipment, seeking free advertising on social media platforms, or sharing office space with other healthcare professionals.

In summary, a solid business plan, coupled with a financial model, allows you to identify business strengths and weaknesses while helping you to understand the financial resources required to start and sustain a physiotherapy business. By carefully developing and assessing these documents, you will be well equipped to make a strategic and successful launch of your new business.

3. Secure Funding

Congratulations! You have reached Step 3 of your journey towards starting a successful physiotherapy business. Securing funding is every entrepreneur's nightmare, but fret not, for we are here to guide you through this milestone.

First and foremost, you need to have a solid plan in place. This includes a business plan , which outlines your goals, target clients, and strategies for growth. Having a clear financial plan that provides insights into cash flow, projected expenses, and revenue is crucial.

• Start-Up Costs
• Working Capital Requirements
• Contingency Reserves
• Profit and Loss Statement
• Cash Flow Analysis
• Projected Balance Sheet

The next step is to explore various funding options available to you. One option could be to apply for a small business loan . Most banks offer such loans at reasonable interest rates. However, qualifying for a loan depends largely on your creditworthiness, as banks use a range of factors to evaluate your creditworthiness.

You may also want to consider angel investors . These are individuals who invest in early-stage businesses in exchange for ownership equity or convertible debt. Angel investors are typically high-net-worth individuals who can contribute significant amounts of capital.

Another funding option is through a crowdfunding campaign . Platforms such as Kickstarter, Indiegogo, and GoFundMe allow you to raise funds from a large number of people in exchange for rewards or equity in your business.

Tips & Tricks

• Explore various funding options available to you.
• Start by approaching friends and family to invest in your business.
• Consider joining an accelerator program or incubator for a chance to access funds and resources.

It is important to assess all options before making a decision. Consider seeking expert advice from a business consultant or attorney who can help you navigate through the complexities involved in funding a start-up. Remember, securing funding can be a slow and challenging process, but do not lose hope. With the right approach, you can start your physiotherapy business and build it into a success story!

4. Select Location

The location you choose for your physiotherapy business can have a big impact on your success. It's important to choose a location that's convenient for your potential clients and visible within the community. Here are some things to consider as you search for the perfect location:

• Demographics: Research the demographics of the area you're considering. Are the residents primarily older adults or families with young children? This can impact the types of services you offer and your marketing strategy.
• Competition: Look at the other physiotherapy businesses in the area. Are they direct competitors or do they offer different services? If you're going to open a business in a competitive area, make sure you can differentiate yourself from the rest.
• Accessibility: Make sure your location is easily accessible, especially if you plan to work with clients who may have mobility issues. Having accessible parking and elevators can make a big difference for your clients.
• Visibility: Consider a location that's visible to potential clients. Being near a busy street or intersection can help attract clients. Additionally, having a sign or logo that's easily visible can also help you stand out from other businesses in the area.
• Rent: Finally, consider the cost of rent when choosing a location. You want to choose a location that's affordable, but still meets your needs.
• Consider partnering with other healthcare professionals to open a group practice. This can help reduce costs and increase visibility.
• Don't rush the location selection process - take the time to find the right space for your business.
• Consider conducting a client survey to gather feedback on where they'd like to see your business located.

5. Purchase Equipment & Supplies

One of the most crucial steps in starting a physiotherapy business is purchasing the required equipment and supplies. This is where the bulk of your startup costs will go, so it's important to budget accordingly. Here are the key items you'll need to purchase:

• Treatment tables: This is where your patients will receive treatment, so it's essential to invest in good quality tables that are comfortable and durable. Choose tables with adjustable heights and backrests.
• Therapy tools and equipment: Depending on your specialty and treatment methods, you may need to purchase items such as resistance bands, weights, hot/cold therapy packs, ultrasound machines, and electrical stimulation devices.
• Furniture: You'll need chairs and desks for administrative tasks and storage cabinets to keep your supplies organized.
• Office equipment: Computers, printers, phones, and other necessary equipment should be purchased for administrative and billing purposes.
• Consumables: Stock up on items like linens, gowns, gloves, and other disposable items that will be used in patient treatment.

When purchasing equipment and supplies, it's important to do your research and choose high-quality items that will last. Don't skimp on the essential items that will be used daily in your practice.

• Consider purchasing used equipment to save on costs, but be sure to thoroughly inspect items before buying.
• Look for package deals that may include multiple pieces of equipment at a discounted price.
• Keep an inventory of supplies to ensure you always have what you need on-hand.

6. Obtain Necessary Permits & Licenses

Before starting a physiotherapy business, you need to ensure that you have the necessary permits and licenses required by the government. Operating without these permits can lead to legal issues and financial penalties.

• Research the permits and licenses required in your area as they vary from state to state and country to country.
• Consult with a lawyer or an accountant who can provide you with accurate information on legal requirements.
• Obtain a business license and a tax ID number from your local government agency to operate your business legally.
• Check with your local health department to determine if any specific licenses are needed to operate as a healthcare provider.
• Make sure that you have all the necessary licenses and permits before you start your business.
• Ensure that you renew your licenses and permits on time to avoid any legal issues.
• If you are unsure about any permits or licenses, consider hiring a professional to help you with the process.

Once you have obtained all the necessary permits and licenses, you can start developing your business plan.

7. Recruit Staff & Train Employees

Recruiting and training staff is essential for any business that wants to achieve success. In this chapter, we will discuss the steps you can take to recruit the right staff and train them to be efficient, effective, and reliable.

• Create Job Descriptions: Start by creating job descriptions for the different positions you need to fill. Write down the required qualifications, skills, and experiences necessary for each job.
• Post Job Advertisements: Post job advertisements on your website, social media pages, and job boards. Reach out to local universities, colleges, and schools to recruit fresh graduates.
• Conduct Interviews: After you receive applications, conduct interviews with the shortlisted candidates. Ask about their qualifications, work experience, and skills.
• Carry out Background Checks: Before hiring, carry out background checks on the candidates to ensure that they have no criminal records.
• Provide Training: Once you have hired the right employees, provide them with orientation and training to acquaint them with their job responsibilities, company values, and work processes.
• Encourage Ongoing Learning: Encourage your employees to take additional training courses to improve their skills and knowledge. This will benefit the business in the long run.
• Tip 1: Look for candidates who share your company values and culture.
• Tip 2: Make sure that you have a comprehensive training program that covers all aspects of the business.
• Tip 3: Provide your employees with regular feedback on their performance. This will help them identify areas for improvement and become more productive.

Recruiting the right staff and training them well is crucial for the success of your physiotherapy business. Taking the time and effort to find the right employees will pay off in the long run by ensuring that your business operates smoothly and efficiently.

8. Design A Marketing Plan

Creating a strong marketing plan is key to launching a successful physiotherapy business. Your marketing plan should outline your target market, competition, unique selling points, and strategies for reaching and engaging potential clients.

• Identify your target market: Determine the demographics of your ideal client, such as age, gender, location, and income level. This will help you tailor your marketing messages and tactics to reach this audience.
• Research your competition: Analyze the physiotherapy practices in your area, researching their services, pricing, and target market. Use this information to differentiate your business and find gaps in the market.
• Define your unique selling points (USPs): Determine what makes your physiotherapy business unique and better than your competition. This could be your specialized services, location, staff qualifications or other factors that set you apart.
• Develop your brand: Create a strong brand identity, including a logo, brand messaging, and consistent visual style that can be used across all marketing channels.
• Create a marketing budget: Determine how much you can afford to spend on marketing and allocate your budget accordingly to achieve the best return on investment.
• Establish your marketing tactics: Choose the marketing tactics that are best suited to your business, budget and target market, such as SEO, content marketing, social media advertising, direct mail, events or sponsorships.
• Measure your success: Monitor and evaluate the success of your marketing campaigns, tweaking your strategies as necessary in response to the results.
• Nurture your relationships: Building strong relationships with clients and referral partners can be more effective than traditional advertising. Encourage referrals, offer loyalty programs, and provide exceptional customer service to keep your clients coming back.
• Take advantage of free marketing: There are many free marketing options available, such as listings on online directories and social media platforms. Make sure your business is listed on all relevant platforms and engage with your followers regularly to build relationships and increase exposure.
• Be patient: Marketing takes time to gain traction and results may not be immediate. It's important to be consistent, track your progress and make adjustments as you go.

By designing a strong marketing plan, you can help ensure the success of your physiotherapy business and attract the clients you need to grow and thrive.

9. Launch Business & Assess Performance

Once you have gone through the previous eight steps of preparing your physiotherapy business, it is time to launch it and assess its performance. Here are the steps to take:

• Step 1: Finalize your business plan and financial projections.
• Step 2: Obtain the necessary licenses and permits to operate your business.
• Step 3: Register your business with the relevant authorities.
• Step 4: Secure financing if needed.
• Step 5: Find a location for your business that is easily accessible and meets all your needs.
• Step 6: Hire and train staff, including receptionists, therapists, and admin personnel.
• Step 7: Install essential equipment and software.
• Step 8: Launch your business with a grand opening and marketing campaign.
• Step 9: Keep track of your financial performance, including revenue, expenses, and profit margins.
• Step 10: Assess your business performance regularly and make adjustments as needed.

Here are some tips & tricks to help you launch and assess your physiotherapy business:

• Make sure you have a solid marketing and advertising plan in place before launching your business. This will help you attract customers and generate revenue quickly.
• Stay up to date with industry trends and changes in regulations and adjust your business approach accordingly.
• Track your business performance using metrics like customer satisfaction, referral rates, and staff turnover to identify areas for improvement.

By following this checklist, you should be well on your way to successfully launching and managing your own physiotherapy business. Remember to stay focused, flexible, and responsive to changing circumstances to maximize your chances of success.

10. Adjust Strategies As Needed

Once you've launched your physiotherapy business, the work isn't finished. As with any business, you'll need to continue to evaluate your strategies and make any necessary adjustments. Here are some tips:

• Keep track of your financials closely
• Look for trends in customer feedback and adjust your services accordingly
• Stay up-to-date on industry changes and adapt your business accordingly
• Regularly review and adjust your marketing strategies to ensure they're effective

By keeping a close eye on your business, you'll be able to make informed decisions about which strategies are working and which need to be tweaked. This will help you stay competitive and ensure the long-term success of your physiotherapy business.

• Stay organized by keeping detailed records of your financials, customer feedback, and marketing strategies
• Regularly attend industry events and conferences to stay up-to-date on new trends and best practices
• Consider partnering with other healthcare professionals to expand your services and reach a wider audience

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Physical Therapy Business Plan Template

Written by Dave Lavinsky

Physical Therapy Business Plan

You’ve come to the right place to create your Physical Therapy business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Physical Therapy businesses.

Below is a template to help you create each section of your Physical Therapy business plan.

Executive Summary

Business overview.

Santa Fe Physical Therapy Center is a startup physical therapy company located in Santa Fe, New Mexico. The company is founded by Tyler Hicks, a physical therapist for over twenty years who has extensive experience as both a physical therapist and a business manager during his last years of employment. Tyler has brought a new set of therapy-related solutions to the industry and is starting his own business to fully develop and spread the word of these solutions.

Santa Fe Physical Therapy Center is a comprehensive, one-stop center for everything customers need in physical therapy. Whether related to work, injury rehabilitation, or chronic conditions, Santa Fe Physical Therapy Center will treat the holistic customer rather than a few symptoms of the condition. The motto for the Santa Fe Physical Center is, “When you need rehab, we respond with holistic care.”

Product Offering

The following are the services that Santa Fe Physical Therapy Center will provide:

• Orthopedic rehabilitation
• Sports medicine
• Neurological rehabilitation
• Geriatric rehabilitation
• Pain management
• Whole-body, holistic care throughout all rehabilitation
• Herbal and natural products
• Holistic treatments
• Nutritional supplements to aid healing

Customer Focus

Santa Fe Physical Therapy Center will target all residents within the Santa Fe region. They will target rehabilitative patients. They will also target hospitals and medical clinics. They will target doctors and physical caregivers. They will target individuals looking for holistic body treatments and products.

Management Team

Santa Fe Physical Therapy Center will be owned and operated by Tyler Hicks. He recruited the Naturopathic Doctor from his former place of employment, Bob Carlson, N.D., to join his startup company in the same capacity. He also recruited his former assistant, Sharlene Mason, to take on the role of Administrative Assistant in the new company. The new Senior Physical Therapist will be Trevor Atkin, who has a background of ten years within the physical therapy world and holds a bachelor’s degree in Physical Therapy Sciences.

Tyler Hicks holds a certification in Physical Therapy from the University of New Mexico, and has been a physical therapist for over twenty years. He has extensive experience as both a physical therapist and a business manager during his last years of employment. Tyler has brought a new set of therapy-related solutions to the industry and is starting his own business to fully develop and spread the word of these solutions.

Bob Carlson is a Naturopathic Physician who has worked with Tyler Hicks for several years. He will assume the role of Senior Physician at the startup, where he will encourage customers to consider their rehabilitation and care as that of the “whole body” rather than merely one part.

Sharlene Mason, Tyler’s former assistant, will take on the role of Administrative Assistant in the new company.

Trevor Atkin, has a background of ten years as a physical therapist and will now assume the role of Senior Physical Therapist in the Santa Fe Physical Therapy Center.

Success Factors

Santa Fe Physical Therapy Center will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Santa Fe Physical Therapy Center
• Holistic, “whole body” physical therapy solutions
• Naturopathic treatments and ND consultations
• Natural health and healing products and nutritional supplements

Financial Highlights

Santa Fe Physical Therapy Center is seeking $200,000 in debt financing to launch its Santa Fe Physical Therapy Center. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Santa Fe Physical Therapy Center.

Company Overview

Who is santa fe physical therapy center.

Santa Fe Physical Therapy Center is a newly established, full-service physical therapy company in Santa Fe, New Mexico. Santa Fe Physical Therapy Center will be the most reliable, cost-effective, and effective choice for patients, athletes, and guests in Santa Fe and the surrounding communities. Santa Fe Physical Therapy Center will provide a comprehensive menu of physical therapy services for any customer to utilize. Their full-service approach includes a comprehensive set of physical therapy treatments and naturopathic, whole-body products and supplements.

  Santa Fe Physical Therapy Center will be able to serve and treat a wide variety of physical and health-related needs. The team of professionals are highly qualified and experienced in holistic health and care. Santa Fe Physical Therapy Center removes all headaches and issues of the physical therapy choices for customers and ensures all physical therapy needs are met in addition to holistic body care and well-being.

Santa Fe Physical Therapy Center History

Santa Fe Physical Therapy Center is a startup physical therapy company located in Santa Fe, New Mexico. The company is founded by Tyler Hicks, a physical therapist for over twenty years who has extensive experience as both a physical therapist and a business manager during his last years of employment. Tyler has brought a new set of therapy-related solutions to the industry and is starting his own business to fully develop and spread the word of these solutions. Santa Fe Physical Therapy Center is a comprehensive, one-stop center for everything customers need in physical therapy. Whether related to work, injury rehabilitation, or chronic conditions, Santa Fe Physical Therapy Center will treat the holistic customer rather than a few symptoms of the condition. The motto for the Santa Fe Physical Center is, “When you need rehab, we respond with holistic care.”

Since incorporation, Santa Fe Physical Therapy Center has achieved the following milestones:

• Registered Santa Fe Physical Therapy Center, LLC to transact business in the state of New Mexico.
• Has a contract in place at one for 20,000 square feet of treatment and office space in a midtown building near the Santa Fe General Hospital.
• Reached out to numerous former clients and contacts to include recommendations and referrals.
• Began recruiting a staff of ten physical therapists and six office personnel to work at Santa Fe Physical Therapy Center.

Santa Fe Physical Therapy Center Services

The following will be the services Santa Fe Physical Therapy Center will provide:

Industry Analysis

The physical therapy industry is expected to grow during the next five years to over $71 billion. The growth will be driven by the aging population who will require treatment. The growth will be driven by the increasing awareness of our physical bodies and the care required for them. The growth will be driven by the individuals who seek physical fitness and health-related activities. The growth will be driven by the ongoing pain management for chronic illnesses. Costs will likely be reduced as administrative tasks will be placed primarily into artificial intelligence centers for communication. Costs will likely be reduced as telehealth services increase.

Customer Analysis

Demographic profile of target market.

Santa Fe Physical Therapy Center will target all residents within the Santa Fe, New Mexico region. They will target rehabilitative patients. They will target individuals with chronic pain or illnesses. They will target cognitive-memory patients. They will also target hospitals and medical clinics. They will target doctors and physical caregivers. They will target individuals looking for holistic body treatments and products.

Customer Segmentation

Santa Fe Physical Therapy Center will primarily target the following customer profiles:

• Hospital and medical clinics
• Physicians, naturopathic and osteopathic doctors
• Rehabilitative patients
• Individuals with chronic pain or illnesses
• Individuals with cognitive decline
• Individuals seeking holistic body treatments and products

Competitive Analysis

Direct and indirect competitors.

Santa Fe Physical Therapy Center will face competition from other companies with similar business profiles. A description of each competitor company is below.

Athlete’s Edge Physical Therapy

Athlete’s Edge is a specialized physical therapy company that focuses on providing exceptional care to athletes of all levels. The clinic is located in Santa Fe, New Mexico and was founded by Cameron Taylor to meet the needs of athletes who push their bodies to superior performance. The clinic is designed to help athletes recover from sports-related injuries and prepare them for future performances, all while preventing future injuries. A team of three skilled therapists offer in-clinic treatment or will travel in the mobile van, if the therapy is conducive to such.

Athlete’s Edge Physical Therapy therapists conduct thorough assessments to develop tailored treatment plans for each athlete. They focus on creating physical strength from an injury that will actually improve and enhance future performance.

Seniors In Motion Physical Therapy Clinic

Seniors In Motion (SIM) Physical Therapy Clinic offers care and rehabilitation services tailored specifically to the aging population. The team of skilled physical therapists is passionate about enhancing the quality of life for seniors and helping them maintain their independence and mobility.

SIM Physical Therapy Clinic offers specialized treatments for the unique needs of seniors and has a special “mobility assessment” that is offered to seniors to determine the extent of the need and the ways to meet those needs. The clinic focus is not only the physical aspects, but also the emotional and social well-being of their clients. Their goal is to promote active and healthy aging, enabling individuals to live their lives to the fullest.

Pain Management & Care Clinic

Pain Management & Care Clinic is owned and operated by Charlene Dalton. As a physical therapist for twenty years, she witnessed the difficulty of pain management and now has enlisted the assistance of a pain management physician to join her in starting the Pain Management & Care Clinic. Dr. Anderson Walker is known for his excellent pain management programs that emphasize wellness over pain and the whole body over one part. His prescriptions for pain are always carefully curated and appropriate for the client and act as an assistive part of regaining health, if possible.

Pain management is a difficult issue for most individuals, as it is either not enough or too much. The Pain Management & Care Clinic is focused on therapeutic ways to use physical therapy to resolve pain as much as possible before offering pharmaceutical or other forms of pain management. The company focuses on the whole body instead of merely one part of the body and works toward solutions that fit each client in their needs.

Competitive Advantage

Santa Fe Physical Therapy Center will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Santa Fe Physical Therapy Center will offer the unique value proposition to its clientele:

• Discount packages for families, those in hospice, or those with chronic pain management needs

Promotions Strategy

The promotions strategy for Santa Fe Physical Therapy Center is as follows:

Word of Mouth/Referrals

Santa Fe Physical Therapy Center has built up an extensive list of clients and contacts over the years by providing exceptional service and expertise to their clients. The former associates and contacts will follow them to their new company and help spread the word of Santa Fe Physical Therapy Center.

Professional Associations and Networking

Santa Fe Physical Therapy Center will network throughout the medical community. They will network with professional associations and care-centric groups who focus on specific issues, such as pain management and holistic healing.

Website/SEO Marketing

Santa Fe Physical Therapy Center will fully utilize their website. The website will be well organized, informative, and list all the services that Santa Fe Physical Therapy Center provides. The website will list their contact information and provide an interactive appointment schedule so clients can enter their names and make appointment times that fit their own schedules. The list of services is available for patients who wish to choose what is needed and the holistic care procedures are also listed and open for appointment times. In addition, the natural products and nutritional supplements are available to purchase via the website, all of which adds to the convenience for both the clients, patients and physical therapists.

The website will engage SEO marketing tactics so that anytime someone types in the Google or Bing search engine “physical therapist” or “pain management near me”, Santa Fe Physical Therapy Center will be listed at the top of the search results.

The pricing of Santa Fe Physical Therapy Center will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Santa Fe Physical Therapy Center. Operation Functions:

• Tyler Hicks will be the Owner and President of the company. He will oversee all staff and manage client relations. He has spent the past year recruiting the following staff:
• Bob Carlson will be the Naturopathic Physician, who will manage all holistic health-related care and referrals for clients of the clinic.
• Sharlene Mason will be the Administrative Assistant in the new company, overseeing and assisting staff and guests upon visiting the clinic.
• Trevor Atkin will assume the role of Senior Physical Therapist in the Santa Fe Physical Therapy Center.

Milestones:

Santa Fe Physical Therapy Center will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Santa Fe Physical Therapy Center
• 6/1/202X – Finalize contracts for Santa Fe Physical Therapy Center clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Santa Fe Physical Therapy Center office
• 7/1/202X – Santa Fe Physical Therapy Center opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for Santa Fe Physical Therapy Center are the fees they will charge to guests for their services and products.

The cost drivers will be the overhead costs required in order to staff Santa Fe Physical Therapy Center. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Santa Fe Physical Therapy Center is seeking $200,000 in debt financing to launch its physical therapy clinic. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Clinic Guests Per Month: 600
• Average Revenue per Month: $68,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, physical therapy business plan faqs, what is a physical therapy business plan.

A physical therapy business plan is a plan to start and/or grow your physical therapy business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Physical Therapy business plan using our Physical Therapy Business Plan Template here .

What are the Main Types of Physical Therapy Businesses? 

There are a number of different kinds of physical therapy businesses , some examples include: Sports Physical Therapy, Pediatric Physical Therapy, and Geriatric Physical Therapy.

How Do You Get Funding for Your Physical Therapy Business Plan?

Physical Therapy businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Physical Therapy Business?

Starting a physical therapy business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Physical Therapy Business Plan - The first step in starting a business is to create a detailed physical therapy business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your physical therapy business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your physical therapy business is in compliance with local laws.

3. Register Your Physical Therapy Business - Once you have chosen a legal structure, the next step is to register your physical therapy business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your physical therapy business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Physical Therapy Equipment & Supplies - In order to start your physical therapy business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your physical therapy business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Business Plan Template for Physical Therapy Clinic

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a physical therapy clinic can be an exciting venture, but it requires careful planning and preparation to ensure success in a competitive market. That's where ClickUp's Business Plan Template for Physical Therapy Clinics comes in handy!

Our comprehensive template is designed specifically for entrepreneurs like you, looking to establish a thriving clinic. With this template, you can:

• Outline clear goals and strategies to guide your clinic's growth
• Analyze the market and your competition to identify opportunities and stay ahead
• Create accurate financial projections to secure funding and manage your clinic's finances effectively

Don't let the complexities of starting a physical therapy clinic overwhelm you. Use ClickUp's Business Plan Template to streamline your planning process and set your clinic up for success. Get started today and turn your vision into reality!

Business Plan Template for Physical Therapy Clinic Benefits

Starting a physical therapy clinic can be an exciting venture, but it requires careful planning to ensure success. With ClickUp's Business Plan Template for Physical Therapy Clinic, you can:

• Clearly define your clinic's goals and objectives, helping you stay focused and on track
• Develop effective strategies to attract and retain clients, ensuring a steady stream of revenue
• Create detailed financial projections to secure funding and make informed business decisions
• Conduct a comprehensive market analysis to understand your target audience and competition
• Establish a competitive edge in the market, positioning your clinic for long-term success

Main Elements of Physical Therapy Clinic Business Plan Template

Are you planning to start your own physical therapy clinic? ClickUp's Business Plan Template for Physical Therapy Clinic has all the elements you need to create a comprehensive and effective business plan:

• Custom Statuses: Track the progress of each section of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Include important information in your business plan with custom fields like Reference, Approved, and Section, making it easy to organize and analyze your data.
• Different Views: Use the Topics View to break down your business plan into manageable sections, the Status View to track the progress of each task, and the Timeline View to visualize the timeline of your business plan. Additionally, the Business Plan View provides a comprehensive overview of your entire plan, while the Getting Started Guide offers step-by-step instructions on how to use the template effectively.

With ClickUp's Business Plan Template for Physical Therapy Clinic, you'll have all the tools you need to create a professional and successful business plan for your clinic.

How To Use Business Plan Template for Physical Therapy Clinic

Starting a physical therapy clinic can be a daunting task, but with the help of ClickUp's Business Plan Template, you can simplify the process. Follow these four steps to create a comprehensive business plan for your physical therapy clinic:

1. Define your vision and mission

Begin by clearly defining the vision and mission of your physical therapy clinic. What do you hope to achieve with your clinic? What values and principles will guide your practice? Clearly articulating your vision and mission will provide a solid foundation for your business plan.

Use the Docs feature in ClickUp to create a document where you can outline your vision and mission statements.

2. Conduct market research

To ensure the success of your physical therapy clinic, it's essential to conduct thorough market research. Identify your target market, analyze the competition, and understand the demand for physical therapy services in your area. This research will help you identify opportunities and develop strategies to differentiate your clinic from competitors.

Utilize the Goals feature in ClickUp to set specific goals for your market research, such as conducting competitor analysis or surveying potential clients.

3. Develop a marketing and branding strategy

Once you have a clear understanding of your target market and competition, it's time to develop a comprehensive marketing and branding strategy. Determine how you will reach and attract clients, establish your clinic's brand identity, and create a strong online presence.

Use the Board view in ClickUp to create tasks and organize your marketing and branding strategies, such as designing a logo, creating a website, or implementing social media campaigns.

4. Create financial projections and operational plans

Financial projections and operational plans are critical components of a business plan for a physical therapy clinic. Estimate your startup and operational costs, create a budget, and project your revenue and expenses for the first few years. Additionally, outline your clinic's operational structure, including staffing plans, equipment requirements, and workflow processes.

Utilize the Dashboards feature in ClickUp to track and analyze your financial projections and operational plans. Set up custom fields to input and calculate financial data, and create tasks to outline staffing and operational processes.

By following these four steps and utilizing ClickUp's Business Plan Template, you can create a thorough and organized business plan for your physical therapy clinic. This will not only serve as a roadmap for your clinic's success but also help you attract investors and secure funding.

Get Started with ClickUp’s Business Plan Template for Physical Therapy Clinic

Entrepreneurs looking to start a physical therapy clinic can use the Business Plan Template for Physical Therapy Clinic in ClickUp to effectively outline their clinic's goals, strategies, financial projections, and market analysis, ensuring a successful and competitive clinic in the market.

To get started:

Hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you'd like this template applied.

Invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your plan by different sections, such as Executive Summary, Market Analysis, Financial Projections, and Marketing Strategy.
• The Status View allows you to track the progress of each section, categorizing them as Complete, In Progress, Needs Revision, or To Do.
• Utilize the Timeline View to set deadlines and milestones for each section, ensuring timely completion of your business plan.
• The Business Plan View gives you an overview of the entire plan, allowing you to easily navigate and make updates.
• Create a Getting Started Guide View to outline the steps needed to execute your business plan successfully.

Additionally, customize your business plan template with the following custom fields:

• Use the Reference field to link relevant documents, resources, or external references to each section.
• The Approved field helps you track which sections have been approved by stakeholders or investors.
• Use the Section field to categorize each section of your business plan for easy reference and organization.

By utilizing these features, you can efficiently create a comprehensive and professional business plan for your physical therapy clinic.

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Physical Therapists’ Guide to Starting an Outpatient Clinic

If you want to start your own physical therapy clinic, you need a plan to find the offices, providers, and patients you'll need for long-term success.

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Starting an outpatient clinic is a big decision, and not necessarily for everyone. As a startup clinic owner—especially in a single-provider clinic—there’s more risk, stress, and responsibility and less free time than if you simply worked for someone else. You'll have to focus on providing great patient care while working to hone your business skills—something PTs are not always known for excelling at. 

But, as physical therapist and clinic owner Kaci Monroe explains in 7 Lessons Learned from Opening a PT Private Practice , opening a practice doesn’t have to be complicated as long as you’re willing to roll up your sleeves: “Everything’s out there that you can imagine. It’s much easier to start a business nowadays than even 10 years ago. Everything is online. You can get everything that you need to start. You just have to do the work.”

So, do you have what it takes to start a physical therapy clinic? Do you possess enough motivation and internal drive? Are you ready to get your hands dirty? If you’re still serious about starting your own private practice therapy clinic, read on to learn more about deciding on a management strategy, finding the right location, purchasing equipment, selecting software, and choosing a specialty.

What kind of practice do you want? 

Solo leadership or partnership.

One of the first things you should consider when thinking about opening your own practice is whether you plan to run it on your own or with a partner. There are many benefits to bringing in another party. Partners can often provide what you’re missing—whether that be money, experience, relationships, or business acumen. In other words, bringing in a partner may fill a critical gap, and in turn, allow you to achieve even greater success than you could accomplish on your own. Plus, you’ll have someone with whom to share the risk and the reward—because we hear it can be pretty lonely at the top. 

Make your dreams of practice ownership a reality.

Download our step-by-step guide to opening an outpatient private practice.

So, is the old saying that two heads are better than one true? Maybe, maybe not. For example, some of the risks associated with forming a partnership can result in:

• Loss of control;
• Conflicts over differences of opinion; and 
• Dangers of mixing business and pleasure (if you go into business with a friend or family member, that is). 

That’s why entering into a partnership is not something to take lightly—especially considering that getting out of a partnership is always much harder than getting into one. WebPT strongly recommends seeking legal counsel before entering into any business arrangement.

If going solo as a single-provider clinic still feels like the right business decision for your new practice, you’ll be happy to know there are some benefits to go along with your increased risk—like having the freedom to make your own decisions and receiving all the profits. But then again, you also deal with all the debt and all of the administrative burden.

If neither going solo nor partnering up sounds quite right for you, you could always join a group practice and benefit from the experience of other savvy business/therapy professionals. In this case, you won’t have to invest in space or equipment, and you’ll get all the perks of an already established—and hopefully successful—practice.

Looking for some more guidance on how to choose? Ask yourself the following questions (and we suggest being really honest with yourself about your answers):

• Do you prefer working with a team or on your own?
• Do you enjoy having people around to interact with regularly?
• Are your skills well-balanced? In other words, in addition to being an excellent clinician, are you also good at building relationships, communicating clearly and consistently, handling complicated finances, launching successful marketing campaigns, and implementing and maintaining technology? If not, could you hire to fill the gaps?
• Do you focus on the big picture or the day-to-day details? If your answer isn’t “both,” who’s going to focus on the other one?
• Do you know exactly what you want your practice to be like? Will it be difficult for you if things don’t turn out just as you pictured?
• Are you confident enough to launch a startup clinic on your own?

For more information on types of business structures and their benefits, check out this article on  Choosing the Best Legal Structure for Your Practice .

Alternative Business Models

Whatever path you choose to take in starting your own private practice, keep in mind that numerous settings and business models may best suit your personal and business goals. The following list will help you learn more about a growing field of diverse PT-owned business models.

1. Multidisciplinary Care Teams

This model is designed to improve patient experience, increase satisfaction with healthcare services, and reduce the overall cost of care. Here are some added benefits of integrated care teams:

• They create a more well-rounded approach to care;
• They reduce patient healthcare spending;
• They allow for more efficient referral processes; and
• They improve health outcomes through provider collaboration.

2. Subscription-Based or Concierge Services

While many practices offer subscriptions to wellness or gym services, some are taking the subscription model a step further with concierge care . That means these practices provide patients immediate access to all services in exchange for a monthly or annual fee. This model works because it:

• Helps health-focused patients avoid hefty copays and long waits;
• Reduces long-term healthcare spending on preventable illnesses; and
• Creates a steady revenue stream for providers.

The concierge model is also a great option for startups and single-provider clinics because it eliminates the insurance contract negotiation process and provides a steady, predictable revenue stream. It’s also much more cost-effective than the traditional clinic model—especially for mobile concierge practices. After all, opting to forego a brick-and-mortar store will significantly reduce your overhead—and boost your earnings as a result!

3. Gym Partnerships

Rehab therapists can also use their vast understanding of anatomy, physiology, and neurological conditions to serve individuals in a gym setting, helping to connect those individuals who have neuro or mobility issues to gym routines that meet their needs. Do you have a specific niche? This model isn’t exclusive to the traditional gym setting. Many specialty gyms—such as “neuro gyms” and “autism gyms”—benefit from the expertise of a physical therapist. And of course, splitting the rent with a gym is a budget-friendly option.

Legal Considerations

If you decide a gym partnership is the best option for you, there are a few things to consider before you dive in headfirst. Therapists working in gym settings must take extra precautions because, as we mention in Real Talk: The Downside of Providing Wellness Services in Rehab Therapy , “if the therapist’s qualifications include the skills necessary to administer aid in an emergency situation or detect early risk factors for certain health issues, then he or she could be held legally accountable for failing to do so.” That said, non-medical professionals—like massage therapists and personal trainers—do not hold the same liability. So, make sure you’ve covered all of your legal bases before you commit to partnering with a gym.

4. Corporate Office Settings

Many large and forward-thinking companies have their own onsite clinics, which often include physical therapists. Not only does this approach offer a lot of flexibility for providers, but it’s also incredibly convenient for patients. Not only that, but on-site clinics eliminate the need for patients to travel to and from their appointments (thus saving them time), and it typically results in lower-than-average copays (thus saving patients money).

5. Niche Physical Therapy Clinics

When starting afresh in the PT market, it can feel difficult—if not impossible—to stand out among the throng of already-established clinics. Going niche (i.e., providing very specific services for very specific patients) is one way to curate a hyper-loyal subset of patients who will continue to return time and time again. Whether you’re treating a community of Parkinson’s patients or providing primarily hydrotherapy, creating a niche startup—especially as a single provider—is an excellent way to differentiate your services. For help honing in on a niche , scroll down to the below section titled “Which specialty should I choose?”

Compensation: Cash-Based or Insurance-Based

Traditionally, physical therapists—like other healthcare providers— enter into contracts with most major insurance companies to provide services to beneficiaries at a specific, agreed-upon reimbursement rate. In this model, the financial burden for most services falls to the insurer (aside from a nominal co-pay). However, as reimbursement rates decrease and the cost of simply staying in business increases, more and more PT practices are opting to go “ out of network ” and into a cash-based physical therapy practice .

While both these models offer a little more freedom in business practices , it’s not all sunshine and rainbows. In Billing for Cash-Based Physical Therapy Practices , physical therapist and cash-based clinic owner Ann Wendel writes that her documentation and billing practices are not that different from an in-network provider: “The advantage of being cash-based is that I enter into a contract with the patient to provide physical therapy services in a manner that I have determined will help them reach their goals most efficiently. The thorn on the rose is that my documentation and billing practices must ultimately lead to the patient getting reimbursed from their insurance or they won’t be able to continue treatment with me.”

Even with proper documentation and billing practices, you may find that not all patients are willing, able, or—as is the case for Medicare patients — legally allowed to put up the money for physical therapy services. They’d sooner not wait for reimbursement—especially if there’s a provider who accepts their insurance down the road. That’s why we recommend seriously considering whether your services are “sufficient to convince patients to choose to come to your practice despite the out-of-pocket costs” by asking yourself these questions:

• Do your patients trust and value the care you provide?
• Are many of your patient referrals from family, friends, or trusted healthcare providers?
• Do your location, hours of operation, and availability meet your patients’ needs?
• Do you provide a level of clinical expertise and/or service that your patients cannot get elsewhere?

You should also consider your community demographics and how other cash-based businesses and healthcare services—such as massage therapy, chiropractic, acupuncture, and fitness businesses—are performing. This can be a great indicator of your own potential success and can help you identify gaps in services that you can fill. The APTA lists teen sports rehab, chronic disease management, complex orthopedic condition management, hand therapy and splinting, women’s health, and cancer rehabilitation and management are all great options—but those are only a small handful of niche services you could provide. (See "Choosing Your Speciality" below for more on this topic.)

If you’re ready to transition out of network, it’s time to start thinking about setting fees, collecting payment, and discontinuing insurance contracts. If you’re not ready to go all the way out of network, you could consider providing cash-based supplemental services —like medically-oriented gym memberships, pilates or yoga classes, nutritional supplements, or durable exercise supplies —to generate additional income. Think of this as an opportunity to stick your toe in the cash-based services waters.

Insurance Credentialing

If your practice is entirely or partially insurance-based, then you’ll need to be credentialed with payers. Credentialing is the process of becoming accepted into an insurance provider’s preferred network. This process is important because: 

• It helps insurance carriers determine if you’re qualified to serve on their panels, and
• the insurances you’re contracted with will factor into most patients’ decision to come to you for services.

While there are plenty of things to consider when it comes to the credentialing process , these are some essential steps you can take to get the ball rolling:

• Secure your own tax ID number. 
• Get malpractice insurance. 
• Obtain a National Provider Identifier (NPI).
• Have a license to provide services in your state.
• Establish a clinic location.

Learn more about insurance credentialing—and how to navigate potential pitfalls—by downloading our free guide to starting an outpatient practice.  

How do you determine your clinic location?

Sure, that open office space you drive by every evening might be calling your name, but before you go putting down an offer, you better do your homework. After all, your location can make or break your success, so it’s time to start scouting out the community by answering the following questions:

• What direct access services can you legally provide in your state? (Find out in our direct access guide .)
• What are the tax implications and fees for small businesses in your state, city, and county?
• How many people live or work in the community? Realistically, how many of them will seek out your care?
• How many referral providers work in the area? How many of them routinely prescribe physical therapy?
• How many other physical therapy providers are there in the community? Is the area already saturated or can you identify a gap in services that you can fill (e.g., an in-demand niche)?
• Are there any physical therapy practices for sale in the area? 
• Would it be financially feasible to purchase an existing practice rather than launch a startup from scratch??
• How do you become a preferred provider for payers in your area? Will it be difficult?
• What is the typical reimbursement rate for providers in your area? What should you expect to write off as a result of denied reimbursements or failure to collect?
• Is your building easily accessible by foot, car, or public transportation? Will signage be visible from nearby streets?

Not sure where to begin? You can start by reviewing the community demographics in the US census data or on your city’s website.

Once you've conducted your market research and you have a feel for the area, it's time to start browsing real estate, either alone or with the help of a leasing agent. Keep in mind, though, that most commercial real estate brokers work for property owners and represent the owners' interests. If you're looking for someone to advocate for you, try retaining the services of a tenant broker. They—along with a real estate attorney—will help you negotiate your contract so you get what you need in terms of lease length and landlord renovations.

Here are a few other things to consider when looking for the right spot for your practice and defining the terms of your contract:

• If your patient population is mostly baby boomers, consider how accessible the building and restrooms are as well as how far the parking lot is from your office.
• If you’re the first PT moving into your building, ask your landlord if they would include an exclusive use clause in your lease so that no competitors will call your address home.
• If you plan to offer after-hours services—like gym memberships—be sure to tell your landlord exactly what you’re thinking so you can be sure it’s acceptable within the terms of your lease.
• If you’re starting a small, independent, single-provider clinic, try to find a location close to other popular businesses that get a lot of foot traffic. This will help you gain visibility.

One more thing to consider: How much space do you really need? In How To Start An Outpatient Private Practice For Less Than $8,000 , PT and clinic owner Jack Sparacio suggests asking yourself if you really need “the 3,000 square foot office and [to] pay rent for space you are hoping to grow into? Or can you get your practice up and running in the 800 to 1,000 square foot office for one-third the rent?” In his opinion, growing too big for your office space is a much better problem than throwing money away on office space you’re not using. Not quite ready to nail down your own space? Sparacio offers up the following advice: “Subleasing space from other health professionals or health clubs can also be an affordable alternative.“

Which PT specialty is the best one for you?

If you haven’t already considered your new practice’s niche, now’s the time to do so. What services can you provide that will set you apart from your potential competitors? In a whitepaper titled, “ Build Your Practice by Finding Your Physical Therapy Niche ,” Jeff Worrell has a few suggestions for physical therapists looking to identify a specialty—be it sports, pediatric, or post-surgical rehabilitation: “Take some time to jot down your experiences on a piece of paper...be as specific as possible. Look for similarities and highlight the experiences that are similar.” He also recommends that you ask yourself the following questions:

• What type of physical therapy work do you enjoy doing?
• What is the market potential for your specific area of interest?
• What type of patients do you enjoy working with?
• What experience do you have that can help you achieve success in your chosen niche?
• Are there other physical therapists who have built a successful practice in this niche?

For tips on marketing your niche, download this free guide to marketing your outpatient rehab therapy practice.

How can I get financing?

This is probably one of the first questions that comes to mind for anyone planning to start a physical therapy clinic—and it’s often the obstacle that keeps folks from making the leap in the first place. However, with a little proactive effort—and maybe just a tiny bit of luck—you can obtain the funding you need to get your practice-ownership dreams off the ground. Here’s how to make it happen in four steps:

1. Take stock of your expenses.

Determine how much money you’ll need for your venture by looking at your projected monthly expenses. Remember: To increase the viability of a startup venture, you should focus on keeping your expenses low.  Once you have those numbers, you’ll know how big of a loan you need (if necessary). Generally speaking, providers who are launching a new business can allocate their expenses into three categories:

• Fixed costs (e.g., rent, equipment, and software)
• Variable expenses (e.g., utilities, supplies, marketing, and continuing education)
• Labor costs (e.g., employee salaries and benefits)

2. Get the essential documents in order.

Before you head to the bank, make sure you have the following documents in hand (so the review process is as quick and painless as possible): 

• A business plan;
• Financial projections;
• A personal financial statement; and
• Professional references.

3. Pick a lender.

When it comes to picking a funding source, be choosy. We recommend:

• Picking a bank that has experience working with healthcare providers or working with the US Small Business Administration (SBA) ;
• Avoiding the temptation to go with the first offer; and
• Considering a local bank for funding.

4. Make that money talk.

The whole point of a loan is to generate enough revenue to not only pay it back but also make enough of a profit to continue growing your business. (You might consider incorporating cash-based wellness services to boost your revenue cushion .)

For more insight into funding your new practice, download our guide to starting an outpatient practice .

What are the need-to-know details for purchasing equipment?

Once you know who and where you want to treat, it’s time to think about the how. What kind of equipment will you need to provide exceptional care for your patients? Before you become overwhelmed by the mere thought of such a large purchase, consider this advice from PT and clinic owner Jack Sparacio’s post on opening an outpatient private practice for less than $8,000 : “Buying equipment for your office does not need to break the bank. And with the Internet, you can quickly compare prices to save significant amounts of money.” So, before you drop thousands of dollars on expensive equipment—or make any other major purchases for your practice—heed the following advice:

• Shop online. Sites like eBay and Amazon are great places to find deals on new and used equipment. And if you’re a WebPT Member, you have access to the WebPT Marketplace , where you can purchase clinical supplies and equipment at discounted prices.
• Get creative. Some pieces of equipment will always be pricey, but sometimes, you can delay buying that big-ticket item until you have the resources to do so. As PT and clinic owner Jack Sparacio writes , “Why spend $3,500 on a high-end Ultrasound-Electric Stimulation Combo Machine when you can buy separate portable ultrasound and electrical stimulation units for about $100 each?”
• Do more with less. If you’re practical and resourceful, you can find alternative ways to meet your therapy equipment needs. Sparacio explains, “When designing an exercise program for a patient, they are not going to have access to that expensive exercise equipment at home. Giving them exercises in your office utilizing sport cords and resistance bands ensures that those exercises are reproducible and practical in a home environment.” 
• Consider renting. Instead of doubling down on a costly machine, therapy business owners may find that leasing is preferable to buying outright. It gives you the ability to use the latest and greatest machinery while making budget-friendly payments.

What’s the right software for you?

When WebPT first started, an EMR was a huge step forward for the profession. Now, an EMR only scratches the surface of what software can do to help a private practice —and what providers need to run their practice. Clinicians need their EMR to match the demands of modern patient care and to be seamlessly integrated into a slew of other solutions that make up the workflows of a typical clinic. Here are just a few more benefits your new clinic will get with the right EMR:

Compliance Support

Every reporting regulation— MIPS , the 8-minute rule , and the therapy threshold —has its own challenging set of requirements. However, the right EMR will provide the support you need to remain compliant with all of them. Simply follow the built-in prompts and alerts, and you’ll fulfill all requirements for every patient, every time.

Safety and Security

Choose a true web-based (not web-enabled) EMR , and your patient data will be safe and secure—forever. You’ll have all the benefits of the world’s leading data centers—like protection from natural disasters, digital video surveillance, biometric screening, and round-the-clock guards—and none of the cost or responsibility.

Patient and Referral Marketing

Referrals drive a lot of new business for most physical therapists—whether they be from physicians or other patients. With an EMR, you can maximize those referrals by tracking how many you receive and from which sources. It’s a great way to identify those referral sources in your network that need a little more attention. With the right EMR, you can also display your clinic’s logo on all of your digital documents, so every note you send reminds prospective referrers of your clinic. (Free marketing, anyone?)

Plus, if your software touts robust patient relationship management (PRM) features, (e.g. automated email marketing campaigns, patient satisfaction surveys, and online review generation), you’ll have plenty of tools to attract new patients, engage with current patients, and reactivate past ones.

A Paperless Front Office

One of the hallmarks of a solid patient management platform is interoperability—particularly for making your front office a well-oiled machine . From scheduling and registering patients to verifying insurance and conducting follow-ups, each process should work together seamlessly. When they do, it saves time for your front office staff—driving efficiencies throughout the rest of your clinical processes. Plus, a paperless front office also cuts down on the initial startup cost of opening a clinic. And for new clinic owners, any expense saved is money in the bank—which will set you up for greater financial success in the long run.

So, when shopping for software, check to see if they offer these built-in features:

Appointment Scheduling

Scheduling software that automatically links your patient records with your clinic's calendar enables you to review notes with the click of a mouse and send automated appointment reminders via the patient’s preferred method. Scheduling tools can also help you:

• Track missed appointments;
• Book or reschedule appointments easily;
• Manage therapists' schedules;
• View the schedules of your other clinics (if applicable); and
• Color-code patient appointments based on insurance type.

Digital Patient Intake

Digital patient intake solutions enable you to send patients user-friendly intake forms—which they can complete online at their convenience. Most digital patient intake tools can also send automated reminders to patients who haven’t filled out their forms yet as their appointment date gets closer. What this all means is fewer minutes patients are required to spend in your waiting room—culminating in a better experience for them overall. 

Electronic Benefit Verification

Utilizing an electronic benefit verification tool can significantly speed up your insurance eligibility game. Wouldn’t that be a relief? And because these solutions integrate with your EMR, you can say goodbye to the manual process of entering insurance information into a patient’s record—and the transcription errors that can arise from this, too, for that matter.

Outcomes Reporting

In this era of performance-based reimbursement and payment reform, tracking your patients’ functional outcomes is more important than ever. That’s why your software should have robust outcomes tracking capabilities that not only help you stay on top of your patients’ functional progress and clinical results, but also compare them to national averages.

Interoperability

Consolidation is on a lot of practice owners’ minds these days. With larger health systems snapping up the little guys, it can be difficult for startups and single-provider clinics to remain independent while also communicating with other providers seamlessly. Fortunately, if your software can integrate with other software platforms , you can:

• ensure your data transfers smoothly;
• save time by not getting bogged down with multiple platforms; and
• attract referral sources who know your system integrates seamlessly with theirs.

End-to-End Revenue Cycle Management

If you’re still using paper claims, you’re leaving a lot of room for error—not to mention wasting time filling out claim information by hand. But if your EMR has fully-integrated revenue cycle management (RCM), you can rest easy knowing your claims will have fewer errors—and that means you get paid faster. On top of that, be sure your RCM provider’s features include:

• Credit card processing;
• Auto-eligibility verification;
• An integrated clearinghouse; and 
• A patient portal.

Still not sure why you should invest in the right EMR for your outpatient physical therapy clinic? Check out this article .

How do you create a business plan?

Once you’ve got at least a rough idea of how you plan to run your physical therapy practice, it’s time to get business best practices in order and prepare your business plan .

What is a business plan?

A business plan is a formal document that contains every detail about your business—including market assumptions; operations, sales, financing, and hiring plans; and your values and goals. This document will serve as the foundation for your business as well as the driver. It will act as a baseline for monitoring your growth.

Who should write a business plan?

Anyone who plans to run a business should write a business plan, especially if you’re working with other people—investors, partners, or employees. According to this Entrepreneur article, An Introduction to Business Plans , “...anybody beginning or extending a venture that will consume significant resources [money, energy, or time]...and that is expected to return a profit, should take the time to draft some kind of plan.”

Where to start?

Delving a bit deeper, Entrepreneur.com states, “One of the most important reasons to plan your plan is that you may be held accountable for the projections and proposals it contains. [This is] especially true if you use your plan to raise money to finance your company.” Here are some questions to get you started when it comes to thinking about your business goals and objectives:

• How determined am I to see this succeed?
• Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years?
• What's going to happen to me if this venture doesn't work out?
• If it does succeed, how many employees will this company eventually have?
• What will be its annual revenue in a year? Five years?
• What will be its market share in that time frame?
• Will it serve a niche market, or will it sell a broad spectrum of goods and services?
• What are my plans for geographic expansion? Local? National? Global?
• Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others?
• If I delegate, what sorts of tasks will I share? Sales? Technical? Others?
• Is it going to remain independent and privately owned, or will it eventually be acquired or go public?

After you’ve fully answered these questions, you’ll probably have a pretty good idea of the direction you wish to take your clinic. Now it’s time to figure out how you’re going to make your goals a reality. Drum roll, please: it’s time to determine your marketing plan. Whether you’re hoping to find new patients or hire all-star talent , how you present yourself and your practice to the local community—and the physical therapy community as a whole—is quite important. In fact, in Writing a Business Plan? Don't Forget About Marketing Chief Executive Officer of EMSI Public Relations Marsha Friedman strongly recommends that you include a marketing budget—taking into consideration both time and money—in your business plan from the get-go.

Now that you’ve got your plan for the plan complete—you’ve considered your staffing needs, nailed down your financing options, and identified your business goals as well as how you plan to reach them—it’s time to start writing. For more information on how to write a solid business plan, check out this blog post on Strategic Planning 101: The PT's Guide to Building a Better Business

Any more questions?

Almost done! But before you open your doors, there are a few final legal to-dos you need to take care of first:

• Meet with an attorney who is well-versed in private practice law. He or she will help you ensure you have all your legal ducks in a row. 
• Sole Proprietorships
• Partnerships
• Corporations
• Non-profits
• Claim a business name. (Check out this blog post on 16 Creative Physical Therapy Clinic Names for some inspiration.) Don’t forget to consider the online availability for your business’s name!
• Open a business bank account (and keep your books well organized). 
• Lease length,
• Prior building renovations,
• Building accessibility,
• Proximity to competitors, and
• Apply for an Employer Identification Number (EIN).
• Check your state’s website for any additional requirements for starting and operating a business.
• Calendar year: 12 consecutive months from January 1– December 31, or
• Fiscal year: 12 consecutive months ending on the last day of any month other than December.
• Verify employment eligibility.
• Report newly hired and rehired employees to the state.
• Get workers’ comp insurance.
• Display the required posters that explain employee rights and labor laws.
• File your taxes according to federal and local regulations.
• Stay informed and get organized.
• Have a multi-step interview process;
• Ask interviewees experiential questions;
• Hire candidates who share your goals and values; and
• Strive for cognitive diversity among your team.
• Create a marketing strategy to help bring patients into your new practice. 
• Find the right practice management software to help keep things running smoothly. 

Curious about how others got their start in private practice PT? Check out 7 Lessons Learned from Opening a PT Private Practice and How To Start a PT Practice While Keeping a Full-Time Job .

Ready to start a physical therapy clinic?

See how WebPT gets your practice firing on all cylinders, and put all your software and documentation worries in the rearview mirror.

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Disclaimer: Please note that this is general information only and we do not intend for you to use any of it as legal advice or guidance. Nor do we intend for you to use it in lieu of seeking appropriate legal counsel.

Related posts

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The PT, OT, and SLP’s Guide to Creating a Home Exercise Program

The Future PT’s Guide to Becoming a Physical Therapist

Learn how WebPT’s PXM platform can catapult your practice to new heights.

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Physical Therapy Clinic

Back to All Business Ideas

How to Start a Physical Therapy Clinic

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 4, 2022 Updated on March 13, 2024

Investment range

$11,950 - $29,800

Revenue potential

$130,000 - $416,000 p.a.

Time to build

3 – 6 months

Profit potential

$65,000 - $83,000 p.a.

Industry trend

As Baby Boomers move into their golden years, the need for physical therapy has spiked, which is why the market has expanded by a third in the last decade. If you’re a physical therapist, you could start your own clinic to boost patients’ quality of life, grab a share of a $40 billion market and make a great living, all while following your passion. 

But they don’t teach many business skills in physical therapy school, so you’ll need to learn how to cut through the red tape and become an entrepreneur. Luckily, this step-by-step guide contains all you need to know to launch and run a successful physical therapy clinic.

Step by Step Business prioritizes real-life experience. Our Entrepreneur Spotlight Series features interviews with business owners, offering direct insights to our readers.

If you’re embarking on starting a physical therapy business, this interview is a must-read for gaining invaluable insights and practical advice.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a physical therapy business has pros and cons to consider before deciding if it’s right for you. 

• Improve Lives – Help people lead healthier, fuller lives
• Large Market – Ageing US population means greater demand
• Good Money – Make about $100 per session
• Insurance Hassles – Deal with billing and multiple insurance companies
• Stringent Regulations – Must have education and be licensed by the state

Physical therapy industry trends

Industry size and growth.

• Industry size and past growth – The US physical therapy industry is worth $40.1 billion in 2022 after expanding 33% in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/physical-therapists-united-states/ )) 
• Growth forecast – The US physical therapy industry is projected to grow 4.7% in 2022.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/physical-therapists-united-states/ )) 
• Number of businesses –  In 2022, 122,254 physical therapy businesses are operating in the US. 
• Number of people employed – In 2022, the US physical therapy industry employs 503,918 people.(( https://www.ibisworld.com/industry-statistics/employment/physical-therapists-united-states/ ))

Trends and challenges

Trends in the physical therapy industry include:

• Telehealth options have made their way into the physical therapy business, with more and more patients seeking virtual physical therapy consultations.
• Alternative treatment options such as holistic physical therapy, which means treating the mind, body, and spirit, are seeing increased demand. This means integrating meditation and yoga into treatment plans, boosting revenue potential. 

Challenges in the physical therapy industry include:

• Advancements in physical therapy techniques and practices make continuing education necessary for physical therapists.
• Regulations in the physical therapy industry, particularly in terms of electronic medical records keeping, are constantly changing, creating the need for physical therapists to keep up in order to stay compliant. 

Demand hotspots

• Most popular states – The most popular states for physical therapists are Washington, Wyoming, and California.(( https://www.zippia.com/physical-therapist-jobs/best-states/ ))
• Least popular states – The least popular states for physical therapists are Florida, Arkansas, and Utah.

What kind of people work in physical therapy?

• Gender – 63.7% of physical therapists are female, while 36.3% are male.(( https://www.zippia.com/physical-therapist-jobs/demographics/ ))
• Average level of education – The average physical therapist has a bachelor’s degree.
• Average age – The average physical therapist in the US is 41.1 years old.

How much does it cost to start a physical therapy clinic?

Startup costs for a physical therapy clinic range from $12,000 to $30,000. The main cost is renting and outfitting the clinic space. If you have more limited financing, you could cut costs by starting out as a mobile and virtual physical therapist, going to your clients and providing therapy online to build a reputation. This would save you $5,000 to $10,000 in startup costs, but you would only be able to take a limited amount of equipment to your patients’ homes.

Either way, you’ll need to obtain malpractice insurance. If you’re not a physical therapist, you can find information on becoming one through the American Physical Therapy Association . 

To practice as a physical therapist in the US, you must earn a doctor of physical therapy degree from a Commission on Accreditation in Physical Therapy Education-accredited physical therapist education program and pass a state licensure exam. Programs typically take three years, and most require a bachelor’s degree. 

You’ll need a handful of items to successfully launch your physical therapy business, including: 

• Treatment tables – wooden plinths
• Treatment tables – adjustable
• Adjustable height exercise steps  
• Step stools
• Therapist stools on wheels 
• Variety of bolsters, wedges, supports
• Mobilization belts and devices
• Various assistive devices
• Taping supplies
• Splinting materials
• Goniometers
• Tape measures
• Grip dynamometer
• Manual muscle testing dynamometer
• Reflex hammer
• Neurological testing instruments
• Blood pressure cuff
• Stethoscope
• Thermometer 
• Video analysis hardware & software
• FCE testing equipment or system

How much can you earn from a physical therapy business?

The average cost of a one-hour physical therapy session is $100. If you start with a small clinic working alone, your profit margin after rent and overhead should be about 50%.

In your first year or two, you might have 25 sessions per week, bringing in $130,000 in annual revenue. This would mean $65,000 in profit, assuming that 50% margin. As your business gains traction, your clinic might provide 80 sessions per week. At this stage, you’d hire staff, including other physical therapists, reducing your profit margin to around 20%. With annual revenue of $416,000, you’d make a healthy profit of nearly $84,000.

What barriers to entry are there?

There are a few barriers to entry for a physical therapy clinic. Your biggest challenges will be:

• Education and licensing
• Standing out into a competitive industry
• Getting credentialed with insurance companies

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Step 2: hone your idea.

Now that you know what’s involved in starting a physical therapy clinic, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research physical therapy clinics in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a sports medicine clinic, a clinic that also offers athletic training, or a clinic that provides electrical stimulation therapy. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as treating shoulder pain or knee pain, or adding yoga and meditation therapy.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

Your services will depend on what you decide to specialize in. They might include:

• Physical Therapy
• Manual Therapy and Modalities
• Pre and Post-operative Care
• Sports Rehabilitation
• Injury Screenings
• Dance Medicine Services
• Work Conditioning/Hardening
• Gait Analysis
• Balance Problem Treatments

How much should you charge for physical therapy services?

The average price of a one-hour physical therapy session is $100. After your costs of rent and overhead, you should aim for a profit margin of about 50% when you’re working by yourself. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad. You should spread out your marketing to include sites like TikTok, Instagram, and Facebook. You should also try to partner with private practice physicians to get referrals. You can connect with them on LinkedIn or find them on Google or Yelp and call them directly. 

Where? Choose your clinic location

Unless you start out working from home, you’ll need to rent out a space for your clinic. Look for a spot in a central and convenient area, such as a medical district or a busy commercial area.

Depending on the type of physical therapy clinic you plan to start, you may also want to consider the proximity to complementary businesses, such as chiropractors or orthopedic clinics.

By strategically choosing the right location, you can establish a profitable and successful physical therapy clinic that provides high-quality healthcare services to patients and stands out from competitors.

You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Physical Therapy Clinic Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “physical therapy”, boosts SEO
• Name should allow for expansion, for ex: “CoreFit Physical Therapy” over “Pediatric Physical Therapy Center”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Physical Therapy Clinic Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview highlighting the main points of the physical therapy clinic business plan, summarizing its key objectives and strategies.
• Business Overview: A concise description of the physical therapy clinic, outlining its mission, vision, and the problem it aims to address in the healthcare industry.
• Product and Services: Clear details about the specific physical therapy services offered, emphasizing the clinic’s unique selling points and any additional wellness services provided.
• Market Analysis: An examination of the target market, including demographics, trends, and potential demand for physical therapy services in the clinic’s geographic area.
• Competitive Analysis: A review of competitors in the local market, analyzing their strengths and weaknesses to position the physical therapy clinic effectively.
• Sales and Marketing: Strategies for attracting and retaining clients, encompassing promotional activities, advertising, and any partnerships to enhance the clinic’s visibility.
• Management Team: Profiles of key individuals leading the physical therapy clinic, emphasizing their qualifications and expertise in healthcare and business management.
• Operations Plan: Detailed information on day-to-day clinic operations, including staff roles, facility requirements, and technological tools employed to optimize efficiency.
• Financial Plan: A comprehensive overview of the clinic’s financial projections, including startup costs, revenue forecasts, and a break-even analysis, demonstrating the business’s financial viability.
• Appendix: Supplementary materials, such as resumes of key team members, additional financial data, and any supporting documents that provide further context for the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to physical therapy clinics. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your physical therapy clinic will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a physical therapy business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Physical Therapy Clinic Business Licenses and Permits

Starting a physical therapy business requires obtaining a number of licenses and permits from local, state, and federal governments.

You will need to be a licensed physical therapist in your state. Check with your state for requirements. To get credentialed by insurance companies you will need:

• Malpractice insurance
• A National Provider Identifier (NPI)

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your physical therapy business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

For a physical therapy business, you’ll also need to obtain malpractice insurance. 

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Kareo , WebPT , or MWTherapy , to manage your scheduling, record keeping, billing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Starting a Physical Therapy Clinic is a commendable venture, and successful marketing is crucial for attracting clients. Here are some concise and effective strategies to boost your clinic’s visibility and attract new clients:

• Community Partnerships: Forge partnerships with local gyms, sports clubs, and wellness centers to offer exclusive discounts or collaborative events, creating a win-win situation for both parties and expanding your reach.
• Educational Workshops: Host free workshops on common health issues, injury prevention, and rehabilitation techniques in collaboration with local community centers or businesses to position your clinic as an authoritative and trusted source.
• Referral Programs: Implement a referral program that rewards existing clients, physicians, and other healthcare professionals for referring new patients to your clinic, fostering a network of advocates for your services.
• Testimonials and Case Studies: Highlight success stories and positive outcomes through testimonials and case studies, showcasing real experiences to build credibility and instill confidence in potential clients.
• Social Media Engagement: Leverage social media platforms to share educational content, success stories, and behind-the-scenes glimpses, engaging with your audience and creating a personable online presence.
• Local Event Sponsorship: Sponsor local events, sports teams, or health-related gatherings to increase brand visibility, demonstrating your commitment to community well-being.
• Loyalty Programs: Implement loyalty programs that offer discounts or additional services for returning clients, encouraging repeat business and fostering long-term relationships.
• Online Reviews Management: Encourage satisfied clients to leave positive reviews on popular review sites, actively manage your online reputation, and respond promptly to both positive and negative feedback.
• Targeted Direct Mail Campaigns: Send targeted direct mail campaigns to local neighborhoods, emphasizing the benefits of physical therapy and offering exclusive promotions to drive new client acquisition.
• Corporate Wellness Programs: Reach out to local businesses to offer on-site wellness programs, including ergonomic assessments and injury prevention workshops, fostering employee well-being and generating business leads.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your physical therapy clinic meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your physical therapy business could be: 

• Smart sports therapy to get you back in the game
• Our holistic therapy heals mind, body, and soul 
• Soothe your pain with advanced physical therapy techniques

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a physical therapy business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in physical therapy for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in physical therapy. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a physical therapy business include:

• Receptionist – patient check-ins, book appointments, customer service
• Physical Therapists – provide physical therapy services
• General Manager – staff management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Physical Therapy Clinic – Start Making Money!

Physical therapy is experiencing strong growth as the population ages, which means this is a great opportunity to help people every day and make a good living at the same time. If you have yet to complete your physical therapy education, doing so will be well worth your time and money, as it will enable you to follow your passion and provide an invaluable service. 

You’ve gained the required business knowledge, now it’s time to get your successful physical therapy clinic up and running!

• Physical Therapy Business FAQs

Yes, a physical therapy business can be profitable, but more importantly, it can be very rewarding. You’ll be helping people live better lives with less pain. But it’s crucial to provide quality service and treatment.

You can find information on becoming one through the American Physical Therapy Association . To practice as a physical therapist in the U.S., you must earn a doctor of physical therapy degree from an accredited program and pass a licensing exam. Programs typically take three years, and most require a bachelor’s degree.

Collaborate with local healthcare professionals and community organizations to build referrals. Offer educational content and resources on your website to establish credibility and attract patients seeking information.

Physical therapists tend to earn higher salaries in settings such as outpatient clinics, hospitals, and skilled nursing facilities. Geographic location can also influence earning potential, with areas that have a higher cost of living often offering higher salaries. 

To differentiate your physical therapy clinic from competitors, emphasize unique aspects such as specialized treatment techniques, cutting-edge technology, or niche services. Focus on exceptional patient care, personalized treatment plans, and a warm and welcoming clinic environment.

Common types of physical therapy treatments include manual therapy, therapeutic exercises, balance and gait training, electrical stimulation, ultrasound, heat and cold therapy, and patient education on injury prevention and self-care techniques. 

nice explaination very helpfull for me thankuuu

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Physical Therapy Clinic Name
• Create a Physical Therapy Clinic Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Physical Therapy Clinic Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Physical Therapy Clinic - Start Making Money!

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Here's how you start a profitable physical therapy practice.

Embarking on a journey to open a physical therapy clinic can be an incredibly rewarding venture for those with a passion for helping others improve their physical health and well-being.

Whether you're a seasoned physical therapist aiming to establish your own practice or a recent graduate ready to make a positive impact in the healthcare industry, launching a clinic requires meticulous planning and commitment.

In this blog post, we'll navigate you through the crucial steps of opening a physical therapy clinic, from the initial planning stages to the celebratory ribbon-cutting ceremony.

How you should prepare to start a physical therapy practice

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a physical therapy practice because it defines the scope of your services, the design of your clinic, and the target demographic you will serve.

This decision will influence your clinic's location, interior setup, treatment offerings, pricing, and marketing approach. A well-defined concept can help your practice stand out and attract patients who are looking for the specific services you offer.

In essence, selecting the right concept is like deciding on the theme of your practice before you start creating the space and developing your treatment plans.

To assist you in making an informed choice, we have summarized the most popular concepts for a physical therapy practice in the table below.

Pick an audience

When establishing a physical therapy practice, it's crucial to tailor your services and clinic environment to the specific needs and preferences of your target patient demographic.

For instance, if you aim to serve athletes, you might focus on sports rehabilitation and performance enhancement services. Your clinic could be equipped with state-of-the-art exercise equipment and located near gyms or sports centers.

Conversely, if your goal is to cater to an elderly population, you might emphasize treatments for arthritis, balance issues, and post-surgical recovery. The clinic should be easily accessible, with a warm and inviting atmosphere that makes patients feel comfortable and safe.

Understanding your target audience is essential because it shapes every aspect of your physical therapy practice, from the types of therapy services you offer to the design of your clinic and its location. It's akin to customizing a treatment plan; you consider the patient's specific condition and goals before determining the best course of action. This ensures that the services provided are both relevant and appealing to them.

Moreover, knowing your audience enables you to communicate with them more effectively. If you're aware of who you're trying to reach, you can devise the most appropriate marketing strategies to engage them. For example, if you're targeting seniors, you might advertise in community centers or local newspapers that are read by the older demographic.

In our business plan for a physical therapy clinic , we have outlined different patient segments that could be relevant for your practice.

To help you visualize potential patient demographics for your physical therapy clinic, we've compiled a few typical examples below.

Get familiar with the industry trends

As a physical therapist, staying informed about the emerging trends in the industry is crucial for the success of your practice.

These trends indicate the evolving needs and preferences of patients. By aligning your services with these trends, you can attract a broader clientele who are seeking the latest and most effective treatments. Additionally, differentiating your practice through specialized services can set you apart from competitors who may offer more generic care.

For instance, we regularly update our business plan for physical therapy practices to include new and emerging trends. We believe this is essential for developing a thriving and forward-thinking practice.

One significant trend is the growing emphasis on holistic and preventative care, where patients are looking for treatments that address the whole body rather than just specific symptoms.

Another trend is the integration of technology in physical therapy, such as virtual reality for rehabilitation exercises or wearable devices to monitor progress.

Patients are also increasingly interested in personalized care plans that are tailored to their unique needs and lifestyles, moving away from one-size-fits-all approaches.

Moreover, there's a rising demand for at-home therapy options, fueled by the convenience and comfort it offers, especially after the increased need for remote services during the pandemic.

We have compiled a list of more trends in the table below.

However, there are also some declining trends.

For example, as patients become more informed, there's a decline in the acceptance of passive treatments that don't involve patient participation or education.

Also, with a shift towards evidence-based practice, therapies that lack scientific backing are becoming less popular among both patients and practitioners.

Finally, with the increasing importance of environmental sustainability, the use of single-use items and non-eco-friendly clinic practices is being scrutinized and reduced.

Choosing the right location

Selecting the right location for your physical therapy clinic is a critical decision that can significantly impact its success. It requires careful consideration of several factors to ensure that you are well-positioned to attract and retain clients.

Understanding the local demographics is the first step. A physical therapy clinic should be located in an area with a population that may require your services. For instance, if you specialize in sports injuries, being near athletic facilities or communities with a high concentration of active individuals can be beneficial. If your focus is on geriatric physical therapy, a location near retirement communities or areas with an older demographic would be ideal.

Visibility and accessibility are also crucial. Your clinic should be easy to find and reach, whether by car, public transport, or on foot. Locations near main roads, with good signage, ample parking, and ground-floor access are preferable to ensure that clients, including those with mobility issues, can access your services with ease.

Competition should be assessed carefully. While it's not advisable to be too close to another physical therapy clinic, a certain level of competition indicates a demand for these services. Additionally, being part of a medical complex or near hospitals and doctors' offices can be advantageous, as it may lead to referrals and a steady stream of clients.

Rent costs are a significant factor. Prime locations with high visibility often come with higher rents, so you should ensure that the cost is sustainable based on your projected client base and revenue. Sometimes, a less central location with lower rent can be more profitable if you have a strong marketing strategy and referral network.

Negotiating favorable lease terms can make a big difference in your clinic's financial health. This might include securing a lease with renewal options, negotiating a cap on rent increases, or obtaining a period of reduced rent at the beginning to offset initial setup costs.

Consider the growth potential of the area. Is the neighborhood developing in a way that could bring more clients to your clinic? The possibility of expanding your clinic within the same location in the future can be a significant advantage as your business grows.

Convenience factors such as parking and public transportation should not be underestimated. A clinic that's easy for clients to travel to is more likely to maintain a loyal client base.

Market research and demographic analysis tools can offer valuable insights into the best locations for your physical therapy clinic. These tools can help pinpoint neighborhoods with the right client base for your services.

The choice between a city center and a suburban area depends on your target market and business model. City centers may provide a larger potential client base but often come with higher rents and more competition. Suburban areas might offer a more dedicated client base with potentially lower rent but may require more marketing efforts to establish your presence.

Being near community centers, gyms, or office complexes can provide a consistent flow of potential clients, especially if your clinic offers specialized services that cater to the needs of these groups.

Understanding local zoning laws, health regulations, and other legal requirements is essential to ensure that your chosen location is suitable for a physical therapy clinic. Compliance with these regulations from the outset can prevent costly changes and delays.

Finally, evaluating the long-term potential of a location is key. Consider future developments in the area that could impact your business, either positively by increasing your client base or negatively by introducing more competition or raising rent.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a physical therapy practice can vary significantly, ranging from approximately $20,000 to $100,000 for a modest clinic to $120,000 to over $250,000 for a more comprehensive facility in a prime location with state-of-the-art equipment.

If you want to know the exact budget you will need for your own physical therapy clinic and also get a full detailed list of expenses, you can use the financial plan we have created, tailored to physical therapy practices . This excel file is designed to be user-friendly and will provide you with an instant and detailed analysis of your future project.

The budget can vary the most due to the location of the clinic. Prime locations in high-traffic areas tend to have higher rental costs, which can significantly increase startup expenses.

The size of the clinic also plays a crucial role in determining the initial investment. A larger space not only increases rent but also requires more equipment, staff, and materials, leading to higher operational costs.

The quality of equipment is another significant factor. High-quality, durable equipment is expensive but can save money in the long run through efficiency and longevity. Conversely, starting with used or lower-quality equipment can reduce initial costs but may lead to higher maintenance or replacement costs over time.

If the available capital is limited, it's still possible to open a physical therapy clinic, but careful planning and prioritization are crucial. The very minimum budget could be around $20,000 to $40,000 if you choose a low-cost location, minimize the size of your operation, buy used equipment, and manage much of the work yourself. This approach requires a hands-on strategy, focusing on a niche service offering to reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a physical therapy practice include equipment purchases, licensing and permits, insurance, marketing and advertising, technology and software, staff training, office space and utilities, and a reserve for unexpected expenses.

Essential equipment for a physical therapy practice includes treatment tables, exercise equipment, modalities like ultrasound and electrical stimulation machines, and office furniture. Costs can vary widely based on whether you buy new or used equipment. On average, you might spend between $5,000 to $50,000. High-end or new equipment will be at the upper end of this range, while you can save by purchasing used equipment. Treatment tables and exercise equipment are among the most important, as they directly impact your ability to provide services to your patients.

Licenses and permits are critical for legal operation. Costs vary by location but typically range from a few hundred to a few thousand dollars. This includes professional licenses, health department permits, and possibly a business operation license.

Insurance is, obviously, non-negotiable to protect your business against liability, property damage, and other potential risks. Essential policies include professional liability, property insurance, and workers' compensation if you have employees. Annual premiums can range from $3,000 to $12,000 or more, depending on your coverage levels and practice size.

Also, allocating funds for marketing and advertising is crucial for attracting patients. Initially, you might spend between $500 to $3,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for patient records management, appointment scheduling, and billing is important. Costs can range from $500 to $5,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

There are also training costs for staff and professional development. Setting aside $1,000 to $4,000 for initial training and ongoing professional development can help ensure high-quality care and service. This also includes any costs for obtaining or maintaining professional licenses.

Office space and utilities are a significant monthly expense that can vary greatly depending on location and size. Initial setup for a modest space can cost between $2,000 to $10,000, with ongoing monthly expenses for rent, utilities, and maintenance.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen repairs, equipment failures, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for physical therapy practices .

Business plan and financing

Make a solid business plan.

You may have heard it time and again, but it bears repeating: crafting a business plan when starting a physical therapy practice is indispensable.

Why is this the case? A business plan acts as a strategic guide for your venture, detailing your objectives, the methods you'll employ to achieve them, and the potential obstacles you may encounter along the way. A meticulously prepared business plan is not just a tool for maintaining organization and focus; it's also critical if you're looking to attract funding from investors or financial institutions, as it showcases the feasibility and prospective profitability of your practice.

The essential elements of a physical therapy business plan encompass market research, financial projections, and operational strategies, among other components. Market research is vital to comprehend your target demographic, their needs, and the competitive environment. This involves examining trends in the physical therapy sector, pinpointing your primary competitors, and determining a niche or unique value proposition that distinguishes your services.

Financial planning is another crucial facet. This segment details your anticipated income, costs of services (including equipment and supplies), labor expenses, and other operational costs. It should also feature forecasts for profit and loss, cash flow, and a break-even analysis. Financial planning offers a transparent view of your practice's fiscal status and growth prospects to both you and potential backers. You will find all this information in our financial plan for a physical therapy practice .

While the structure of a physical therapy business plan shares commonalities with other business plans, the focus on certain areas may vary.

For instance, a physical therapy practice will emphasize service development (offering a range of therapeutic services), equipment procurement (securing reliable and effective rehabilitation tools), and location analysis (accessibility and convenience for patients). Additionally, it's crucial to demonstrate adherence to healthcare regulations and standards.

To thrive and create a persuasive business plan for your physical therapy practice, you should conduct in-depth research and maintain realistic expectations regarding your financial estimates and capabilities. Engage with potential clients to grasp their requirements, preferences, and readiness to pay for your services. Also, contemplate the scalability of your business model and how you might broaden or modify your service offerings in the future.

In the context of physical therapy, special attention should be given to establishing a strong brand identity and marketing approach that connects with your intended audience. Emphasizing the expertise of your staff, the effectiveness of your treatments, or the personalized care you provide can set your practice apart in a competitive field.

Success depends not only on the excellence of your therapeutic services but also on meticulous planning, understanding your clientele, managing finances prudently, and implementing your operational strategy with precision.

Keep in mind, a business plan is not a static document but a dynamic one that should be revisited and refined as your physical therapy practice expands and adapts.

Get financed

Don't have the capital to start your own physical therapy practice? No problem, there are numerous financing options available to you.

Financing for a physical therapy practice can come from various sources: equity investments from partners or angel investors, loans from banks or credit unions, and potentially grants or subsidies from healthcare initiatives or professional associations.

Each financing method has its own set of benefits and things to consider.

Equity investments involve acquiring funds from partners or investors who will own a share of your practice. This is beneficial because it doesn't require immediate repayment like a loan does.

However, it does mean relinquishing some level of ownership and possibly some decision-making power in your practice.

For a physical therapy practice, this might be a good option if you're looking to scale quickly or need substantial initial capital for specialized rehabilitation equipment or a desirable location. To attract investors, you'll need a robust business plan that shows growth potential, profitability, and a deep understanding of the physical therapy market.

Securing a loan is another common financing route.

With a loan, you'll have to pay back the borrowed amount plus interest, but you get to maintain complete ownership of your practice. Loans can be used for a variety of purposes, including buying equipment, covering startup costs, or financing property improvements.

Banks and credit unions will typically ask for a down payment or collateral; the required amount can vary but often falls between 15% to 25% of the loan's value. It's crucial to consider how much of your budget will come from loans to avoid overwhelming your new practice with debt. Ideally, your physical therapy practice's projected income should easily cover your loan payments while still allowing for operational costs and growth.

Grants and subsidies are less common but can be a valuable resource.

These funds are often provided by government health programs, professional associations, or non-profit organizations to support healthcare services, particularly in areas with high demand or low access. Grants and subsidies don't need to be repaid, but they are competitive and usually come with specific requirements.

For a physical therapy practice, grants and subsidies might not be the main source of funding but could support other financing methods for particular projects or needs.

To effectively secure financing from lenders or investors, it's essential to prove the viability and profitability of your practice.

This means creating a comprehensive business plan that includes market analysis, a clear definition of your target demographic, detailed financial projections, and a strong marketing approach. Your business plan should emphasize what makes your physical therapy practice stand out, such as specialized services, a strong professional network, or a strategic location.

Lenders and investors will judge your practice based on several factors, including your creditworthiness, industry experience, available collateral, and the strength of your business plan.

They'll examine the financial projections of your practice to determine if you can generate sufficient revenue to cover operating costs, repay debts, and still profit. Showing a thorough understanding of the physical therapy industry, including trends, patient needs, and competitive analysis, will also strengthen your case.

Here's a summary table of the various financing options mentioned for starting a physical therapy practice, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Opening and operating a physical therapy practice involves meticulous planning and compliance with various regulations and requirements to ensure the safety, health, and satisfaction of your patients, as well as to safeguard your business.

The specific permits, licenses, health department regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need will vary by location, but there are general guidelines that apply in many places.

First, you'll need to obtain the necessary business permits and licenses.

This typically includes a professional license for physical therapy from your state's health or medical board, a business license from your city or county, and possibly a National Provider Identifier (NPI) if you plan to bill health insurance companies. Depending on the services you offer, you may also need additional certifications or licenses, such as for specialized therapy techniques or the use of certain equipment.

It's crucial to check with your state's physical therapy board and local government to understand the specific requirements for your area.

Regarding health department regulations, physical therapy practices must comply with standards that ensure the cleanliness of the facility, proper sterilization of equipment, and safe practice environments to prevent the spread of infections.

This includes maintaining a clean and sanitary workspace, adhering to proper hand hygiene, and following guidelines for the use and cleaning of therapy equipment. Health department inspections may be conducted to ensure compliance with these regulations. The frequency of inspections can vary, but typically, they occur at least once every two years or more often if there are complaints or previous issues. Some jurisdictions may also require a pre-operational inspection before the practice can open.

Non-compliance with health department regulations can result in consequences ranging from fines to temporary suspension of your license or closure of the business until violations are corrected.

In severe cases, non-compliance can lead to permanent revocation of your license or legal action. It's essential to take these regulations seriously and ensure your practice complies with all health and safety standards.

Insurance is another critical aspect of protecting your physical therapy business. At a minimum, you'll need professional liability insurance, also known as malpractice insurance, to cover claims of negligence or harm resulting from your professional services.

General liability insurance is also important to cover accidents or injuries that occur on your premises. Property insurance can protect your practice's physical assets from damage or theft. If you have employees, workers' compensation insurance will likely be required by law to cover injuries or illnesses that occur as a result of their work.

Additionally, considering business interruption insurance might be wise, as it can help cover lost income if your practice must close temporarily due to a covered event.

Business Structure

The three common structures for opening a physical therapy practice are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in healthcare business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your physical therapy practice.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many healthcare professionals looking to scale their practice.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your physical therapy practice.

We’ll make it easier for you, here is a summary table.

Getting started to start a physical therapy practice

Offer development, design and lay out.

Designing and laying out your physical therapy clinic for operational efficiency and an enhanced patient experience requires careful consideration and strategic planning.

Let's explore how you can achieve this, focusing on patient flow, balancing equipment needs with budget, and ensuring health and safety.

Firstly, envisioning patient flow is crucial.

Your clinic's design should guide patients seamlessly from the entrance to the reception area, through to the waiting room, and finally into the appropriate treatment rooms. This flow should be intuitive, minimizing congestion and ensuring a smooth transition from one area to the next. Place educational materials and engaging content in the waiting area to inform patients about various treatments and promote wellness.

This setup not only educates your patients but also helps them feel more at ease as they wait for their appointment.

Regarding the design to facilitate this flow, consider the layout's openness and accessibility.

Wide corridors, clear signage, and a logical arrangement of the space promote easy movement and comfort. The reception area should be clearly marked and separate from the treatment areas to avoid confusion and maintain privacy. If your clinic offers a gym or rehabilitation space, ensure it's comfortably distanced from the treatment rooms to prevent noise interference and maintain a calm atmosphere for those in therapy.

Balancing the need for high-quality equipment with budget constraints is a challenge many face.

Start by prioritizing essential equipment that directly impacts the quality of your patient care, such as treatment tables and exercise machines. These are worth investing in because they are the cornerstone of your clinic's services. For other items, consider buying gently used or refurbished equipment from reputable suppliers to save money without significantly compromising quality.

Additionally, plan for equipment that offers versatility and efficiency, like adjustable treatment tables or multi-purpose exercise machines, to get the most value for your investment.

Health and safety in the clinic layout are non-negotiable. Your design must incorporate zones designated for different treatments to prevent any risk of injury or infection. For example, separate areas for manual therapy, exercise therapy, and modalities ensure that each aspect of patient care is contained and controlled. Install handwashing stations at key points, especially near the treatment areas, to encourage regular hand hygiene among staff and patients.

Specific protocols for patient handling, equipment sterilization, and treatment procedures are crucial for safety and compliance. Implement a system that ensures all equipment is cleaned and sanitized after each use, with proper storage for clean and used items.

Train your staff thoroughly in health and safety practices, emphasizing the importance of handwashing, wearing gloves when appropriate, and maintaining a clean and organized environment.

Regularly review and update these protocols to comply with local health regulations and best practices.

Craft your offer

Your treatment offerings and your approach to patient care will be the reason why your physical therapy practice is successful (or why it is struggling).

To start, identify the preferences and needs of your target market through direct engagement, such as patient interviews and feedback forms, and indirect research, like analyzing health trends in your area and reviewing what successful competitors are offering.

Once you have a clear picture of your target market's needs, you can begin to craft a service menu that not only meets their health requirements but also distinguishes your practice from others.

Incorporating specialized and evidence-based treatments into your physical therapy services is a fantastic way to enhance appeal and effectiveness.

This approach not only ensures that you are providing the most current and effective treatments but also helps in addressing specific health conditions more effectively. Make connections with medical professionals and institutions to understand what treatments are most sought after and effective. This knowledge allows you to plan your services to include cutting-edge therapies, offering special programs that can attract patients looking for the latest and most effective treatment options. Offering specialized programs also creates anticipation among your patients, as they look forward to the potential for improved health outcomes.

To ensure your physical therapy services stand out in a competitive market, focus on specialization and patient experience.

This can be achieved by offering niche services that are hard to find elsewhere, such as therapy for rare conditions or advanced sports rehabilitation techniques. Sharing success stories and patient testimonials can also add a unique appeal and build trust with potential clients.

Ensuring consistency and quality in your treatments involves establishing rigorous standards and protocols.

This can include detailed treatment plans with specific goals and milestones, thorough training for your therapy staff, and regular outcome assessments. Consistency is key to building trust with your patients, as they will know exactly what to expect each time they visit your practice. Invest in high-quality equipment and continuous education, and don’t shy away from adopting new techniques and therapies that have proven to be effective.

Also, utilizing patient feedback is essential for continuous improvement and refinement of your physical therapy services. Create channels for feedback, such as follow-up calls, online surveys, and social media engagement, to understand what your patients appreciate and where there might be room for improvement.

Be open to constructive criticism and willing to make changes based on patient input. This not only helps in refining your services but also shows your patients that you value their health and satisfaction, fostering loyalty and encouraging referrals.

Determinate the right pricing

As a physical therapist, setting the right prices for your services is crucial to ensure a sustainable business while keeping your clients satisfied. Here's a strategy to balance profitability with customer satisfaction.

Firstly, you must understand your costs thoroughly. This includes rent for your practice space, equipment, utilities, staff salaries, insurance, and any other operational expenses. Knowing these costs is vital to ensure your pricing covers them and allows for a healthy profit margin.

Next, research the market to understand the going rates for physical therapy services. Look at what competitors charge for similar services and take note of any value-added offerings they provide. This will help you set a competitive baseline without necessarily matching the lowest prices.

Understanding your clients' price sensitivity and preferences is also key. Gather feedback through patient surveys, focus groups, or by monitoring how changes in your pricing affect demand. This will help you find the sweet spot where clients feel they are getting value without being overcharged.

Psychological pricing strategies can be applied in a physical therapy context as well.

For example, setting a session price at $99 instead of $100 can make a psychological difference to a client, even though the actual savings are minimal. However, you should use this strategy carefully to maintain the perceived value of your professional services.

The perceived value of your physical therapy services is influenced by the quality of care, the results you deliver, and the overall patient experience. Investing in advanced therapy techniques, maintaining a clean and welcoming practice environment, and providing exceptional patient care can justify higher prices because clients perceive greater value in their treatment.

Consider implementing off-peak pricing to encourage appointments during typically slower hours or days. For instance, offering a slight discount for mid-week morning sessions can help fill your schedule more evenly throughout the week.

When introducing new services or treatment packages, consider using introductory pricing to entice clients to try them. After the initial period, you can adjust prices based on the response and cost-effectiveness of the new offerings.

For services that may be booked online, ensure that your pricing strategy accounts for any additional administrative or technology costs. You might offer online booking discounts or package deals exclusive to your website to promote this convenient booking option.

Finally, be cautious with discounting services. While occasional promotions can attract new clients or reward loyal ones, frequent discounts can undermine the perceived value of your expertise. Use discounts strategically, perhaps in conjunction with a referral program or as a one-time offer for a client's first visit, without setting a precedent for ongoing reduced rates.

By carefully considering these factors, you can set a pricing strategy that supports your physical therapy practice's financial goals while keeping your services accessible and appealing to your clients.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly hinder the success of your physical therapy practice.

On the contrary, establishing strong partnerships with equipment suppliers and service providers ensures the consistent availability of high-quality therapy tools and materials.

Maintaining open lines of communication, making timely payments, and showing appreciation for their products and services can build loyalty and dependability. Be clear about your professional standards and patient needs, and if possible, visit their facilities. This will give you a better understanding of their production quality and any potential challenges, which can lead to more effective collaboration.

Consider long-term contracts for essential equipment and supplies to secure better pricing and ensure availability. However, it's also wise to have a network of alternative suppliers to reduce the risk of being unable to provide necessary treatments due to equipment shortages.

For managing inventory, such as exercise aids, braces, and clinical supplies, inventory management techniques are crucial. Regularly review inventory levels to adjust orders based on patient demand, avoiding excess stock and minimizing the risk of having outdated or expired products. A just-in-time (JIT) inventory system can be beneficial, where supplies are ordered and received as needed, though this requires accurate forecasting of patient needs.

Technology can significantly enhance inventory management and reduce unnecessary expenses in a physical therapy practice.

Implementing an inventory management system that integrates with your practice management software allows for real-time tracking of equipment and supply levels. This technology can help predict patient needs more accurately, streamline ordering processes, and identify trends that can inform service offerings and marketing strategies.

Additionally, digital tools can improve communication with suppliers, enabling more efficient order adjustments and collaboration.

Scaling your physical therapy practice presents challenges such as maintaining treatment quality, managing increased operational costs, and ensuring patient satisfaction. Address these challenges by standardizing treatment protocols, training staff thoroughly, and investing in equipment that can increase treatment efficacy without compromising patient care.

Scaling up also means more supplies, so negotiate pricing with suppliers for bulk purchases without sacrificing the quality of materials. Quality control becomes even more critical as your practice grows, requiring strict adherence to therapeutic standards and more frequent equipment checks.

Implementing effective cost control measures involves scrutinizing every aspect of sourcing and using therapy equipment and supplies. Regularly review and negotiate with suppliers to ensure you're getting the best value without compromising on the quality that your patients expect.

Also, consider alternative products that may offer cost savings or have special pricing due to bulk purchasing. Utilize technology to track and analyze costs, waste, and inventory levels to identify areas for improvement. Reducing waste not only cuts costs but also aligns with sustainable practices, which can enhance the reputation of your practice among environmentally conscious patients.

Hire the right people

When starting your own physical therapy clinic, you should consider the essential roles that will need to be filled to ensure a high standard of care and efficient operations.

At the core, your clinic will require a team that includes licensed physical therapists, physical therapist assistants, and administrative staff.

For patient care, you'll need licensed physical therapists who are skilled in assessing, diagnosing, and treating a variety of conditions. A lead physical therapist with extensive experience and specialized training can help set the standard for care and mentor other staff members.

Physical therapist assistants (PTAs) are also crucial, working under the direction of physical therapists to provide part of the patient's treatment and help with exercises and modalities.

On the administrative side, receptionists or front desk staff are essential for managing appointments, patient records, and providing excellent customer service. A clinic manager or owner-operator who can handle the business aspects, such as staff management, billing, and compliance with healthcare regulations, is also vital.

Specialized roles, such as sports rehabilitation therapists or occupational therapists, may not be necessary from the start but can be added as your clinic expands and the demand for specific services grows. Outsourcing tasks like accounting, marketing, and IT support can be a strategic way to focus on patient care while utilizing external expertise.

When hiring, prioritize candidates with the necessary certifications, experience, and a passion for helping others. For physical therapists, look for a degree in physical therapy and a valid state license. PTAs should have completed an accredited PTA program and obtained licensure. Administrative staff should have experience in healthcare settings and strong organizational skills.

To ensure a good fit with your clinic's culture and patient care philosophy, consider practical assessments during the hiring process, such as role-playing patient scenarios or reviewing case studies.

Seek candidates who are compassionate, dedicated to patient recovery, and adaptable to the dynamic nature of healthcare.

Finding the right candidates can be challenging. Utilize professional networks, healthcare job boards, and social media platforms to reach potential hires. Networking within healthcare communities and attending job fairs can also be effective. Offering internships or partnerships with local physical therapy programs can help attract new graduates.

Here is a summary table of the different job positions for your physical therapy clinic, and the average gross salary in USD.

Running the operations of your physical therapy practice

Daily operations.

Running a physical therapy clinic smoothly requires organization, efficiency, and a patient-centered approach. By implementing the right systems and fostering a positive environment, you can ensure your clinic operates at its best.

Firstly, adopting a clinic management software tailored for physical therapy practices can greatly enhance your daily operations.

Choose a system that integrates appointment scheduling, patient records, and billing. This integration allows you to manage appointments effectively, maintain accurate and secure patient records, and streamline the billing process.

Many advanced clinic management systems also include telehealth capabilities, which can broaden your service offerings and provide convenience for patients who are unable to visit the clinic in person.

For patient record management, you want software that allows you to document treatments, progress notes, and patient outcomes efficiently.

The best systems enable you to customize templates for different treatment protocols, set reminders for follow-up appointments, and generate reports to track patient progress. This helps in providing personalized care and adjusting treatment plans as needed.

Effective communication with other healthcare providers is also essential for a physical therapist's success.

Establish secure channels for sharing patient information and collaborate closely with referring physicians and specialists. This ensures continuity of care and can lead to better patient outcomes. It's also important to stay informed about the latest research and treatment techniques in your field.

Keeping your team engaged and motivated is about creating a supportive work environment and promoting professional development.

Regular in-service training, clear communication of clinic goals and policies, and constructive feedback are key. Acknowledging and rewarding dedication and achievements can also help maintain a positive team spirit. Ensure that work schedules are fair and allow for a healthy work-life balance.

Ensuring that every patient has a positive experience starts with the atmosphere of your clinic, the effectiveness of your treatments, and the service provided by your team.

Train your staff to be empathetic, knowledgeable, and efficient. Encourage them to build rapport with patients, contributing to a more comfortable and trusting therapeutic environment.

Maintaining a clean, accessible, and well-equipped clinic, with clear signage and a layout that accommodates patients with different needs, also enhances the patient experience.

Effective patient service policies for a physical therapy clinic might include a commitment to timely and effective treatments, clear communication about treatment plans and expectations, and a system for gathering and acting on patient feedback.

Make it easy for patients to provide feedback, whether in the clinic, through your website, or via email. Respond to feedback promptly and constructively, showing that you value their input and are dedicated to improving their care.

Handling patient feedback and concerns with professionalism is crucial. Always listen to the patient's issues fully before responding. Apologize where necessary and offer a solution or adjustment to the treatment plan, if appropriate.

Use feedback as an opportunity to refine your clinic's operations, treatments, or customer service. Turning a less-than-ideal situation into a positive one can often result in a more satisfied and loyal patient.

Revenues and Margins

Know how much you can make.

Understanding the financial dynamics of a physical therapy practice is crucial for its success.

We have an in-depth article on the financial aspects of running a physical therapy clinic that you might find useful. Here, we'll provide a brief overview.

One key metric for a physical therapy clinic is the average revenue per patient visit.

The average revenue per patient visit is the average amount a patient pays for a session of physical therapy.

This metric can vary widely depending on the services provided, the clinic's location, and the patient's insurance coverage. For a standard outpatient clinic, the average revenue per visit might range from $75 to $150 .

Specialized clinics, such as those focusing on sports medicine or pediatric therapy, may command higher fees due to their targeted expertise and services, with average revenues per visit potentially between $100 and $200 .

Home health physical therapy services, which involve therapists visiting patients at home, might see different revenue ranges due to the added convenience and personalized care, possibly between $100 and $250 per visit.

When it comes to overall revenue, it also varies. You can estimate your clinic's revenue accurately with our tailored financial plan for physical therapy practices .

Urban clinics might see monthly revenues ranging from $10,000 to $50,000 , translating to annual revenues from around $120,000 to $600,000 .

Rural clinics, facing a smaller potential patient base, might expect annual revenues on the lower end of that spectrum ( annual revenue between $80,000 and $400,000 ).

New clinics in the startup phase often experience lower revenues as they work to establish a patient base and reputation. Initial monthly revenues might not exceed $8,000 .

Conversely, established clinics with a solid patient base and referrals can enjoy higher and more stable revenues.

Specialized clinics, while potentially charging higher rates, may have a smaller patient base due to the niche nature of their services. Their annual revenues can vary greatly.

Physical therapy clinics don't just earn money from patient visits. They can diversify their income with additional services and offerings.

If you're looking for inspiration, here's a table that outlines various potential revenue streams for a physical therapy clinic.

Understand your margins

As a physical therapist, understanding the financial health of your practice is as crucial as providing excellent patient care. While revenue is important, it's the profit margins that truly determine the sustainability of your practice.

Let's delve into the key profitability metrics: gross and net margins, which are vital for assessing the financial performance of a physical therapy practice.

To calculate your own margins and gain insight into your potential profit, you can adjust the assumptions in our financial model designed for physical therapists .

Gross margins for physical therapy services typically range from 30% to 50%. Gross margin is the difference between the revenue earned from patient services and the direct costs associated with providing those services (such as salaries for physical therapists and aides, and costs of supplies and equipment), divided by the revenue, and then multiplied by 100 to get a percentage.

Net margins consider not only the direct costs but also all other operating expenses, including rent for the practice space, utilities, administrative expenses, marketing, insurance, and taxes. Net margins provide a more complete picture of a physical therapy practice's profitability and are generally lower than gross margins, with industry averages often between 10% to 20%.

Different types of physical therapy practices—solo, group, and specialized—may experience varying profit margins due to differences in their operational structures and client bases. Here is a table to illustrate these differences.

The margins of a physical therapy practice can be influenced by several factors, including the mix of services offered, pricing strategy, and the volume of clients.

A diverse range of services can attract a wider clientele but may also increase operational complexity and costs. Pricing strategy is critical; fees must be competitive yet sufficient to cover costs and yield a profit. Client volume impacts revenue and the ability to spread fixed costs over a larger number of sessions.

Ongoing expenses that affect margins include salaries for staff, rent for the practice space, utilities, and the cost of supplies and equipment. Salaries are a major expense, particularly as the practice grows and additional therapists are hired. Rent can vary significantly based on location, and utilities and equipment costs must be managed efficiently.

Practices that specialize in areas such as sports rehabilitation or pediatric therapy may have different margin profiles compared to general practices. While specialized practices can command higher fees, they also face higher costs for specialized equipment and potentially limited client bases.

External factors such as healthcare regulations, insurance reimbursement rates, and patient demographics also influence the margins of a physical therapy practice. Adapting to changes in these areas is essential for maintaining profitability.

Managing margins in the face of rising operational costs is a challenge. Physical therapy practices can address this by optimizing cost management, implementing strategic pricing, and investing in technology to improve patient outcomes and operational efficiency.

Regular monitoring and analysis of financial performance, including gross and net margins, is crucial for the long-term success of a physical therapy practice. Fortunately, you can track all these metrics using our financial model specifically created for physical therapists .

Implement a strong marketing strategy

Marketing for a physical therapy clinic doesn't have to be an overwhelming task. We understand that as a physical therapist, your primary focus is on providing excellent patient care, and you may not have extensive time to dedicate to marketing. That's why we've crafted a straightforward and practical marketing strategy, which you can find detailed in our business plan for a physical therapy clinic .

Building a strong brand for your physical therapy clinic is essential.

Your brand represents how patients perceive and remember your services. It encompasses more than just your clinic's name or logo; it's about the patient experience, the healing environment you create, and the core values you uphold, such as holistic health or innovative treatment methods. A distinctive brand will differentiate your clinic in a competitive healthcare market and help cultivate a dedicated patient base.

Begin your marketing plan by identifying your target demographic. Who are the patients you aim to serve? What are their primary health concerns? Do they value personalized care, cutting-edge treatments, or perhaps a family-friendly environment? Knowing your audience will shape your branding and promotional efforts.

When it comes to promotion, social media and online marketing are invaluable for physical therapists. Platforms like LinkedIn, Facebook, and even Instagram can be excellent for demonstrating your expertise and connecting with potential patients.

Share educational content that informs your audience about common physical ailments and the treatments you offer. This not only adds a personal touch but also showcases your knowledge and dedication to patient health.

Patient testimonials and success stories can foster trust and motivate others to seek your services. Educational videos or health tips can engage your audience, provide them with valuable information, and position your clinic as a leader in the field.

Content strategies that work well for physical therapy clinics include highlighting patient recovery journeys, explaining treatment modalities, and promoting wellness and preventive care. Collaborating with local healthcare providers or fitness influencers can also increase your visibility.

However, not all marketing techniques will be suitable for your clinic. For instance, if your target patients are in your local area, investing in broad, national advertising may not be cost-effective. Similarly, if your clinic specializes in sports rehabilitation, focusing on content related to geriatric care might not resonate with your brand.

Even with a modest budget, there are several strategies you can employ to attract new patients.

First, consider participating in community health fairs or local events where you can offer free consultations or workshops. This not only introduces your services to potential patients but also builds community presence.

You can also provide educational seminars or classes in your clinic or at local community centers to engage with the public.

Forming partnerships with local gyms, sports clubs, or other healthcare providers can extend your reach and create referral networks.

Implementing a referral program can encourage your current patients to recommend your clinic to others. Simple incentives or discounts on future services can be quite compelling.

Lastly, never underestimate the power of word-of-mouth marketing. Encourage your satisfied patients to share their positive experiences by offering them rewards for bringing in new patients.

Grow and expand

We want you to thrive in your physical therapy practice. The insights provided here are intended to help you reach that goal.

Imagine you're already running a successful physical therapy clinic with solid profit margins and a steady influx of clients. Now is the time to contemplate how to scale and expand your services.

There's always potential for greater achievement, and we're here to show you the path to further success.

Also, please note that we have a 3-year development plan specifically designed for physical therapy practices in our business plan template .

Successful physical therapists often possess qualities such as empathy, excellent communication skills, a strong knowledge base in their field, and the ability to build trust with their patients. These traits are essential as they explore ways to grow their practice.

Before adding new services or specialties, consider the current market demand, how these services complement your existing offerings, and the impact on your clinic's operations.

Market research is critical in this phase. By understanding patient needs, emerging health trends, and the success of similar services in the market, you can make informed decisions that are in line with your clinic's capabilities and patient expectations.

To evaluate the success of your current operations, look at patient retention rates, client testimonials, and operational efficiency. If your clinic consistently meets or exceeds patient satisfaction goals, receives positive feedback, and operates smoothly, it might be time to consider expansion.

Opening additional clinic locations should be based on clear evidence of demand, a deep understanding of the target demographics, and the financial stability of your existing operation.

Franchising can be a way to expand with less capital risk, tapping into the entrepreneurial drive of franchisees.

However, it requires a reputable brand, proven treatment protocols, and the ability to support franchisees. Opening owned branches gives more control over patient care and clinic culture but demands more capital and hands-on management. Each approach has its pros and cons, and the decision should align with your business objectives, resources, and growth preferences.

Digital channels, including telehealth services and online appointment booking, can significantly extend a clinic's reach and patient base. An online presence allows you to serve patients beyond your immediate area, meeting the growing need for accessibility and convenience.

This strategy demands an understanding of digital health regulations, logistics for remote patient engagement, and maintaining high standards of care.

Branding is vital as it sets your clinic apart in a competitive market. A strong, consistent brand identity across all locations and platforms can foster patient loyalty and attract new clients. Enhance your brand by ensuring every patient interaction reflects your clinic's values, professionalism, and care quality.

Ensuring consistency across multiple locations is a challenge but is critical for success. This can be managed through comprehensive operational guidelines, staff training programs, and quality control measures.

Regular visits and audits, coupled with nurturing a cohesive, shared culture, help guarantee that each location maintains the standards that made your original clinic successful.

Financial indicators and business benchmarks that signal readiness for expansion include consistent profitability, robust cash flow, and achieving or surpassing patient volume projections over a considerable time.

Having a scalable business model and the operational capacity to support growth are also essential factors.

Partnerships with healthcare providers and participation in community health events can introduce your clinic to new patients and markets. These opportunities allow for networking, community involvement, and increased visibility, contributing to your practice's growth.

Scaling your services to meet higher demand involves logistical considerations such as investing in new equipment, optimizing patient scheduling, and potentially expanding your clinic space. It's crucial that your supply chain and staffing levels can handle the increased patient load without compromising care quality.

Finally, it's vital that your expansion efforts remain aligned with your clinic's core values and long-term objectives. Growth should not detract from the principles that made your practice successful.

Regularly revisiting your business plan and values can help ensure that your expansion strategies stay true to your vision and mission, preserving the essence of your physical therapy practice as it evolves.

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How To Write a Business Plan for Physiotherapy in 9 Steps: Checklist

By henry sheykin, resources on physiotherapy.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Looking to start a physiotherapy company? You're in luck - the demand for physiotherapy services is higher than ever! According to IBIS World, the physiotherapy industry is expected to grow at an annual rate of 4.3% over the next five years. To help you create a successful business, we've put together a checklist of nine essential steps for writing a business plan for physiotherapy.

The first step is to conduct market research, which will give you an understanding of the industry and help you identify potential opportunities. From there, you can define specific goals and objectives for your business, such as offering personalized homecare plans and onsite health programs.

• Outline the services to be offered
• Assess the competition
• Determine target market and customer base
• Develop a pricing strategy
• Create a marketing and advertising plan
• Determine staffing requirements
• Conduct a financial analysis

By following these nine steps, you'll be well on your way to creating a successful physiotherapy business.

Conduct Market Research

Before starting any business, it is important to understand the market you are entering. Conducting thorough market research can help you identify potential customers, competitors, and market trends. The information gathered during this step is crucial in developing a solid business plan that addresses the needs of your target audience and sets your company apart from the competition.

One important element of market research is identifying your target market and customer base. You need to understand the demographics, location, and lifestyle choices of potential clients. This will help you tailor your services and marketing efforts to appeal to this specific group.

• Tip 1: Use online resources to gather demographic information about your target market.
• Tip 2: Conduct surveys and interviews to gather information directly from potential customers.

Another important element of market research is assessing the competition. This helps you understand the strengths and weaknesses of your competitors, as well as identify gaps in the market that your business can fill.

• Tip 3: Visit the websites and social media pages of your competitors to gather information on their services and pricing.
• Tip 4: Conduct a SWOT analysis (strengths, weaknesses, opportunities, threats) to identify areas where you can excel.

Once you have a clear understanding of your target audience and competition, it is important to identify any market trends and potential challenges your business might face. This information can help you adapt your business plan accordingly and make informed decisions.

• Tip 5: Attend industry conferences and events to stay up-to-date on the latest trends.
• Tip 6: Research any legal or regulatory requirements that may impact your business.

Overall, conducting thorough market research is an essential step in developing a successful business plan for your physiotherapy company. It helps you understand your target market, competition, and industry trends, which is crucial for making informed decisions as you move forward.

Define Specific Goals And Objectives

Before starting any business venture, it is essential to define specific goals and objectives. These goals and objectives will guide you through the planning process and help you to make informed decisions. When it comes to developing a business plan for Physiotherapy, there are some key goals and objectives to consider.

• Offer comprehensive services: The primary goal for any Physiotherapy business is to provide comprehensive services that can cater to the needs of clients. This means offering services that meet the needs of clients of all ages and skill levels, no matter if they require custom exercise regimes, personalized homecare plans, or onsite health programs.
• Focus on improving overall health: The objective of any Physiotherapy business should be to enhance a client's overall physical, emotional, and mental health. To achieve this, tailor the services based on the person’s individual needs and ensure that proper evaluations, consultations, and follow-up visits are conducted to track their progress towards specific goals.
• Serve a broad customer base: While it is essential to target primary customer groups, such as the elderly or athletes, it is also essential to serve a broad customer base. This includes addressing the needs of customers of different age groups, backgrounds, and fitness levels.
• Maximize profitability: The objective of any business is to generate profits. Hence, develop a realistic pricing strategy while keeping the costs in mind, such as acquiring equipment, paying staff salaries, and ensuring profitability for the business.
• Establish a unique identity: Creating a brand identity that is unique and distinct from competitors plays a key role in establishing a Physiotherapy business successfully. It should be aligned with the services offered, the target market, and the business values.
• Ensure that the goals and objectives are SMART (Specific, Measurable, Achievable, Realistic, Time-bound).
• Make sure that your goals and objectives align with your overall vision and mission statement.
• Ensure you have a system in place for evaluating the success of your goals and objectives regularly.

Define goals and objectives that are relevant to your business. Conduct comprehensive research to evaluate what goals and objectives align well with the Physiotherapy business model. These goals and objectives will be the foundational pillars that guide your business growth and success path.

Outline The Services To Be Offered

As a physiotherapy company specializing in custom exercise regimes, personalized homecare plans, and onsite health programs , it is essential to have a clear outline of the services that will be offered to the target market. Here are some key services that should be included:

• Custom Exercise Regimes: Exercise is an essential part of physiotherapy, and each client has different physical needs. Developing custom exercise regimes for each client will improve their overall physical health and prevent further injuries.
• Personalized Homecare Plans: To ensure clients are practicing healthy habits even outside of the facility, personalized homecare plans will be created for each client. These plans will aim to improve their physical, emotional, and mental health to reach their goals.
• Onsite Health Programs: Our onsite health programs will be customizable for small and large businesses. These programs will help prevent workplace injuries and improve overall employee wellness.
• Evaluations, Consultations, and Follow-Up Visits: Before starting any treatment, it's essential to evaluate clients' physical health and create an effective treatment plan. Consultations will be provided to clients to ensure that the treatment plan aligns with their goals and expectations. Follow-up visits will be part of our services to track the client's progress and modify the treatment plan as required.
• Make sure all services are customizable to cater to each client's needs. Smart customization builds a better relationship with clients and is also a great way to stand out from your competitors in the market.
• Make sure the clients are clear about the services offered at your physiotherapy company and how each service will benefit them.
• Be transparent about any restrictions or limitations you have in offering any services.

When outlining the services to be offered, it's important to keep in mind the resources required to deliver these services effectively. With well-articulated services, a physiotherapy business can clearly communicate to potential clients what sets them apart from the competition and how the business will cater to their specific needs.

Assess The Competition

One important aspect of creating a successful physiotherapy company is understanding the competition. Assessing the competition will help you gain insights into the market and identify potential strengths and weaknesses in your own business plan. Here are some important factors to consider when assessing your competition:

• Services offered: Identify what services your competitors offer and how they differentiate themselves from one another. Observe if they have similar or additional services that you may need to consider adding or improving upon in your own business plan.
• Pricing strategy: Analyze the pricing strategies used by your competitors. How do their prices compare to the market average? Consider whether you want to follow their pricing strategy or offer different packages.
• Target markets: Look at your competitor's target market. Who are they serving and which demographics seem to be the focus? Determine if you want to broaden your target demographic or specialize in a particular niche in comparison to your competitors.
• Marketing and advertising: Review the marketing and advertising approach of your competitors. Determine what they're doing well and what can be improved upon. Create a marketing plan that can leverage their strengths and differential advantages.
• Clients' feedback: Collect information on the feedback and reviews of clients of your competitors. Analyze what they're doing well and what you can do to differentiate yourself from them. It's worth checking their social media and online reviews.

Tips for Competitor Analysis:

• Visit the website of your competitors and note the unique selling points they emphasize and the descriptions they give for their services offered. Return occasionally for updates on their products.
• Visit or call your competitor's company to get information to supplement what is available online. Sign up for their emails and newsletters.
• Read their online reviews and social media posts to understand how their clients speak about their services.
• Engage with both their former and current clients to find out about their experiences and the pros and cons of their treatment plans.

Determine Target Market And Customer Base

Identifying your target market and customer base is the foundation of your business. Knowing who your ideal customer is will help you tailor your services, pricing, and marketing efforts towards their specific needs and preferences. Your target market should be a group of people who share common characteristics and are most likely to use your services.

To determine your target market, ask yourself the following questions:

• What age group would benefit the most from my services?
• What is the gender distribution of potential clients?
• What are their interests and hobbies?
• What is their income level?
• What are their pain points and challenges related to physical, emotional, and mental health?
• Use online tools like Google Analytics and social media insights to gather data on your target market.
• Consider conducting surveys and focus groups to get direct feedback from potential clients.
• Don't try to please everyone – focus on a specific niche to differentiate yourself from the competition.

Once you have identified your target market, develop a customer profile highlighting their demographics, psychographics, and behavior. This will help you create a personalized experience for each customer, making them feel valued and understood.

It's also important to consider your customer base in terms of their geographic location. Is your business serving a local community, or do you plan to expand nationally or internationally? Knowing where your customers are located will help you develop a marketing strategy that is relevant and effective.

Lastly, keep in mind that your target market and customer base may evolve over time. Stay open to feedback and adjust your services and marketing efforts accordingly to meet the changing needs and preferences of your customers.

Develop A Pricing Strategy

Once you have outlined the services that your physiotherapy company will provide, the next step is to develop a pricing strategy . This strategy should take into account your costs, competition, and target market. Here are a few tips for developing a pricing strategy:

• Determine your costs, such as rent, utilities, equipment, and staffing.
• Research your competition to see what they are charging for similar services.
• Consider your target market and what they would be willing to pay for your services.
• Decide if you want to offer different pricing tiers, such as individual sessions, group packages, or ongoing plans.
• Make sure your pricing covers your costs and provides a profit margin.

When developing your pricing strategy, it is important to remember that your prices should reflect the value of the services you provide. Keep in mind that your clients are paying not just for your time, but for your expertise and knowledge in developing personalized exercise regimes and homecare plans.

If you are unsure of how to price your services, consider conducting a survey with your target market to get a better understanding of what they would be willing to pay for your services. This can give you insights into how to price your services to be competitive while also meeting your financial goals.

Once you have developed your pricing strategy, it is important to regularly review and adjust your pricing as needed. This can help ensure that your prices remain in line with your costs and your competition while still providing value to your clients.

In conclusion, developing a pricing strategy for your physiotherapy business is a crucial step in becoming successful. By taking into account your costs, competition, and target market while also reflecting the value of your services, you can establish a pricing strategy that will help you meet your financial goals while also providing quality services to your clients.

Create A Marketing And Advertising Plan

Once you have determined your target market, pricing strategy, and services to be offered, it is essential to create a marketing and advertising plan. Your plan should focus on reaching your target market and promoting your services. A well thought-out marketing plan will help you increase your client base, retention rates, and overall revenue.

The following are some crucial steps to include in your marketing and advertising plan:

• Define your unique selling proposition - What sets your physiotherapy company apart from the competition? Identify what makes your services unique, and use this as your primary sales pitch.
• Identify marketing channels - Determine the most effective ways to reach your target audience. Consider using social media platforms, email marketing, flyers, posters, and referrals.
• Create a budget plan - Calculate your marketing expenses to avoid overspending. Allocate a reasonable budget to each marketing channel based on the estimated ROI.
• Be consistent with your branding across all marketing channels, including your website, logo, business cards, and flyers.
• Use testimonials from satisfied clients to build brand awareness and trust in your services.
• Participate in community events and sponsor local organizations to increase brand visibility.

Implementing a marketing and advertising plan will take time, money, and effort. But, it is an excellent way to promote your physiotherapy company to your intended audience while highlighting your unique services, driving revenue growth, and building brand equity in the long run.

Determine Staffing Requirements

When planning to start your own physiotherapy business, your staffing requirements are a crucial consideration. Your team of staff members will directly impact the success and growth of your business, as they are responsible for providing exceptional care to your clients.

Begin by carefully considering the various roles that need to be filled within your team. These roles will include physiotherapists, receptionists, administrative staff, and potentially even marketing or outreach personnel. Each position comes with a unique set of skills and responsibilities, so be sure to have a clear understanding of the requirements for each role before beginning the hiring process.

When searching for physiotherapists to join your team, prioritize experience and educational background. Look for candidates who hold relevant degrees or certifications in physiotherapy and who have worked in the field for several years. Candidates with experience in the specific areas that your business will focus on will be particularly valuable.

Receptionists and administrative staff should have excellent communication and organizational skills, as they will be responsible for scheduling appointments, managing client records, and handling customer inquiries. Consider hiring individuals with customer service experience who are capable of working in a fast-paced environment.

Once you have a clear understanding of the roles you need to fill, create job descriptions and job postings to attract qualified candidates for each position. Make sure to include the responsibilities, qualifications, and compensation that comes with each position to avoid confusion and ensure transparency.

• Consider partnering with local universities or physiotherapy programs to find qualified candidates.
• Be sure to conduct thorough interviews for each position to ensure you are hiring the most qualified and passionate individuals for your team.
• Offer competitive salaries and benefits packages to attract the best talent and help retain employees in the long term.

Conduct A Financial Analysis

Conducting a thorough financial analysis is crucial for any business, including a physiotherapy company. It helps understand the company's current and future financial status and identify areas of improvement. It involves analyzing various factors, including revenue, expenses, profits, cash flow, and ROI.

Here are some important steps to follow when conducting a financial analysis:

• Review past financial statements: Analyze past revenue and expense data to identify trends and patterns. This will help identify areas where you can reduce expenses and increase revenue.
• Create financial projections: Based on the historical data, create a financial projection for the future. This will give you an insight into how the business is expected to perform financially.
• Identify funding sources: Determine how you plan to fund the business, whether through loans, grants, or personal investment.
• Calculate break-even point: Determine the minimum amount of revenue you need to generate to cover your expenses and start earning a profit.
• Use accounting software to track expenses and revenue accurately.
• Consult with a financial advisor to ensure that you are making the right financial decisions for the business.
• Periodically review financial statements to identify areas of improvement and make necessary changes.

Conducting a financial analysis is an essential step in developing a business plan for your physiotherapy company. It will help you understand the company's financial health and identify areas of improvement. By following these steps and utilizing the tips provided, you can ensure that your business is financially stable and profitable in the long run.

Writing a business plan for a physiotherapy company is crucial to its success. By following these 9 steps, you can ensure that your plan is comprehensive and covers all the necessary aspects of starting a physiotherapy business. Conduct thorough research, know your competition, determine your target market, pricing strategies, marketing and advertising plan, staffing requirements, and perform a financial analysis. By doing this, you will be able to create a plan that can help you gain financial backing, increase your chances of success, and contribute to your vision of improving people's overall physical, emotional, and mental health.

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How to Create a Business Plan For Your Physical Therapy Private Practice

Whether you're starting up a brand new practice or are an established practice looking to plan for the future, a business plan is key.

You Can't Get Where You're Going Without a Plan

A business plan is an essential formal document and should outline every aspect of an existing or new physical therapy private practice. And while it contains vital information about your finances, management, market, and funding requests—it doesn’t have to be complicated. Excellent business plans provide structure for an organization for the first five years of operation. They’re also a fantastic device for goal-setting in all major areas, including sales, expenses, hiring, and financing.So what’s included in a business plan? And how can you write one for your physical therapy private practice? In this article, we’ll break down each section of the business plan and give you the tools you’ll need to write your very own.

Business Plans Are Not Just for Start-Ups

While business plans are most associated with new practices looking to get open, the reality is that having a business plan can serve all practices. Start-ups absolutely need a business plan to guide and aid them in getting loans or additional funding. Even if you're not planning to seek external funding, having a business plan is crucial to success; the plan will act as a roadmap and as a roadmap. For established practices, the exercise of writing a business plan or updating an existing plan can help provide an opportunity to think about what's working and what's not and to then plot a way forward. This could include new markets, new referral sources, new markets or just fine-tuning existing strategies.

Executive Summary

Writing the executive summary is perhaps the most integral part of creating a business plan for your private physical therapy practice. Not only does it provide a clear and concise overview for readers, but it promotes other benefits such as attracting potential investors and determining if your practice will be profitable in the long-run. Writing the executive summary for private practices requires market research. You should begin with the essentials:

• Description of your practice
• Services your PTs will provide
• Mission statement and overlying purpose for creating the clinic
• Opportunity statement to investors or lenders explaining the marketplace for physical therapy and how your clinic will contribute
• Detailed analysis of the rehabilitation marketplace pinpointing your clientele, marketplace growth, and competitor data.

Furthermore, you’ll write a summary of your management expertise and projected financials to hook your audience.

Practice Description

A practice description should tell the reader everything they need to know about who you are, where you’re at, and what you do. People want to get a good sense of who they’re conducting business with. Great practice descriptions include information about why you’re getting into business, what therapy your practice excels at providing, and why your clinic is equipped to provide those services. People want solutions—what shortcomings is the business solving right out of the gate in your respective market? How is your business leveraging the chosen location to secure clientele? Answer these questions, and do the research required to build your business plan on a solid foundation.

Market Analysis

After showcasing your expertise, providing solutions to problems, and building a buzz around the qualified individuals who are running the practice—what does the market look like?Market analysis needs to dive deep and provide answers for any form of skepticism. Every private practice has a different clientele, competition, and operational challenges to combat, but there are some universal questions business owners should ask themselves while writing a market analysis:

• Who are our successful competitors?
• What are they doing correctly to make them successful?
• How can our private practice do it better?
• What would I want as a patient receiving therapy at our clinic?
• What does the past, present, and future look like in our target market?

There are thousands of questions you can ask yourself, but getting a good grip on the competition, landscape, and projected need for the physical therapy you provide is essential.

Organization and Management

Simply put, this is the hierarchy of your practice and will explain how tasks are completed. Each position is plotted on an organizational chart detailing who’s responsible for what. This section of a business plan provides an excellent opportunity to highlight exceptional skills, talents, and achievements. It can also be used to show how you can delegate tasks and reduce costs by implementing physical therapy software . The organization and management section is also used to discuss the legal structure of your practice. While most private practices are sole proprietorships, it’s important to disclose any legal agreements.

Marketing Strategy

Now the fun part, selling your business to the public and other clinics. Building a powerful marketing strategy instills brand confidence , which generates more patients. You should explore how to write a compelling ad for your physical therapy practice and cater advertisements to selected marketing platforms. Use the market analysis and competitor research you’ve compiled to make strategic decisions. Remember, there’s no one way to approach a marketing campaign. The best policy is to do your research, take a shot, analyze the campaign data, and adjust future campaigns for enhanced results.

Funding Request

Not all business plans will require a funding request, but for those that do, you’ll want to outline the request in detail. Funding requests should begin with a summary of how much funding you’ll need for the first five years of operation. It will be a step-by-step analysis covering any required start-up and future expenses including everything from rent to individual PT salaries . Business owners want to specify whether you want debt or equity, terms and conditions, and the time the funding request will cover. Finally, there needs to be an element of future-sight included in the request. You’ll need to let investors know plans of paying off debts , selling the business, or opening up multiple clinics in the long-term.

Financial Projections

Selling the unknown takes a lot of charisma and data. This stage of your business plan will encompass your entire financial projections for the first five years of business. The financials should include, but are not limited to: ‍ Sales forecast – By using the market and competitor data, you’ll want to project the monthly sales data for your practice. The forecast should include a pricing structure for each treatment rendered and how many patients you expect to see per month. You should be meticulous by doing a month-by-month analysis within the first two years of business. Afterward, you can defer to quarterly sales projections. ‍ Expenses budget – In detail, explain the overhead and varied costs in any given month. Investors will want to see a profit yield on physical therapy provided to clients. ‍ Cash Flow Statement –The cash flow statement will depict how much money is coming into your practice versus how much is going out. Unfortunately, starting a private practice from scratch offers little perspective on the real cash flow analysis. However, you can use sales forecasting, industry knowledge, and the expense budget to hit projections accurately. Revenue will often lag in cases where patients pay off their physical therapy debts on payment plans. Be mindful of carried balances when pinpointing the cash flow so your business can project accurate revenue on hand. ‍ Profit and Loss Statement – A culmination of your sales projections, expense budget, and cash flow analysis used to provide insight on what the clinic will—or won't take home in the next five years. Most new businesses will add a break-even projection goal to educate on when the clinic will start turning a profit. ‍ Balance Sheet – A detailed list of all assets and liabilities, providing you with a bottom-line value of the clinic.

Supporting Documents Required

Finally, you’ll want to provide some supporting documents relevant to your situation. These could include but are not limited to blueprints of the clinic, marketing mock-ups, quotes and estimates from contractors, legal documents about your physical therapy practice, and accolades such as industry awards or customer letters.

Be Flexible and Keep Your Plan Updated

Once you get your plan completed and begin implementing it, keep it handy for reference and update it often as you learn what's working and what isn't. The plan should be a guide giving you a path to success with the understanding that market realities may cause you to need to tweak or change your path - in some cases considerably. It's OK to grow and change, that should be part of the plan too but with a plan in hand you'll be able to be very clear on what you're changing and why. It will also help you give clarity to your team and potential investors or bank, as needed.

The Bottom Line

Sit back with an umbrella and a bendy straw and enjoy your new business plan. Creating an outline is the first big step towards owning a private practice. And while starting is difficult, hopefully, each section of the business plan equips practice owners with a strategy. If you’re looking to simplify your scheduling, EMR, billing, organization, and other aspects of your new physical therapy practice experience our free live demo that’s guaranteed to streamline opening a clinic.

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Guide for opening your own physiotherapy clinic

Jun 22, 2022 | Tips

Are you an established physiotherapist? Do you feel the urge to take the next step and move on from merely being an employee, to starting your own physiotherapy practice? Let’s do it! We have a few steps you can take to make your physical therapy clinic start up dream a reality.

Why start your own practice?

Firstly, decide what you want from your personal physiotherapy practice. Can you enhance life quality and independence through therapy? Do you want to make a better living for yourself and gain more control over your career? It’s advisable to set your goals clearly before laying out a business plan on paper.

List your main motivations and goals for getting started in business. Answer this question several times to understand what is going on. This is how you’ll guide your decisions.

Develop a business plan

It’s time to explore competition and decide on your specific target, make the financial decisions to start a clinic, and look at the requirements of a physical therapy clinic.

You’re also going to need an excellent business plan to be submitted for funding – whether through a bank, alternate loan provider, or investment.

Keep it simple so that your vision is clear. It’s necessary to understand your business principles to ensure everything from product marketing to customer support is running smoothly.

To take the pain out of writing one from scratch, we’ve created a business template for you to download for free.

Buy an existing business?

Is it better for physiotherapists to buy an existing practice than begin a new one? When you buy an existing enterprise, it means the patient base and staff have already been installed. The purchase of a business is an extremely difficult task, however, unless there’s specialised expertise in this area; for example, legal and financial expertise are essential.

You’ll need to establish why it’s being sold in the first place – was it unable to flourish for reasons you too will encounter?  Establish an authentic financial position to ensure a good price for the business.

Start searching for and hiring staff

It is your job to attract and retain the best talent. Your clinic will only be as good as your physios, so you need to pay careful attention to the hiring process. Do you need specialists? Would a more recently educated physio have new methods that you could harness? Would a more experienced practitioner suit you better?

You may also need to hire an office manager, cleaning service, and someone on the front desk. This will all depend on the size of your practice and how much  of your attention you wish to pay to clients as opposed to managing the administration of your business.

How do I differentiate my practice?

It’s time to think about what makes a good practitioner different from other practitioners. You must anticipate competition between physiotherapy clinics an get ahead of it. How will your clinic differ? You need to know what sets your clinic apart:

• Will your practice have a multi-disciplinary nature?
• Will you home in on a niche?
• Will you focus on your price point?
• Will you have the latest fit outs and equipment?
• Wil you offer the newest treatments?
• Will you bring client services and satisfaction into sharp focus?

Cement your competitive difference and work it into your marketing.

Promote and market your clinic

1) your website.

Your website is first up – you should be ensuring you have a high-quality website that’s mobile friendly and fast. Make sure you have thought about user experience (UX) and design, keeping it simple and well branded.

You should also be paying attention to landing pages and calls to action – specifically for click throughs from ads or social content. This is what helps drive sales.

Make sure you have a solid blog page that’s regularly updated too. This will keep your website ranking high on search engines like Google.

Your content is king. Creating fresh and engaging content will be pivotal in your marketing plan. Your content is often what populates your other digital channels, and it should appeal to your base of customers. Try to create the following:

• high quailty blogs
• ebooks and in-depth content
• video content
• original brand-oriented photography
• testimonials and case studies
• infographics
• web content
• how-to guides

Much of the content you create will seed things like social media and email activity, so make sure you’ve spent time crafting great content.

3) Social media

Social media is one of the cornerstones of digital marketing. Make good use of the content you create and share it across your social network as well.

Pay attention to linking back to your website booking form with a call to action, landing page or customer journey. Look into the following avenues for social media marketing:

• paid or boosted posts
• brand stories
• organic posting around your products or customers
• click throughs to blogs and other website hosted content
• direct promotions such as sales and deals

Search engine optimisation (SEO) is paramount in digital marketing. Spend time teaching yourself about basic keyword SEO and how to set up your website to be easily searchable.

It might be wise to engage with a specialist to best understand how to ‘game’ Google and increase the visibility and relevance of your content, website, and social media posts.

6) Paid ads

Paid ads are another mainstay of digital marketing. Whether you engage with paid social posts, Google ads or host ads on relevant websites, paid ads are still a great way to increase awareness of your business and get people ‘in the door’.

This is extremely valuable as your open your physiotherapy practice for the first time. Putting down money to do a big advertising drive to drum up attention may be necessary in your early days, before word-of-mouth kicks in.

Design the space

Now you need to design the area you’ll be practicing from. Your physical space is not just practical in terms of treatment, it also reflects your brand and creates a sense of comfort and professionalism.

Take into account that an expert designer can maximise your square footage while capturing your vision of your clinic.

Think about:

• Practical and private treatment spaces
• All the equipment you’ll need and the spaces they can occupy
• A stellar front desk and waiting room
• Branded colour scheme
• Practicalities such as plumbing, heating and lighting

If you want some tips on designing a cracking front desk experience, read our article here .

Financing your new practice

Many people feel intimidated when it comes to business financing. This can be completely understood as your studies in physical therapy may not cover the financial aspects, but it is a crucial element for a physical therapy clinic.

First, you’ll need that business plan you created, then you need to decide on your chosen mode of business financing. These include:

• debt financing (aka a loan)
• self-financing
• investor financing

All have pros and cons attached and you need to think carefully before eyou commit yourself to any one type of finance. Read more here about how to finance a business .

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Executive Summary of a Physiotherapy Clinic: Template & Example

• January 3, 2024
• Business Plan , Competitive Analysis

A physiotherapy clinic business plan needs a straightforward executive summary . This part of your plan is the first thing investors and partners see, and it should clearly outline what your physiotherapy clinic is all about. It’s where you explain what makes your physiotherapy clinic different and worth investing in.

We recommend using a two-slide PowerPoint format for this summary. The first slide should cover the basics of your business and the market you’re entering. Here, you detail your physiotherapy clinic’s services, location, and what sets you apart from others. The second slide focuses on your management team and your financial plans, highlighting the people behind the business and how you expect the physiotherapy clinic to grow financially.

This simple, two-slide approach ensures that your executive summary is easy to follow and covers all the essential points about your physiotherapy clinic business.

Physiotherapy Business Plan

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Physiotherapy Clinic Executive Summary: Page 1

Business Overview

The business overview within the executive summary acts as an introduction to the clinic’s fundamentals. It encompasses the clinic’s name, location, services offered, and key distinguishing factors.

An emphasis on the unique services provided is essential, showcasing what sets the clinic apart in the realm of rehabilitative care. Whether it’s specialized treatments for sports injuries, tailored rehabilitation programs, or innovative approaches to chronic pain management, this section spotlights the clinic’s exceptional offerings.

Example: “ReviveWell Physiotherapy Clinic,” in the heart of [City/Neighborhood], offers a comprehensive spectrum of rehabilitative services. Spanning across 3,000 square feet, our clinic specializes in musculoskeletal rehabilitation, sports injury recovery, post-operative care, chronic pain management, and mobility enhancement. What sets us apart is our focus on individualized care plans tailored to each patient’s unique needs, ensuring optimal recovery outcomes.

Market Overview

Understanding the market dynamics is crucial. This section should encompass the market size , growth trends, and competitive landscape within the physiotherapy and rehabilitative care industries.

Highlighting the clinic’s positioning in this landscape, whether in a burgeoning market or a niche segment, is imperative. This is the opportunity to present growth projections and market potential, backed by industry insights and statistics.

Example: The physiotherapy clinic industry in the US is a robust sector, valued at $45.9 billion, with a steady growth rate of +3.4% CAGR from 2023 to 2030. The landscape comprises approximately 125,000 clinics nationwide, indicating a thriving market for specialized care. Within our targeted area, [City/Neighborhood], the physiotherapy market is competitive, boasting various clinics from specialized centers to comprehensive healthcare facilities. We’ve identified [6] main competitors within a [x] mile radius. 

Physiotherapy Clinic Executive Summary: Page 2

Management Team

A robust management team is the backbone of any successful clinic. This section highlights the qualifications and expertise of key individuals steering the clinic toward success.

Profiles outlining the team’s expertise, qualifications, and relevant experience in healthcare administration or physiotherapy are showcased here. It underscores the strengths and capabilities of the team entrusted with the clinic’s operations.

Example: ReviveWell is spearheaded by [Name], possessing a degree in Healthcare Administration and over a decade of experience in managing healthcare facilities. Responsibilities encompass overseeing day-to-day operations, financial management, strategic planning, and ensuring optimal patient experiences, setting the standard for high-quality care at our clinic.

Financial Plan

The financial overview succinctly summarizes the clinic’s financial goals, revenue projections, and financial stability and growth strategies.

This section outlines revenue targets, profitability margins, and the key strategies driving financial success, including investment plans, marketing initiatives , and community engagement strategies.

Example: ReviveWell aims to achieve an annual revenue milestone of $1.0 million with a targeted profit margin of 30% ( EBITDA margin) by 2028. Our financial strategy encompasses prudent investments in state-of-the-art equipment, continuous staff development, and community outreach initiatives. Leveraging these strategies alongside comprehensive marketing efforts and partnerships within the healthcare ecosystem, we are poised for sustainable growth and financial success in the coming years.

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Starting your own physiotherapy practice

6 steps to a complete business plan

Starting your own practice as a physiotherapist: it is quite the step. Because suddenly you find yourself an entrepreneur in addition to being a therapist. Running your own business generally means you've got more responsibilities, more stress and less spare time than when you’re working for someone else. Because you're no longer just a physiotherapist providing the best care for your patients, but you also need to devote time and attention to the business elements of your company. Practical things, such as registering your business and getting recognised by insurance companies are issues you may have researched already. But what about the business aspect? We are happy to help you map out all the relevant aspects. 6 Steps to a complete business plan and a better chance of getting funded.

Step 1: Why start your own practice? 

The first step is to determine why you want your own practice. What aspiration inspires your clinic? Do you want to improve the quality of your therapy, your ability to work independently or is it that you would like to generate more income? You may have many reasons to start a business - it is important to crystallise your goal on paper. 

Write down your primary reason for wanting to start your own practice. Then ask yourself the following question: “Why is that important to me?” answer it and repeat the same question “Why?” a couple of times until you get to the absolute core of the matter. That core will help you make every decision you will face. Because every decision will serve to support that initial “why”.

Step 2: What type of physiotherapy practice?

You now understand your motivation for starting a practice. What type of practice matches that drive? The American Physical Therapy Association (APTA) published a number of questions that will help you figure out what type of practice best suits you:

• Do you prefer to work alone or in a team?
• Do you like to have people around you regularly with whom you can discuss things?
• Do you have a balanced set of talents? In other words, are you not just an excellent therapist, but also a bridge builder, a clear communicator, good at finance, a marketing natural and a tech virtuoso? Or are you prepared to hire people to cover your weaknesses? 
• Will you focus on higher level management or on everyday details? And if your answer isn't both, who will be tending to the other part of the equation? 
• Have you figured out the exact design of your practice? And are you quick to adapt when things don’t go as expected? 
• Do you feel confident enough do it all on your own?

When answering these questions, you may find out that although you do want to start your own practice, perhaps it is better to do it together with a business partner. A partner can help fill the gaps, e.g. by investing, through experience, a good network or valuable business skills. You won’t have to do things like administration and managing a team all by yourself and will be able to spread the load instead. 

But a type of physiotherapy practice means more than just deciding whether you want to start by yourself or with a partner, and whether you want to hire a team or set up a practice independently. Because physiotherapy isn’t the only service you can provide as a practice. 

You may choose to create a multidisciplinary practice where other health services are provided in addition to physiotherapy, such as manual therapy, osteopathy or chiropractic.  Or you might offer a type of gym, and have your patients use your equipment regularly. You may offer your patients guidance while they are exercising to ensure the equipment is used correctly and provide a true contribution to their recovery with your gym environment. A big plus of such a practice is that it provides a constant stream of income. 

Step 3: How to distinguish your practice? 

Now you know what type of practice you want, it is time to consider what will set your practice apart from others. Perhaps there is no physiotherapy practice in your area yet - that would be a distinguishing factor right there. But you will usually find that there is competition from other physiotherapy practices. What sets your clinic apart? 

You may already know what it is that will set your clinic apart: specialising in certain treatment methods, such as shockwave therapy or TECAR-therapy . Or the fact that your practice is multidisciplinary. But there is also a chance you may not yet know what to do in order to create a distinguishing practice. 

The easiest way to start a distinguishing practice, is to offer your patients the best possible experience throughout. Make sure your practice deals with the patient in a personal, involved and memorable way. Whether it be the treatment itself, the interior design of your practice, communication with your patients - make the extra effort.

Consider who your patient is and what you can do to be of extra service to that person. Map out your ideal patient, what treatment he/she needs, the size of that target group and what the priorities are for that target group. Based on this information, you can determine what to do in order to offer your target group the best possible experience. For example, make sure you have a comfortable waiting room that is an enjoyable place for your patients to be seated. Or make sure you make contact with patients in between your appointments to show your involvement.

Step 4: What location will you choose?

Real estate brokers have three magical words: location, location and location. The same applies to a physiotherapy practice. Your practice attracts people from the local area. Make sure you take the socio-economic circumstances in a specific area into account in addition to your own “why” and whom you want to be treating. 

Some things to research:

• how many people live and work in the area? 
• what are their demographics (age, status, etc.)?
• how many general practitioners are located in the area (for references)?
• how many and what physiotherapy practices are located in the area? 
• how often do people search for a physiotherapy practice in a certain area on Google? 
• how accessible is the desired location? Is there any (free) parking opportunity? 

In addition to the geographic location, it is important to consider the physical location.  How much space do you think you need? You don't have to invest in a future-proof location right away. Of course, you don't want to go too small, because you need enough room for yourself and your patients to ensure a comfortable treatment experience. However, getting started in an oversized practice will inflate your monthly costs in terms of rent and utilities which will prove difficult to cover. 

This is why it is best to look at smaller locations that can be rented flexibly at first. Should things not turn out as you had thought, or if you need more time to get going, this will allow you the flexibility to adapt. If you notice that your practice isn’t working out, you can swiftly change location and opt for a bigger location in the area if you need to. 

Step 5: How to design a professional practice? 

You’ve researched locations and know how much space you want to find in what area. Once you've found your location, it is time to decorate it. Got an idea of how to design your practice? Two decision are key: what software you'll use and of course what treatment equipment to choose. 

What software do I need?

The right software will give your practice a kick-start. There is a lot of software out there for you to research. The most important thing about software is that it does what you want. You won’t need huge software suites for a small clinic, but you do want to make sure your software offers all the functionality you need. Consider your services and needs and make sure you opt for software that will help keep your practice organised. 

That said, every physiotherapy practice will have to deal with the following matters: 

• Payments 
• Schedule 

Complete this list with your specific requirements and find your perfect software. 

What equipment do I need? 

Your equipment will help you turn your practice into a success story. Good equipment requires an investment but it will last for years and support you in providing the best possible care. 

Equipment can be divided into two categories: 1. must-haves and 2. convenient tools. When running a fledgling practice, it is best to focus all your attention on your must-haves, even if your financial means are sufficient to buy more. Build up your equipment arsenal gradually based on the needs of your patients. 

Invest in quality equipment. A first impression comes only once and your treatment equipment is an important part of that first impression. As your patient comes in, he/she must find the equipment looking clean, reliable and professional. It is vital to keep the equipment comfortable and hygienic both for the patient and the therapist. 

Still figuring out the best products for your practice? Gymna’s professionals will be happy to discuss options with you. 

Step 6: How to begin marketing myself? 

What is a physiotherapy practice without patients? Attracting new patients and retaining current patients is one of your core tasks. Although references and word-of-mouth are important elements, they will likely not be enough. You are after all a new player. Many of your potential patients are currently going elsewhere, or have gone elsewhere in the past, and will have to make a conscious decision to change therapists. 

This is where your distinguishing capability comes in. Why would a patient opt for you instead of that other, much older practice? Perhaps your practice offers longer office hours, home visits, a more professional feel or better hygiene . The next question is: how to let people know that you offer these distinguishing elements?  

This will require a marketing strategy. The foundation of a marketing strategy is this:

• Who : who is your target audience, how to best reach this group? 
• When : when is your target group most susceptible to your message? 
• Where : what channels will you deploy for your campaign? 
• What : what content does the target group prefer?
• How : who will take care of marketing? How will that person keep track of what is working and what is not? How often will you adjust course? 

In any case, your marketing plan will provide the following output: business name, visual identity and logo, and communication guidelines including how to interact with your target audience and with what type of message. The German magazine for physiotherapists, pt_Erfolg, shows that the logo is an important part of marketing a physiotherapy practice. Though a logo doesn’t make a brand, it does often function as the image people remember you by. It is symbol for quality and professionalism. The aim is to design a logo for life. You might refine it over time or design minor modifications, but the foundation of your logo is meant to last forever (consider Coca Cola, who have been using their characteristic curly font   since 1906 . 

When creating your logo (and its style that often permeates throughout your visual identity) it is important to determine what symbols, signs or logos appeal to you, choose font and colours and elaborate details in order to create the best possible representation of your practice. 

Once you've determined your visual identity and logo, it is time to determine what resources you will use to show your brand to the public and offer your services. You may want to create a website combined with an active social media strategy and an online advertisement plan. It is also important to explore whether you can find partners who will be referring patients to you - referrals can be a good source of patients. 

It is vital that you gear your marketing strategy to your potential patients. Where are they at what moment in time and how can you best reach them? 

Convert your ideas into a business plan 

All these steps combined will give you a pretty clear picture of your practice. You have determined the why, what, who, where and how. That gives you a pretty good idea of your concept and the costs you will be making. Bundle all this information in a business plan. You can then present this business plan to legal authorities in order to get your business registered and financed - plus it will remain a useful document for you to fall back on. 

A business plan is an elaborate document consisting of text and numbers. The plan answers important questions, which you have addressed throughout the previous 6 steps. A brief summary:

• Business summary : a one-pager with your mission, vision and goal.
• Target group : where and to whom do you offer your services 
• Competition : who is your competition and what sets you apart 
• HR : who runs the company and what other team members do you need (team) 
• Equipment : what products and services do you need in order to start your practice 
• Marketing plan: what does your brand look like and how do you ensure that your ideal patients will show up 
• Finance : how much start-up capital do you need, what do you expect to earn and what are your fixed costs for the first three years 

Are you looking for an extra tool to help answer these questions? The Balanced Scorecard (BSC) might be the thing for you. 

From business plan to funding  

You need to make sure that these things are fully elaborated in a representative document so you can present this business plan to a bank, letter or subsidy. If you need financing, ask the bank for information about the desired procedure. They will often have special departments or consultants responsible for business loans. You are often required to submit a business plan prior to getting an appointment. 

A conversation will be conducted where the bank will ask you about the details of your plan, such as an explanation of how you reached the income and expenditure forecasting for the first three years. If you are able to answer these questions properly and if you have got at least 20% of your start-up capital to contribute yourself, there is a good chance you will be granted a loan - and you can finally start creating your practice! 

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• September 6, 2016

20 Best Physiotherapy Business Ideas, and How to Start Your Clinic

You’ve decided to open a new physiotherapy clinic, exciting! After all the training, maybe you’ve had a couple years of work experience too, and now it’s time for you to branch out and create the business you’ve been envisioning.

The choices at this point are to buy an already-established business or start a new one from scratch. For most, the availability and starting capital required to buy an established business dictates the decision.

If your plan is to start a new clinic, your first decision is to focus on a location and demographic that you can serve.

The next decision is determining the size of your clinic.

Is a 2 room clinic too small, is a 6 room clinic too big? The answer to this question has to do with your strategy and cost.

If you are paying by square footage, then you have to consider your monthly lease expenses and the initial capital requirement for getting the rooms to a functional state.

Remember, each room will be a revenue-generating machine. If for example, each room is 120sqft and the cost to lease the additional space compared to the potential profit of the room justifies the cost, then it’s worth considering if you have enough capital to renovate and equip the rooms to prepare to sublet.

Now, how do you determine if the added space is going to be profitable?

There are multiple ways to create room revenue. You can rent the rooms by hiring individual practitioners. This makes it slightly harder to build a consistent brand and customer base, but it’s the easiest way to ensure a profitable business.

Your other option is to hire therapists as independent contractors; however, you have to be careful with various provinces or state laws as enforcing too many rules may suggest an employer-employee relationship.

To maximize your revenue, you could rent the rooms in dual shifts and consider longer hours of operations and/or weekends. The big factor here is to ensure that you have enough patients to support and keep your practitioners busy.   Because the therapists are paying rent, you can specify in their contracts that they are required to do their own marketing and bring in their own clients.

The catch with this is that if they aren’t busy, they will leave, so it is in your best interest to include them in your marketing campaigns as their success means success for you and your clinic.

Some may naturally bring their customers with them, but most, especially those who use software like counseling scheduling software or   med spa software , would want to have access to a steady patient base and business services like a payment system, practice management software and tools to manage patients, charts, bookings, a website, admin staff, and more.

Another option is revenue splits. For example, the practitioners keep 60%, and the business keeps 40%. This reduces the risk for practitioners because if they aren’t required to do their own marketing and they don’t have to pay rent; however, it’s riskier for the business owner as now there is even a bigger requirement to ensure you have an adequate number of patients. The bigger the practice, the more patients you need to keep everyone busy.

In both cases, you have to protect your business patients, as that is your biggest leverage.  This is more crucial with the commission-based scenario as you are revenue sharing.

Acquiring patients, especially repeat customers is not an easy task, but here are some top tips to consider for opening a new massage therapy business. [bctt tweet=”Here are the 20 Tips for Opening and Managing a #Physiotherapy Business. #clinicmanagement” username=”yocalenetwork”]

Here are the 20 Tips for Opening and Managing a Physiotherapy Business

1. Make it easy for your clients find you. Location, Location, Location!

2. Offer services and hours that match the demographics. For example, if you service busy professionals, consider longer or earlier opening hours.

3. Make it easy for people to do business with you. Offer online booking and encourage people to use it. Inform your patients of the online booking option every time you see them until they start using it. And, inform them about online booking on your voicemail greeting.

Online booking makes their life easier: they can book anytime, even when you are closed which could increase the frequency of booking, reduces your admin overhead, increases your efficiency allowing you to concentrate on higher value items, and increases your revenue by filling last minute appointment slots.

PLUS it increases your online ranking. Every time your patients want to book you, they search for you online, that increases your online ranking! Your job is to make sure you get an online booking solution that gives you complete control over your schedule with the flexibility to let you do business the way you want to.

4. Use practice management software that allows you to see how your business is doing; provide key performance indicators (KPIs) that you can use to better manage your business and tools to manage your patients and their charts.

5. Go Green. Use practice management software that helps you save money by going green. Electronic invoices, patient charts, intake forms etc. Not only will it save you money but it also saves you admin time.

6. Invest in your online presence. You have to be found online! Have a professionally made website that highlights your staff and services, is easy on the eyes, and SEO optimized. Some online booking software solutions, like Yocale, give you additional SEO-friendly pages that increase your appearance in search engines like Google. They offer you a mini website with booking widgets that you can also use on your website or Facebook pages. They also have SEO optimized URLs, which help with your online ranking.

7. Your first priority should be to quickly fill the rooms with practitioners that pay you to rent so you can cover your costs and invest in marketing. Advertise in schools, online sites like craigslist, on your own website, etc.

8. Make sure you have good social media presence on Facebook, LinkedIn, and other local directories. Some online booking and practice management software like Yocale also provide you with the additional local directory listing benefits as well.

9. Make sure you train your administrative staff to recommend follow-up appointments. This way you can keep your rooms filled. Again, some practice management software solutions (ie: Yocale) have recurring appointments or follow-on appointments, re-calls and reminders, which are a soft way of reminding patients to book again.

10. Seek reviews from your patients. This increases your online ranking. Look for a practice management software that automatically asks for reviews after every appointment to help increase your online reputation.  These reviews and testimonials become an important part of your online profile that new, potential clients will use in determining to book with you.

11. Don’t forget to build a proper patient database . Make sure you have contact information (ie: their email address) so you can use marketing tools to keep in touch with your patients and keep your schedule busy. Email marketing tools are sometimes built directly in the practice management software, which makes it easy to run against your patient records. For example, you can set up an automatic email to reach out to patients that haven’t visited you for a while.

12. Your admin staff must be friendly. They make a lasting impression. You can even use variable bonus compensation schemes to have them help you with finding practitioners at the start or if someone leaves. Keep your social pages updated. Many small clinics start without having a receptionist to minimize costs with the help of a practice management system that can automate most tasks like taking bookings, appointment reminders, cancellations, changes, billing, and reporting.

13. Network! Local business groups like BNI or other community groups are excellent to build a referral-based business. Listing marketplaces like Yocale, have some built-in referral capabilities, they are community-based systems so you’ll have some automatic networking benefits. Getting to know nearby complementary providers such as Massage Therapists, Chiropractors, or Medical Doctors to take referrals from is a great way to build your network.

14. Create content online. Videos and blogs are a great way to increase your online presence. A short video blog on your specialty or blog on a treatment plan shows you are a thought leader and increases your online reputation.

15. Make sure you have enough cash flow to support the business for at least a year assuming minimal income from the operation or rent.

16. Create a relaxing ambiance. Good sound system, decorations, etc. to make people feel relaxed and encourage them to come back.

17. Ensure the people you hire are a good representation of your health and wellness center. Not all registered physiotherapists are trained the same or have the same personality. Pick a system like diagnostic therapy and make sure everyone follows the same minimum standard.

18. Consider other complementary services. For example, acupuncture, chiropractic or naturopath services in your clinic to offer a holistic care plan.

19. Attend community events. Be a part of your community.

20. Watch your online reputation and learn from it. Respond to people’s feedback.

Following the above can help you create a solid cash flow business while creating a great wellness center in the community. It’s important that you adopt a system and continue refining and fine-tuning it as you move forward.

Good practice management software is an important part of it, but you have to make sure you use it properly and to its full potential. If you do this right, you’ll be ready to open your 2nd location!

One Response

I am looking for a physiotherapy clinic and was interested to see how they run from the inside. I appreciate the advice here given to the clinics to offer online booking to make life easier for both the client and the clinic. That is something that I’ll look for when I’m looking for a clinic!

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