Physical Therapy Business Opportunity
Do you have the time, money, & expertise to do this on your own?
346 Hours. 268 Days. $199,500+.
How much time and money does it take to start your own physical therapy clinic? Short answer: A LOT! The numbers below represent averages - any given situation could cost more or less. But since we're experts at starting clinics (we've done it over 350 times!), you can trust these figures:
Step 1: Business Plan
A physical therapy business plan allows investors to evaluate the opportunity of doing business with you. The basic components include a pro forma, balance sheet, income statement, and cash flow analysis. It shows what you will do with the money, how you will run the business, how you will grow the business, and how you will repay the loan. Everything hinges on your ability to create a great business plan. Don't skimp!
80 Hours • 60 Days • $5,000
Step 2: Secure Financing
You'll have to shop your business plan to various banks, angel investors, friends, and family members in an attempt to secure the needed funding. With banks, be prepared to revise your business plan, fill out endless lending forms, and expect to use your home and other assets as security.
30 Hours • 14 Days • Good Luck!
Step 3: Find A Space
Location is important - you'll want to find a location near your referral sources. You'll need to hire a real estate broker and look for a good space that will work for a clinic... while keeping in mind issues like visibility, utilities, build-out, parking, and more.
6 Hours • 14 Days • $0
Step 4: Negotiate A Lease
Once you find the space you like, then the fun begins! How long of a term do you want? What will the rate be? What is the landlord responsible for? You'll want to hire an attorney to make sure you are getting a good deal. Better to be safe than sorry.
10 Hours • 30 Days • $3,000
Step 5: Design The Clinic
You'll need to research, interview, and hire a space designer, architect, and interior decorator... Then spend time with each to share your vision of the clinic. Expect to review multiple revisions of the plans before moving forward with the final version.
20 Hours • 30 Days • $8,000
Step 6: Build Out The Space
You'll need to research, interview, and hire a construction company to build out your space. You'll need to keep constant tabs on what they're doing, and make sure the project is moving along at the expected rate. Make sure you have your attorney inspect your agreement with the contractor so as to avoid any disputes and unexpected costs.
60 Hours • 60 Days • $75,000
Step 7: Furnish & Equip
Identify equipment; choose vendors; negotiate prices; order everything; install equipment, furnishings, and supplies. You'll need to research the best vendors and order computers, billing software, telephone systems, and business office equipment.
40 Hours • 30 Days • $60,000
Step 8: Open For Business!
Opening checklist: legal documents; establish a name and logo; marketing materials; negotiate managed care contracts; utilities; policies and procedures; create signage; Medicare certification; acquire business and malpractice insurance; health insurance for employees and your family; interview and hire staff; get contracts for linen and housekeeping; order medical and office supplies; get an accountant and launch your marketing. Whew!!!
100 Hours • 30 Days • $18,500
Step 9: Working Capital
How much will it cost to run your clinic while you're waiting to receive your first payment from insurance companies and Medicare? Better plan on at least 2 months with no revenue and up to a year of supplementing the clinic from personal reserves.
If All This Seems Overwhelming, It Should!
There's no reason a physical therapist should know all of this stuff, and most therapists don't have access to that kind of capital. Read each of the 9 steps in detail and you'll get a good idea of why so many entrepreneurs fail - there are just too many things to master.
Our philosophy is different. We want to take GREAT clinicians who have mastered their craft and know how to build referral relationships and allow them to THRIVE at handling the parts of the business they know best. Meanwhile, we handle ALL of the tedious, time consuming, specialized knowledge parts of the business - leaving you to operate your own physical therapy clinic .