If you dream of opening your own physical therapy business, you’re in luck. You can have a fulfilling and fruitful experience helping people around your community. If you dream of a massive company down the road, it starts today with a plan.
In this guide, you’ll learn how to make a physical therapy business plan as well as what it is and why you need one.
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What is a physical therapy business plan?
A physical therapy business plan is a complete roadmap for your operation. These plans are made for all types of businesses. They should be put together ahead of time, and they outline upcoming challenges.
More importantly, these plans force you to think through certain situations and ask yourself difficult questions. By answering these questions, you’re preparing yourself for the future and positioning yourself for success.
These plans are often dozens of pages long and include a lot of information. It’s no different than planning for a patient to get back to full mobility and health. If you try to wing it, your client can end up in more pain or take too long to heal.
Why does a physical therapy company need a business plan?
Your company needs a business plan because it’s not only needed to procure business loans and investors — should you need them — but it also prepares you for the various things you might encounter as you set up and grow your business. Like anything else in your business, a little planning goes a long way.
Suffice it to say, any operation that wants to find success in the future needs to start with a business plan.
How to make a physical therapy business plan
The best way to make a business plan is to start with a deep understanding of what you want to do. This involves a lot of thinking, planning, and researching.
The beauty of this business plan is that it will force you to walk through these steps. Four major parts go into your business plan.
- Executive summary
- Marketing plan
- Key management bios
- Financial plan
By doing each part thoroughly, your business will have a complete plan.
1. Executive summary
Your plan will start with an executive summary. This is the part where you entice people to keep going with your document. It’s daunting for someone to pick up a 50-page report and start blindly leafing through it. That’s why the executive summary is so important.
You can think of this section as your “elevator pitch”. You have as much time as it takes someone to go up a few floors on the elevator. You have to spend this short time telling the person who you are, why your physical therapy business is special, and what you plan on accomplishing.
In the first paragraph, you should explain what problem the customer is facing and what your company does to solve it. Again, this is necessary to tell people what they can expect through the rest of your business plan.
A good idea is to write this section last. That might seem strange since it’s the first section that introduces the entire plan. This section, however, acts as a summary. It’s easier to summarize ideas after you write everything else.
A big focus of the executive summary should also be what separates you from your competitors. Are you the higher-quality, lower-cost, or faster alternative to their services? This is your time to explain it briefly.
2. Marketing plan
Once you hook the reader with your executive summary, you can get into your marketing plan. This involves physical and online marketing options. It’s composed of a market analysis, competitive analysis, and specific marketing actions.
This is where you start doing your homework. Take a look at the market around you and try to answer two questions:
- How big is the market?
- Who is your perfect customer?
The size of the market will determine how viable your business is. If you live in a saturated area with dozens of physical therapy businesses taking all the clients, you’ll struggle to keep your doors open.
That is, unless the other guys are targeting a different customer. This is why the second question is so important. It’s where you carve out your piece of the pie. Knowing who you’re targeting will help you in many subsequent steps of your business.
In this part of your physical therapy business plan, you’ll take a deeper dive and look at the other physical therapists in the area. Grab 5 to 10 physical therapy businesses in your location and list their strengths and weaknesses.
Look at things like their hours, what services they offer, how they price themselves, and their overall reputation.
This will help you recognize gaps in the market. If every single company is closed during a certain day and certain hours, or all of their prices are way too high, there’s your opportunity.
Specific marketing actions
When you take the results of the first two parts of your marketing plan, you get the answer to this part. What specific things can you do to carve your spot in the market?
Put together some specific marketing steps that you will be taking in the future. With them, try to figure out what the rough costs will be. These add together to become your marketing budget.
Also, try to predict how much you can make in sales. You’ll use the rest of your marketing research to come up with this number known as the sales forecast.
3. Key management bios
A lot of companies can attribute their success to their owner. This is especially true for small physical therapy businesses. For that reason, it’s critical to introduce yourself and explain some of your strengths.
Assuming you’re the owner or chief operator, it’s time to convince the reader that you’re the real deal. Try to keep your bio to about one page. Talk about your experience, your unbreakable attitude, and explain how you’re someone they can bet on.
You should dive into not just your business experience, but also your abilities as a leader. If there are sections that you’re weak in, mention that you’ll bring in additional resources to help in these areas.
4. Financial plan
In this section, you’ll put pen to paper to talk about how you’ll keep your doors open. This involves explaining what physical therapy services you’ll provide, how you’ll charge, what your business model is, and all of your expenses.
Your expenses should include more than just the cost to rent a gym and equipment. You should talk about marketing and operational costs as well.
A reader should be able to use this section in conjunction with your market analysis to determine whether or not your proposed business is viable.
Taking your physical therapy business to the next level
You just learned how to make a physical therapy business plan from scratch. After opening your doors, you’ll probably need some different ways to market your business and grow it. In that case, you can download our free online marketing guide, The Download.