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.
