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
Download the Physical Therapy business plan template (including a customizable financial model) to your computer here <–
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:
- 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
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.
Download the Physical Therapy business plan template (including a customizable financial model) to your computer here <–
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.
The precise demographics for Santa Fe Physical Therapy Center are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
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.
Download the Physical Therapy business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Santa Fe Physical Therapy Center will be able to offer the following advantages over their competition:
- 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
Marketing Plan
Brand & Value Proposition
Santa Fe Physical Therapy Center will offer the unique value proposition to its clientele:
- Holistic, “whole body” physical therapy solutions
- Naturopathic treatments and ND consultations
- Natural health and healing products and nutritional supplements
- 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.
Pricing
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.
Download the Physical Therapy business plan template (including a customizable financial model) to your computer here <–
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
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.
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:
- 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
Download the Physical Therapy business plan template (including a customizable financial model) to your computer here <–
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
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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.
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.