Starting Your Own Physical Therapy Business – Carolyn Young is a business writer focusing on business concepts and business startups. He has over 25 years of experience in business roles and is the author of several business textbooks.
David has been writing and studying business, finance and globalization for a quarter of a century, starting at a small consulting firm in New York in the 1990s.
Contents
- 1 Starting Your Own Physical Therapy Business
- 2 Critical Musts When Starting A Physical Therapy Private Practice
- 3 What Is Physical Therapy? Definition, Purpose, And Uses
Starting Your Own Physical Therapy Business
As Baby Boomers moved into their golden years, the need for physical therapy grew, so the market expanded by a third over the past decade. If you’re a physical therapist, you can start your own clinic to improve the quality of life for patients, capture a $40 billion market share, and make a great living while following your passion.
You’re Not “too Green” To Start A Physical Therapy Business
But physical therapy school doesn’t teach many business skills, so you have to learn to cut through the red tape and become an entrepreneur. Fortunately, this step-by-step guide has everything you need to know to start and run a successful physical therapy clinic.
Do you want to register your company? A Limited Liability Company (LLC) is the best legal structure for new businesses because it is quick and simple.
Before deciding whether starting a physical therapy business is right for you, you need to weigh the pros and cons.
The initial cost of a physical therapy clinic ranges from $12,000 to $30,000. The main expense is the rental and equipment of the clinic premises. If you have more limited financial resources, you can cut costs by starting a mobile and virtual physical therapist to provide online therapy to reach your clients and build your reputation. This will save you $5,000 to $10,000 in upfront costs, but you will only be able to take a limited number of devices into your patients’ homes.
Critical Musts When Starting A Physical Therapy Private Practice
In both cases, you should buy bad insurance. If you are 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 United States, you must earn a Doctor of Physical Therapy degree from the Commission on Accreditation in Physical Therapy Education and complete an accredited physical therapist training program and pass a state licensing exam. Programs typically last three years and most require a bachelor’s degree.
The average price for a one-hour physical therapy session is $100. If you are starting a small stand alone clinic, your profit margin after rent and overhead should be around 50%.
In the first year or two, you can do 25 sessions a week and your annual income is $130,000. That’s a profit of $65,000, assuming a 50% margin. As your business grows, your clinic can provide 80 sessions per week. At this stage, you would hire staff, including additional physical therapists, reducing your profit margin to around 20%. With an annual income of $416,000, you would have a healthy profit of about $84,000.
Starting Your Own Physical Therapy Business: The “whys” And “hows” Of A Pt Startup
If you’re still not sure if this business idea is right for you, here are some related business opportunities to help you on your way to business success.
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Now that you know what is involved in starting a physical therapy clinic, it is a good idea to refine your concept as you prepare to enter the competitive market.
Even if you’re convinced you have a great product or service, market research will give you an edge. Conducting market research is important because it can help you better understand your customers, who your competitors are, and your business environment.
What Is Physical Therapy? Definition, Purpose, And Uses
Research physical therapy clinics in your area and explore their services, prices and customer reviews. You are looking for a niche in the market to fill. For example, your local market may not have a sports medicine clinic, a clinic that 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 or knee pain or adding yoga and meditation therapy.
The average price for a one-hour physical therapy session is $100. After rent and overhead, you should aim for a profit margin of around 50% when you are self-employed.
Once you know your costs, you can use this detailed profit margin calculator to determine your markup and final price points. Remember that the prices you use when selling can change if the market warrants it.
How To Start A Physical Therapy Business: A 15 Step Guide
Your target market will be broad. You should expand your marketing to include sites like TikTok, Instagram, and Facebook. You should also try to work with private practitioners to get referrals. You can connect with them on LinkedIn or find them on Google or Yelp and call them directly.
Unless you are starting a home business, you will need to rent space for your clinic. Look for a place in a central and convenient area, such as a medical center or busy shopping area.
Depending on the type of physical therapy clinic you plan to open, you may also want to consider the proximity of additional facilities such as chiropractic or orthopedic clinics.
By choosing the right location strategically, you can build a profitable and successful physical therapy clinic that provides high quality patient care and stands out from the competition.
Perspectives On Starting Your Own Private Occupational Therapy Practice
You can find commercial space for rent in your area on sites like Craigslist, Crexi, and Instant Offices.
Your business name is your business identity, so choose one that sums up your goals, services and mission in a few words. You’ll probably want a name that’s short and easy to remember because most of your business, especially your first business, will come from word of mouth.
Once you have a list of potential names, visit the US Patent and Trademark Office website 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” increases credibility dramatically, so it’s best to focus on them.
Finally, choose from among the names that pass this selection and proceed with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart from others. Once you’ve chosen your company name and started promoting your brand, it’s difficult to change your business name. Therefore, it is important to carefully consider your choice before starting a business.
Empower Yourself By Starting Your Own Pt Business
Every business needs a plan. This will serve as a guide to start the startup process and keep you focused on your main goals. A business plan also allows potential partners and investors to better understand your company and its vision:
If you have never created a business plan, this can be an intimidating task. You may consider hiring a business plan expert to create a top-notch business plan for you.
Registering your business is an absolutely necessary step – it’s a prerequisite for paying taxes, raising capital, opening a bank account and other steps to start a business.
Registration is also interesting because it formalizes the whole process. When you’re done, you’ll have your own business!
Geriatric Physical Therapy: Benefits, Tips For Older Adults
The location of your business is important because it can affect taxes, legal requirements and income. Most people will register their business in the state they live in, but if you’re planning to expand, you may want to consider looking elsewhere, as some states can offer real benefits when it comes to physical therapy clinics.
If you are ready to move, you can really maximize your business! Keep in mind that moving your business to another state is relatively easy.
Business entities come in several types, each of which has its pros and cons. The legal structure you choose for your physical therapy clinic will determine your taxes, personal liability and business registration requirements, so choose wisely.
We recommend that new business owners choose an LLC because it offers liability protection and tax avoidance while being a simpler form than a corporation. You can create an LLC in five minutes using the online LLC formation service. Before you submit your application, they will check the availability of your business name, provide you with articles about your organization and answer any questions you may have.
The First Steps For Startups In Private Practice
The final step to being able to pay your taxes is to get an Employer Identification Number, or EIN. You can apply for an EIN online or by mail or fax: visit the IRS website to learn more. Note that if you have chosen to be a sole proprietor, you can simply use your Social Security number as your EIN.
After you get your EIN, you’ll need to select a tax year. From a financial perspective, your business will operate on a calendar year (January to December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax period and your business structure will determine what taxes you will pay.
It’s important to consult with an accountant or other tax professional to make sure you’re filing your taxes correctly.
Bank and SBA loans are probably the best option next to friends and family
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