Starting Your Own Physical Therapy Practice – Carolyn Young is a business writer who focuses on entrepreneurial concepts and business formation. He has over 25 years of experience in business roles and is the author of several entrepreneurial guides.
David has been writing and teaching about business, finance and globalization for a quarter of a century, starting at a small New York consulting firm in the 1990s.
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Starting Your Own Physical Therapy Practice
As baby boomers entered their golden years, demand for physical therapy increased, causing the market to expand 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 pursue your passion.
Can I Run My Physical Therapy Clinic Without A Receptionist?
But they don’t teach a lot of business skills in physical therapy school, 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 physical therapy clinic successfully.
Want to register your business? A limited liability company (LLC) is the best legal structure for a new business because it is quick and easy.
Starting a physical therapy business has pros and cons to consider before deciding if it’s right for you.
Start-up costs for a physical therapy clinic range from $12,000 to $30,000. The main expenses are the rent and equipment of the clinic premises. If you have limited funding, you can cut costs by starting a mobile and virtual physical therapist, visiting your clients and doing online therapy to build your reputation. This will save you $5,000 to $10,000 in upfront costs, but you will only be able to bring a limited amount of equipment into your patients’ homes.
How To Become A Physical Therapist: Your Step By Step Guide
Either way, you’ll need to take out insurance. If you are not a physical therapist, you can find information on how to become one through the American Physical Therapy Association.
To work as a physical therapist in the United States, you must obtain a doctorate in physical therapy from the Commission on Accreditation of Physical Therapy Education, 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 cost of a one-hour physical therapy session is $100. If you’re starting out as 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, bringing in $130,000 a year. This represents a profit of $65,000, assuming a 50% margin. Once your business recovers, your clinic can handle 80 sessions a week. At this point you will hire staff including other physical therapists, which will reduce your profit margin to around 20%. With an annual income of $416,000, you will have a profit of almost $84,000.
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If you are still not sure if this business idea is the right choice for you, here are some related business opportunities to help you succeed.
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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 in preparation for entering the competitive market.
Market research will give you an edge even if you’re already convinced you have the perfect product or service. Conducting market research is important because it helps you better understand your customers, competitors, and business environment.
Pro Bono Clinic
Search for physical therapy clinics in your area to check their services, prices, and customer reviews. You are looking to fill a gap in the market. For example, your local market may lack a sports medicine clinic, a clinic that also offers sports training, or a clinic that provides electrical stimulation therapy.
You might consider targeting a niche market, specializing in a certain aspect of your industry, such as treating shoulder or knee pain, or adding yoga and meditation therapy.
The average price of a one-hour physical therapy session is $100. If you’re self-employed, you should be looking at a profit margin of around 50% after rent and overhead.
Once you know your costs, you can use this step-by-step profit margin calculator to determine your markup and final price points. Remember that the prices you use at launch should change if the market warrants it.
Biggest Challenges For A Mobile Physical Therapy Business In 2022
Your target market will be broad. You should expand your marketing to sites like TikTok, Instagram, and Facebook. You should also try to work with doctors in private practice to get referrals. You can connect with them on LinkedIn or find them on Google or Yelp and call them directly.
If you do not start working from home, you will need to rent premises for your clinic. Look for a place in a central and convenient location, such as a medical district or a busy commercial district.
Depending on the type of physical therapy clinic you plan to open, you may want to consider the proximity of additional businesses such as chiropractors or orthopedic clinics.
By strategically choosing the right location, you can create a profitable and successful physical therapy clinic that provides patients with quality medical services and stands out from the competition.
What Specialisations Should You Choose For Your Physical 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 corporate identity, so choose one that reflects your goals, services and mission in just a few words. You probably want the name to be short and easy to remember since most of your business, especially your startup, comes from word of mouth.
Once you have a list of possible names, visit the US Patent and Trademark Office website to make sure they are registrable and check the availability of related domain names using the domain name search tool. Using a .com or .org adds a lot of credibility, so it’s best to focus on them.
Finally, select the names that will pass this check and proceed with domain registration and social media account creation. Your company name is one of the main distinguishing factors that sets your business apart. Once you’ve chosen a business name and started branding, it’s hard to change your business name. Therefore, it is important to think carefully about your options before creating a business entity.
How To Start A Physical Therapy Clinic In 2023
Every business needs a plan. This will be a guide to help you through the startup process and focus 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 a daunting task. You may consider hiring a business plan specialist to create a top-notch business plan for you.
Registering a business is a very important step – it is a prerequisite for paying taxes, raising capital, opening a bank account and other guides to starting a business.
In addition, registration is interesting in that the whole process becomes official. Once you do that, you’ll have your own business!
The Anatomy Of A Cash Based Physical Therapy Practice
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 look elsewhere, as some states can offer real benefits for physical therapy clinics.
If you want to move, you can really maximize your business! Remember, moving your business to another state is relatively easy.
There are several types of business entities, each with their own advantages and disadvantages. 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 pass-through taxation and is simpler to set up than a corporation. With our online LLC formation service, you can form an LLC in as little as five minutes. Before submitting your application, they will check your company name, provide your articles of incorporation and answer any questions you may have.
Hudson Physical Therapy
The last step before you start paying taxes is to get an Employer Identification Number, or EIN. You can file an EIN online, by mail, or by fax: see the IRS website for more information. Note that if you choose to be a sole proprietor, you can simply use your social security number as your EIN.
After you receive your EIN, you must 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 cycle and your business structure will determine what taxes you will pay.
It is important to consult with an accountant or other professional who can help you pay your taxes correctly.
Bank and SBA loans are probably the best options outside of friends and family
Starting Your Own Physical Therapy Business: The “whys” And “hows” Of A Pt Startup
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