If you are in the process of opening up a physical therapy practice or currently have one in place, it is essential that you create a business plan. It is a known fact that it is impossible to get exactly where you want to go without a plan in place. This is a highly essential formal-based document that specifically outlines the various aspects associated with your physical therapy practice. It will contain information on your management, finances, the requests you make for funding, your marketing endeavors, and more! While it sounds complicated, the good news is, it does not have to be! Continue reading to learn the simple steps for creating your physical therapy business plan.
What is a Business Plan?
A business plan is an intentionally-created document that defines – in a lot of detail – the objectives of your physical therapy practice and how you will go about achieving those objectives. It is a business “road map” that outlines finances, marketing, and operations. It is intended for both you and those in your practice, as well as interested external audiences – such as financial institutions in which you hope to obtain funding for your business.
Do I Need a Business Plan if My Physical Therapy Practice is Already Established?
All businesses need a business plan. It does not matter if you are in the process of starting your practice or have an established practice.
While business plans are exceptionally helpful and highly useful for brand-new physical therapy practices, each and every practice should have a business plan.
Additionally, it should be reviewed on a regular basis and updated to reflect the goals that have been met and those that have yet to be met. If you are an established practice, you may even create a business plan if you have decided to move that practice in a new direction.
What Does a Business Plan Consist Of?
There are typically 10 distinct components to a business plan for a physical therapy practice. These are outlined below, along with a brief description of each:
- The Executive Summary – In short, this is a simple introduction to the overall business plan. In most instances, this is written after the other components of the plan as it provides an overview of each other section within the business plan. In this, the goal is to engage those who review your plan. It should outline the type of therapies that your practice provides and the audience that you want to target. It should then provide a quick summary of the other components in the business plan.
- The Company Analysis – This section of the physical therapy practice business plan should outline the type of business that you will be or are currently operating. For example, are you offering general physical therapy services to all, sports physical therapy, geriatric physical therapy, or another type? Detailed background on your practice should be outlined in this section. Provide information on the reason why you started the business, the milestones you have met, and the legal structure.
- Industry Analysis – In this section of the business plan, you will provide an overview of the industry in which you operate. By the time you are done with this section, readers should view you as an expert in your field. You may choose to outline the trends of the field, key competitors, forecasted growth, and more.
- The Customer Analysis – In this section, you should outline the types of customers that you provide services to or plan on providing services to in the future. Do you want to serve kids, athletes, the elderly? Your target audience should be outlined by general demographics. You may also utilize psychographic profiles to highlight both the wants and the needs of your target audience.
- The Competitive Analysis – In this part of the physical therapy business plan, you will need to outline both the direct and indirect competitors of your practice. An overview should be done of the competition and their strengths and weaknesses should be outlined. Finally, you should outline the competitive advantages of your physical therapy practice, such as how you will provide more comprehensive services, your pricing models, and anything else that sets your practice apart.
- The Marketing Plan – The marketing plan section of your physical therapy business plan should outline the product that you offer, the pricing model that you utilize, the place where your practice operates, and the promotions that you will or plan on using to attract your target audience to your practice.
- The Operations Plan – This section of your business plan should outline your day-to-day operations and that which you hope to accomplish. Examples include how you schedule, your billing processes when you hope to reach a certain level of revenue, and/or when you plan to open or relocate a currently operating physical therapy practice.
- The Management Team – In this part of your business plan, you should outline those that are part of the management team in your practice. You should outline their skills, their expertise, background, and other information that pertains to their skill set. If you have outlined points of growth that are required, outline how that will be accomplished.
- The Financial Plan – This section should outline a 5-year statement pertaining to the finances of your business. This should include an income statement, balance sheets, and a cash-flow statement. You should also outline the costs associated with opening and growing your physical therapy practice.
- The Appendix – The final component of your physical therapy business plan should include a comprehensive and highly-detailed appendix section. This should overview that which you included, any necessary supporting documents, and any other paperwork that you feel is relevant to the endeavor.
Once you have created a business plan for your physical therapy practice, it is essential that you keep it updated on a regular basis. Furthermore, you should ensure that all aspects of the plan are being successfully implemented.
This will allow you to determine what parts of the plan are productive and what parts of the plan are not productive. This plan is for you and those in your practice; however, it is also for your potential investors and lenders.
By taking the time to create this comprehensive document, it will be simple for others to take a look at it and determine who you are, what you are about, and if you have a progression that is moving towards your future success.
Why Do Business Plans Fail?
If you have had a previous business plan and it failed, you may be wondering why. In most cases, it is a direct result of not following the plan that was originally created. You should take a strong position on leadership and place a special emphasis on following the plan that has been created. The secret is, though, to attempt to build some flexibility into your business plan. In doing this, you can follow a new course if the markets or the economy experiences any changes. Be strict enough to follow the plan, but flexible enough to adjust it.
Contact Us Today
If you are starting or have a physical therapy practice, we here at Colorado Physical Therapy Network invite you to apply for a position within our organization. You will find that the resources that we offer, the networking opportunities that we have, and the posts that we share will be highly beneficial to the overall success of your practice. For more information, click HERE.