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1.0 Executive Summary
Physical Therapy Practice, LLC (“the Company”) was founded by Peter Holmes with the intent on providing a broad range of rehabilitative care via a state-of-the-art facility. The business is based in Danbury, Connecticut. The Company will provide a broad range of physical therapy services that will help patients recover from surgery or physical trauma as a result of an accident. At this time, the Company will require a $500,000 SBA loan to develop its facilities.
1.1 The Services
The facilities developed by Physical Therapy Practice will provide comprehensive rehabilitative services for patients. These services will include the following disciplines:
• Electrical Muscle Stimulation
• Geriatric Physical Therapy
• Manual Therapy
• Pediatric Services
• Orthopedic
• Vestibular
The Company’s physical therapists will be directly employed by the business although contracted personnel may be used from time to time. The Company, in order to remain as a community focused business, will affordably price its services. The business will have three PTs on staff at the onset of operations.
The services offered by the Physical Therapy Practice will be further examined the third section of the business plan.
1.2 Financing
Dr. Holmes will need to secure $500,000 to effectively launch the operations of the business to profitability. The funds will be used specifically for the following:
• Practice location in Danbury (leased)
• Medical and physical therapy equipment
• Initial payroll
• Professional fees and licensure
As the practice expands its operations, the Company could acquire additional rounds of capital to further fuel the growth of the business. In the event that Management develops an additional location, the Company would either work with a bank or private investor to source capital for this type of development.
1.3 Mission Statement
Physical Therapy Practice’s mission is to provide comprehensive trauma and rehabilitative care.
1.4 Management Team
Peter Holmes completed his doctorate in physical therapy. He will be able to guide the continued growth of the business while employing qualified PTs that will contribute to the success of the business.
1.5 Sales Forecasts
1.6 Expansion Plan
Given the strong demand for physical therapy services, Management may develop additional Physical Therapy Practice locations within other markets in Connecticut or neighboring New York. The business will continue to hire highly trained physical therapists in order to boost year-on-year billings.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Physical Therapy Practice, LLC.
2.2 Required Funds
A total capital injection of $600,000 is required. Of this capital, $100,000 will be provided by the Owner/Founder (Peter Holmes).
2.3 Investor Equity
Dr. Holmes will provide the equity capital needed for this venture. In the future, an investor may be brought on to expand operations more rapidly.
2.4 Management Equity
Dr. Peter Holmes will continue to remain as the sole owner for the foreseeable future.
2.5 Exit Strategy
Transitioning a healthcare practice from one provider to another is a complex process. In all likeliness, Dr. Holmes will work with the current staff in order to facilitate a practice sale (via sweat equity and staged buyout milestones). A formal valuation conducted by an expert in the field of healthcare would be conducted as part of this transaction.
3.0 Physical Therapy Services
In tandem with each patient’s physician/surgeon, the Company will provide rehabilitative care from the Company’s facilities in Danbury. These facilities will be able to accommodate up to four physical therapists working with patients at any given time. The business will provide both general and specialized care. The location will feature installments that facilitate the treatment of:
• Back pain
• Bone disorders
• Cardiopulmonary issues
• Major injuries
• Muscle disorders
• Post surgical care
Hydrotherapy, heat therapies, and electrical stimulation therapies will be offered on site.
In regards to fees, the Company anticipates that will generate $30 to $400 per session depending on the scope of the patient’s needs. The business will accept all major health insurance plans. In order to ensure that patients get the care they need, the Company will implement a sliding scale when working with patients that are uninsured or do not have a high income.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
As with all healthcare enterprises, physical therapy services remain in high demand in all economic climates. People will continue to have rehabilitative care as a result of accidents or major surgeries. Beyond standard operating risks, there are few economic factors that can impact the income of these businesses.
The primary external factor that can impact the operations of a physical therapy practice is changes in reimbursement schedules. However, this event is unlikely to cause any major issues with revenue generation. The Company will continue to receive payments from both insurance carriers and patients.
There are currently no other economic factors that could impact the launch of this business.
4.2 Industry Analysis
Currently, there are over 100,000 companies that provide physical therapy services to the general public. Aggregate, the industry employs 500,000 people (including the physical therapists). Per annum revenues have exceeded $40 billion in each of the past five years.
The outlook for this industry is strong. As more people reach senior age, the demand for physical therapy will continue to expand. Most importantly, as older people have complex surgeries – there will be a major uptick in demand for post-surgical rehabilitative care rendered by physical therapists.
An additional trend within this industry is the continued integration of state-of-the-art technologies that can assist physical therapists with rendering care. The business will continue to integrate new technologies at all times.
4.3 Customer Profile
Any individual that requires treatment for trauma or has undergone a major surgical procedure is a potential client of the Physical Therapy Practice. Generally, most patients are expected to be older people that have undergone major surgery (especially as it relates to brain, spine, heart, or lung procedures). These patients are expected to be enrolled in Medicare or have private insurance cover the cost of their rehabilitation needs.
The Company will also work with athletes that have incurred an injury during the course of playing a sport. Given the large number of colleges and professional sports teams surrounding the practice, the Company sees a significant opportunity to work within the athletic sector to further increase revenue.
Here, you can indicate various statistics about your specific market.
4.4 Competition
Given the ubiquitous demand for physical therapy services, the Company will face ongoing competition not only from standalone practices but also among hospital systems that have integrated these services at their locations. This Physical Therapy Practice will maintain a competitive advantage given the state-of-the-art nature of the facilities coupled with the specialized treatments that can be rendered to patients. Additionally, the business will be one of the only locations that seeks to provide affordable care for the Danbury area market.
The Company will also only hire doctorate-level physical therapists that have at least five years of experience past completing their educations.
5.0 Marketing Plan
Physical therapy practices need to engage in high-impact marketing campaigns in order to create brand awareness within their respective markets. The Company will work closely with hospitals, surgeons, physicians, and allied healthcare professionals that will provide referrals to the practice.
5.1 Marketing Objectives
• Develop ongoing relationships with a broad range of surgeons that will provide post-surgical care referrals.
• Implement a traditional marketing campaign specific for the Danbury area and surrounding markets.
• Engage numerous online marketing strategies that will drive traffic to the Physical Therapy Practice’s website.
• Leverage third-party portals that showcase the operations of the business.
5.2 Marketing Strategies
Foremost, during the development period, the Company will work with regional surgical practices, surgical centers, and hospital systems in order to foster referral relationships. Most importantly, the Company will target orthopedic surgeons, cardiovascular surgeons, and neurosurgeons in order to have their patients use the facilities for their rehabilitative needs. This will remain as the most important undertaking for the practice’s marketing operations.
The Physical Therapy Practice’s website will feature all PT biographies, location information, and contact information. The platform will feature a number of videos that showcase the facilities, specialized equipment, and other pertinent information about the Company. The platform will also feature reservation functionality so that individuals can reserve appointments with their preferred onsite provider.
The Company will also market its operations among numerous third-party platforms that showcase physical therapy practices. This type of marketing is important for a few reasons. First, it will drive new patients to the practice. Second, users will be able to leave reviews regarding the quality of service that they received from staff physical therapists. Over time, and as the number of reviews increases, this will further expand the well-regarded reputation of the business.
Management will attend a number of regional functions that are specific for the healthcare industry. At these events, the Company will distribute sales literature that showcases the facilities, services, and commitment to outstanding rehabilitative care that is offered by the Physical Therapy Practice.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
As it relates to management biographies, all physical therapists that are employed by the business at the onset of operations should be included in this section. All aspects of your experience and that of your planned staff as well as everyone’s CV should be addressed here.
7.0 Financial Plan
7.1 Underlying Assumptions
• Physical Therapy Practice will have a CAGR of 10%.
• Dr. Holmes will invest $100,000 into the business.
• An SBA or conventional business loan of $500,000 will be sourced to develop the operations of the practice.
7.2 Sensitivity Analysis
The practice’s revenues will not be impacted by any negative changes in the economy. The bulk of the Company’s revenue will come from insurance reimbursement, which will further ensure that Physical Therapy Practice remains economically viable. The business will also implement protocols that ensure that the loan remains serviceable every month.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
