Do you want to start a physical therapy business and you want to know the cost? If YES, here is an estimated cost breakdown to open a physical therapy business.
Physical therapy (PT) which is also known as physiotherapy, is one of the allied health professions that, by using evidence-based kinesiology, electrotherapy, shockwave modality, exercise prescription, joint mobilization and health education, treats conditions such as chronic or acute pain, soft tissue injuries, cartilage damage, arthritis, gait disorders and physical impairments typically of musculoskeletal, cardiopulmonary, neurological and endocrinological origins.
Physical therapy is used to improve a patient’s physical functions through physical examination, diagnosis, prognosis, physical intervention, rehabilitation and patient education. It is practiced by physical therapists (known as physiotherapists in many countries).
Estimated Cost Breakdown to Build a Physical Therapy Business
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by leasing or acquiring your own facility, then you need a good amount of capital as you need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a physical therapy business; it might differ in other countries due to the value of their money.
These are the key areas where you are expected to spend your startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (animation software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the physical therapy clinic in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for renting or leasing an office facility (clinic facility) and that can accommodate the number of customers per time (Re – construction of the facility inclusive) will cost – $80,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,800).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory (stocking with a wide range of therapeutic (massage) oil, and other medical supplies) – $15,000
- The cost for store equipment (cash register, security, ventilation, signage) – $4,750
- The cost of purchase and installation of CCTVs: $2,000
- The cost for equipping the physical therapy clinic (NordicTrack system, Treatment Tables, Therapeutic ultrasound equipment, Isokinetic devices, Electrical Muscle Stimulation, Exercise Bike and Exercise Balls, Internet Server, Flat Screen TVs, sound system, DVD players, Satellite dish and decoder, furniture (table, stools and sofas), telephones, filing cabinets) will cost – $180,000
- The cost of launching a website: $600
- Miscellaneous: $2,000
From the rough estimate as listed above, you would need a minimum of three hundred and ninety-eight thousand nine hundred USD ($398,900) to establish a medium-scale but standard physical therapy clinic in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a physical therapy clinic to go to the market or directly contact wholesalers and suppliers of the major equipment such as NordicTrack system, Treatment Tables, Therapeutic ultrasound equipment, Isokinetic devices,
Electrical Muscle Stimulation, Exercise Bike and Exercise Balls et al, and related gadgets they want to have in their physical therapy clinic in order to get the real time prices of these items. The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.