Physical Therapy Clinic

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Executive Summary

Torres Physical Therapy is an outpatient physical therapy clinic in Roanoke, Virginia providing rehabilitation and injury recovery for adults and active people. It treats back and joint pain, post-surgery recovery and sports injuries with one-on-one care, and bills insurance and self-pay patients. The clinic opens with one physical therapist, an assistant and front desk staff. Year 1 revenue is projected at about $185,000, growing to about $740,000 by Year 3. Startup costs are about $127,500.

Company Description

Torres Physical Therapy is an LLC owned by Luis Torres, PT, DPT, who has eight years of outpatient orthopedic experience. A licensed physical therapist must treat patients, and the clinic cannot see patients until it holds a Virginia business license and the owner's license is active. The clinic leases a 2,200-square-foot suite with four treatment areas and a small exercise space. Services: orthopedic and sports rehabilitation, post-surgical therapy, manual therapy and exercise programs, balance and fall prevention and a cash-pay wellness program.

How we make money. The plan has these income lines: insurance visits (net collections per visit) at about $98 each, about 1,633 in Year 1; cash-pay wellness and self-pay visits at about $85 each, about 294 in Year 1. Pricing is set so each line covers its direct cost and a share of overhead.

Unit economics. In Year 1 direct costs are about $11,268, a gross margin of about 94% of sales. Pay and overhead take most of what is left, so the plan first shows a profit in Year 2. Prices and volumes are set from the assumptions in the appendix and should be replaced with your own quotes.

Problem & Opportunity

Patients often wait weeks for an appointment, are seen in crowded gyms by several different providers and leave with exercises they do not follow. Insurance rules confuse them. People want to be seen quickly by one therapist who explains the plan and checks progress.

Products & Services

One-on-one visits with a doctor of physical therapy for the full session, appointments within a few days and a written home exercise plan with video. Patients get a clear explanation of their plan of care and what to expect. The clinic checks insurance benefits before the first visit and explains costs in plain language.

Market Analysis

Roanoke and the surrounding region have an aging population, active outdoor and sports communities and a large health system. Demand comes from physician referrals and from patients who come directly where state rules allow. Insurance contracts and referral relationships drive volume.

Who we serve first. Adults with back, joint and sports injuries, patients recovering from surgery and older adults working on balance.

Competitive Landscape

Hospital-based therapy departments and several outpatient chains serve the area. They compete on size and referral networks. Torres Physical Therapy competes on one-on-one care, quick access and clear communication. We do not promise cures and we refer patients who need medical care to a physician.

Our strengths and weak points. Strengths: Owner with eight years of outpatient orthopedic experience; One-on-one visits and quick access, which crowded clinics often lack. Weak points we plan for: Revenue depends on insurance contracts and referrals that take months to build; Only one therapist at first, so illness or time off stops visits.

Marketing & Sales Strategy

Introduce the clinic to physicians, surgeons and urgent care offices, offer lunch-and-learn sessions on common injuries, partner with gyms and running groups and ask patients for reviews. The first goal is 55 visits a week by month 6 and 80 by month 12.

The first 90 days. Days 1 to 30: sign the lease, order equipment and file for the business license and insurance enrollment. Days 31 to 60: hire the assistant and front desk coordinator and meet 25 physicians and surgeons. Days 61 to 90: open, see the first patients and send progress notes to every referrer.

Operations Plan

Each patient receives an evaluation, a written plan of care and a reassessment at set intervals. The clinic uses an electronic health record, a billing service and a secure patient portal. Treatment areas are cleaned between patients, and records are protected under privacy laws. Billing follows payer rules, and documentation is reviewed monthly. The clinic follows Virginia practice rules, including supervision of assistants.

Key resources and partners. Resources: A licensed physical therapist, a leased clinic suite, treatment equipment, an electronic record and a billing service. Partners: Physicians and surgeons who refer, insurance plans, a billing service, an equipment supplier and gyms and running groups.

What we measure. Visits per week, new patients per week, revenue per visit, patient attendance and cash in the bank.

Risks and how we plan for them:
- Insurance payments arrive slowly and enrollment takes months. The plan includes a cash cushion and we enroll with plans before opening.
- Rules for billing and documentation are strict. We use an outside billing service, document every visit and audit charts each quarter.
- Dependence on one therapist. A second therapist is hired in Year 2 and an assistant covers follow-up care under supervision.
- Payer rates may fall. We build cash-pay wellness and balance programs to diversify income.
- Patient safety. We screen every patient, refer anyone who needs medical care and follow written emergency and infection control steps.

Privacy and compliance. Patient records are protected under federal health privacy rules, staff are trained annually and access is limited to what each person needs. Billing is done only for services provided, with documentation to support it, and an outside reviewer audits a sample of charts each quarter. Payers. The clinic confirms insurance contracts and enrollment before billing any plan, and patients are told in advance which services may not be covered.

Patient experience. New patients are offered an appointment within three business days, receive a text with forms and directions before the first visit and a call after the third visit to ask how they are doing. Patients who stop coming without notice receive a friendly check-in call, and every patient is asked to rate each visit.

Management & Organization

Luis Torres, PT, DPT, Owner and Clinical Director, treats patients and manages the clinic. A physical therapist assistant is hired at opening and a front desk coordinator handles scheduling and insurance. A second physical therapist is added in Year 2. An outside billing service and bookkeeper support the clinic.

Hiring plan. Luis treats patients and runs the clinic. An assistant and front desk coordinator start at opening, a second therapist joins in Year 2 and a third in Year 4.

Outside help. We rely on an outside bookkeeper for monthly reconciliation and tax filings, an attorney for contracts and licensing questions and an insurance agent who reviews our coverage every year. We meet with these advisors at least twice a year and keep notes of what they recommend.

Milestones Narrative

Year 1: sign the lease, equip the clinic, complete insurance enrollment, open in month 4, reach 55 visits a week by month 10, revenue about $185,000. Year 2: hire a second physical therapist and reach 120 visits a week, revenue about $555,000. Year 3: add a balance and fall prevention program and a third therapist, revenue about $740,000.

What the plan's numbers say. Year 1: sales about $185,000, loss about $123,000; Year 2: sales about $555,000, profit about $72,300; Year 3: sales about $740,000, profit about $197,600; Year 4: sales about $856,000, profit about $224,000; Year 5: sales about $935,000, profit about $158,200. The lowest year-end cash is about $41,500.

How we will keep score. Every month we compare real sales to the plan, check the cash in the bank, review the direct cost of each job or product, and look at what customers say. If sales are behind plan for two months in a row, we slow spending and delay hiring until the numbers catch up.

Funding Request

How much we need and how we will use it. Total needed: $347,000. This number comes from the Funding Need Calculator in this plan. It adds up:
- Startup costs of $127,500, listed item by item in the Startup Costs section (the largest are Working capital reserve $45,000; Treatment tables, exercise equipment and modalities $32,000; Suite improvements and flooring $14,000).
- A cash cushion of about $219,500. That is the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital."
- Together that comes to about $347,000 (rounded up to the nearest $500), which is the total we are planning for.
Where the money comes from:
- Owner money: $30,000.
- SBA 7(a) loan: $317,000.
Kind of funding we are looking for: SBA 7(a) loan: $317,000 at 12.75% interest over 10 years, about $4,687 a month. A loan is money we pay back with interest, and the monthly payments are already included in our cash flow.
How we will pay it back. We expect sales of about $185,000 in Year 1, growing to about $935,000 by Year 5. We expect a loss of about $123,000 in Year 1, a profit of about $72,300 in Year 2, a profit of about $197,600 in Year 3, a profit of about $224,000 in Year 4 and a profit of about $158,200 in Year 5. Year 1 is lower than a full year because the clinic opens in month 4 and insurance enrollment takes time. The lowest year-end cash balance is about $41,500 (Year 2), so with this funding the business has money in the bank every year of the plan.
What we are offering the lender: the equipment we buy as collateral and a personal guarantee from the owner.
A smaller first step, if needed. If we cannot raise the full amount right away, we can start in a smaller shared space, treat fewer hours at first and add equipment as visits grow. Duplicate this plan and lower the equipment and lease costs to match.
What if sales are slower? We also tested a cautious case where sales come in 20 percent lower every year. In that case the plan shows a loss of about $162,400 in Year 1, a profit of about $86,900 in Year 3 and the lowest year-end cash is below zero, by about $40,000. Cash would run short in that case, so we would cut costs early, delay hiring and talk to the lender before it happens.
All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- LLC operating agreement.
- Virginia business license and physical therapist license.
- Insurance certificates for professional and general liability.
- Insurance enrollment and credentialing applications.
- Clinic suite lease.
- Equipment purchase agreements.
- Privacy policy and patient forms.
- Plan of care and billing templates.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Insurance Visits (net collections per visit): about 1,633 units in Year 1 at about $98 each, costing about $6.00 each to deliver.
- Cash-Pay Wellness and Self-Pay Visits: about 294 units in Year 1 at about $85 each, costing about $5.00 each to deliver.
- Pay: owner / physical therapist $105,000 a year (the same number all five years); physical therapist assistant $58,000 a year (people in Years 1 to 5: 0.7, 1, 1, 2, 2); front desk coordinator $38,000 a year (people in Years 1 to 5: 0.7, 1, 1, 1, 2); physical therapist $95,000 a year (people in Years 1 to 5: 0, 1, 1, 1, 2).
- Other yearly costs in Year 1: clinic lease and utilities about $32,000, billing service and electronic health record about $16,000, professional and general liability insurance about $7,000, clinical supplies and equipment upkeep about $6,000, marketing and referral outreach about $8,000, accounting, licensing and admin about $7,000.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Plain words used in this plan:
- Plan of care: a written treatment plan for a patient.
- DPT: Doctor of Physical Therapy, the degree held by most new therapists.
- Direct access: a patient seeing a therapist without a physician referral, where state law allows.
- Credentialing: enrolling a clinician with insurance plans so the clinic can bill them.
- Home exercise program: exercises a patient does between visits.

Startup Costs