How to Start a Physical Therapy Clinic: Avoiding Growth Phase Pitfalls
Dec 04, 2024First off, this is a series based on our guide HOW TO START A PHYSICAL THERAPY CLINIC SIDE HUSTLE - THE ULTIMATE GUIDE. You can check it out to learn about all of the aspects of starting a physical therapy clinic side hustle!
Starting your own physical therapy clinic is a rewarding journey, but navigating the first growth phase can be the most challenging and high-risk part of the process. This is the stage when you transition from a solo provider in a subleased space or mobile practice to managing a standalone clinic with increased overhead, staff, and responsibilities.
While this stage is necessary for growing beyond yourself, it’s also where mistakes can lead to financial strain, burnout, and even business closure. Here are the key pitfalls to avoid and strategies to succeed during this critical phase of starting and scaling your clinic.
Find out other insights in this podcast blog post!
1. Don’t Underestimate the Costs of a Standalone Space
Moving to a standalone space comes with hidden expenses: higher rent, utilities, build-out costs, and equipment purchases. Many new clinic owners underestimate these costs and overextend themselves financially.
How to Avoid This Mistake:
- Negotiate wisely: Work with a commercial real estate expert to ensure favorable lease terms, including tenant improvement allowances to offset build-out costs.
- Build cash reserves: Have at least three months of operating expenses saved to weather delays or unexpected expenses.
- Start lean: Avoid building out extravagant facilities initially. Focus on functionality and patient care to minimize upfront costs.
2. Prepare for Leadership Challenges
Transitioning from a solo practitioner to managing staff is a significant shift. Many new clinic owners struggle with hiring, training, and retaining their first employees.
How to Avoid This Mistake:
- Hire smart: Start with a part-time administrative assistant to offload scheduling, billing, and other tasks you shouldn’t handle yourself.
- Invest in leadership skills: Learn how to manage, motivate, and provide constructive feedback to your team.
- Set clear systems: Implement processes and tools to streamline onboarding and ensure consistency in your practice’s operations.
3. Don’t Skip Marketing and Patient Acquisition
One common mistake is assuming your existing patient base will fill your new, larger clinic. Without a clear marketing and sales strategy, you risk underutilizing your new space and falling short of revenue goals.
How to Avoid This Mistake:
- Develop a marketing plan: Use a combination of local networking, digital marketing, and patient referrals to consistently attract new patients.
- Track your metrics: Monitor lead generation, conversion rates, and patient retention to identify and address gaps in your strategy.
- Leverage your niche: Focus on the patients and conditions you excel at treating to differentiate your clinic and attract your ideal clientele.
4. Understand the Financial Transition
The first growth phase often leads to reduced profitability before things improve. As you increase overhead and hire staff, your take-home pay may temporarily decrease, which can feel discouraging.
How to Avoid This Mistake:
- Plan for a dip in income: Accept that your revenue may dip during the transition and treat it as an investment in your clinic’s future.
- Focus on scalability: Bring in additional clinicians gradually, ensuring that patient volume supports their salaries.
- Be patient: Building a successful clinic takes time. Avoid rushing growth or taking on unnecessary debt.
Final Thoughts
The first growth phase in starting a physical therapy clinic is a make-or-break stage. By preparing for increased costs, improving leadership skills, developing a robust marketing strategy, and managing your financial expectations, you can navigate this phase successfully and build a sustainable, thriving clinic.
Remember, this phase is not easy—but with careful planning and the right support, it’s the foundation for long-term success.
Ready to Take the Next Step?
If you’re ready to start your physical therapy side hustle or take your existing one to the next level, check out our free 5-day challenge. We’ll guide you step-by-step on how to create a business plan, attract clients, and build a thriving practice.