Milpitas Physical Therapy Clinic Business Plan

Business Plan

Any physical therapy center has one thing in their agenda, to lead a patient towards living a pain free life in the future and enable the patient revert to the previous good status that they were in there before the sickness or before the surgery.

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This report aims at divulging the finer details on how a post surgery physical rehabilitation center can be opened and run as well as identifying the likely benefits and he profits that can be earned from such a business. It also seeks to put clear the expected expenditure that will be involved in terms of the running costs as well as the human resources that will be required.

The report also puts forth the various equipment that will be of great sue in the center and the services that these equipment will be offering alongside those of the therapists.

Since the administrative aspect of such a center is of very vital importance, the report also highlights the organizational structure and the summary of how such a center can be managed with the functions of the various sections of the organization well crafted out so that it is easy for one to easily tell the purpose of each of the various administrative levels within the organization.

The marketing aspect of the center is also well covered within the report. There are described the various techniques that can be effectively used to ensure the center gets a good enrollment. The targeted market for such a center is also well described as well as the various modes of providing incentives that will ensure the conquered market segment remains within the fold of the center. The possible competitors are as well highlighted and the report shows clearly how such competition can be stemmed and dealt with successfully.

Thereafter, the report looks at the financial analysis of the center and the various assumptions that can be made in coming up with the income statements. These are assumptions generate within the report that are as close to the real life situation as possible hence bringing results that can be easily applied to the real opening of a post surgery physical rehabilitation center. These will include the types of revenues that are expected to be generated as well as numerous services that will be initiated in order to generate this amount of income. Here, the type of labor that is required for such a center will be looked into, the cost of the labor has also been covered here.

The report gives a detailed account of the drugs that will be required in the center as well as other medical devices that will be of sue in the center and their respective costs. Being that this is a physical therapy center the issue of space is of central concern and with the space comes the aspect of the cost of the space that will be used. These are basically the most crucial details that nee to be made clear for any person who intends to open a post surgery physical rehabilitation center that can succeed and serve the patients efficiently as well.

Service and/or Equipment Description

The center is aimed at being a homely place where those recovering from surgically imposed physical limitations can recover form the incapacitation as fast as possible. This can only be made possible with the provision of the best possible services as well as the best possible equipment that can there be in the market.

The center has the focus of having rehabilitation programs that are aimed at giving treatment to the “whole patient” as noted by Milpitas Physical Therapy Clinic (2011). This will be achieved in this center through setting of achievable goals that are functional, these goals will consequently be communicated to the patients and the professionals within the center will work with the patients in helping them to achieve these goals.

This center will also have a program designed that is aimed at teaching patients how to restore function, enhance health as well as relieve pain so as to be able to be self-reliant in the recovery process which is more effective since the patients will be doing the self-induced exercises on their own at any time that they feel it is necessary.

The major services offered in the center are speech therapy, occupational therapy, physical therapy as well as recreational therapy. These are therapies that are directed towards enabling the patient to re-engage with the social environment as fast as possible and carry on with their life as was before they underwent the surgery. In order to be ale to effectively offer the services to the satisfaction of the patients, it is essential to have the best equipment in the market that will fit the needs of the patients best. These equipment ranges from balance boards, cardio equipment, diathermy units, dumbbells, exercise pulleys, finger and hand exercisers, fitness balls, foam rollers, hand grip dynamometers, hot and cold therapy equipment, hydrotherapy whirlpool tubs, light and laser therapy equipment, massagers and accessories, parallel bars, pedometers, posture mirrors, professional massage tables and chairs, rehab work tables, shape belts, spa tables, stair climbers and traction therapy among many other equipment.

The above mentioned equipment will enable the center to effectively handle the diverse cases of post surgery therapies that can be required consequently attracting a larger customer base that will opt to come for the service at this center due to the advance equipment that are provided and the diversity that there is to take care of each part of the physical rehabilitation efficiently.

Organizational Plan

Being a service oriented center, it is very essential that the organization is kept as simple as possible so that the service can be acquired at whichever point of the organization structure. Ideally, the entire organization should be having a horizontal kind of management system so that there can be service delivery to the client at whatever stage it could be.

The organizational structure is as below;

Senior management; this is the board of directors who will be two in number and are responsible for the daily critical decision making process within the organization. They chart the way forward in terms of the changes to be made in order to further benefit the customers, the change in the lower management as well as the physical changes to be made in the organization. Generally, they are to oversee the general running of the organization. Under them are the operations staff and the administrative staff.

Operations staff; these are the people who are most significant in the running of the center, they are the center of all the operations that go on in the center. They come into one on one contact with the patients and the people responsible for the patients. It is the largest of all the other levels of management as they are charged with the physical running of the center and all the patient related aspects are pegged on their presence. This level of management is again divided into two levels so as to ensure the service provided will be of the highest quality possible with a personal touch and feel with the client and the stakeholders.

i. Customer service; this is the largest of the entire staff levels in the organization. These are the employees that will ensure a cordial relationship between the organization and the outside world. They are to ensure a positive image is portrayed of the center among the people who visit the place and even the public perception that is out there. It also the same task force that includes the professionals in the field of physiotherapy and any other forms of physical rehabilitation, hence the organization literally relies on this level of employees for its survival.

ii. Facilities management; this yet another group of operations staff that is charged with the management of the center and all the property that is found therein. They are in charge of ensuring the safety standards are met to the highest levels in an environment involving physical rehabilitation activities. They are the ones who will also ensure that the equipments are regularly maintained so that the equipments are safe for use by the patients.

Administrative staff; these are the people who are charged with the smooth running of the paperwork and the interdepartmental communication and coordination. They are entrusted with the technical paper work of the organization in ensuring that the center runs smoothly with all the employees therein catered for well. This group will further be divided into three offices i.e. The accounting department, the sale and marketing and the administrative office.

i. Accenting department; this is the office that will ensure a smooth running of all the monetary related transactions from the handling of the fees paid for the service provided, to the timely remuneration of the employees, the purchase of approved items and any other duties that are related to money.

ii. The sales and marketing office; this is the office that will deal with the marketing of the activities of the center with an aim of ensuring that the visibility of the center is maintained at an all time high among the competitors. The sales and marketing office will be charged with ensuring that the general public understands what the center deals in and the products or services that are offered within the center.

iii Administrative; this is the office that is central in sourcing for the employees for the center as well as carrying out training as well as offering the needed assistance to the senior administration.

Marketing Segment

The current society has had to deeply get engaged in the physical therapy in order to have the fast recovery that many desire. The necessity of having physical therapy especially among those who are from surgery has led to the coming up of several centers where there are varied physical therapy provided.

The target market in this case is quite definite and specific. The market that such a center targets are the people who have had to undergo surgery and are in need of regaining their physical health and ability back as soon as possible. This group ranges from those who had major surgery and need critical care in the process of the physical therapy to those who had minor surgeries and need a little aid in regaining their posture and functionality of their limbs.

The organization will ensure that each client that comes to the facility is given the maximum attention needed and even upon exit, they will be given handouts and a gift hamper from the center to act as an incentives to have them remember the center and be able to recommend the center to another person who may find himself in the same situation.

There are several competitors in this market since other centers have also come up that offer the same service. These are equally viable centers and enough effort must be put in order to stem the competition that they pose for this center. In this respect, there will be heavy use of advertisement to ensure that this center remains visible in the competitive market. There will be use of newspapers, television as well as the organizational website.

Financial Analysis

Year 1 projection

Year 2 projection

Year 3 projection


Billable hours




Payment for counselors




Payment for equipment use




Boarding fee




Total Revenues




Cost of operation









Total cost of sale

Gross Margin









Open day participation
















Facility/Equipment repairs and maintenance








Registration fee


Commuting expenses




Venue payment (Rental)




Office stationery




Banking charges




Loan Interest




Consultation fee




Facility depreciation




Total Expenses




Operating profit before tax




Deducted estimated tax




Net profit (loss) after tax




Here the assumption is that the first year will be full of expenses as the premise will be new hence a lot of activities shall be undertaken in order to ensure that the center is popularized as much as possible. The income may be low as there could be a limited number of intakes being that it shall be a new place by then and people will just have know the place. There will be need to have a venue that can hold a minimum of 150 people at the same time and this added to the expenditure of it all.


Milpitas Physical Therapy Clinic (2011). Strength and Health for the Journey. Retrieved February 4, 2012 from

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