Occupational Therapy Business Plan Sample

Occupational therapy business plan for starting your own business

If you want to know how to open an occupational therapy business, you are in the right place. We will give you all the information and guidance for nonprofit business planning as well as for-profit. Our business plan for physical therapy has helped a lot of people start their own business.

Occupational therapy is a field of health sciences. It is focused at helping people correct mental and behavioral irregularities using meaningful activities (occupations) that are imparted in their daily routine. We will have a look at how Alpha Occupational Therapy plans to be the leader of the industry.

Executive Summary

2.1 The Business

Alpha Occupational Therapy will be a registered business in Seattle. It will be owned by Dr. William Petronas. William is a retired psychiatrist who has conducted substantial research in the field of behavioral therapy and interventions.

2.2 Management of Occupational Therapy Business

For starting an occupational therapy business, it is of paramount importance to make a strong management plan. William will hire an experienced CEO to manage the business. As there are two faces of the business, operations and public relations, experts will be hired to take care of both. This document will tell you in sheer detail how to start an occupational therapy business and make it successful.

We’ll also tell you how to get a non profit occupational therapy business license.

2.3 Customers of Occupational Therapy Business

This is not as simple as a pharmacy business plan. To make the strategic business plan for this business, we need to know the customers first. The main customers of this business will be:

• People who want to improve their lives by therapy.
• People who want to get a loved one treated.
• Institutions that want their employees to get therapy.

2.4 Business Target

The business target is:

• To expand to two more states in 2 years.
• To start making $29.8k in profits per month by the end of three years.

Company Summary

3.1 Company Owner

William Petronas, the owner of the company is one of the most renowned psychiatrists in the state of Washington. He was one of the very first practitioners to make occupational therapy available for the masses. However, business and management are out of his scope and to make this occupational therapy business plan example successful he’ll hire a CEO.

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3.2 Why the Occupational Therapy Business is being started

William is starting this business because he’s passionate about it. He has worked in this field all his life. He is like a star of this field. However, just like a Herbalife business plan there is a financial aspect too.

3.3 How the Occupational Therapy Business will be started

Step1: Plan Everything

The first step in making this sample occupational therapy business plan is planning. Williams will start this business after extensive planning. This consulting business plan template occupational therapy will cover all the aspects of planning needed.

Step2: Making a Brand

People these days are brand conscious. In order to make this business successful, a brand needs to be developed. The focus of making the brand will be around how occupational therapy can change your life for good.

Step3: Establishing a Clinic

Once the brand has been established, the next step will be to establish a clinic where the clients will visit. This clinic will need to be at par with the services provided in it.

Step4: Establish Online Presence

Going online is the most important thing. If you want your business to be noticed, you’ll have to create an online presence. This will be done using a website and social media pages on all the notable platforms.

Step5: Marketing

A solid marketing plan will be developed to make sure that the people of Seattle know Alpha Occupational Therapy exists.

Start-up Expenses
Legal	$248,000
Consultants	$0
Insurance	$30,000
Rent	$29,000
Research and Development	$30,000
Expensed Equipment	$51,000
Signs	$4,000
TOTAL START-UP EXPENSES	$392,000
Start-up Assets	$340,000
Cash Required	$350,000
Start-up Inventory	$51,000
Other Current Assets	$230,000
Long-term Assets	$250,000
TOTAL ASSETS	$1,221,000
Total Requirements	$1,613,000
START-UP FUNDING
Start-up Expenses to Fund	$392,000
Start-up Assets to Fund	$1,221,000
TOTAL FUNDING REQUIRED	$1,613,000
Assets
Non-cash Assets from Start-up	$1,612,000
Cash Requirements from Start-up	$369,000
Additional Cash Raised	$52,000
Cash Balance on Starting Date	$33,000
TOTAL ASSETS	$2,066,000
Liabilities and Capital
Liabilities	$30,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$41,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$71,000
Capital
Planned Investment	$1,613,000
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,613,000
Loss at Start-up (Start-up Expenses)	$382,000
TOTAL CAPITAL	$1,995,000
TOTAL CAPITAL AND LIABILITIES	$2,066,000
Total Funding	$1,613,000

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Services

No occupational therapy business plan template can be complete without a list of the services the business is going to provide. To deliver the best value to the customers and make profit while you are at it, you need to know how to start your own occupational therapy business.

Here are the services Alpha Occupational Therapy will be providing:

• Personal Development Services

These will cover the bulk of the services provided by the business. These services will be intended for people who are not suffering from any irregularity or medical condition and just want to be the better versions of themselves.

These services will include:

• Time management therapy.
• Focus increasing therapy.
• IQ improvement therapy.
• Increasing decision making ability.
• Specialized Therapy

Just like any other non-medical home care business plan, this business will also provide services to people with mental problems. These will include:

• Anger management therapy.
• Depression mitigation therapy.
• Mental improvement therapy.
• Behavioral therapy.

• Corporate Personal Development Services

These services will be provided for large corporations who want their employees to be better persons. These services will include behavioral, personal development, stress, and workload management therapies.

• Occupational Therapy for Hospitals

Hospitals with in-patient psychiatric wards that do not have occupational therapy services available will be provided with these services which will include all types of therapy needed by people with severe and progressive psychiatric conditions.

Marketing Analysis of Occupational Therapy Business

Business Plan for Investors

Occupational therapy is not an entirely new concept. The idea came into being in 1917. As of now it is a $26.1 billion market in the US. The business has grown from “a therapy for the rich” to an essential healthcare profession. Large corporations, schools, and even hospitals hire occupational therapists to provide the services. You need to have some really radical and innovative occupational therapy business ideas to start this business and make it profitable.

5.1 Market Trends

Just like a cannabis cultivation business plan, the occupational therapy business has just recently boomed. The market started flourishing after the financial crisis of 2008. As a lot of people lost their jobs and property, it was a time of widespread mental illnesses. This was the time when occupational therapy proved itself and came forth as a solution to the problem the US was facing at that time. This market is not yet saturated and you can make a name and start a profitable business in this field very easily.

5.2 Marketing Segmentation

The market for occupational therapy is a very diverse one. It can be divided into four major segments and each of them is a large one in terms of revenue.

5.2.1 Individual Patients

These are the people who do not have a severe mental condition. These people just want to improve themselves and be better. These patients are the easiest to handle and pay substantially. However, there are not much of such patients as occupational therapy is still largely thought of as a treatment and not as a method of self-improvement.

5.2.2 Schools

This is an emerging market segment for occupational therapy service providers. Schools hire occupational therapists to help the children who need special care. Children with anger issues and those suffering with PTSD also need the services which makes this segment a profitable one.

5.2.3 Corporate Clients

This is also a market segment for occupational therapy that has bulk of clients. Large corporations have realized the importance of occupational therapy and hire therapists to improve their employees. We will focus on such clients as they work with the therapists on a long-term basis and offer the best prices.

5.2.4 Hospitals

Some hospitals do not have occupational therapy experts, but they do need the services. They can be a good source of cases in bulk and for long time. We will be dedicating a whole part of the company to serve these clients.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Individual Patients	32%	32,000	34,000	35,000	37,000	39,000	10.00%
Schools	23%	25,000	26,000	27,000	28,000	30,000	10.00%
Corporate Clients	24%	21,000	22,000	24,000	25,000	27,000	10.00%
Hospitals	21%	16,000	17,000	18,000	20,000	21,000	11.00%
Total	100%	94,000	99,000	104,000	110,000	117,000	10%

5.3 Business Target

In this business plan on how to open an occupational therapy business, we’re providing the business targets set by Alpha Occupational Therapy.

• To be the leading provider of occupational therapy services in the US.
• To expand to 2 more states by the end of 3 years.
• To bring innovation in the field of occupational therapy.

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5.4 Product Pricing

Our services will be priced at the market average at the start. This will, however, change to a higher-than-average price once we get clients. The average price is being used because we don’t want people to think of us as an inferior brand due to low prices.

Marketing Strategy

The next thing needed to complete this occupational therapy marketing plan is the marketing strategy. This occupational therapy business proposal covers that expect in detail. In order to successfully launch and run this business, the importance of a solid marketing policy is paramount.

We will run a detailed competitor analysis to see what competitive edge we have and the marketing strategy will be based on that. Let’s have a look at the competitor analysis for this occupational therapy business.

6.1 Competitive Analysis

1. No occupational therapy business has an experienced and renowned professional like Dr. William Petronas on their payroll. This will give us an edge.
2. To make sure that the services provided by our company are impeccable, we will hire the best of the best therapists.
3. We will market our business as a cheap yet effective way towards a better life and mental health.

6.2 Sales Strategy

• We will utilize all the major media channels to advertise our services.
• We’ll keep the prices low at the start and will offer substantial discounts to earn repeat customers.
• We will partner up with hospitals and corporate clients who have lot of patients to make sure that we have plenty of work.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Personal Development Services	49,000	51,940	55,056
Specialized Therapy	38,000	40,280	42,697
Corporate Personal Development Services	35,000	37,100	39,326
Occupational Therapy for Hospitals	28,000	29,680	31,461
TOTAL UNIT SALES	150,000	159,000	168,540
Unit Prices	Year 1	Year 2	Year 3
Personal Development Services	$43.00	$49.88	$57.86
Specialized Therapy	$52.00	$60.32	$69.97
Corporate Personal Development Services	$49.00	$56.84	$65.93
Occupational Therapy for Hospitals	$55.00	$63.80	$74.01
Sales
Personal Development Services	$2,107,000.00	$2,590,767.20	$3,185,607.35
Specialized Therapy	$1,976,000.00	$2,429,689.60	$2,987,546.33
Corporate Personal Development Services	$1,715,000.00	$2,108,764.00	$2,592,936.21
Occupational Therapy for Hospitals	$1,540,000.00	$1,893,584.00	$2,328,350.89
TOTAL SALES	$7,338,000.00	$9,022,804.80	$11,094,440.78
Direct Unit Costs	Year 1	Year 2	Year 3
Personal Development Services	$41.00	$46.00	$53.00
Specialized Therapy	$50.00	$57.00	$65.00
Corporate Personal Development Services	$47.00	$53.00	$61.00
Occupational Therapy for Hospitals	$53.00	$60.00	$70.00
Direct Cost of Sales
Personal Development Services	$2,009,000.00	$2,389,240.00	$2,917,989.20
Specialized Therapy	$1,900,000.00	$2,295,960.00	$2,775,292.00
Corporate Personal Development Services	$1,645,000.00	$1,966,300.00	$2,398,886.00
Occupational Therapy for Hospitals	$1,484,000.00	$1,780,800.00	$2,202,256.00
Subtotal Direct Cost of Sales	$7,038,000.00	$8,432,300.00	$10,294,423.20

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Personnel plan

In order to complete this occupational therapy business plan example, we need to talk about the staff that will be needed to run the business. This is important because just like a physical therapy clinic business plan, this business needs a lot of experienced, educated, and trained staff to operate.

7.1 Company Staff

• 1 CEO to head the company.
• William Petronas himself will be the Chief Operations Officer.
• 6 Occupational Therapists.
• 1 Web Developer to make the website and app for the business.
• 1 Social Media Manager
• 2 Sales Executives
• 1 Accountant
• 1 Driver
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
CEO	$15,000	$16,500	$18,150
Occupational Therapists	$68,000	$74,800	$82,280
Web Developer	$10,000	$11,000	$12,100
Social Media Manager	$9,000	$9,900	$10,890
Sales Executives	$20,000	$22,000	$24,200
Driver	$10,000	$11,000	$12,100
Accountant	$11,000	$12,100	$13,310
Receptionist	$7,000	$7,700	$8,470
Total Salaries	$150,000	$165,000	$181,500

Financial Plan

If you are wondering how much money is the occupational therapy business worth, it depends on the value of the brand. This is not a dentistry business plan where the equipment and real estate are all what dictate the value of the business. The value of such a business is determined by the level of trust people have in it.

To start this business, we’ll have to arrange enough money for the following:

• Renting a place to set up the business.
• Salaries for the staff for the first 6 months.
• Money needed to lease 3 field vehicles.
• Money needed to get the business registered and licensed.
• Money needed to set up a website and social media pages.
• Money needed to market and promote the business in the starting phase.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.24%	8.25%	8.26%
Long-term Interest Rate	8.40%	8.41%	8.42%
Tax Rate	23.90%	23.98%	24.20%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5338
Monthly Revenue Break-even	$132,020
Assumptions:
Average Per-Unit Revenue	$235.00
Average Per-Unit Variable Cost	$0.66
Estimated Monthly Fixed Cost	$164,100

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$7,338,000	$9,022,805	$11,094,441
Direct Cost of Sales	$7,038,000	$8,432,300	$10,294,423
Other	$0	$0	$0
TOTAL COST OF SALES	$7,038,000	$8,432,300	$10,294,423
Gross Margin	$300,000	$590,505	$800,018
Gross Margin %	4.09%	6.54%	7.21%
Expenses
Payroll	$150,000	$165,000	$181,500
Sales and Marketing and Other Expenses	$126,000	$127,000	$128,000
Depreciation	$2,290	$2,340	$2,440
Leased Equipment	$0	$0	$0
Utilities	$2,975	$3,020	$3,110
Insurance	$1,850	$1,930	$2,040
Rent	$3,000	$3,100	$3,200
Payroll Taxes	$31,000	$32,000	$33,000
Other	$0	$0	$0
Total Operating Expenses	$317,115	$334,390	$353,290
Profit Before Interest and Taxes	($17,115)	$256,115	$446,728
EBITDA	($17,115)	$256,115	$446,728
Interest Expense	$0	$0	$0
Taxes Incurred	($3,423)	$51,223	$89,346
Net Profit	($13,692)	$204,892	$357,382
Net Profit/Sales	-0.19%	2.27%	3.22%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$57,000	$61,560	$66,485
Cash from Receivables	$19,000	$20,520	$22,162
SUBTOTAL CASH FROM OPERATIONS	$76,000	$82,840	$89,467
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$76,000	$83,000	$90,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$31,000	$32,000	$33,000
Bill Payments	$21,000	$22,000	$23,000
SUBTOTAL SPENT ON OPERATIONS	$52,000	$54,000	$56,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$52,000	$56,160	$60,653
Net Cash Flow	$15,500	$16,900	$18,000
Cash Balance	$22,000	$23,000	$24,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$268,000	$300,160	$330,176
Accounts Receivable	$23,000	$25,760	$28,954
Inventory	$4,000	$4,480	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$277,000	$310,240	$348,710
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$18,100	$20,272	$22,806
TOTAL LONG-TERM ASSETS	$24,000	$26,880	$30,240
TOTAL ASSETS	$291,000	$325,920	$366,660
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,800	$21,056	$23,667
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$15,500	$17,360	$19,513
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$13,400	$15,008	$16,869
Paid-in Capital	$29,000	$30,200	$30,900
Retained Earnings	$53,300	$58,097	$63,907
Earnings	$192,500	$209,825	$230,808
TOTAL CAPITAL	$277,800	$302,802	$333,082
TOTAL LIABILITIES AND CAPITAL	$291,200	$325,920	$366,660
Net Worth	$285,000	$310,650	$341,715

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.28%	10.28%	11.39%	9.80%
Inventory	5.40%	5.98%	6.63%	9.90%
Other Current Assets	2.15%	2.38%	2.64%	2.40%
Total Current Assets	150.02%	151.00%	152.00%	158.00%
Long-term Assets	11.39%	11.45%	11.53%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.89%	4.93%	4.97%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.61%	7.67%	7.74%	7.38%
NET WORTH	101.02%	101.83%	102.76%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	95.03%	97.60%	100.33%	99.00%
Selling, General & Administrative Expenses	94.90%	97.46%	100.19%	97.80%
Advertising Expenses	1.54%	1.58%	1.63%	1.40%
Profit Before Interest and Taxes	41.10%	42.21%	43.39%	33.90%
Main Ratios
Current	34	35	36	32
Quick	34	34.5	35.3625	33
Total Debt to Total Assets	0.17%	0.17%	0.17%	0.40%
Pre-tax Return on Net Worth	73.80%	74.60%	75.12%	75.00%
Pre-tax Return on Assets	95.02%	99.77%	104.76%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.21%	34.24%	35.30%	N.A.
Return on Equity	55.10%	56.81%	58.57%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32	33.6	34	N.A.
Accounts Payable Turnover	15.3	15.8	16.4	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$238,900	$252,278	$266,406	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.86	0.87	0.88	N.A.
Current Debt/Total Assets	1%	1%	0%	N.A.
Acid Test	29.45	29.89	30.01	N.A.
Sales/Net Worth	2.2	2.2	2.3	N.A.
Dividend Payout	0	0	0	N.A.

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