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.
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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.
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.
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.
A solid marketing plan will be developed to make sure that the people of Seattle know Alpha Occupational Therapy exists.
|Research and Development||$30,000|
|TOTAL START-UP EXPENSES||$392,000|
|Other Current Assets||$230,000|
|Start-up Expenses to Fund||$392,000|
|Start-up Assets to Fund||$1,221,000|
|TOTAL FUNDING REQUIRED||$1,613,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$41,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,613,000|
|Loss at Start-up (Start-up Expenses)||$382,000|
|TOTAL CAPITAL AND LIABILITIES||$2,066,000|
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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
It is a must to have proper business models occupational therapy in order for successfully starting a business as a occupational therapy. Marketing analysis is an immensely important part of this.
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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.
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.
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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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.
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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
- No occupational therapy business has an experienced and renowned professional like Dr. William Petronas on their payroll. This will give us an edge.
- To make sure that the services provided by our company are impeccable, we will hire the best of the best therapists.
- 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
|Unit Sales||Year 1||Year 2||Year 3|
|Personal Development Services||49,000||51,940||55,056|
|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|
|Corporate Personal Development Services||$49.00||$56.84||$65.93|
|Occupational Therapy for Hospitals||$55.00||$63.80||$74.01|
|Personal Development Services||$2,107,000.00||$2,590,767.20||$3,185,607.35|
|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|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Personal Development Services||$41.00||$46.00||$53.00|
|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|
|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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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
|Year 1||Year 2||Year 3|
|Social Media Manager||$9,000||$9,900||$10,890|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.24%||8.25%||8.26%|
|Long-term Interest Rate||8.40%||8.41%||8.42%|
8.2 Break-even Analysis
|Monthly Units Break-even||5338|
|Monthly Revenue Break-even||$132,020|
|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|
|Direct Cost of Sales||$7,038,000||$8,432,300||$10,294,423|
|TOTAL COST OF SALES||$7,038,000||$8,432,300||$10,294,423|
|Gross Margin %||4.09%||6.54%||7.21%|
|Sales and Marketing and Other Expenses||$126,000||$127,000||$128,000|
|Total Operating Expenses||$317,115||$334,390||$353,290|
|Profit Before Interest and Taxes||($17,115)||$256,115||$446,728|
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 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|
|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|
|SUBTOTAL CASH SPENT||$52,000||$56,160||$60,653|
|Net Cash Flow||$15,500||$16,900||$18,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$277,000||$310,240||$348,710|
|TOTAL LONG-TERM ASSETS||$24,000||$26,880||$30,240|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$15,500||$17,360||$19,513|
|TOTAL LIABILITIES AND CAPITAL||$291,200||$325,920||$366,660|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.15%||2.38%||2.64%||2.40%|
|Total Current Assets||150.02%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||94.90%||97.46%||100.19%||97.80%|
|Profit Before Interest and Taxes||41.10%||42.21%||43.39%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.3||15.8||16.4||N.A.|
|Total Asset Turnover||2.4||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$238,900||$252,278||$266,406||N.A.|
|Assets to Sales||0.86||0.87||0.88||N.A.|
|Current Debt/Total Assets||1%||1%||0%||N.A.|
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