10 Mistakes to Avoid When Starting a PT Clinic

When setting up a PT clinic, knowing what not to do is just as essential as how to go about it. Avoiding some common mistakes will help new clinic owners steer cautiously through the rough tides.

Setting up a physical therapy clinic can be quite daunting if one does it on their own, and especially so if they go about it without any business background. From finances going out of hand to hiring the wrong people to improper planning and failing to adopt the right management systems, there are many things that can push the plans off-track.

It's all exciting at first, and new clinic owners are willing to try, learn, fail, and try again; but when the goal is to create something for the long term, it's imperative to foresee the challenges and consider factors like growing demand, changes in healthcare policies, updated technology, and the ever-changing trends in physical therapy.

There are several challenges one can face, and one can make a lot of mistakes, too. The foremost among them is moving ahead without a structured business plan. 

Here are some common PT clinic setup mistakes to help avoid repeating them when setting up a PT clinic, thus enabling a practice to grow faster.

1. Relying Solely on Clinical Abilities

When ventured into starting a PT clinic, it's best to not rely only on clinical abilities. It's difficult to learn the business aspects on the job and make it work. Observing other successful businesses, one might even think, "Why can't I do the same?" 

• Business naivety, while initially motivating, can prove to be limiting. 
• The goals should be clear and the approach structured. 
• The long-term goal and pathway have to be established early on. 
• Providing patient care has to be organized and efficient, but treating patients well will not generate significant word-of-mouth referrals. 

It's no wonder that 96% of businesses fail! According to the bureau of labor statistics, only a small percentage of physical therapists are successfully self-employed. 

Once the new clinic owner understands where they are wrong, they can set clear goals and realize they can't do it all alone. They have to build a business attractive enough to convince someone to be willing to join them on the journey. 

2. Failing to Seek Assistance When Starting a PT Clinic

Starting a physical therapy clinic independently can lead to unnecessary challenges. New clinic owners may be determined to succeed on their own, but this determination can sometimes result in an unwillingness to seek help. Recognizing the value of assistance can be a critical factor in making significant progress.

• Seeking help opens up new possibilities and offers different perspectives that might otherwise be overlooked. 
• It is important to assess available networks, identify contacts who can provide support, and consider how mutual benefits can be established. 
• Experienced professionals can offer valuable insights and practical advice on setting up and managing a PT clinic. 
• Establishing mutually beneficial relationships can greatly enhance the chances of success, making the journey more manageable and effective.

3. Lowering the Pricing of Services

Offering services at reduced prices is a significant mistake when establishing a physical therapy clinic. Initially, lower pricing may attract a large number of clients, but this can lead to attracting the wrong type of clientele—those seeking quick, inexpensive fixes rather than long-term solutions. This misalignment can undermine the clinic's values and long-term goals.

In the marketplace, attempting to be the cheapest often comes at the cost of quality and speed. Clinics that prioritize delivering high-quality, long-term results must charge appropriately to sustain the level of service provided. The cost of physical therapy sessions typically ranges from $75 to $120, and up to $350, depending on factors such as insurance coverage, location, and the complexity of care required. 

Low overhead costs might suggest underinvestment in crucial areas like recruitment or marketing. Higher prices set higher expectations and reflect the confidence and value placed on the services offered. 

Pricing strategies should also align with current market trends and emerging healthcare policies, such as telehealth services, transparent pricing, integrated care models, and value-based care.

It is essential not to undervalue time and skills by charging less due to the fear of being perceived as expensive. Although raising prices may result in losing some clients, it can ultimately position the clinic as a premium, sought-after option. This approach enables competitive wages, an outstanding clinic experience, and sustained profitability.

4. Neglecting to Seek a Mentor When Establishing a PT Clinic

Starting a physical therapy clinic without guidance is a common mistake that can hinder success. The key to growing a successful business lies in making a series of well-informed decisions. A single poor choice can set the clinic back significantly, affecting both business growth and personal development as a clinic owner.

Being open to learning and channeling energy in the right direction is crucial for avoiding common pitfalls and accelerating progress. Doubt and hesitation in decision-making can slow down growth, but with the guidance of a mentor, progress can be significantly faster.

A mentor can provide valuable insights in various areas, including recruitment, marketing, pricing strategies, selecting premises, implementing necessary systems, and staying informed about industry developments. Their guidance helps anticipate and prepare for future challenges, ensuring smoother and more efficient progress.

5. Obsessing Over Small Details

Focusing excessively on minor details, such as color schemes or choosing the perfect name, can be a significant distraction when starting a physical therapy clinic. While creating a cohesive brand is important, these elements are less critical during the initial stages of establishing the business.

• For a local business, the most valuable asset is the service provided and the expertise of the clinic owner. Shifting focus away from trivial matters and toward taking meaningful action is essential. The pursuit of perfection can hinder progress, leading to delays in launching the clinic and reaching potential clients.
• Taking consistent action is more impactful than endlessly refining details. Success comes from engaging with the community, providing quality care, and continuously improving the business, rather than striving for an unattainable ideal.

6. Choosing the Location of a PT Clinic

The adage "location, location, location" is particularly relevant when launching a physical therapy clinic. The success of a clinic can be significantly influenced by its location. 

Relocating from a less visible, rural area to a prominent high street location often leads to a notable increase in patient numbers. In such cases, the rent essentially becomes part of the clinic's marketing strategy, contributing directly to attracting new clients. 

The importance of location cannot be overstated, especially in relation to the clinic's ideal patient demographic. Understanding the needs and habits of the target market helps determine the optimal location. A clinic situated on a busy road, near a train station, close to a supermarket, or on the main street is likely to perform better than one hidden away inside another business. 

In addition to selecting a strategic location, offering conveniences such as after-hours services, clean restrooms, ample parking, streamlined processes, and regular follow-ups can enhance the clinic's appeal and establish it as a sought-after option in the community.

7. Delaying Recruitment

Delaying recruitment is a common mistake that can hinder the growth of a physical therapy clinic. The earlier recruitment is initiated, the faster the clinic can expand and thrive. Recruitment is a significant step, and it can be daunting to realize that the success of the business may depend on paying an employee's salary. However, timely hiring is essential for scaling the clinic effectively.

Here are a few things to keep in mind.

• Recruitment is a mutual decision, with both the employer and the candidate evaluating the fit. Employees may leave or disappoint, and it's unlikely they will stay throughout their entire career. The focus should be on whether the clinic can help employees grow and how they can contribute to the clinic's development.
• Initial hires often include additional physical therapists to increase capacity. However, hiring support staff, such as front desk personnel, is equally important. Although these roles may not generate direct income, they play a critical role in the clinic's success by handling essential tasks like answering phones and managing appointments. Recognizing the value of these roles can lead to missed opportunities if overlooked.
• Implementing a probationary period of 3-6 months in employment contracts is advisable, allowing both parties to assess the fit. While hiring mistakes may occur, making the right recruitment decisions can significantly contribute to business growth.
• A prudent approach includes setting aside three months' worth of salary before making a hire to ensure financial stability. When hiring a physical therapist, for example, it's important to calculate how many patients they need to see daily to cover their salary. 
• With the right support and coaching, new hires typically progress to seeing a full patient load within a few months, ensuring the clinic remains financially stable.

8. Misunderstanding the Role of a Physical Therapy Website

A common misconception when starting a physical therapy clinic is underestimating the role of a website, viewing it merely as a one-page online advertisement. Launching a website and expecting it to automatically attract visitors without further effort is a significant mistake. In reality, a website is just the first step in establishing a digital presence.

In healthcare, building trust is paramount. A website should serve as a platform to share information, educate clients, reassure them, and demonstrate empathy. Beyond just having a website, it's crucial to maintain an active digital presence through social media, garner positive online reviews, and showcase testimonials—all of which contribute to building credibility and trust.

Key considerations for an effective physical therapy website include:

• Attracting Traffic: Implement strategies to drive visitors to the website, such as SEO optimization and online marketing.
• Clear Call to Action: Define the actions you want visitors to take, such as booking appointments online or contacting the clinic for more information.
• Core Messaging: Ensure the website communicates the core message of the clinic clearly and consistently.
• Functionality: Incorporate necessary features like online booking, and ensure the website is user-friendly and responsive.
• Ongoing Updates: Regularly update the website to keep it relevant and competitive, focusing more on functionality than just visual appeal.

In today’s competitive landscape, having a dynamic and functional website is far more critical than its appearance alone.

9. Failing to Implement CRM and Clinic Management Software

As a physical therapy clinic grows, implementing efficient CRM (Customer Relationship Management) and clinic management software becomes crucial. Neglecting to invest in robust systems can lead to significant operational challenges, resulting in time-consuming and costly issues.

Key considerations for a clinic management system include:

• Streamlining Operations: A robust system should make the clinic run smoother, providing a hassle-free work environment for the team. It should enable monitoring of staff performance, such as completion of SOAP notes and utilization rates, while offering clear insights into overall clinic efficiency.
• Financial Management: The software should help manage billing submissions, track cash flow cycles, and reduce the risk of financial losses due to inefficiencies.
• Enhanced Communication: A comprehensive CRM solution enhances patient communication and overall clinic productivity by streamlining tasks such as scheduling, EMR/EHR management, appointment management, billing, and invoicing.

Investing in top-tier CRM and clinic management software is essential for maintaining an efficient and productive clinic. For example, SPRY, an AI-powered all-in-one PT clinic management software, offers features that automate processes, digitize workflows, and improve efficiency. 

With SPRY, clinics have reported a 98% reimbursement claim approval rate, a 30-40% reduction in SOAP note creation time, and a 70% savings on front-end administrative time.

Neglecting to implement effective clinic management software is a critical mistake to avoid when setting up a PT clinic. Ensuring that these systems are in place is vital for the clinic’s long-term success and smooth operation.

10. Underestimating the Importance of Marketing

Clinic owners often underestimate the importance of marketing, especially once their client roster appears full. This is a significant oversight.

For physical therapy clinic owners, it is crucial to remember that marketing should be an ongoing effort, even when the clinic is busy. Effective marketing plays a vital role in business growth by generating leads that convert into patients, who ultimately contribute to the clinic’s revenue and support its operations. Ideally, around 10% of the clinic’s turnover should be allocated to marketing efforts to ensure continued growth and sustainability.

Various marketing strategies can be employed, including:

• Building Partnerships: Establish relationships with other healthcare providers or local businesses. 
• Hosting Free Events: Organize events to engage with the community and attract potential clients.
• Utilizing Postcards: Send out promotional postcards to raise awareness.
• Running Google Ads: Use targeted ads to reach individuals searching for physical therapy services.
• Creating Blogs: Provide valuable content to educate and engage potential patients.
• Direct Mail Postcards: Send targeted mailings to specific demographics.

Digital marketing strategies such as content marketing, targeted advertising, social media marketing, and email marketing can significantly broaden reach and enhance patient engagement. Consistently investing in marketing will help maintain high demand and contribute to the clinic’s overall success.

What’s Next?

Having a solid business plan, managing finances effectively, anticipating challenges, seeking guidance from a mentor, staying informed about current market trends, and implementing efficient clinic management software such as SPRY are crucial for gaining a competitive edge when starting a physical therapy clinic. These elements are essential for establishing a successful practice.

With an understanding of common mistakes to avoid, clinic owners can confidently move forward and navigate the setup process with greater ease. After establishing the clinic, focusing on gradual expansion of service offerings is important. Incorporating the latest technologies, such as AI-driven facilities and wearable device patient monitoring systems, can help keep the clinic ahead of the curve and enhance patient care.