How Much is Needed For A Physical Therapy Business

By: First Union


How Much is Needed For A Physical Therapy Business

Are you tired of working for somebody else? Maybe it’s time to start your own physical therapy business. However, that can be expensive.

Now you’re wondering: How much money do I need to start a physical therapy business?

If you’re mindful about your startup expenses, the answer might be less than you think. Here are the types of costs you need to think about when planning your new physical therapy practice.

Types of Startup Expenses for a Physical Therapy Business

Sure, you need physical therapy equipment and a space to work. Have you considered all the other types of expenses you may incur?

Permits, Insurance, and More

Depending on your location, you will need varying types of permits to operate a physical therapy business. These permits can range anywhere from $150 to $2000 depending on your location.

Additionally, you will need liability, business, and other sorts of insurance plans. Shop around to find the best programs to suit your needs.


You have significant control over equipment expenses. There’s no need to start with the most expensive equipment.

For example, you can start with a $500 wooden table with an adjustable backrest compared to a $3000 electric table. Separate $100 portable electrical stimulation and ultrasound units work as well as a $3500 high-end combination unit.

You can also look for used equipment over new equipment. You can invest in more modern equipment once you’ve established your practice.

Another method of cutting costs is to use resistance bands and sport cords attached to ballet bars of varying heights. Not only is this more cost-efficient, but you can show your patients the exercises they will do at home. Additionally, this will take less space than large machines so you can save on rent.


The space you choose to open your business is crucial. Why spend the money on an area larger than you need? It’s better to start with a small space with lower rent and move once your business has outgrown your location.

One way to find an affordable space for your new physical therapy business is to sublease from other healthcare professionals. You may only need one large room to start. Don’t pay for may a whole office space at first.

It’s important to note that you’ll need a security deposit and first and last month’s rent to secure a space.

Another important thing you should consider is the location of your physical therapy business. What type of clients are you servicing? Where do they live? It may be worth investing more money in a better location.


When you first open your business, people need to know about you. Marketing is a big variable expense.

You can start cheap by getting business cards to give to medical practices which might refer clients to you. Having several good referral sources is priceless when you run a physical therapy clinic.

A website is necessary, but there’s no need to spend thousands of dollars on a professional site. Many websites exist that allow you to build your website for free or cheap. You can upgrade to a professionally designed site down the road.

Social media may be the best way to market your physical therapy business. All it requires is time, with no need to spend money unless you hire a professional.


You will need varying types of software to run your business, from accounting to insurance billing to customer tracking. Spend time looking for the best software to avoid paying for something that isn’t efficient.


When you first start, you can probably manage everything yourself. Eventually, though, you will need help. Employees may include a receptionist, billing specialist, social media marketer, other physical therapists, or more.

Employees are one area you don’t want to cut costs much. Happy employees are better for business, and retaining employees is more cost-efficient than having high turnover rates. An employee with a bad attitude could scare away clients, which can tank your business.

Financing Options

We can’t provide you with exact dollar amounts for how much money you will need to start your business. It is likely, though, that you may need a loan to finance at least part of your startup costs.

There is a variety of financing options out there, and the wrong type of loan could cost you money. Are you confused about your options?

First Union Lending has nine different loan types to suit any business need. They will be happy to explain all the different loan types to find what works best for you.

Click here or call 863-825-5626 to talk to one of our loan specialists. We’ll help you get the best financing to start your physical therapy business.

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