Deciding to open a physical therapy (PT) practice can be an exciting and rewarding experience. However, choosing between starting a practice from scratch and purchasing an established practice is not always simple. Below, we’ll break down the key differences between starting and buying a physical therapy practice, exploring the starting investment, the risk, and more.
The Investment: Time, Money, and Effort
Starting a Practice
Starting a PT practice from scratch requires considerable time, money, and effort. You will have to overcome numerous challenges, such as finding a suitable location, setting up the clinic, purchasing equipment, hiring staff, and creating a solid business plan.
Buying a Practice
Purchasing an existing PT practice may involve a higher upfront investment, but most of the groundwork will have already been laid for you. The existing infrastructure, client base, staff, and reputation within the community can significantly reduce the time it takes to become profitable.
Building a Client Base and Reputation
Starting a Practice
Attracting clientele and developing a reputation can be time-consuming when starting a new practice. It may take years to achieve a steady business flow and establish yourself within the community.
Buying a Practice
When you purchase an existing PT practice, you inherit the existing client base and the reputation that the previous owner built. This can provide a solid foundation for rapid growth, allowing you to focus on expanding the business rather than starting it from scratch.
Mitigating Risk
Starting a Practice
The prospect of venturing into a new business can be daunting due to the significant risk involved. New PT practices face a range of uncertainties, including lower-than-expected client flow, unforeseen expenses, and complications arising from insurance and regulatory requirements.
Buying a Practice
Buying an established PT practice significantly lowers the risk associated with starting from scratch. Purchased practices have a proven track record of success, an established client base, and a history of revenue generation. This provides a greater degree of financial security compared to starting your practice from the ground up.
Making the Right Decision
Upon review, it becomes clear that buying an existing PT practice often presents a more secure and reasonable path to success when compared with starting a new practice. Benefits such as an established client base, existing infrastructure, and reduced overall risk can be vital considerations that may ultimately sway your decision.
Expert guidance can be invaluable when navigating the process of buying or selling a professional practice. Business brokers, such as Private Practice Transitions, specialize in helping physical therapists and other professionals in the service niche make these crucial decisions and achieve their goals. Browse our online listings of PT practices or contact our staff to learn more.
