You are on page 1of 14

Mike Warren

English 1010
4/23/16
Walton

I.

Executive Summary

At New Life Physical Therapy, we believe that the best investment we can make is in
the wellbeing of people. Our mission as a physical therapy team is to provide every patient
with the necessary tools to live life to its fullest. What New Life brings to the table is the
most accurate diagnoses and subsequent treatment possible for each client by using
electrotherapy and electromyography technology. The Founding Fathers provided us with the
right to pursue happiness New Life will restore the physical capacity to actively pursue it.
New Life is the brainchild of Michael Warren, PT, DPT, CECS and Patricia Hugh, PT,
DPT, OCS, who were practicing physical therapists in Salt Lake City and shared a vision of
providing a more effective and promising method of physical therapy. Patricia and I are the
founders, owners, and head therapists of New Life Physical Therapy. Aside from Patricia and
myself, our team consists of two excellent PTAs, Will Jackson and Gary Smith. We also have
an experienced secretary, Samantha Carlisle, who will help us manage the organization of the
clinics operations.
Physical therapy is an industry that has a virtually unending supply of clients. As we
see the increase in popularity of extreme sports, energy drinks, and action-packed movies and
TV shows, our youth are becoming more drawn to participate in dangerous activities in
search of an adrenaline rush. While we as therapists do not condone such reckless behavior,

we recognize it as a great marketing plan for increasing our business as people frequently
injure themselves doing such cool things as parkour, snowboarding, and skateboarding. Our
clinic will grow quickly as the accuracy of our diagnoses gains fame within the medical
community and the stellar results of our therapeutic methods will prove the value of our
investment in each patient. As we grow, we will open another clinic in the Salt Lake Valley,
then one in Park City, as there is no other which utilizes electromyography in either city.
Electromyography is a test which measures electrical activity produced by the
muscles. When an electromyograph is read by a trained professional, he or she can easily
identify exactly what is wrong with the muscular system and the source of the injury or
malfunction. New Lifes standout offering is the use of such tests in order to diagnose each
patient better than can be done by simple manual diagnosis. With the proper diagnosis,
prescribing and performing the restorative therapy can be quite simple. We, as a clinic, will
offer superior therapy and individualized wellness programs for each patient to enjoy his or
her life more than ever before upon completion of therapy.
I became interested in physical therapy as a result of my own lifelong pursuit of
health and my passion for making other people sincerely happy. I see New Life becoming the
most highly respected and sought-after physical therapy clinic in the state and ranked among
the best in the nation. We, as a team, seek to extend our services to as many people as
possible and will do so by offering our superior services at a competitive price. New Life
Physical Therapy has the potential to become a frontrunner as the entire PT industry changes
with advancing technology and we want to offer you, the SBA, the opportunity to invest in
the healthy future of countless people.

II.

Company Description

A good investor always makes certain that he or she is making a wise decision before
finalizing a deal. Therefore, arguably the most important step in investing is the very first
actually devoting ones resources. We believe that the same rule applies in physical therapy
and for this reason we have an incredible opportunity before us. The greatest challenge that
every healthcare provider faces is properly diagnosing each patient and physical therapy is no
exception to this rule. Clinical electrophysiology has such amazing potential because it uses
technology to diagnose and identify exactly what causes a patients ailments. New Life
Physical Therapys mission is to use combine electrotherapy with orthopaedic to truly give
our patients a new life.
Technology is improving at a tremendous rate, which has allowed society to go where
it has never been before. Our clinic seeks to help every patient do what they have been unable
to do because of their injuries. Electromyographic testing allows a trained professional to
clearly see how the body reacts to electrical stimulation and where the source of the injury
lies. Unfortunately, misdiagnoses occur from time to time among qualified, experienced
therapists. Fortunately, New Life will provide the solution by using EMG
(electromyographic) testing in order to completely avoid this.
We pride ourselves in the wellbeing of each patient and we want everyone to enjoy
life to the fullest. Obviously the best way to preserve life is to take care of it and so we will
also focus on helping our clients develop healthy, constructive habits to prevent future injury.
Our clinic aims to bring together the benefits of both disciplines of therapy to best
treat our patients. The idea is not a new one, but clinics which also incorporate acupuncture
are fairly rare to come across. Simply stated, we are dedicated to offering the most effective
treatment possible and will combine the strengths of technology and its advantages in

diagnosis with the tried-and-true methods of physical therapy that has helped countless
people fully recover from sometimes devastating injuries.

III.

Market Analysis

As advanced as our civilization has become, with technological miracles so frequent, we


still keep finding new ways to get hurt. Our devotion to others wellbeing has brought us here
today and our unique services will become increasingly well-known and sought-after as the
industry expands. The physical therapy market has grown significantly in recent years and is
projected to grow even more. It is common knowledge and even scientifically proven that
teenagers and young adults are more susceptible to making poor choices than older people.
Case in point, extreme sports and athletic competitions have grown tremendously in
popularity in recent years, as illustrated by the massive increase in the sale of action cameras
(i.e. GoPro). According to www.statista.com, roughly 200,000 action cameras were sold
worldwide in 2010, whereas in 2015, a whopping 9.6 million units were sold. (Statista, 2016)
That is an increase of 4,700% in market size. We see that people are more drawn to injurycausing activities now than they used to be. Having never broken a bone myself, I find that I
am somewhat of a rarity among my friends because they all bought into the adrenalinejunkie mentality and I managed to control myself more than they did. That being said, I once
watched a movie produced by Red Bull about some of the worlds greatest downhill
mountain bikers called Where the Trail Ends. One of the stars prepares to do a backflip on his
bike and explains that he had broken his back when attempting the same trick over a year
before but he was determined to get it right this time. He had to go through a lot of therapy
and conditioning in order to ride a bike again, let alone have the courage to try repeating the
same action that broke his back the first time. Although a therapist would never recommend

doing something so reckless, the purpose of the therapy provided is to instill such confidence
as this in every patient.
The U.S. Bureau of Labor Statistics predicts the physical therapy industry to grow
34% between 2014 and 2024. (U.S. Bureau of Labor Statistics, 2015) The market will
continue to grow and patients will seek the most effective and best therapy possible because
more and more people are hurting themselves doing these extreme activities and everyone
who goes through physical therapy expects to get better. The outpatient rehabilitation industry
is currently worth about $29.6 billion and is expect to grow another 7% each year, according
to market advisor Harris Williams and Co. (Harris Williams & Co., 2014)
Aside from the expected growth, the physical therapy industry is already vast and
efficient, yet it is not uncommon for patients to complain about unsatisfactory results.
Misdiagnoses occur and therapists may prescribe certain treatments when others are what is
really needed. Clinical electrophysiology removes a great deal of guesswork when it comes to
diagnosing the source of a problem and the accuracy and efficiency of such tests will attract
many of the patients who are dissatisfied with traditional physical therapy methods. Our
clinic will specialize in the use of electromyography and other clinical tests in order to
discover exactly what the source of each patients pain is and this will allow us to provide the
best plan for recovery. Nobody wants to go to a professional and walk out unsatisfied and still
in need of treatment, yet this is not a rare occurrence in the PT realm. That is why we are
seeking funding to set up the most comprehensive, best orthopaedic physical therapy clinic
Salt Lake City can claim as its own.

IV.

Organization

New Life Physical Therapy will be a clinic owned and operated as a partnership between
myself and Patricia Hugh. Our clinics organizational structure will be simple, yet effective.
Patricia is a practicing physical therapist and a certified orthopaedic specialist. She began her
career as a receptionist at a small physical therapy clinic where she learned the ins and outs of
ground-level management and organization. She set up appointments, handled payments, and
gained experience in bookkeeping as well. Having this experience will make her the best
option for overseeing the organizational wellbeing of the clinic.
I will perform the same functions on the physical therapy side of our clinic and we
will consult together for decisions regarding marketing, finances, and anything that may
affect the clinic as an entity. We will outsource major financial decisions to a qualified
accountant when necessary. I will also perform the electrophysiology functions in the clinic
with the help of Will Jackson, a licensed PTA.
We intend to bring in Gary Smith, also a licensed PTA, in order to assist Dr. Hugh and
facilitate the proper treatment of our patients.
As no business is successful without a talented and hardworking secretary, we will
include Samantha Carlisle, an outgoing, proactive young woman with experience working in
two other highly successful clinics.
Our organization will be somewhat unique as all members of the team will be
consulted when big decisions are to be made, yet the ultimate authority will lie with Patricia
and myself. All team members will work closely with one another so that the entire
therapeutic experience may be synergistic and wholesome for our patients. Our clinics
mission is to provide a therapeutic program that will work naturally with the body and to
ensure each patients post-therapy wellness.
Dr. Hugh will have a 40% share in the clinic and I will have 60% as I will be
personally investing more in the business and the clinics defining features will be based

primarily on my clinical electrophysiology. That being said, we intend to pay our employees
fair wages, with our secretary, Samantha, earning $38,000/year and our PTAs earning
$52,000/year each.

Patricia Hugh, PT, DPT, OCS

V.

Service Line

Physical therapy as a profession has been around since 1813, when the Royal Central
Institute of Gymnastics was founded in Sweden by Per Henrik Ling. (Physiopedia) All
physical therapy clinics share a few similarities such as their purpose, their therapeutic
methods, and the problem that all therapists face of accurately diagnosing each patients
condition. We will offer professional orthopaedic treatment and therapy of the highest caliber,
but our diagnoses will be made using clinical electrophysiology, including electromyographic
testing.
Simply stated, such testing allows therapists to clearly understand which muscle
groups are being recruited in movement, the status of neuromuscular system, and accurately
diagnose sources of biomechanical, neuromuscular, and other bodily injuries and pains.
(McDermott, 2012) Technology has created a window through which therapists can look and
see exactly what is going on inside the body instead of having to rely solely on manipulating
the injured part of a patient in order to diagnose a treatment. Physical therapists readily
recognize that diagnosis is the most difficult part of the career because only an accurate and
correct diagnosis will lead the therapist to prescribing the proper exercises and therapeutic
routine for recovery.
At New Life, my specialization in Clinical Electrophysiology will enable me to
appropriately use EMG (Electromyographic) equipment and therefore provide our patients
with the most accurate diagnosis possible. After the diagnosis, our patients individual
progress will be tracked and used in order to create, and modify as needed, a personalized
orthopaedic therapy routine through which the patient will be guided by one of our therapists.
In order to ensure each patients post-recovery wellbeing, we will prescribe exercises for
continued strengthening and to prevent future repetition of the injury.

As technology improves at such a rapid pace, we will stay up-to-date on


breakthroughs and progress in EMG technology and physical therapy methods. Since our
clinics defining feature is our specialty of electrophysiology, technological advancements
will permit us to provide even better services to our patients. By working in conjunction with
universities, we will be able to be involved in research and the development of more effective
therapeutic methods.

VI. Marketing

Here in Salt Lake City our service is unique. As of now, there is no other physical
therapy clinic with a Clinical Electrophysiology specialist and equipment. Our use of
electromyographic equipment indeed sets us apart from other clinics, but what we are really
offering is the most accurate and thorough diagnosis available along with subsequent
effective treatment. Physical therapy clinics can be found in abundance, but what patients
want is a guarantee that the clinic they go to is the best available. Such a clinic needs to do
more than guarantee a speedy recovery because thats what patients automatically assume
they will get regardless of where they go for therapy. Our clinics pricing will attract a
wider variety of clients as we work closely with insurance companies to make our services
available to the greatest number of people possible.
Quite frankly, physical therapy clinics just arent as appealing as amusement parks,
movie theaters, or clothing stores. Therefore, our marketing campaign will be based on a
totally different model a dentistry office campaign. An online marketing firm,
www.dentalmarketing.net, offers affordable postcard marketing services made specifically for
dentistry offices but can easily be used to promote a PT clinic efficiently in a given area.
Basically, postcards have become more effective for marketing than emails and telemarketing

calls. This being the case, we will have 25,000 personalized postcards sent to residential
addresses in three or four zip codes surrounding our clinic. DentalMarketing.net even pays
for postage and sends the postcards directly from the warehouse, thus saving us the added
cost of paying for stamps. Besides the attractiveness of the companys pricing and method,
they provide an ROI Calculator which predicts roughly how many new clients will be
gained as a result of the campaign. They also include a guarantee that every practice will gain
enough new patients to cover the cost of three postcard mailings or else the company will
send a fourth mailing for free. The postcard marketing model will work wonders for our
clinic because it targets only people who live close enough to be attracted by our clinics
offerings. Salt Lake City is an excellent location for such a specialized clinic as ours because
of the abundance of outdoors activities and Utahs young population.
In addition to the postcard campaign, we plan to attend Chamber of Commerce
meetings to establish relationships with other health professionals, sponsor community sports
teams, and get involved in high school athletics. If our clinic does not grow as quickly as we
expect it to, I will get a second job as a referee on a community sport circuit and network
there in order to gain clientele. We plan to seek out opportunities to speak at colleges and
seminars to raise awareness of our services and what sets us apart from all the other physical
therapy clinics around.
Once we get a solid clientele base, we will be able to branch out more and get
involved with larger healthcare providers, such as hospitals inpatient clinics, to offer our
services. Expanding into hospital PT units will help us establish credibility and awareness
with surgeons and general practitioners who will then refer more patients to our clinic. As the
clinic grows, we will begin to expand within the original building and later open one or more
clinics as necessary. If our PTAs have completed their DPT education by the time we open
new clinics, we will offer them operational management positions at the new clinics where

they will be able to combine their knowledge of New Lifes techniques with the abilities of
more experienced therapists that we will hire onto the team.

VII. Funding Request

We have come to the SBA seeking a debt loan of $75,000 so that we can open Salt Lakes
first Clinical Electrophysiology-focused physical therapy clinic. Being the first clinic of its
kind in the city, it has great potential and we are confident that it will thrive. Before we can
open our doors we will need to acquire a location and furnish our space. We have found an
excellent location to rent for $15,000/year which will provide us with enough space to get the
clinic up and running.
The majority of our costs are one-time purchases, so a greater percentage of our
profits will be directed toward repaying the loan and paying our employees. We have
included a breakdown of how the funding will be used.
We expect to pay back the entire loan within a five-year window, making monthly
payments of 2% of the principal. We expect the clinic to grow at a reasonable rate as patients
experience our high-quality service and see for themselves the superiority of treatment
prescribed from electrophysiology-based diagnoses. We do not foresee any future loan
requirements, however if the clinic grows faster than expected we will certainly need to bring
in more therapists and equipment in order to best serve to our clientele. If that is the case, we
would need to purchase more therapeutic equipment (such as tables, weights, hot/cold pads,
treadmill, etc.) which we estimate would cost another $20,000.
If our clinic suffered terribly and failed to get a foothold in the industry, our first
priority would be to repay the loan. We would seek out a larger therapy group or hospital to
purchase the ownership rights of our clinic and we would operate it.

That being said, we have full confidence that our business will succeed and help
revolutionize the entire industry. Everyone deserves to enjoy life and contribute fully to
society, which is why everyone in need of physical therapy deserves the absolute best that
medicine and technology can offer. We are seeking your aid in this venture which will
ultimately change thousands of lives for the better and invest not only in the lives of our
patients, but also in the societies which they will contribute to.

Space Rental
Clinic Equipment

$15/sq. ft. x 1,000 sq. ft. = $15,000 annually


Tables - 4 at $520/ea

(One-Time

Wedges - 4 at $107/ea

Purchase)

Cylinder Bolsters - 3 at $62/ea


Crutches - 2 pairs at $65/ea
Ultrasound/Stim Combo Unit - $3500
Goniometers - 2 at $7/ea
Cuff Weights - $150
Upper Body Ergometer - $4000
Treadmill - $4000
Recumbent Bike - $2500

Balance Discs - 2 at
$20/ea
Bosu Balance Disc - $90
Exercise Ball - 2 at $20/ea
Ultrasound Gel Warmer $120
Pneumatic Stools - 3 at
$150/ea
Wall-Mounted Mirrors $1600
Hot Pack Drying Rack $68
Hot/Cold Relief Pads - $97
Hydrocollator Set - $95
Hydrocollator Unit - $500
Home Gym Unit - $2000
Cadwell EMG Unit $15000
Aerobic Steps - 2 at

NuStep Trainer - $3800


Ball Rebounder w/ Medicine Balls - $485
Dumbbell Set - $225
Exercise Bands (6 types, 100 yds/ea) - $750
Athletic Tape - $63
Hand Sanitizer Dispenser - $96.93

Clinic Furniture

Therapeutic Equipment Total: $42,657.93


Mobile Workstation - $314

(One-Time

Sit/Stand Desk - 2 at $660/ea

Network Storage Server - $1800

Purchase)

Receptionist Desk - $1000

Credit Card Terminal - $250

Ergonomic Office Chair - $600

Internet Router - $180

Reception Area Table - $120

Office Phone - $100

Reception Area Chairs 4 at $140/ea

Printer/Fax/Photocopier - $400

Microsoft Office Subscription - $148

Desktop Computer - $1500

EMR Software - $400

Works Cited
Harris Williams
& Co.

Supplies

Furniture/Office Equipment Total: $8,692


Ultrasound Gel - $30

(Restocking

Station/Equipment Cleaner - $123

necessary)

Hand Sanitizer - $25.11


Terry Towels $20
Analgesic Pain Relief Gel - $135.92

Marketing

Supplies Total: $334.03


Postcard Marketing Campaign 25,000 Cards at $.0399/ea

Total - $9.975

(2014,

February). Physical Therapy Industry Report. Retrieved April 5, 2016, from Harris
Williams:
http://www.harriswilliams.com/sites/default/files/industry_reports/physical_therapy_
market_overview.pdf
McDermott, E. (2012, June 4). Surface Electromyography Gives PT Clinics a Competitive
Advantage in Treatment. Retrieved April 13, 2016, from WebPT:
https://www.webpt.com/blog/post/surface-electromyography-gives-pt-clinicscompetitive-advantage-treatment
Physiopedia. (n.d.). Physiotherapy. Retrieved April 13, 2016, from Physiopedia:
http://www.physio-pedia.com/Physiotherapy_/_Physical_Therapy#cite_ref-3
Statista. (2016). Worldwide Sales of Action Cameras. Retrieved April 9, 2016, from Statista:
http://www.statista.com/statistics/326898/worldwide-unit-sales-action-cams/
U.S. Bureau of Labor Statistics. (2015, December 17). Occupational Outlook Handbook:
Physical Therapy. Retrieved April 5, 2016, from U.S. Department of Labor, Bureau of
Labor Statistics: http://www.bls.gov/ooh/healthcare/physical-therapists.htm#tab-6