1. Importance of a Business Plan
Starting a speech therapy practice without a business plan is like setting sail without a map. You might know where you want to go, but without proper guidance, you could easily get lost.
A business plan acts as your navigational tool, helping you chart a course for success. It outlines your goals, strategies, and tactics, providing a roadmap to guide your practice towards both your professional goals and sustainable income.
2. Key Components of a Speech Therapy Practice Business Plan
Before diving into the specifics of each section, let’s understand the core components of a speech therapy practice plan.
Executive Summary:
I would suggest you write the executive summary last. First create the plan, then summarize what you have decided while discovering how you want to build you business.
The executive summary is like the cover of a book; it gives a brief overview of what’s inside. It highlights your practice’s mission, vision, goals, and key differentiators. Think of it as your elevator pitch – a concise summary that grabs the reader’s attention and entices them to learn more.
Market Analysis:
The most important thing is to understand both what you’d like to do and to experiment. Unless you’ve done many years in the profession, it takes time to discover after graduation what truly lights your spirit…
Some people train as speech therapists and then discover that they prefer being creators. They build assets that they sell on their ‘Teachers Pay Teachers’ store, some build social media content to share latest games and activities to speech therapists and parents alike. Some really were destined to be a speech therapist with children, with adults or an expert in court.
Understand first what you want to do then doing your market research is crucial for success. Remember though, this is a journey, you can decide to try to different things before you find something that lights your spirit and is the right fit. Give yourself grace. Not every experiment will be a success. Doing research does help cut through and minimize false starts… If you want to do speech therapy with children, there are a high density of them in your area, yet non that help people recovering from strokes… Bingo! You’ve found a niche of patients that need your services.
Services and Pricing Strategy:
Once you know which services you wish to offer… There is more research to do. You need to know your worth. How much are other speech therapists in the same domain charging in the area? How many regular patients do they have a month? What do speech therapists outside your domain charge? Know your worth. You’ve studied long and hard. Expertise is hard earned.
Here is an interesting TedTalk to motivate you: Casey Brown – Know Your Worth
Consider factors such as office costs, administrative support costs, equipment costs. You need to both remain competitive for your area but also ensure that you are profitable.
Marketing and Sales Plan:
Even the best speech therapy practice will struggle to succeed without effective marketing and sales strategies. Develop a comprehensive plan to attract patients. Utilize a mix of sustainable tactics that work for you, whether through GP or word of mouth referrals, social media, paid ads and/or blogging blogging.
Financial Projections:
Forecasting your finances is essential for financial planning and decision-making. Estimate your revenue, expenses, and cash flow projections for the first few years of operation. This will help you determine how much funding you’ll need to start and sustain your practice until it becomes profitable.
Start with a simple budget to estimate rent, office supplies and furniture spend, equipment spend like computers, tablets, software or children’s games. Build into that budget a slow buildup of patients, you might not have 100% full schedule in the first few weeks so have a plan on how you manage that cashflow. If you chose to work only a few days a week, could you do an office share with another therapist or rent an office in a shared office environment? That might be a great way to manage your expenses while having your own independence.
Also, the nature of your practice will also determine what are the biggest cost drivers. Some people will do home based speech therapy services, this might mean no office costs but some transport costs and less patients during a single day. So determining how you want to practice will be important in your financial planning.
Risk Analysis and Contingency Plan:
Identify potential risks and challenges that could impact your practice’s success, such as regulatory changes, competition, or economic downturns. Develop contingency plans to mitigate these risks and ensure business continuity. Having a solid risk management strategy in place will help you navigate uncertainties with confidence.
3. Writing Your Business Plan
Now that you understand the key components let’s discuss how to write your speech therapy practice plan.
Start by drafting each section in detail, using clear and concise language. Tailor your plan to your specific practice and target market, avoiding generic or boilerplate content. Be realistic in your projections and strategies, setting achievable goals and timelines. Be very specific, for example, I will need to have 20 patients per week to generate enough income to both pay for all my expenses will earning a good living. Remember your goals must be K-I-S-S (Keep it simple stupid).
Focus on articulating the unique value proposition of your practice – what sets you apart from other therapists and why patients, or their parents, should choose you.
Don’t forget to proofread and edit your plan for clarity, coherence, and consistency. Check for spelling and grammatical errors, and ensure that all information is accurate and up-to-date. A well-written business plan not only reflects professionalism but also instils confidence in potential lenders and business partners.
4. Revising and Updating Your Business Plan
A business plan is not set in stone; it’s a living document that should evolve with your practice. Regularly review and update your plan to reflect changes in your local market, industry, or your business model. Be proactive in addressing new opportunities or challenges that arise, and adjust your strategies accordingly.
Do revisit the K-I-S-S goals that you’ve set. Have you achieved them? Were they realistic? Do you want to make them more ambitious? Whatever you have achieved, set the new set of goals based on what you have learned, how you want to adjust your practice and where you want to go.
Seek feedback from trusted advisors or mentors to gain fresh perspectives on your plan. Their insights can help you identify blind spots or areas for improvement that you may have overlooked. Embrace constructive criticism and be open to making revisions as needed to strengthen your plan.
5. Seeking Professional Assistance
If you’re feeling overwhelmed or unsure where to start, don’t hesitate to seek professional assistance. Reach out to an existing speech therapist with a private practice, seek their feedback and help. Most people like to be helpful, to be a sounding board and will help you answer some questions you are struggling with.
Some speech therapists, such as Jill Shook, MS, CCC-SLP, have made a business out of helping other therapists startup their practice. She has many very valuable assets that can be useful and she offers consulting services if you need help. She also has an online course on how to setup your business: Speech Therapy Private Practice Startup Guide | Online SLP CEUs (northernspeech.com) (Offered for 0.35 ASHA CEUs – 3.5 contact hours).
Consider hiring an accountant, or attorney with experience in the healthcare or small business sector. Do get a referral, it’s always better to find an expert through someone that has had a great experience. They can provide valuable guidance and expertise to help you develop a robust business plan and navigate the complexities of starting and running a speech therapy practice.
Remember, you don’t have to go it alone. Building a successful practice takes time, effort, and support from others. By investing in a well-crafted business plan and seeking professional assistance when needed, you’ll set yourself up for long-term success in the rewarding field of speech therapy.
