Are you an occupational therapist looking to start your own private occupational therapist practice or your own occupational therapist business? Shortages of qualified occupational therapists and high demand has led to a shortage in Australia. An effective and efficient business model can help close this gap and provide care to many in need.
Starting a new business can be overwhelming. You will be required to comply with legal policies and regulations whilst maintaining all the financial and administrative requirements of a business.
This article breaks down the necessary steps required to start your very own Occupational Therapy (OT) business. This article also provides guidance on how to open an occupational therapy clinic and how to become a private occupational therapist.
What is an Occupational Therapy Business
Occupational therapists (OTs) are healthcare professionals that provide physical therapy or holistic therapy to promote a person’s ability to complete their day-to-day tasks. These abilities might have been hampered due to an accident, injury or might be a birth condition. OTs work with the injured, ill, or disabled patients to help them recover and improve their ability to complete daily tasks.
Starting an Occupational Therapy Business: The Pre-Steps
Before you start your own occupational therapy business you need to complete the following steps to ensure you have a strong foundation for your business:
Research
Before you start your business, you need to research if there are enough potential clients in your area, if the market is already saturated and if your business has a chance of surviving in a competitive environment. Given that a franchise occupational therapy business is new, you are unlikely to have many competitors. However, you should still conduct a 360 degree review of your business environment.
Financing
You will also need to create a finance plan for your business. Running an occupational therapy business can come with high costs for equipment, salary for individual therapists, technicians, etc. You can finance your business using personal savings, loans or investors. Taking out loans puts you in substantial debt but raising money from investors reduces your total control over your business. Before deciding your financing model, you can speak to an expert to discuss the best scenario for you.
Create a Business Plan
Helen Whait, the founder of ActivOT, Australia’s first—and only—private practice occupational therapy franchise, says,
“Without planning, the entire team will struggle for direction.”
You will need to create a business plan which will contain your competitor analysis, target audience, business plan and goals, etc. A good business plan can create a solid foundation for the growth of your business. Setting measurable goals for your business in your business plan can also help you track your progress over time.
A competitor analysis outlines your present competitors, their strengths and weaknesses. Your target audience lists the groups and demographics you believe are most likely to avail your services. Recognizing this from your research can help you create an efficient marketing plan.
Find a Location
Your occupational therapy business will require a physical location where clients can come for therapy. You can rent out a large space for the same.
Name Your Business
You will need a business name in order to apply for an Australian Business Number (ABN).
Register Your Business
To operate within Australia, you will first need to register for an Australian Business Number (ABN). This number is what the government uses to identify your business, and is important for processes like tax and invoicing.
Business structure and goals
Generally, new businesses will take the form of a sole trader, partnership or company. How your business is structured will affect how you will take on debt, distribute profits and pay tax.
- Sole trader: This can be a low-cost option for an individual running the business. A sole-trader and their company are considered the same entity and hence they are responsible for the company’s debts and obligations.
- Partnership: A partnership is controlled by two or more people who also share the debts and obligations of the company.
- Company: A company has a complex structure and can legally sue and be sued. In other words, it is a legal entity in itself. Companies are incorporated under the Corporations Act 2001 (Cth) and are governed by the Australian Securities and Investments Commission (ASIC).
Hiring Employees
Your occupational therapy facility will need to hire more occupational therapists, administrative staff, technicians, cleaners, etc. You can hire these employees either as casual employees or full-time employees. Some of your options are listed below:
- Part-time employees: Part-time employees generally work for less than 38 hours a week. They can still receive some employment benefits, such as sick-leaves or annual leaves, on a pro-rata basis.
- Full-time employees: Full-time employees work consistently for fixed pay, subject to change on employer discretion. Generally full-time employees receive a wide variety of employment benefits such as sick leaves, health insurance, etc.
- Independent Contractors: Independent contractors are freelancers or individuals who offer their services for a fixed period of time to a company for a fixed price.
Here is a webinar on how to hire the right employees for your business.
Marketing Your Business
There are a few ways you can use it to attract more customers to your business. For example:
- Advertising: You can also use television and print media to run advertisements about your business.
- Online marketing: Once you set up your business, you should also create a website with your branding. You can run ads directing potential customers to your website and generate interest in your business through Google ads, Facebook ads, etc.
- Social Media: You can also reach your target audience using social media platforms such as Facebook and Twitter.
- Word of mouth: You can also advertise your business at networking events and conferences.
- Newsletters: You can also reach your audience via newsletters or emails. But you should be aware of the Spam Act 2003 (Cth) that deals with electronic communications with customers.
A marketing strategy will help you target your target audience in the most efficient way. You can find out more about marketing your business.
Occupational Therapy Business and the Law
Starting your own occupational therapy business can come with its own set of legal obligations and requirements. Here are some of the legalities to look into as you start your business:
- Workplace health & safety: As a business you will be expected to comply with Australia’s workplace health & safety laws.
- Employment contracts: You might hire help to run your occupational therapy business. Employment contracts can set the terms of employment for you and your employee.
- Privacy Policy: You might collect sensitive client data, such as data on their health conditions. A privacy policy can notify clients about how you deal with their data, how it is stored and disposed, etc.
- Rental lease agreement: You will need to rent a commercial space to operate your occupational therapy business. This will require a commercial lease agreement.
- Occupational Therapist Licence: You need to be registered to practise as an occupational therapist in Australia. You must have undertaken your occupational therapy studies at a World Federation of Occupational Therapists (WFOT) accredited institution in Australia or New Zealand, or been deemed eligible for registration by the OTC in case of an overseas degree.
You can explore more legal documents that you might need to kickstart your business on the Lawpath website.
Frequently Asked Questions
- How do I start my own occupational therapy business?
You need to be a registered occupational therapist to practise in Australia. Once you have your licence, you can start your occupational therapy private practice. If you wish to scale up your business, you can team up with a group of registered occupational therapists to provide stable care to clients. This article can provide some guidance on how to start your own occupational therapy practice.
- Can occupational therapists work privately?
Yes, occupational therapists can practise privately. Occupational therapists work in a range of settings including community health centres, public and private hospitals, people’s homes, etc.
- Are OTs in demand in Australia?
There is a shortage of occupational therapists in Australia due to high demand.
- How much does private occupational therapy cost?
Occupational therapy can cost ~ $500 for 120 minutes of service. While it is not cheap, insurance can offset costs in case of injuries and other health conditions.
How Lawpath Can Help
At Lawpath, we can help guide you through starting your own occupational therapist business. Hire a lawyer today who can help you navigate the ins and outs of starting an occupational therapy business today.
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