Growth Plan 2022

Introduction

- Operating since 2016

- Opened at 8 Gladstone in 2018

- Especially resilient through Covid

- 6 PT's (max capacity 8), 1 RMT (max 2), 1 Nutritionist (remote), 1 Clinic Manager, 2 part-time

- 60-70% runners, 30-40% "other"

- Additional Services include Gait (Running) Analysis, Shockwave Therapy, Concussion Therapy, Pelvic Floor Therapy, Gunn IMS, Weekend Workshops, collaborations (yoga, pilates, RunCon, Freestyle 5k Kids Run with CRS and Holland Bloorview)

About Me

- B.Kin McMaster 2009

- MScPT U of T 2011

- Con.Ed Certificate Business Management 2015

- Ironman 70.3 World Championships Austria 2016

- Boston Marathon 2018

- Featured in Canada Running Magazine, several podcasts, guest lecturer U of T & created running curriculum elective (2nd years)

About runners

- 22,000-30,000 people run Sporting Life 10k each year in Toronto

- 60-80% of runners new to running (<2 years) are injured within the same timeframe

- The most frequently cited complaint is their PCP or previous PT "didn't get it"

- Running also encompasses other sports that require running

- Majority of patients are recreational (5k-10k)

Current Landscape

- Industry trends: massive declines during 2021 in physical activity (50%)

- With lessoned pressures of pandemic, there is an increase in people accessing MSK branches of physiotherapy services (and an increase in MSK conditions)

- Increased number of M&A in the US and this trend is coming to CA as well (Lifemark 300 clinics for 845M)

- Hiring: The growth of PT within healthcare is faster than the growth of the entire industry and the economy overall

- Combination of exam logistical failures, current employee/IC expectations, and increased hiring in public sector has put pressure on private practice business models

The Vision

- The private PT landscape is growing but also becoming more refined aesthetically and

niche-wise

- Critical, hyper-health-vigilant demographic is growing

- The Running Physio can be the go-to clinic for runners dealing with injury across Ontario/Canada/North America (doesn't exist currently)

- Requires financial assistance to scale, hire, create broader processes, ?franchise model, hiring of Junior Partner(s) and/or other management

Financially

- Lower margin business but responds well to scale

- $60-80k revenue per month

- High splits with senior staff are problematic -> recent turnover bringing in new grads and grandfathing in employee contracts vs. IC's

- Pay management salary

- Profiting ~4-5%

Overall...

- Not looking to sellout but to bring on partners who share the vision and want to grow the brand on par with where the industry is headed

- Can appreciate when one person is maxed out

- It's fun

Questions and discussion?