Tips for Starting an Allied Health Business

Business tips and advice
July 3, 2025

Key takeaways

  • Choose the right business structure early on, as it will impact your tax, legal obligations, and long-term growth.
  • Select a location that’s easily accessible to your target customers. Focus on convenience and visibility.
  • Do some market analysis to better understand your potential customers and community so you can tailor your services to their needs.
  • Stay on top of legal and financial requirements, such as insurance and tax compliance, to maintain smooth operations and avoid costly mistakes.

💡Top takewaway: Consider shared spaces for your practice to reduce costs and increase collaboration with other health professionals, opening doors for referrals and networking.

<div id="section-1">Thinking about starting your own allied health business?</div>

It’s a big step—but one that can be incredibly rewarding. Allied health plays an important role in supporting recovery and wellbeing, working alongside other medical professionals to deliver real, lasting results. From occupational and speech therapists to physiotherapists, chances are you’re already helping people feel better and live healthier lives.

Running your own practice gives you the chance to work the way you want, with the people you want to help. It’s about building something meaningful, where you’re in charge of how care is delivered and how your business grows.

With more people looking for ongoing support and early intervention, now’s a great time to take the next step. In this blog, we’ll share practical tips to help you get started—from the basics of planning and legal setup to building a loyal client base and getting your name out there.


<div id="section-2">Tips for starting a business in allied health</div>

Starting and running your own business comes with its challenges. From managing finances and navigating regulations to handling client expectations, it can feel overwhelming, especially if it’s your first time. It's important to be prepared for slow periods, growing pains, and the need for constant adaptation. Recognising these challenges early on will help you stay resilient and focused on building a successful business


<div id="section-3">1. Define your services and target market</div>

If you’re thinking about starting a business, chances are you’re already working in the industry. Now’s the time to reflect on your strengths—what you’re good at, what gets the best results, and what your potential clients truly value. Think about the community you’ll be serving and conduct some market research. Who’s your ideal client? Are there any gaps in services that you’re well-placed to fill?

It’s important to be clear on what services you’ll offer. Go too niche, and you may limit growth; if it is too broad, the quality of care could suffer. Choose your area of expertise and back yourself. If you’re working in an existing business, take note of what’s working well and why.

This is also the time to decide if you’ll go solo or if you’ll need support—whether it’s admin help, additional clinicians, or marketing strategists. Avoid taking on too much too soon, as it can lead to overpromising and underdelivering. Start small, establish solid foundations, and scale when you’re ready.

💡Tip: Focus on what you do best and build a business around that - it’ll make everything else easier.


<div id="section-4"> 2. Understand the legal requirements </div>

You might have the best business idea in the world, but without the proper legal foundations, you won’t be able to operate. Setting up a private allied health practice comes with some essential boxes to tick. These legal requirements ensure your business is recognised, compliant and ready to deliver care with confidence.

To get started, you’ll need:

  • Necessary qualifications in your chosen field
  • An ABN (Australian Business Number)
  • Registered business name (if you're trading under a name other than your own)
  • GST registration (required if your business earns over $75,000 annually)
  • NDIS registration (if you plan to work with NDIS participants)
  • Professional registration (some allied health professions must register with AHPRA)

💡Tip: It’s worth chatting with a small business advisor or other financial institutions early on—they can help you make sense of your obligations and avoid costly mistakes down the track.


<div id="section-5"> 3. Gather necessary documents and insurance </div>

Before you open your doors, make sure you have the correct documents and insurance in place. It’s not just about ticking boxes—it’s about protecting your clients, business profitability, and professional reputation. The following documents are essential for allied health practices:

Documents
  • Client Service Agreement: A legally binding document outlining your services, fees, cancellation policy, and responsibilities—necessary for clear communication and NDIS compliance.
  • Privacy Policy: Required under the Privacy Act 1988 and the Australian Privacy Principles, this explains how you collect, use, and protect client data, which is especially important if you're using digital systems.
  • Terms of Trade & Payment Policies: Sets expectations around billing, payment timeframes, cancellations, and debt recovery.
  • Employment & Contractor Agreements: Clearly define roles, responsibilities, and entitlements for anyone working in or with your business.

Insurance

This is where many new businesses slip up. In the healthcare industry, the risks are high, and the wrong insurance (or none at all) can have serious consequences. As a baseline, consider:

  • Professional indemnity: Protects against claims of professional negligence or errors.
  • Public liability: Covers injuries or damages that occur on your premises.
  • Workers compensation: Required if you have employees.

💡Tip: Consult an insurance advisor who understands healthcare. Don’t rely on guesswork.


<div id="section-6"> 4. Financial management and tax compliance </div>

Studies show that approximately 43% of small businesses fail to make a profit. The leading causes of these failures, as reported by the Australian Banking Association, are insufficient leadership and management, inadequate market research, and poor financial management. This highlights how important it is to get your financial management and tax compliance right from the start.

Use accounting software like Xero or MYOB to manage invoices, track expenses, and handle payroll as your team grows. If you’re billing through Medicare or NDIS, take the time to understand their processes to avoid delays.

Key things to consider:

  • Open a separate business bank account to clearly divide personal and business spending.
  • Keep receipts and records for at least five years
  • Monitor your cash flow regularly

💡Tip: An accountant or financial advisor can help you stay compliant and make the most of your deductions.


<div id="section-7"> 5. Develop a business plan and structure </div>

A clear business plan sets the foundation for your success—it helps you stay focused, make informed decisions and grow with confidence. Start by defining your mission, values and business goals, as these will guide your decisions and help shape your brand. Be realistic about your startup and ongoing costs, including equipment, marketing, insurance and admin expenses. Outline how you plan to generate income and include revenue projections based on your research.

Choosing the right structure matters just as much as your business plan—sole trader, partnership, company or trust, each comes with different tax, legal and financial implications, so understanding the differences is key to selecting the best fit for your goals.

💡Tip: Explore free resources from the government to help you create a business plan that outlines your objectives, identifies potential risks, and provides a clear roadmap for success.


<div id="section-8"> 6. Choose a suitable business location </div>

Where you base your practice has a big impact on how accessible and appealing you are to clients. If you’re running an online-only service, make that clear on your website and booking platforms so clients know what to expect. But if you’re offering in-person appointments, your location becomes a major factor in people’s decision-making. In busy cities and suburbs, convenience matters—clients are more likely to stick with someone they can get to easily, without battling traffic or struggling to find parking.

Decide whether you’ll operate from home, travel to clients, or lease a dedicated clinic. If you're just starting out, shared allied health spaces can be a smart option. These clinics are usually located in prime areas and are already set up with treatment rooms, reception, and waiting areas—so you don’t have to worry about fit-outs or long leases. Plus, working alongside other health professionals can open the door to continuous referrals and collaboration.

💡Tip: Before signing anything, visit the location during business hours. Check out parking, public transport, noise levels and accessibility for clients with mobility needs.


<div id="section-9"> 7. Build relationships with the local community </div>

Building strong community relationships is key to running a successful business because, at the end of the day, these are the people you’ll be working with. Connecting with local business owners, GPs, support workers, and community groups can lead to valuable, consistent referrals. In fact, studies show that 64.3% of people trust word-of-mouth recommendations from professionals more than testimonials. For health practitioners, these referrals can be one of the most powerful and effective marketing tools at your disposal.

Attend local events to show you're invested in the well-being of the area, and if you have knowledge to share, offer free workshops or post helpful tips on your socials. Not only does this benefit those around you, but it also establishes your business as a trusted resource in the community. The more you connect, the more likely people will choose you when they need support.

💡Tip: Consider shared clinic spaces with other professionals. They reduce costs, increase visibility, and create opportunities for cross-referrals between practitioners.


<div id="section-10"> 8. Create a branding and marketing plan </div>

Your brand is often the first impression people get, so make it count. Choose a business name that’s clear, easy to remember and reflects what you do. Your logo doesn’t need to be fancy, but it should look professional and work well across social media, signage and print. Stick to the same colours, fonts and tone to keep things consistent.

Logos and business names are a key foundation of branding—but it’s so much more than that. Clients aren’t scanning billboards or newspapers for logos anymore; they’re online, looking for clear, trustworthy information. That starts with a website that’s easy to find and even easier to navigate.

Think of your website as your digital front door. It should clearly talk to your target audience. Make it user-friendly and provide information on your services, background, location, and contact details. If you offer telehealth, mobile visits or NDIS support, make that easy to spot right away.

Once your brand and website are clear, it’s time to build a social media marketing strategy that speaks to your audience and helps you grow your digital presence. It helps you stay top-of-mind, build trust and connect with people in a more personal way. Choose one or two platforms and show up consistently with helpful info, updates and a bit of personality.

💡Tip: You don’t need a big budget—just be clear, genuine and consistent in how you show up.


<div id="section-11"> 9. Take advantage of government support </div>

Starting a business can come with some expensive upfront costs, but there’s support to help you along the way. Programs like the Workforce Incentive Program (WIP) – Practice Stream offer financial help for hiring nurses, midwives, allied health professionals, and Aboriginal and Torres Strait Islander health workers. There are also other grants out there designed to ease start-up costs. The government wants to see practices like yours succeed, so take advantage of the funding available to set your business up for success.

You may also find state-specific initiatives to help upskill practitioners and support business growth. In Queensland, the Business Basics Grant offers assistance with start-up funding, helping you get your practice up and running smoothly.

💡Tip: Start exploring your state’s grants portal and keep an eye out for funding rounds, especially those aimed at small businesses and health services.


<div id="section-12"> 10. Have a contingency plan </div>

Things don’t always go to plan when running a practice, so it’s worth having a backup plan ready. Whether it’s a slow period, sick leave or an unexpected cost, a little forward-thinking can go a long way. Set aside some emergency funds, know who you can call for support and think through how you’d handle a curveball or two. It’s not about expecting the worst—it’s just about being ready if something pops up. Having a plan in place takes the pressure off and helps you keep things running smoothly, no matter what comes your way.

💡Tip: Think ahead—what would you do if you had to step away suddenly? A basic plan can save you stress later. It doesn’t need to be perfect, just practical.


<div id="section-13"> Starting small, dreaming big in allied health <div>

Running your own allied health business takes courage, commitment and a clear plan. With the proper support and preparation, you can create something truly impactful—something that reflects your values and helps your community.

Wherever you are in your journey, remember: It’s okay to start small. Focus on delivering excellent care, stay connected to your clients, and keep learning as you grow. Don’t be afraid to reach out to business advisors or network with others in the industry for advice along the way. And if you need flexibility, renting a space like Kiah Place lets you scale your business without the burden of long-term commitments.

Author
Nathanael Hubbard

Nathanael Hubbard is the Co-Founder of Kiah Place, a suite of allied health offices designed to support clinicians in building thriving private practices.

With more than 20 years of experience in business and marketing, Nathanael is passionate about making it easier for practitioners to focus on what matters most — their clients. Through Kiah Place, he’s creating spaces where allied health practitioners can do work that matters, while building strong, meaningful practices.

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