View Full Version : Starting a facility
05-24-2003, 07:46 AM
During one of my latest sleepless nights I was pondering the thought of what it would take to start up a facility like Project Walk or SCI-Step in the Pa./NJ./Del area. Besides equipment cost and facility cost, what other costs would be incurred? What type/quanity of staff would initially be required? Also, what insurance/legal issues would need to be addressed? Any other costs? Basically, what would the start-up costs for such a program run? Thanks for any help.
"I will drive the lane,
I will drain the three,
I will finger roll,
but the one thing I will not do is FADE AWAY"
05-24-2003, 08:23 AM
I would contact Michele at Sci-Step directly for this information as I know they have thought hard about expanding across the country.
I too would like to start a facility in Florida, centered around the locomat (very expensive) equipment. How do I get in touch with Michelle at Sci-step? I couldn't find their website.
06-03-2003, 03:51 PM
To do it right . . .
I would estimate $200,000 at a minimum in order to purchase the right equipment (for a list of necessary equipment look at NI's listing . . . they have ALL of the latest technology and equipment), be able to cash flow sufficiently to pay for the right staff for at least 6 months until the receivables come in, pay for legal, cash flow lease for 6 months, pay for lease to house facility, pay for bookkeeping\accounting, get software for billing, advertise, pay for employee benefits (to attract good staff), get bonded for at least $1 million, workers comp, etc.
keep in mind these costs can vary from state to state. in addition, ask yourself if you want to maximize the number of folks who can participate in your program. if you want a cash business only, you'll get less folks but need less funding for cash flow. if your goal is to open up to as many folks as possible . . . then you need to allow for that 180 period it can take to get reimbursed by the various insurance carriers and also account for denials and resubmissions, etc.
also you need to look into the licensing requirements in your area/state. these can be tricky at times.
And folks, don't expect those who own these businesses to give up industry knowledge freely. Each of the programs we have discussed from PW to Sci Step to NI all required someone to take a financial risk (big ones) to get started. It isn't fair to ask them how to set up a business to compete with themselves. Would Arnie, Michelle or Ted do it? Possibly. But I think its wrong to expect them to.
Green Machine is starting out right. Ask questions, research the competition, price out the costs . . . and then jump. Because being an entrepreneur is all about risking it. I've worked with a lot of them and the one thing they all share is a high tolerance for risk, and an incredible work ethic. Because at first . . . with any start-up business its on your mind 24/7 and you and your family will live with it 24/7.
Good luck. Hope my input helped.
Don't forget the price of rent or building a facility. Our local post-rehab exercise program is currently closed (the 3rd time in 15 years) due to lack of enough money to keep it open.
If you use some licensed staff (ie, PTs and OTs) it will be more expensive, but you will also be much more likely to get insurance reimbursement. Without this, you are likely to run into major barriers with anything but private funds.
If you need help in developing a business plan, you might want to talk with someone at the Disabled Businessperson's organization. They do not charge for consultation: