A drug rehab center is a specialized clinic that has medical staff who provide outpatient services that are related to the diagnosis as well as treatment of alcohol, drugs, and other substance abuse. The size of this business depends on the kind of firm it is, as for-profit firms tend to be larger and more highly concentrated in the industry than public and nonprofit firms.
A report released by the National Council on Alcoholism and Drug Dependency in the United States shows that over 23 million Americans who are from the ages of 12 and above are addicted to alcohol and other drugs. So also, research from the Substance Abuse and Mental Health Services Administration (SAMHSA), has it that 2.5 million Americans received care at an addiction treatment facility as of 2012.
The market for addiction treatment according to SAMSHA is estimated to be about $35 billion per year with more than 14,000 treatment facilities in existence.
Steps on How to Write a Drug Rehab Center Business Plan
Table of Content
1. Executive Summary
Dave Benson® Drug Rehab Center, Inc. is a drug and alcohol treatment facility that will be based in Wilmington, North Carolina, and the organization will be committed to providing treatments and therapies geared towards helping patients make positive changes in their lives by rectifying maladaptive behaviors.
We are well-equipped with the right facility, technique, and manpower to help our patients learn healthy coping skills, impulse control, emotional regulation skills, and drug-refusal strategies that can help them avoid relapse in the long run. Dr. Dave Benson is the founder and CEO of Dave Benson® Drug Rehab Center, Inc.
Company Profile
a. Our Services
Dave Benson® Drug Rehab Center, Inc. will be involved in;
- Providing drug rehab outpatient services
- Providing detoxification services
- Providing intensive outpatient services for drug and alcoholic addicts
- Providing medication-assisted opioid therapy services
Our services are designed to help drug and alcohol addicts overcome their addiction, and go on to make positive changes in their lives and the society at large.
b. Nature of the Business
Our drug and alcohol rehab center will operate as a nonprofit organization, we will source for finance from donor organizations, individuals, and relevant government agencies.
But in some cases, we will charge our patients or their family for services rendered, however, we are designed not to make profits.
c. The Industry
Dave Benson® Drug Rehab Center, Inc. will operate under the drug and alcohol rehabilitation clinics industry.
d. Mission Statement
Our mission is to provide safe and secured clinic facilities and services geared towards helping drug and alcohol addicts overcome their addiction and then go on to make positive changes in their lives and society at large.
e. Vision Statement
Our vision of to become the best drug and alcohol rehab center in the whole of Wilmington.
f. Our Tagline (Slogan)
Dave Benson® Drug Rehab Center, Inc. – Your Trusted Plug If You Want to Be Free from Drugs and Alcohol Addiction!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Dave Benson® Drug Rehab Center, Inc. will be formed as a nonprofit corporation at the state level and we will apply for 501(c)(3) tax exemption at the federal level.
h. Our Organizational Structure
- Chief Medical Director (President)
- Rehab Center Manager (Administrator)
- Medication Management Counselors
- Nurse’s Aides
- Caregivers/Rehab Counselors
- Fundraiser
- Account Officer
- Front Desk Officer
- Cleaners
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Dave Benson (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Scott Webb (Board Member) 14 Percent Shares
- Adam Smith (Board Member) 10 Percent Shares
- Kate Handerson (Board Member) 10 Percent Shares
- Zoe Gatwick (Board Member and Sectary) 10 Percent Shares.
SWOT Analysis
a. Strength
- Ideal location for drug and alcohol rehab center
- Highly experienced and qualified employees and management
- Access to a pool of donor organizations
- Well-equipped facility and techniques
- Highly structured programs aimed at overcoming drug and alcohol addiction in record time.
b. Weakness
- Financial Constraints
- New facility that is just starting out
- Inability to initially run and manage the organization without the support of donations and grants
- Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
- Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
- Wilmington has loads of drug and alcohol addicts who are eager to get free from drug and alcohol addiction.
- Wilmington is an ideal location for drug and alcohol rehab centers
- We have a pool of finance from donor organizations, individuals, and relevant government agencies.
i. How Big is the Industry?
The drug and alcohol rehabilitation industry is indeed a big industry. The industry is worth over $42 billion and there are over 14,000 treatment facilities spread across the United States.
ii. Is the Industry Growing or Declining?
All available data points to the fact that the drugs and alcohol rehab industry is growing. The market size of the industry in the United States has grown 3.0 percent per year on average between 2016 and 2022.
Please note that increased instances of substance use disorder in recent times, including an epidemic of opioid addiction, have raised the demand for industry services. Meanwhile, access to rehabilitation programs has expanded with increased enrollment in health insurance.
iii. What are the Future Trends in the Industry
The drug and alcohol rehabilitation clinics industry is changing, and players in the industry are improvising. No doubt, specialized treatment, technology, and social media (using influencers to talk people out of drugs and alcohol) will change the landscape of the industry going forward.
iv. Are There Existing Niches in the Industry?
Yes, there are niche ideas in the drug and alcohol rehabilitation clinics industry, and here are some of them;
- Luxury Treatment Centers (providing intensive inpatient and outpatient drug and alcohol rehab services)
- Basic Drugs and Alcohol Rehab Centers
Also note that high-end niches have emerged especially for celebrities and top personalities for issues such as internet addiction, sex addiction, nicotine addiction, and problem gamblers. Some of these facilities are also diversifying into treating those with eating disorders, anxiety disorders, and post-traumatic stress for war veterans.
v. Can You Sell a Franchise of your Business in the Future?
Dave Benson® Drug Rehab Center, Inc. has plans to sell franchises in the nearest future and we will target major cities with high drug and alcohol abuse rates in the United States of America.
d. Threats
- Lack of support from stakeholders and the government
- Unfavorable government policy and regulations.
- Community resistance
- Liability problems
- Continuously changing consumer demands especially as it relates to drugs and alcohol et al.
i. Who are the Major Competitors?
- Beachside Rehab
- APEX Recovery Rehab.
- Betty Ford Center.
- High Watch Recovery Center
- The Ranch at Clear Springs.
- Addiction Solutions of Florida.
- CRC Health Groups
- American Addiction Centers
- Passages
- The Dunes
- The Betty Ford Clinic
- Silver Hill Hospital
- The Meadows
- Living Rebos.
- Sober College.
- Serenity Malibu
- Retorno International Rehab
- New Life Addiction Treatment Center
- Orchid Recovery Center
- The Springboard Center
ii. Is There a Franchise for Drug and Alcohol Rehab Center?
- iRecover
- Addiction Centers Intl. (You’ll need to have at least $25,000 per 1/2 Unit Share in liquid capital)
iii. Are There Policies, Regulations, or Zoning Laws Affecting Drug and Alcohol Rehab Centers?
Yes, there are county or state regulations and zoning laws for drug and alcohol rehab centers. But it is important to state that there is no specific statutory “override” of local zoning regulations that prohibit the operation of a substance abuse treatment facility in a town. State law restricts the extent to which zoning commissions can exclude group homes and family day care homes from residential areas.
Marketing Plan
a. Who is Your Target Audience?
i. Age Range
Our target market captures teenagers and adults of any range who are addicted to drugs, alcohol, and other form addictions.
ii. Level of Education
We don’t have any restriction on the level of education of those we are ready to work with.
iii. Income Level
We don’t have any cap on the income level of those we are looking to work with because we are a nonprofit organization.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people we are looking forward to welcoming in our drug and alcohol rehab center.
v. Language
We have no language restriction when it comes to the people we will accept into our drug and alcohol rehab center.
vi. Geographical Location
Anybody from any geographical location will be welcomed into our rehab center.
vii. Lifestyle
Dave Benson® Drug Rehab Center, Inc. will not restrict any patient from accessing our services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with other nonprofits and related organizations that work with drug and alcohol addicts.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Dave Benson® Drug Rehab Center, Inc. will make sure it covers therapy sessions, medications, premium, economy or value, and full rehab package. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charities to help refer drug and alcohol addicts to us.
Dave Benson® Drug Rehab Center, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need medications (naltrexone, methadone, and buprenorphine et al), medical supplies, (injection needles and syringes, cotton wools, methylated spirit, hand gloves, facemask et al), and related materials mean that Dave Benson® Drug Rehab Center, Inc. will operate an inventory strategy that is based on ordering, maintaining and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Dave Benson® Drug Rehab Center, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
At Dave Benson® Drug Rehab Center, Inc., we offer services, and the nature of services we offer does not accommodate return policy or incentives, but we will give our patients a guarantee that their lives will transform if they follow our treatment and drug rehabilitation program.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to our patients. It will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to be able to achieve this.
We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Operational Plan
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, we plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Drug and Alcohol Rehab Center?
- The facility is open for the day
- The facility is cleaned and prepared for the day’s activities
- Patients are welcomed
- Patients are attended to
- Documentation and other administrative works are conducted throughout the day
- The facility is closed for the day and patients go back to their homes or rooms within the facility.
b. Production Process (If Any)
There is no production process when it comes to drug and alcohol rehab centers.
c. Service Procedure (If Any)
- The service procedure of a drug and alcohol rehab center starts by screening and proper documentation of drug and alcohol addicts seeking to overcome their addictions.
- Patients undergo an intake evaluation from an addiction counselor or mental health professional.
- Patients undergo detox treatment. Detox is the process in which a patient rids his or her body of the addictive substance.
- Individual therapy, such as cognitive-behavioral therapy (CBT) or contingency management is done on patients.
- Group counseling sessions are conducted.
- Family therapy sessions.
- Additional services or activities, such as yoga, exercise and nutritional counseling, meditation, and mindfulness, acupuncture, or spa treatment are done.
- Medication management, relapse prevention education and aftercare planning are carried where applicable.
d. The Supply Chain
Dave Benson® Drug Rehab Center, Inc. will rely on charity organizations, religious organizations, and government agencies to refer drug and alcohol addicts to us. Also, we have been able to establish business relationships with wholesale supplies of medications, medical supplies, beddings et al.
e. Sources of Income
Dave Benson® Drug Rehab Center, Inc. makes money from;
- Fees paid by drug and alcohol addicts
- Contributions for partners and donors
- Grants from government agencies and charity organizations
- Community support.
Available data shows that it could cost up to $20,000 for a 30-day drug and alcohol rehab program. For those requiring 60- or 90-day programs, the total average of costs could range anywhere from $12,000 to $60,000. Please note that outpatient programs for mild to moderate addictions are cheaper than inpatient rehab.
Financial Plan
a. Amount Needed to Start your Drug and Alcohol Rehab Center?
Dave Benson® Drug Rehab Center, Inc. would need an estimate of $450,000 to successfully set up a drug and alcohol rehab center in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $200,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- Start-up inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $80,000
- Website: $600
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Dave Benson® Drug Rehab Center, Inc. will not build a new facility for our drug and alcohol rehab center; we intend to start with a long-term lease and after 5 years, we will start the process of owning (acquiring) our facility.
d. What are the Ongoing Expenses for Running a Drug and Alcohol Rehab Center?
- Cost of stocking up supplies such as medications, medical supplies, and beddings et al
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital
- Chief Medical Director (President) – $120,000 Per Annum
- Rehab Center Manager (Administrator) – $65,000 Per Annum
- Medication Management Counselors – $55,500 Per Annum
- Nurse’s Aides – $35,660 Per Annum
- Caregivers/Rehab Counselors – $32,878 Per Annum
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
- Security Guard – $22,000 Per Annum
f. How Do You Get Funding to Start a Drug and Alcohol Rehab Center
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
Financial Projection
a. How Much Should You Charge for your Service?
At Dave Benson® Drug Rehab Center, Inc. our fee will cost up to $20,000 for a 30-day drug and alcohol rehab program. For those requiring 60- or 90-day programs, the total average of costs could range anywhere from $12,000 to $60,000. Please note that outpatient programs for mild to moderate addictions are cheaper than inpatient rehab.
But it is important to note that we will make our facility free of charge especially when we are able to attract enough grants and funds from donors.
b. Sales Forecast?
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $700,000
- Third Fiscal Year (FY3): $900,000
c. Estimated Profit You Will Make a Year?
Dave Benson® Drug Rehab Center, Inc. will operate as a nonprofit organization.
d. Profit Margin of a Drug and Alcohol Rehab Center
Dave Benson® Drug Rehab Center, Inc. is designed not to make profits hence we don’t have a profit margin for our services.
Growth Plan
a. How do you intend to grow and expand? By opening more offices or selling a franchise?
Dave Benson® Drug Rehab Center, Inc. will grow our rehab center by opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Dave Benson® Drug Rehab Center, Inc. plans to expand first to Phoenix, Arizona and then to Cincinnati, Ohio, Elmwood Park, Illinois, Louisville, Kentucky, Detroit, Michigan, Dayton, Ohio, Missoula, Montana, Espanola, New Mexico, Washington, D.C, Chicago, Illinois and Baltimore, Maryland.
The reason we intend to expand to these geographic locations is the fact that available statistics show that the cities listed above have the highest drug and alcohol abuse rates in the United States. As a matter of fact, Phoenix, Arizona had the highest cocaine usage percentage in the country, with over 20 percent of citizens having tried the drug before.
Exit Plan
The founder of Dave Benson® Drug Rehab Center, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.