Drug Rehabilitation Business Plan Template

Drug Rehabilitation Business Plan

You’ve come to the right place to create your Drug Rehabilitation business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Drug Rehabilitation centers.

Below is a template to help you create each section of your Drug Rehabilitation business plan.

Executive Summary

Business Overview

New Horizons is a startup drug rehabilitation center located in Seattle, Washington. The company is founded by Nathan Rodgers, a drug rehabilitation counselor who has provided counseling and medication therapy to hundreds of rehabilitation guests over the past twenty years. Nathan’s reputation for assisting guests in completing drug rehabilitation has become so well-known, that many incoming guests at his former employer’s drug rehabilitation center continue to ask for him upon arrival.

New Horizons will provide a comprehensive array of products and services that will support any guest who enters the facility for treatment and care. New Horizons will provide therapy, medications, and other services, in addition to the holistic “well body, well mind” purpose found within the mission statement of the center. As a result, every aspect of the mind-body connection is served and supported at New Horizons.

 

Product Offering

The following are the services and products that New Horizons will provide:

  • A welcoming state-of-the-art facility situated on a spacious and peaceful property conducive to healing and recovery
  • A warm and welcoming atmosphere and outdoor grounds surrounded by walking paths
  • Comfortable living accommodations, with single or double occupancy rates that meet every budget
  • Therapy rooms to accommodate 2-15 individuals as guests work on wellness
  • Recreational and activity areas, including indoor exercise rooms and outdoor obstacle course and group game courts.
  • Administrative offices staffed with friendly, courteous administrative members of the team.
  • Specialists; including addiction experts, therapists, counselors and support staff who will all be dedicated to providing personalized care and support to each client.
  • Day to day guest healing processes

 

Customer Focus

New Horizons will target all individuals, ages 16 and older, who self-admit as guests to New Horizons. New Horizons will also target physicians, therapists, drug counselors, mental health counselors, school counselors and others who supply advice and assistance for those who have addictions to drugs.

 

Management Team

New Horizons will be owned and operated by Nathan Rodgers. A former drug addict, Nathan found the pathway to his personal healing by engaging as a guest in a treatment facility that offered a “whole body-whole mind” perspective that he hopes to emulate at the startup facility. This centers on treating more than the addictive habits that are destructive. The concept brings individuals to a true understanding of their own skills, talents, limitations and gifts; all of which bring individuals to a better understanding of their purpose in life.

Nathan Rodgers has recruited Danielle Foster, the former Patient Director of a 300-guest drug rehabilitation facility, to be the Vice President of Guest Services in the new startup. He has also recruited Tony Sciorcio and Ray Thomas as the Operations Manager and Facilities Director respectively.

Danielle Foster is a graduate of the University of Washington where she earned a master’s degree in Drug Rehabilitation & Services. She has been the acting Patient Director for over fifteen years in her former facility and is well-known for her calm and kind attentiveness to every conversation she holds.

Tony Sciorcio is a former associate of Nathan Rodgers, with a former drug addiction, as well. Nathan and Tony were treated at a drug rehabilitation program at the same time, became friends and have worked together for over ten years in former employment roles. Tony will become the Operations Manager in the new company, where he will oversee all day-to-day management of the processes and procedures, therapy and appointment centers.

Ray Thomas will be the new Facilities Director at the startup. He holds an impressive record as the Facilities Manager for a drug rehabilitation center that housed over 300 guests at a time. This meant his duties were on-call 7-days a week and he formed a massive team of courteous and helpful associates to work constantly on facilities needs throughout the complex.

 

Success Factors

New Horizons will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team of New Horizons
  • Comprehensive menu of services and a welcoming and inviting atmosphere
  • A whole body-whole mind emphasis that will be included throughout the therapy guest stay
  • Recreational and activity areas, including indoor exercise rooms and outdoor obstacle course and group game courts
  • New Horizons offers the best pricing in town. Their pricing structure is the most cost effective when compared to the competition.

 

Financial Highlights

New Horizons is seeking $200,000 in debt financing to launch its New Horizons. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing costs. The breakout of the funding is below:

  • Office space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph outlines the financial projections for New Horizons.

New Horizons Pro Forma Projections

 

Company Overview

Who is New Horizons?

New Horizons is a newly established, full-service drug rehabilitation center in Seattle, Washington. New Horizons will be the most reliable, cost-effective, and effective choice for those seeking drug rehabilitative treatment in Seattle and the surrounding communities. New Horizons will provide a comprehensive menu of services for all guests to utilize in their treatment leading to wholeness. Their full-service approach includes a comprehensive set of whole body-whole mind therapy and treatment sessions.

 
New Horizons will be able to treat up to 300 guests at a time. The team of professionals are highly qualified and experienced in counseling, therapy, medication, physical wellness and emotional well-being. New Horizons removes all headaches and issues of sourcing a truly rehabilitative treatment center and ensures all issues are taken care of expeditiously while delivering the best customer service.

 

New Horizons History

New Horizons will be owned and operated by Nathan Rodgers. A former drug addict, Nathan found the pathway to his personal healing by engaging as a guest in a treatment facility that offered a “whole body-whole mind” perspective that he hopes to emulate at the startup facility. This centers on treating more than the addictive habits that are destructive. The concept brings individuals to a true understanding of their own skills, talents, limitations and gifts; all of which bring individuals to a better understanding of their purpose in life.

Since incorporation, New Horizons has achieved the following milestones:

  • Registered New Horizons, LLC to transact business in the state of Washington
  • Has a contract in place for a 10,000 square foot office on the wellness center grounds
  • Reached out to numerous contacts to include New Horizons in their recommended list of drug rehabilitation centers.
  • Began recruiting a staff of ten and six office personnel to work at New Horizons

 

New Horizons Services

The following will be the services New Horizons will provide:

  • A welcoming state-of-the-art facility situated on a spacious and peaceful property conducive to healing and recovery
  • A warm and welcoming atmosphere and outdoor grounds surrounded by walking paths
  • Comfortable living accommodations, with single or double occupancy rates that meet every budget
  • Therapy rooms to accommodate 2-15 individuals as guests work on wellness
  • Recreational and activity areas, including indoor exercise rooms and outdoor obstacle course and group game courts.

  • Administrative offices staffed with friendly, courteous administrative members of the team.
  • Specialists; including addiction experts, therapists, counselors and support staff who will all be dedicated to providing personalized care and support to each client.
  • Day to day guest healing processes

 

Industry Analysis

The drug rehabilitation industry is expected to grow over the next five years to over $53 billion.
The growth will be driven by the increased use of drugs and alcohol by the general population.
The growth will also be driven by the growing acceptance of assistance by drug users
The growth will be driven by individuals who choose to treat the whole body: physical, psychological, and emotional wellness during addiction recovery
Costs will likely be reduced as technology advances in medical and rehabilitative processes
Costs will likely be reduced as new drug treatments are introduced and made available
Costs will also be reduced as advances in holistic treatments for the entire body/mind connection continue to be popular with all genres of society

 

Customer Analysis

Demographic Profile of Target Market

New Horizons will target all individuals, ages 16 and older, who self-admit as guests to New Horizons. New Horizons will also target physicians, therapists, drug counselors, mental health counselors, school counselors and others who supply advice and assistance for those who have addictions to drugs.

The precise demographics for New Horizons are:

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

 

Customer Segmentation

New Horizons will primarily target the following customer profiles:

  • Individuals, ages 16 and older
  • Family members of those with drug addictions
  • Physicians and patient care providers
  • Counselors and therapists, including mental health and school counselors

 

Competitive Analysis

Direct and Indirect Competitors

New Horizons will face competition from other companies with similar business profiles. A description of each competitor company is below.

 

Hope Heaven

Hope Haven is a in-patient drug rehabilitation facility in Bellevue, Washington. It is owned and operated by Jim and Colleen Swanson. Jim and Colleen have a family member, a son, who became addicted to drugs many years ago. During the process of finding treatment for him, the Swansons determined that a higher level of care could be offered through an on-site program and in-patient care.

Hope Haven offers Hope Haven addresses the physical, psychological, and emotional aspects of addiction recovery. The treatment programs safe detoxification, individual counseling, and group therapy. The facility houses up to 50 in-patient guests at a time and is surrounded by pine and evergreen trees on a large gated estate. Visitors are discouraged during the twenty-week programs offered and in-patient guests typically have no contact with anyone via phone, text or email while in treatment.

 

Holistic Drug Rehab House

The Holistic Drug Rehab House is owned and operated by John Jacobs, who is a medical physician with a staff of four primary care physicians who serve alongside him at the Holistic Drug Rehab House. The focus of the in-patient treatment house is on holistic care via holistic interventions. This may include mindfulness practices, art therapy, music therapy, yoga, and other holistic approaches to support emotional well-being and personal growth.

Family support is a large part of the treatment program, with counseling and education for families provided to help the entire family understand addiction, cope with challenges, and rebuild healthy relationships. Included in the services is Aftercare Planning, which is an individualized plan that is created to support guests in maintaining sobriety post-treatment, including relapse prevention strategies and referrals to support groups and community resources.

 

Townsend & Harris Medical Facility

The Townsend & Harris Medical Facility is a physician-controlled facility where walk-in guests and clients visit on a daily basis to receive proper drug care and treatments during detoxification. The facility can treat up to 200 guests on a daily basis and includes such services as dental, vision, and personal grooming services at the facility before and after drug treatments are provided.

Personnel at the Townsend & Harris Medical Facility are trained to note and encounter verbally with guests while visiting the facility, to encourage each to start and continue drug rehabilitation treatment, moving visitors toward the indoctrination counter where they can be introduced to the process. Guests may include anyone older than eighteen and after receiving treatment and medication, all guests are invited to stay for a meal, visitation with counselors and other services on an on-call basis.

 

Competitive Advantage

New Horizons will be able to offer the following advantages over their competition:

  • Friendly, knowledgeable, and highly-qualified team of New Horizons
  • Comprehensive menu of services and a welcoming and inviting atmosphere
  • A whole body-whole mind emphasis that will be included throughout the therapy guest stay
  • Recreational and activity areas, including indoor exercise rooms and outdoor obstacle course and group game courts
  • New Horizons offers the best pricing in town. Their pricing structure is the most cost effective when compared to the competition

 

Marketing Plan

Brand & Value Proposition

New Horizons will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees who are able to provide a comprehensive set of treatment programs and whole body-whole mind support sessions
  • Recreational and activity areas, including indoor exercise rooms and outdoor obstacle course and group game courts
  • A welcoming state-of-the-art facility situated on a spacious and peaceful property conducive to healing and recovery
  • Unbeatable pricing to its clients; they will offer the lowest pricing in the city.

 

Promotions Strategy

The promotions strategy for New Horizons is as follows:

Word of Mouth/Referrals

New Horizons has built up an extensive list of contacts over the years by providing exceptional service and expertise to their former clients. The contacts and clients will follow them to their new company and help spread the word of New Horizons.

Professional Associations and Networking

Professional medical associations, community networks and industry trade events will all be targeted for promotions of the startup company.

Print Advertising

Brochures announcing the opening of the New Horizons will be sent to medical clinics, physician offices, medical insurance company C-suite executives, and drug treatment facilities within the city.

Website/SEO Marketing

New Horizons will fully utilize their website. The website will be well organized, informative, and list all the services that New Horizons provides. The website will also list their contact information and list their available guest accommodations and pricing for treatments. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “drug rehabilitation” or “drug treatment near me,” New Horizons will be listed at the top of the search results.

 

Pricing

The pricing of New Horizons will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

 

Operations Plan

The following will be the operations plan for New Horizons.
Operation Functions:

  • Nathan Rodgers will be the owner and President of the company. He will oversee all staff and manage client relations. Nathan has spent the past year recruiting the following staff:
  • Danielle Foster, Vice President of Guest Services, will manage the guest experience from intake to release.
  • Tony Sciorcio will become the Operations Manager, overseeing all day-to-day management of the processes and procedures of the facility.
  • Ray Thomas will be the new Facilities Director, who will oversee all facility buildings and grounds on the campus.

 

Milestones:

New Horizons will have the following milestones completed in the next six months.

  • 5/1/202X – Finalize contract to lease office space
  • 5/15/202X – Finalize personnel and staff employment contracts for the New Horizons
  • 6/1/202X – Finalize contracts for New Horizons suppliers
  • 6/15/202X – Begin networking at industry events
  • 6/22/202X – Begin moving into New Horizons office
  • 7/1/202X – New Horizons opens its doors for business

 

Management Team

New Horizons will be owned and operated by Nathan Rodgers. A former drug addict, Nathan found the pathway to his personal healing by engaging as a guest in a treatment facility that offered a “whole body-whole mind” perspective that he hopes to emulate at the startup facility. This centers on treating more than the addictive habits that are destructive. The concept brings individuals to a true understanding of their own skills, talents, limitations and gifts; all of which bring individuals to a better understanding of their purpose in life.

Nathan Rodgers has recruited Danielle Foster, the former Patient Director of a 300-guest drug rehabilitation facility, to be the Vice President of Guest Services in the new startup. He has also recruited Tony Sciorcio and Ray Thomas as the Operations Manager and Facilities Director respectively.

Danielle Foster is a graduate of the University of Washington where she earned a master’s degree in Drug Rehabilitation & Services. She has been the acting Patient Director for over fifteen years in her former facility and is well-known for her calm and kind attentiveness to every conversation she holds.

Tony Sciorcio is a former associate of Nathan Rodgers, with a former drug addiction, as well. Nathan and Tony were treated at a drug rehabilitation program at the same time, became friends and have worked together for over ten years in former employment roles. Tony will become the Operations Manager in the new company, where he will oversee all day-to-day management of the processes and procedures, therapy and appointment centers.

Ray Thomas will be the new Facilities Director at the startup. He holds an impressive record as the Facilities Manager for a drug rehabilitation center that housed over 300 guests at a time. This meant his duties were on-call 7-days a week and he formed a massive team of courteous and helpful associates to work constantly on facilities needs throughout the complex.

 

Financial Plan

Key Revenue & Costs

The revenue drivers for New Horizons are the fees they will charge to guests for their in-patient services.

The cost drivers will be the overhead costs required in order to staff New Horizons. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

 

Funding Requirements and Use of Funds

New Horizons is seeking $200,000 in debt financing to launch its rehabilitation facility. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

  • Office space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

 

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Guests Per Month: 300
  • Average Revenue per Month: $900,000
  • Office Lease per Year: $100,000

 

Financial Projections

Income Statement
FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
Balance Sheet
FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
Cash Flow Statement
FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286


Drug Rehabilitation Business Plan FAQs

A drug rehabilitation business plan is a plan to start and/or grow your drug rehabilitation business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Drug Rehabilitation business plan using our Drug Rehabilitation Business Plan Template here.

There are a number of different kinds of drug rehabilitation businesses, some examples include: Medical detox/symptom management drug rehabilitation, Substance abuse treatment center, and Self-help drug rehabilitation.

Drug Rehabilitation businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

Starting a drug rehabilitation business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Drug Rehabilitation Business Plan - The first step in starting a business is to create a detailed drug rehabilitation business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your drug rehabilitation business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your drug rehabilitation business is in compliance with local laws.

3. Register Your Drug Rehabilitation Business - Once you have chosen a legal structure, the next step is to register your drug rehabilitation business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your drug rehabilitation business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Drug Rehabilitation Equipment & Supplies - In order to start your drug rehabilitation business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your drug rehabilitation business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.