How to Start Your Business Without Breaking the Bank

Here’s a scenario we see far too often…

In grad school, the business portions we are educated on (if at all) are suited for those interested in traditional models. One’s like your standard outpatient physical therapy clinic for example. So when you’re there in your group, writing out your business plan, you look at all the funding that would be required just to start.

A standalone space, buying all the tables, equipment, support staff, billing, the list goes on…

But the reality is, that’s just ONE model of rehab business.

The problem we generally see with this, is unfortunately, it deters potential business owners from pursuing their dreams. Because first off, it’s pricey to get started… and secondly, there are a ton of roadblocks in the way of coming to fruition. 

But what if it didn’t have to be that way? What if you could minimize the risk, and maximize the rewards?

A common question we get is regarding setting up your business and finding an operating location. Here’s my recommended starting strategy and the pros and cons that come along with each.

1. Find a location with both existing infrastructure that you can use to treat and a population that you can serve. For me, this meant starting out in a CrossFit gym. I had no treatment room, just buy-in from the community and the ability to get started by setting up my table on the gym floor. If you think about it, this is really no different than a lot of traditional clinic setups with an open floor plan - you don’t need a room to start!
2. Understand the economics of the payment structure you are negotiating. 
   • If you are going to pay per client, you get flexibility. If you want flexibility, it will generally cost you more! This isn’t necessarily a bad thing if it suits the needs of your business. So if you are only going to see a few clients per week, maybe this is the best option for you. *Make this a flat dollar amount, NOT a percentage. This will kill your business. 
   • If you are going to pay a stabilized rent rate, keep in mind that the more clients you see, the less expensive your rent becomes per client. So if you charge $150/session, and pay $600/month, you only need to see 4 clients to breakeven. Every client over 4 makes your rent inherently “cheaper” per client interaction. From what we have seen, you generally get the best “deal” on rent when you provide stability to the space you are subletting from.
3. Figure out how to become a part of their ecosystem. You ideally do NOT want to operate as silos. This is key. You have to understand what problem you solve for the business you are setting up shop in.
4. Sometimes it takes a few attempts to find your “home”. I practiced in 3 different gyms. Each of them was a great relationship, but at certain points in my journey, it became time to move on. What’s really important is you get started!

Those are the basics. My advice would be to keep it simple and pick a structure that fits your risk profile. The more you can understand the pricing structure for flexibility vs stability, the better you will be able to negotiate your deal!

Now, it’s time to do the work. What are 5 businesses that you feel would be a good fit for you to operate out of? Go build a relationship with them!