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How to Start Your Own Rehab Center

Research suggests the rehab industry is worth around $35 billion

So if you want to start a profitable business that can make a real difference, you may want to consider starting a rehab clinic. 

However, running a rehab center isn’t for the faint of heart, and it’s a tough industry to crack. Get things wrong, and it won’t be long before people avoid your clinic because of its bad reputation. 

Read on to learn more about you how to start your own rehab center. Use the knowledge in this post, and you’ll know how to open a rehab center that has the power to change people’s lives for the better. 

Let’s begin! 

Should You Focus on a Particular Type of Addiction?

When starting your rehab center, you might think it’s a good idea to help everyone that has some form of addiction. However, while this can sound like a great approach, it’s often not the best option for people opening their first rehab center.

If you try to treat many different types of addictions, you’ll need a lot of startup capital.

That’s because you’ll need to hire a wide range of experts and you’ll need to diversify the facilities in your building. If you’re using a loan, taking on a lot of startup capital increases the costs of failure.

Aside from running costs, trying to treat multiple forms of addiction often leads to lackluster care across the board.

It takes a lot of time to develop an effective treatment approach for just one form of addiction. Try to solve many types of addiction, and you massively limit your odds of success.

So with all that said, pick one form of addiction and then aim to create a clinic that can successfully treat that addiction. 

If you can do this, people will know your clinic has a successful method for treating a particular addiction.

This will then give your clinic a positive reputation, and you’ll benefit from word of mouth. Before you know it, you’ll be the primary consideration for people looking to find a program that helps them with a certain form of addiction.

Then, if you want to, you can expand upon this success and open a new department in your clinic that helps people deal with other forms of addiction.

Find a Good Location

The location of your clinic can have a big impact on how successful it’s going to be.

Now, you don’t have to base your clinic in a major city, but it’s worth noting that the easier it is to get to your clinic, the simpler it’ll be to attract clients. Thus, you may want to locate your clinic near an airport or highway.

You could even think about placing your clinic on the outskirts of a large city. In doing so, you can experience the benefits of having a clinic in the city, without having to pay the high costs associated with actually being in a city.

Think About the Finances of Your Operation

A rehab clinic is a business, and so you need to do the math to figure out what it’ll take for you to be profitable. After all, if you can’t make your clinic profitable, you’ll struggle to create a thriving clinic that helps people get past their addictions.

To begin with, you’ll need to figure out your basic operating costs.

How much do you have to pay for the building? How much will you need to pay staff? Each clinic will have different operating costs, so you need to take a look at your specific situation and then note these costs into a spreadsheet.

You then need to take a look at your clinic capacity and figure out how much you need to charge people.

For instance, suppose your monthly costs are $10,000, and your clinic can hold ten people, per month. For the clinic to break even, the amount you charge people would have to be at least $1000 per month.

You don’t have to charge them every month, but you do need to make sure their costs are covered for the duration of their stay. So, if someone is planning a two-month stay, a single $2000 payment would cover their costs.

Of course, you’ll want your clinic to turn a profit, and so you’ll want to charge above the bare minimum. 

If you’re not sure what you should charge, think about reviewing what other clinics are charging.

Another option is to initially adopt a relatively low profit margin of 5% or so.  Then as your clinic grows to be more successful, you could raise prices to improve profits.

Hire People That Know What They’re Doing

Perhaps the most influential factor that’ll determine the success of your clinic is the people you hire.

If you don’t hire competent staff, you won’t be able to provide patients with the help that they need.

When going through the hiring process, find people that have experience with working in addiction centers.

Make sure you ask these people what their day to day responsibilities were and how they managed to pull people out of addiction. In some cases, you may even want to seek some references, by calling the previous employer of a potential candidate.

You might also want to present them with some common scenarios that take place in a rehab center, and ask them how they’d deal with these situations.

For instance, how would they deal with someone that doesn’t feel as though they’re able to get past their addiction? What would they do if a particular medical problem took place?

Their ability to answer these questions will help you learn more about their experience, but also their ability to think on the spot. 

Ready to Start Your Own Rehab Center?

After reading through the tips in this post, you should be ready to start your own rehab center. 

When opening your rehab center, there’s no shame in starting small. You don’t have to help everyone and anyone. Just try to help a specific group of people, struggling with a specific form of addiction. 

Once you find that your clinic is consistently delivering results for patients, you can then increase the scale of your operation. If you do this over an extended period, it won’t be long before you’re the owner of a clinic that helps hundreds of people per day. 

Unsure of how you’re going to market your rehab center? Check out this post for some helpful digital marketing tips.