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Rehabilitation Center Business Plan

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A rehabilitation center is undoubtedly the most rewarding business opportunity for anyone with the expertise or financial pool wealth. It promises an extensive target market, abundant growth opportunities, and appreciating business value.

Starting a rehab center is no easy feat. You need a detailed business plan to attract funding and get a clear picture of its scalability.

Need help writing a business plan for your rehabilitation center? You’re at the right place. Our rehabilitation center business plan template will help you get started.

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How to Write A Rehabilitation Center Business Plan?

Writing a rehabilitation center business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Services & treatments:.

Highlight the services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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addiction treatment center business plan pdf

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of rehabilitation center you run and the name of it. You may specialize in one of the following rehabilitation centers:

  • Inpatient rehab centers
  • Outpatient rehab centers
  • Teen and adolescent rehab centers
  • Holistic rehab centers
  • Dual-diagnosis rehab centers
  • Describe the legal structure of your rehabilitation center, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established rehabilitation center service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as science-backed integrative therapies, personalized healing approaches, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your rehab center business plan::

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. This section should include the following:

Describe your services:

Mention the rehab services your business will offer. This list may include services like,

  • Assessment and Evaluation
  • Detoxification services
  • Deaddiction services
  • After Care services

Describe treatment plans

: Provide a detailed description of each program and therapy offered at your rehab facility. This list may include,

  • Therapies – personal therapy, family therapy, group therapy.
  • Cognitive Behavioral Therapy – skills training, exposure therapy, role-playing, etc.
  • Integrative medicine therapies
  • 12 step program
  • Innovative therapies

Quality measures:

This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services:

In short, this section of your rehabilitation center business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your rehabilitation center business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your rehab center, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Mention your rehab business’s staffing requirements, including the number of caregivers or professional staff needed. Include their qualifications, the training required, and the duties they will perform.

Operational Process:

Equipment & machinery:.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your rehabilitation center management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.


Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your rehabilitation services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the rehab industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your drug rehabilitation center business plan should only include relevant and important information supporting your plan’s main content.

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This sample rehabilitation center business plan will provide an idea for writing a successful rehabilitation center business plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our rehabilitation center business plan pdf .

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Frequently asked questions, why do you need a rehabilitation center business plan.

A business plan is an essential tool for anyone looking to start or run a successful rehab center. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your rehab center.

What is the easiest way to write your rehabilitation center business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any rehabilitation center business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a rehabilitation center business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

  • Stating the objective of your market analysis—e.g., investor funding.
  • Industry study—market size, growth potential, market trends, etc.
  • Identifying target market—based on user behavior and demographics.
  • Analyzing direct and indirect competitors.
  • Calculating market share—understanding TAM, SAM, and SOM.
  • Knowing regulations and restrictions
  • Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my rehabilitation center business plan?

The level of detail of the financial projections of your rehab center may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good rehabilitation center business plan help me secure funding?

Indeed. A well-crafted rehabilitation center business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a rehabilitation center business plan?

Marketing strategy is a key component of your rehab business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

About the Author

addiction treatment center business plan pdf

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Behavioral Health Business Plan for New Level of Treatment Program

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This business plan is a quick and dirty example of one that I wrote which helped secure $250k in investor money to help build an integrated mental health and substance abuse treatment center.

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Drug Rehabilitation Business Plan Template

Written by Dave Lavinsky

substance abuse rehab business plan

Drug Rehabilitation Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their drug rehabilitation companies. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a drug rehabilitation business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your drug rehabilitation business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a drug rehabilitation business or grow your existing drug rehabilitation company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your drug rehabilitation business to improve your chances of success. Your drug rehabilitation business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Drug Rehabilitation Businesses

With regards to funding, the main sources of funding for a drug rehabilitation business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for drug rehabilitation companies.

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How to write a business plan for a drug rehabilitation business.

If you want to start a drug rehabilitation business or expand your current one, you need a business plan. The business plan outline below details the necessary information for how to write each essential component of your drug rehabilitation business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of drug rehabilitation business you are running and the status. For example, are you a startup, do you have a drug rehabilitation business that you would like to grow, or are you operating a chain of drug rehabilitation businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the drug rehabilitation industry.
  • Discuss the type of drug rehabilitation business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of drug rehabilitation business you are operating.

For example, you might specialize in one of the following types of drug rehabilitation businesses:

  • Medical detox/symptom management drug rehabilitation: this type of drug rehabilitation focuses on medical assistance while individuals are in withdrawal, along with the management of symptoms the individual may have during recovery.
  • Substance abuse treatment center: Commonly seen as highly-effective, substance abuse treatment centers focus on one or a combination of the following: counseling, group therapy, medically-assisted treatment therapy (MAT) and other forms of assistance that support holistic health and well-being.
  • Self-help drug rehabilitation: this type of therapy is designed for someone who prefers to work on an individual basis with one counselor, commonly a professional certified in alcohol and drug rehabilitation.

In addition to explaining the type of drug rehabilitation business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of patients served, the number of cases with positive outcomes, reaching X number of contracted medical providers who refer directly to your company, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the drug rehabilitation industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the drug rehabilitation industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your drug rehabilitation business plan:

  • How big is the drug rehabilitation industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your drug rehabilitation business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your drug rehabilitation business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, family members of addicts, physicians and licensed therapists.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of drug rehabilitation business you operate. Clearly, individuals would respond to different marketing promotions than medical personnel, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other drug rehabilitation businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes psychiatrists, other healthcare providers, or members of the clergy. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve; in-patient or out-patient?
  • What type of drug rehabilitation business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide options for the uninsured?
  • Will you offer 24/7 care services that your competition doesn’t?
  • Will you provide a one-to-one ratio of therapist- to-addict service?
  • Will you provide certified personnel in every department of your business?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a drug rehabilitation business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of drug rehabilitation company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide therapy that includes in-patient care coupled with therapy sessions for management of addiction?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your drug rehabilitation company. Document where your company is situated and mention how the site will impact your success. For example, is your drug rehabilitation business located near a hospital, in a clinic in a pleasant neighborhood, or is it in a stand-alone building? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your drug rehabilitation marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites
  • Distribute flyers to area medical and therapist personnel
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your drug rehabilitation business, including answering calls, overseeing clinic or substance abuse treatment center practices, providing daily care, billing insurance, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth substance abuse treatment center patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your drug rehabilitation business to a new city.

Management Team

To demonstrate your drug rehabilitation business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing drug rehabilitation businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a drug rehabilitation business or successfully running a therapist practice.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you admit 10 new patients per day, and/or offer group therapy sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your drug rehabilitation business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a drug rehabilitation business:

  • Cost of equipment, furnishings, and housing
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location mortgage or a list of contracted providers who refer individuals to your substance abuse treatment center.

Writing a business plan for your drug rehabilitation business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the drug rehabilitation industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful drug rehabilitation business.

Drug Rehabilitation Business Plan FAQs

What is the easiest way to complete my drug rehabilitation business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your drug rehabilitation business plan.

How Do You Start a Drug Rehabilitation Business?

Starting a Drug Rehabilitation business is easy with these 14 steps:

  • Choose the Name for Your Drug Rehabilitation Business
  • Create Your Drug Rehabilitation Business Plan
  • Choose the Legal Structure for Your Drug Rehabilitation Business
  • Secure Startup Funding for Your Drug Rehabilitation Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Drug Rehabilitation Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Drug Rehabilitation Business
  • Buy or Lease the Right Drug Rehabilitation Business Equipment
  • Develop Your Drug Rehabilitation Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Drug Rehabilitation Business
  • Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to learn about Growthink’s business plan writing services .

Other Helpful Business Plan Articles & Templates

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Substance Abuse Drug Abuse Rehab Rehabiliation Center Business Plan Template

Click bellow to view sample pages of the Substance Abuse Rehabilitation Center Business Plan Template

Click here to learn more about this substance abuse center business plan template.

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  •   Substance Abuse Center Business Plan Template(Microsoft Word)  –  $47.00
  •   +Add Excel Worksheet (Recommended)  –  $25.00
  •   +Add Funding Package Pitch Deck PowerPoint  –  $35.00

Or Click here to learn more about the substance abuse rehabilitation center business plan template. 

For an additional fee a full set of financials in Excel and a PowerPoint pitch deck presentation template are available. See options prior to purchase. 

Financials in Excel (available as an add on option):

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PowerPoint Pitch Deck Template to  Help Present Your Concept to Investors (available as an add on option):

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Business Plan Starter Documents part of the Funding Package:

business documents

Business Plan Raising Capital Documents part of the Funding Package:

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Or Click here to learn more about the substance abuse rehabilitation center business plan template.

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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

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:

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, 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:

  • 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
  • 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.

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.


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

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:

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, balance sheet, cash flow statement, drug rehabilitation business plan faqs, what is a drug rehabilitation business plan.

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 .

What are the Main Types of Drug Rehabilitation Businesses? 

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.

How Do You Get Funding for Your Drug Rehabilitation Business Plan?

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

What are the Steps To Start a Drug Rehabilitation Business?

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.

Drug Rehab Marketing


 Business Plan For Addiction Treatment Centers

When people begin the process of opening a business, one of the first steps to success is building the right business plan. This is used, not only to give the owner a plan of action, but also for funding. All banks and investors expect a quality a quality, detailed, professional business plan. The drug and alcohol rehab space is no different.

Drug and Alcohol Rehab Business Plan

For those looking to open a drug and alcohol treatment center The Drug Rehab Agency is here to help. Our addiction consultants have over 10 years of experience in opening and running treatment centers. Over the years, we have seen, edit, and created business plans for new drug rehab centers. We focus on the following areas within all business plans we build.

Executive Summary

Including the problem and how the center will be the solution.

Market Conditions with references

Competition Review

Why Us Section (Value Prop)

Program Focus (Level of Care)

Target Market

Expectations and Forecasting

Key Planed Hires

Phased Rollout

Expansion Plans

Technology Focus

Marketing Plan

Patient Acquisition planning


Admissions process

Sales process

Milestone Outline

Partners and Resources

Business KPI (Key Performance Indicators)

Team (Salary)

Staff (Salary)

Financial Plan

Forecasting patient admissions

Forecasting Revenue by Month

Forecasting Expenses by Month

Forecasting Profit and Loss Statement for Year One.

Projected Cash Flow

Use of Funds

Source of Funds

The above is not only what any business owner needs to identify prior to opening a business but also what banks and investors need to see to provide funding.

Cost of Addiction Business Plan Development

With everything shown above, the average amount of time spent researching and building the business plan is 30 hours. Depending upon client involvement this can take 4-6 weeks to complete. The all-in cost is $5,000 for our consultants to research and build an extremely professional addiction center business plan that will impress any bank or investor.

What to Learn More?

Please complete the following form and one of our consultants will contact you to discuss your needs.




Addiction Treatment Center Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Drug & Alcohol Rehab

Do you want to start an addiction treatment center and need to write a business plan ? If YES, here is a sample addiction treatment business plan template.

This is a thriving industry in the United States, but it is important to point out that this is a delicate business; you need to network with legal, medical, as well as criminal professionals so that they will refer patients to your addiction treatment center.

This does not however mean that you cannot source for your clients directly; but your marketing needs to be very sensitive as your potential customers and their families are in a vulnerable place. You should know what licensing and certifications would be needed from you by the state in which you would be operating from, especially as licensing varies depending on the state.

A Sample Addiction Treatment Center Business Plan Template

1. industry overview.

Addiction treatment center is a business that is grouped under the mental health and substance abuse industry and players in this industry includes establishments that primarily provide residential care and treatment for patients with mental illnesses, drug addiction and alcoholism.

Industry services include lodging, supervision, evaluation and counseling. Medical services may be available, though these are incidental to counseling, mental rehabilitation and support services.

Statistics has it that in the united states of America alone, there are about 8,216 licensed and registered mental health and substance abuse centers  (addictive treatment centers) responsible for employing about 231,941 employees and the industry rakes in a whooping sum of $18 billion annually with an annual growth rate projected at 4.6 percent between 2014 and 2019.

It is important to state that the company holding the largest market share in the Drug & Alcohol Rehabilitation Clinics industry is Acadia Healthcare Company Inc.

A recent report released by IBISWorld shows that over the five years to 2019, industry revenue is estimated to grow an annualized 4.6 percent to $17.6 billion. In 2019 alone, revenue is estimated to grow at 3.0 percent. Due to a broad range of focuses and treatment approaches offered by programs, profit margins vary significantly between operators.

Some of the factors that encourage entrepreneurs to open their own addiction treatment centers could be that the business is thriving and most addiction treatment centers get support and grants from government and donor agencies.

In order to become successful as an addiction treatment center operator, you should find it easy to connect with people and constructively discuss their problems and issues. Excellent written and verbal communications skills and an analytical approach will serve you well in this line of business. Plus, you should know how to reach out to your target market and partner with the government and NGOs.

2. Executive Summary

Ray Johnson® Addiction Treatment Center, Inc. is a standard and licensed addiction treatment center that will be located in the heart of Rio Rancho – New Mexico in a neatly renovated and secured housing facility. Our addiction treatment center is specifically designed with the needed gadgets to give comfort and security to all our residents irrespective of the religious affiliations, their race, and health condition.

We are set to treat and take care of people who are addicted to drugs, pornography and other substances. Despite the fact that we are an addiction treatment center, we are going to be health conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our organizational structure.

With that, we know that we will consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clients, partners, and all our employees as well. Ray Johnson® Addiction Treatment Center, Inc. will be equipped with everything that will make life comfortable for all the inpatients and outpatients.

We will build a fitness room and library et al. We will also install a free Wi-Fi that will enable our patients and guests surf the internet with their laptops free of charge, and there will be wireless access in all the public areas within the lodging facility.

We will ensure that we enforce our rules, treatment programs, work requirements and curfews while in our addiction treatment center. An inmate who fails to comply with the rules of our center can be discharged and sent home.

Ray Johnson® Addiction Treatment Center, Inc. is owned and managed by Mr. Raymond Johnson. Mr. Johnson is a licensed therapist and psychiatrist with over 25 years’ experience working for leading brands in the industry. He has a Master’s Degree in Public Health and he is truly passionate when it comes to treating people who are fighting addictions.

3. Our Products and Services

Ray Johnson® Addiction Treatment Center, Inc. is set to operate a standard addiction treatment center in Rio Rancho – New Mexico. The fact that we want to become a force to reckon with in the mental health and substance abuse industry means that we will provide our residents a conducive and highly secured accommodation.

In all that we do, we will ensure that our inpatients and outpatients are satisfied and are willing to recommend our facility to their family members and friends. We will offer the following services;

  • Providing residential alcoholism rehabilitation
  • Providing residential drug addiction rehabilitation
  • Providing treatment at convalescent homes or hospitals for psychiatric patients
  • Providing treatment at halfway houses for patients with mental health illnesses and substance abuse problems
  • Providing treatment at homes and hospitals for emotionally disturbed or psychiatric convalescent adults or children

4. Our Mission and Vision Statement

  • Our vision is to become the number one choice when it comes to addiction treatment center in the whole of New Mexico and also to be amongst the top 5 addiction treatment facilities in the United States of America within the next 5 years.
  • Our mission is to build an addiction treatment center that will contribute in reducing addictions and mental health ailments in the whole of Rio Rancho – New Mexico and environs.
  • We want to meet and surpass the needs of all our patients and to build a profitable and successful business.

Our Business Structure

Ray Johnson® Addiction Treatment Center, Inc. is built on a solid foundation. From the outset, we have decided to recruit only qualified professionals to man various job positions in our organization. We are quite aware of the rules and regulations governing the industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization.

We hope to leverage on their expertise to build our business brand to be well accepted in New Mexico and the whole of the United States. When hiring, we will look out for applicants that are not just qualified and experienced, but homely, honest, customer centric and are ready to work to help us build a prosperous business.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Ray Johnson® Addiction Treatment Center, Inc.;

  • Chief Executive Officer
  • Facility Administrator (Human Resources and Admin Manager)

Addiction Treatment Specialist/Psychiatrist

  • Sales and Marketing Executive
  • Accounting Officer
  • Security Officer

5. Job Roles and Responsibilities

Chief Executive Officer:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board.

Facility Administrator (Admin and HR Manager)

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily home activities.
  • Develop a treatment plan in consultation with other professionals, such as doctors, therapists, and psychologists
  • Create rehabilitation or treatment plans based on clients’ values, strengths, limitations, and goals
  • Assist clients in creating strategies to develop their strengths and adjust to their limitations
  • Monitor clients’ progress and adjust the rehabilitation or treatment plan as necessary
  • Advocate for the rights of people who are just coming out of drug addictions and alcoholism to live in the community and work in the job of their choice.

Marketing and Sales Executive

  • Identify, prioritize, and reach out to new clients, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Document all customer contact and information
  • Represent Ray Johnson® Addiction Treatment Center, Inc. in strategic meetings
  • Help increase sales and growth for Ray Johnson® Addiction Treatment Center, Inc.


  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for the organization
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Ray Johnson® Addiction Treatment Center, Inc.
  • Serves as internal auditor for Ray Johnson® Addiction Treatment Center, Inc.

Security Officers

  • Ensure that the facility is secured at all time
  • Control traffic and organize parking
  • Give security tips to staff members from time to time
  • Patrols around the building on a 24 hours basis
  • Any other duty as assigned by the facility administrator
  • Responsible for cleaning the facility at all times
  • Ensure that toiletries and supplies don’t run out of stock
  • Assist our inpatients and outpatients when they need to take their bath and carry out other tasks
  • Handle any other duty as assigned by the facility manager

6. SWOT Analysis

Ray Johnson® Addiction Treatment Center, Inc. is set to become one of the leading addiction treatment centers in New Mexico which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business.

We want our addiction treatment center to be the number one choice of all addiction patients of Rio Rancho and other cities in New Mexico. We know that if we are going to achieve the goals that we have set for our business, then we must build our business on a solid foundation.

Even though our Chief Executive Officer (owner) has a robust experience in treating people with addictions, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to become a leader in the mental health and substance abuse industry.

This is the summary of the SWOT analysis that was conducted for Ray Johnson® Addiction Treatment Center, Inc.;

Our strength lies in the fact that we have a team of qualified professionals manning various job positions in our organization. As a matter of fact, they are some of the best hands in the whole of Rio Rancho – New Mexico. Our location, the Business model we will be operating on, well equipped and secured facility and our excellent customer service culture will definitely count as a strong strength for us.

Ray Johnson® Addiction Treatment Center, Inc. is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the highly experienced hands in the mental health and substance abuse industry.

  • Opportunities:

Federal funding for Medicare and Medicaid has increased during the period as states have expanded Medicaid coverage to a greater number of low-income individuals. An increase in coverage enables more individuals struggling with substance use and mental illness to access industry services.

Currently, an estimated 41.9 percent of industry revenue is derived from Medicaid and Medicare reimbursement payments. In 2019, federal funding for Medicare and Medicaid is expected to increase, presenting a potential opportunity for the industry.

Individuals seeking treatment for mental health or substance use disorders have many options as regards providers and treatment models.

As a result, industry operators experience external competition from numerous sources, including from short-term inpatient and outpatient service providers in the Mental Health and Substance Abuse Clinics industry. External competition is anticipated to remain high in 2019, posing a potential threat to operators in the industry.


  • Market Trends

A notable trend shows that the revenue and wages for addiction treatment centers have largely been affected due to the recession and also a slight fund drop in 2012 from federal funding of Medicaid and Medicare as a result of a rise in premiums but the effect is wearing off as the industry has largely recovered. Also, the economy which is constantly improving is expected to boost revenue for the addiction treatment center industry from 2015 to 2022.

More companies entering into this industry are doing so due to the fact that there is an increasing focus on outpatient services, which are considered less costly than inpatient care, and which is also more desirable for insurance providers.

The demand for addiction treatment centers is largely driven by the availability of various factors such as new drugs and treatments, funding policies as well as insurance programs. Profitability for individual facilities depends on controlling costs as well as referrals.

Large scale addiction treatment centers usually have more advantage when marketing to sources that would provide these referrals. However, small scale companies have more leverage in competition by providing superior service to patients.

8. Our Target Market

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the mental health and substance abuse industry in the United States. Our staff are well – trained to effectively service our customers and give them value for their monies.

Our customers can be categorized into the following;

  • Drug addicts
  • Pornography addicts
  • Other substance addicts

Our Competitive Advantage

To be highly competitive in the mental health and substance abuse centers industry means that you should be able to secure a conducive and secured facility, deliver consistent quality service and should be able to record good testimonial of changed lives.

Our facility is well positioned (centrally positioned) and visible, we have good security and the right ambience for people who are addicted to drugs, pornography and other substances. Our staff are well groomed in all aspects of addiction treatment and all our employees are trained to provide customized customer service to all our patients.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.


  • Sources of Income

Ray Johnson® Addiction Treatment Center, Inc. will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. We will generate income by offering the following services;

  • Getting financial support in form of grants from government and philanthropists

10. Sales Forecast

One thing is certain, there would always be people who are addicted to drugs, alcohol, pornography and other substances that would need the services of addiction treatment centers.

We are well positioned to take on the available market in Rio Rancho – New Mexico and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow our inpatients and outpatient base.

We have been able to examine the addiction treatment center services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Ray Johnson® Addiction Treatment Center, Inc., it is based on the location of our business and of course the wide range of related services that we will be offering;

  • First Fiscal Year (FY1): $250,000
  • Second Fiscal Year (FY2): $500,000
  • Third Fiscal Year (FY3): $$1.1 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

The marketing and sales strategy of Ray Johnson® Addiction Treatment Center, Inc. will be based on generating long-term personalized relationships with our patients. In order to achieve that, we will ensure that we offer all – round addiction treatment services at affordable prices compared to what is obtainable in New Mexico.

We know that if we are consistent with offering high quality service delivery and excellent customer service, we will increase the number of our inpatients and outpatients by more than 25 percent for the first year and then more than 40 percent subsequently.

Before choosing a location for Ray Johnson® Addiction Treatment Center, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for people of Rio Rancho and other cities in New Mexico. We have detailed information and data that we were able to utilize to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the mental health and substance abuse industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in New Mexico.

In summary, Ray Johnson® Addiction Treatment Center, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our business by sending introductory letters to psychiatric facilities and other stake holders in and around Rio Rancho – New Mexico
  • Advertise our business in community based newspapers, local TV and radio stations
  • List our business on yellow pages ads (local directories)
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Leverage on word of mouth marketing (referrals)
  • Enter into business partnership with prisons, government agencies and NGOs that work with drug addicts, pornography addicts and other substance abusers.
  • Attend drug and substance abuse related seminars/expos.

11. Publicity and Advertising Strategy

We are in the addiction treatment business to become one of the market leaders and also to maximize profit hence we are going to explore all available means to promote Ray Johnson® Addiction Treatment Center, Inc.

Ray Johnson® Addiction Treatment Center, Inc. has a long – term plan of building addiction treatment facilities in key cities in the United States of America which is why we will deliberately build our brand to be well accepted in Rio Rancho – New Mexico before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Ray Johnson® Addiction Treatment Center, Inc.;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs that appeals to people who are addicted to drugs, alcohol, pornography and other substances
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
  • Install our Bill Boards on strategic locations all around Rio Rancho – New Mexico
  • Distribute our fliers and handbills in target areas with high concentration of drug addicts and alcoholics
  • Ensure that all our workers wear our branded shirts and our facility and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Prices vary for staying in addiction treatment centers, but most of the time it costs about the same as it would cost to live in hospitals and other medical facilities. Addiction treatment center patients must pay rent each month. The rent usually amounts to between $450 and $750 per month, depending on where the home is located.

Ray Johnson® Addiction Treatment Center, Inc. will work towards ensuring that all our services are offered at highly competitive prices compared to what is obtainable in The United States of America.

  • Payment Options

The payment policy adopted by Ray Johnson® Addiction Treatment Center, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Ray Johnson® Addiction Treatment Center, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via Point of Sale Machines (POS Machine)
  • Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our clients make payment for our treatment fee without any stress on their part.

13. Our Startup Expenditure (Budget)

If you are looking towards starting an addiction treatment center business, then you should be ready to raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.

You need money to secure a standard residential facility big enough to accommodate the number of people you plan accommodating per time, you need money to acquire supplies and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.

The items listed below are the basics that we would need when starting our addiction treatment center business in the United States;

  • The total fee for registering the business in the United States – $750.
  • Legal expenses for obtaining licenses and permits – $1,500.
  • Marketing promotion expenses for the grand opening of Ray Johnson® Addiction Treatment Center, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring business consultant – $2,500.
  • The cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
  • The cost for leasing a standard and secured facility in Rio Rancho – New Mexico for 2 years – $250,000
  • The cost for facility remodeling – $50,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The cost for start-up inventory (stocking with a wide range of products such as toiletries, food stuffs and drugs et al) – $50,000
  • Storage hardware (bins, rack, shelves,) – $3,720
  • The cost for the purchase of furniture and gadgets (Beds, Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $700
  • Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our addiction treatment center in Rio Rancho – New Mexico.

Generating Funds/Startup Capital for Ray Johnson® Addiction Treatment Center, Inc.

Ray Johnson® Addiction Treatment Center, Inc. is owned and financed by Mr. Raymond Johnson. He has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Ray Johnson® Addiction Treatment Center, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our treatment services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Ray Johnson® Addiction Treatment Center, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check : Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of medical equipment and vans et al: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Establishing business relationship with players in key industries, NGOs, government and third – party services providers: In Progress

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