Hello again! This is Daniel from CSMi and I wanted to give a quick update on how my experience is going opening a new clinic. If you recall, last month I posted about acquiring the best equipment to fit the needs of my niche isokinetic and “final rehab phase” practice. This month, I want to discuss financial targets.
First, I had to determine a break-even budget. Rent, utilities, PT Business coaching/mentorship group, equipment costs of the HUMAC NORM and VALD ForceDecks, clinic phone/internet/cell, EMR, Insurance, and SoloK Contributions, run $6,219/month. Add another $500 for unexpected expenses and my monthly expenses should be $6,719.
My Price Schedule is:
Single Session
5 Session Package
- ($200/Visit)
10 Session Package
- ($175/Visit)
I expect the average revenue per transactions will be $200. This means I need to sell 34 visits a month to breakeven if I do not take a salary. I’m willing to operate without a salary for up to six months to get ProActive Athletic Performance off the ground.
My annual salary goal is $125,000/$10,416 per month salary with an end-of-year profit for the business (after 15% tax) of $36,000. I need $42,352/$3,529 after all expenses to retain $36,000 profit for year. Therefore, I need to generate $248,988 in revenue.
Starting July 1, 2024 (spot myself a few months to get the business running/more predictable) my 12 financial budget is:
| # | Expenses | Monthly | Annual |
|---|---|---|---|
| 1 | Fixed Costs | $6,219 | $74,628 |
| 2 | Owner’s Pay | $10,500 | $126,000 |
| 3 | Unexpected | $500 | $6,000 |
| 4 | Taxes | $565 | $6,348 |
| 5 | Profit | $3,000 | $36,000 |
| 6 | Total | $20,748 | $248,988 |
I will use the following Key Performance Indicators (KPI) to monitor results vs. budget.
| # | Key Performance Indicator | Weekly | Monthly | Quarterly | Annually |
|---|---|---|---|---|---|
| 1 | 5 Visit Packages | 5 | 21 | 63 | 249 |
| 2 | Visits Needed at $200/visit | 26 | 105 | 315 | 1,260 |
| 3 | Revenue Target | $5,187 | $20,748 | $62,244 | $248,988 |
These are my targets as a solo provider/solo location. As I grow my local presence, I intend to grow and bring in other providers and possibly other locations in the Atlanta area and therefore my financial targets will change.
Thanks for reading and allowing me to share my experience in opening my isokinetic-focused clinic. This is my first time down the entrepreneurial road so if you have any advice or suggestions please share them with me.
Join me next month when I discuss market research! See you then!
Daniel Bodkin PT, DPT, ATC
ProActive Athletic Performance
Proactiveathleticperformance.com
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