Executive Summary

Executive Summary

Passions is a Christian based rehabilitation center for men and women suffering from eating disorders such as binge eating, bulimia and anorexia nervosa. The prevalence of eating disorders in men and women has gradually increased over the past few years leading to a profitable and beneficial business opportunity. Psychological issues such low self-esteem, a distorted physical image, depression, anxiety, and insecurity are only a few of the reasons an estimated 8 million women and 1 million men suffer from bulimia and anorexia nervosa in the United States alone. Also, another 25 million suffer from binge eating; yet, lacks as much interest to the public as the previous two although it is just as severe. Passions will consist of 3 critical aspects: Research, Awareness, and Treatment. The facility displays unique because not only is it one of the first eating disorders facilities for men, it also specializes in working with athletes. There are many eating disorder facilities across the globe such as Remuda Ranch, Renfrew, and Avalon, but not one single facility offers a program for men or athletes who want to heal and return to high level athletics after treatment.


Founders

Jennifer Liles and a Management team consisting of 4 other successful individuals in their line of work. This includes two partners who previously owned a psychiatry hospital and physical rehab center, an entrepreneur who previously owned an insurance company who is now retired, and a doctor with a renowned published book on eating disorders.


What We Offer

Passions offers both inpatient and outpatient programs to men and woman alike. We treat men and woman diagnosed with either binge eating, anorexia nervosa or bulimia nervosa, but also offer a program specialized for athletes who want to return to their sport through our basic 12 step program. The number of eating disorder facilities in the United States is large and continuing to grow due to the seriousness of the issue. Our facility offers a basic 12 step program which proves to have a high success rate among both men and women alike. It is common for facilities to eliminate all forms of exercise for newly admitted patients as an introduction prevention process. This is necessary until the patient is stable, a feat easier for patients with bulimia than anorexia nervosa because of the necessary weight gain. What Passions offers that other facilities haven't developed are guidelines and a program for athletes who plan on returning to their sport. Our sports psychologist has a background in athletic training and over exercising syndrome. She will start the patient on an exercise program deemed appropriate for their health status that they can build upon when they are discharged. Passions is a 40 bed inpatient treatment facility located in San Diego, Ca and anticipating opening nation wide. Men and women will have separate dwellings to prevent any tension among gender. The program has a highly skilled treatment team consisting of 2 medical doctors, 4 licensed psychologists specializing in eating disorders, 2 nutritionists, 2 group therapists, a family psychologist, 2 psychiatrists, a sports trainer, nursing staff and dining team. Each patient will be given a weekly schedule specific to their needs and specific situation to insure maximum possible success. The minimum stay is 45 days to help build and reinforce the appropriate habits. Over the course of each patient’s stay, they will meet with each staff member numerous times as part of our program. Passions Christian based affiliation will provide a foundation for those who seek a higher power as their strength. Chapel, consisting of singing and reading bible verses, will be conducted 6 times a week to provide an inner strength to the patients. Furthermore, Passions will be affiliated with an exercise facility, spa and sports center. The sports trainer will work with the patient’s psychologist to determine an exercise program and gradual implementation of sport with the progression of healthy behaviors. Passions is affiliated with the Alliance for Eating Disorder Awareness and the National Eating Disorder Association. The NEDA strives to find cures to prevent eating disorders, increase awareness of the life threatening disease, and encourage federal policy makers to improve access to insurance coverage for these necessary situations. Our program gives patients a better understanding of their eating disorder, teaches them healthier ways to cope with stress and anxiety, and gives them a start at a fulfilling and successful life.

Our Target Market

Our target market consists of boys, girls, men and women suffering from bulimia nervosa, anorexia nervosa, or binge eating disorder as well as special programs for athletes. Eating disorders are prevalent in a handful of elementary students, highschool and college students, men and women, and elite athletes; particularly in sports revolved around a certain body image such as gymnastics, ballet, wrestling, and cross country running. Our goal is to help each patient develop a healthy mindset, a set of coping mechanisms, and a positive body image. A strategically developed fitness program will be administered to athletes who have progressed in their treatment and wish to return to competition. Many people struggling with eating disorders range from the ages of 14 to 25 (although children as young as 7 and adults as old as 75 are affected as well.) This program will be of great interest to athletes who take a semester off to be treated and want to return to their sport.

Size and Growth Trend of Target Markets

The number of people with eating disorders has continued to grow, especially in reference to men. According to the Alliance for Eating Disorders Awareness up to 24 million Americans and 70 million individuals worldwide are affected by eating disorders. It is uncertain whether the prevalence of eating disorders is increasing or whether society is just becoming more aware and the disease more forthcoming but the numbers are definitely increasing dramatically. Eating disorders in males is on the rise but it is difficult to determine the number of males who suffer because of the stigma attached to eating disorders. Athletes have been known to fall victim to eating disorders especially those involved in weight and appearance related sports such as diving, gymnastics, wrestling, jockeying, and cross country running. Low self esteem, perfectionist attitudes and over focusing on the athlete’s success rather than them as a person increases an athletes risk to develop an eating disorder. Research has shown that 42% of children in first grade have already stated that they want to be thinner, 81% of 10 year olds are afraid of being fat, and that most girls start their eating disorder between the ages of eleven to thirteen years old(kidshealth.org.)

Initial Funding

Year of Business Projected Occupancy Every 45 Days Minimum Stay = 45 Days Projected Total Revenue

1st Year 20 patients 45 Days $10,800,000
2nd Year 25 patients 45 Days $13,500,000
3rd Year 30 patients 45 Days $16,200,000
4th Year 35 patients 45 Days $18,900,000
5th Year 40 patients 45 Days $21,600,000
6th Year 40 patients 45 Days $21,600,000


Assuming Your Max Capacity is 30 beds and you plan to expand after your third year at 5 additional beds per year up to a maximum of 40 beds.

Year of Business Projected Total Revenue Expenses Money owed to Investors and Bank Projected Net Revenue
1st Year $10,800,000 $9,000,000 $2,000,000 -$1,000,000
2nd Year $13,500,000 $9,000,000 $2,500,000 $2,000,000
3rd Year $16,200,000 $9,000,000 $5,000,000 $2,200,000
4th Year $18,900,000 $10,000,000 $6,900,000 $2,000,000
5th Year $21,600,000 $10,000,000 $9,600,000 $2,000,000
6th Year $21,600,000 $10,000,000 $8,500,000 $3,100,000




The plan is to receive a sum of $30,000,000 from investors and the bank ($25,000,000 from, Investors and $5,000,000 from the bank that will be paid off in 5-6 years approximately at a fixed rate of 15 % interest leading to overall sum of $34,500,000 of debt).At 15% Fixed Interest expect to pay off in 5-6 years $30,000,000. Expenses include salaries, medical and dental benefits for employees, supplies, equipment, utilities, etc.Expenses remained fixed but increase to $10,000,000 when more beds and supplies are needed to take care of the patients. Profit dips slightly for 2 years but remains positive leaving room for growth and expansion. Projected Net Revenue looks positive and this looks to be a successful business.





Exit Strategy

The exit strategy would most likely be to eventually sell the company and turn a profit or if possible, to go public.