Starting your very own CPR business can be a very rewarding and lucrative business venture. As a certified trainer, you’ll help people from all walks of life, from nurses and other health care professionals to lifeguards to the everyday person looking to learn the skills to save a life.
However, before you get started and begin taking on clients, there are a few steps you need to take care of to make sure your CPR business is successful.
Like any business, it requires planning, funding, and setting up systems and processes that will help your business function smoothly. In this article, we’ll be tackling one of the first questions when starting your business…..How much money is required to start a CPR business?
Step 1: Plan Your Business
Having a clear vision for your business is essential as an entrepreneur. It will help you clarify your role as a business, your target market, and other important factors when starting.
You’ll want to ask yourself a few questions, including:
- Who is my target market?
- How much will I charge individual customers?
- How much will I charge for groups?
- What will I name my business?
Understanding your target market, what you plan to charge, and your business name will give you a clear roadmap going forward as your start thinking about researching the costs of setting up your business.
Step 2: Breaking Down Costs to Open Your Business
The very first thing you’ll want to do is to write up a business plan. You’ll have to make some decisions about how you plan to structure your business. Will you work out of office space to serve as your training facility, or will you go to your customers. If you decide to have a training facility that customers can come to, you’ll have to find office space and secure a lease.
After you’ve considered the space you plan to work out of for your business, there are other expenses to consider, including:
- Manikins: adult, child, and infant classroom packs = $1,500
- AED Trainers costs start at $554.40 for a 4-pack
- Miscellaneous supplies for training will cost $5,000-10,000
- (TV’s, computers, first aid equipment, notebooks, binders, textbooks, internet, subscriptions, gas, vehicle, tables, chairs, printer, pens, paper, etc)
- Marketing Materials including a professional-looking website, business cards, and brochures can cost anywhere from $5,000-10,000
Breaking down these costs is essential when thinking about starting costs. When you are acquiring capital for your business, you’ll want to make sure you leave a cushion for any unforeseen expenses you may need as you acquire clients.
Step 3: Funding Startup Costs for a CPR Business
There are several ways that you can go when it comes to raising startup capital for your business.
- Depending on your credit history, you could always apply for a business loan.
- If this isn’t an option for you, you could always take out a line of credit from the bank. It’s similar to a credit card but with a much lower interest rate.
- Another way you can secure funding is if you have equity in your home, you could take out an equity HELOC line of credit. It is similar to the one above.
- You could raise money from friends, but this can get tricky, so it may not be your best bet. It gets tough when you mix friendship and business.
- You could find investors to provide the money, but keep in mind that you may have ideas on how to get the most back for their investment that may not align with your goals.
- Lastly, you could use a 0% interest credit card and try to pay back the loan within the first year before the percentage rates jack up to 18% to 24%. As you can see, this would most likely be used as a last resort given the economic risk involved.
Whatever way you choose to go, it’s essential to ask for a bit more than your startup costs to guard against unexpected expenses that may pop up. As with all businesses, it takes some time before it becomes profitable, so it’s crucial that you have a plan or funds set aside.
It’s a good idea to do some research before creating any marketing materials to see if there are any specific groups of professionals you should target. You want to look for businesses that might be new or underserviced.
If you live in an area where the primary industry is manufacturing or healthcare, make sure your marketing materials speak to both industries in a way they see value in your service.
How Does My CPR Business Make Money?
Your CPR business generates revenue for every individual signed up for a class. Sometimes, trainers will charge a group rate for a business that may have many customers coming through a class. Additionally, many trainers now offer online and in-person classes depending on the class and how much hands-on learning is required.
How Much Should I Charge Customers?
Most instructor-led classes can run anywhere from $70 to up to $300 per customer. Many instructors service about 50-200 students each month on average. Most people will look at competitors in the market and set their prices accordingly. Our experience tells us not to do this. Business owners need to do the hard work and figure out how much teaching a class costs them. Knowing your numbers helps you make good and informed decisions. Tally up your costs for every student trained and factor in a percentage of your overhead costs to know the minimum you can charge for each student. If you try to compete with people on price, it becomes a race to the bottom and everyone loses. Set prices according to your expenses and the pay that you need.
How Much Profit Can I Expect From My CPR Business?
While it can take some time to start acquiring clients, successful CPR businesses that have become established can see gross revenues of $100,000 and grow to $1mil. It all depends on your location, number of customers, and so on.
Ready to Start Your Own CPR Business?
If you’re already an instructor and want to partner with an AHA Training Center that can help you grow your business, you can learn more about alignment with us.