Written By: Madison Wellman, Business Opportunity Specialist
Background: Jimmy Kakouris is a trained physical therapist from Boylston, Massachusetts. After years of experience in the field, Mr. Kakouris decided to open his own physical therapy practice, Ethos Rehabilitation. He approached Workers’ Credit Union – a partner in RCAP’s Open for Business Program – for start-up financing, but the business loan officers at the credit union did not have confidence in his plan. Instead of simply denying Mr. Kakouris financing, they referred him to RCAP to refine his business model.
The Challenge: Rural communities across the United States share a sense of underdeveloped entrepreneurial capacity. Lack of educational opportunities, poor connectivity infrastructure and a general absence of human capital capable of providing mentorship and expertise in the community all contribute to the high business failure rate in our nations small towns and villages. RCAP is striving to surmount these obstacles by delivering the absent human capital to rural communities in a cost-effective manner. In meeting this challenge, RCAP is building permanent entrepreneurial capacity in rural America.
The Approach & Solution: To rise to the challenge, RCAP launched the Open for Business program. The program delivers business expertise to rural communities through webinars, online workshops and one-on-one business consultations made available to entrepreneurs at no cost. All services are delivered remotely to reduce cost and maximize geographic reach. Jimmy Kakouris utilized this program to receive free guidance from RCAP’s experienced consultants. The RCAP consulting team worked with Mr. Kakouris to develop his business plan and financial projections to model his path to success. At the time of this writing, Mr. Kakouris received twenty-two hours of one-on-one consulting assistance.
Impact: RCAP’s professional consulting team was able to determine through financial modeling that Mr. Kakouris’ initial plan was not feasible. Specifically, the space that Mr. Kakouris wanted to lease for his physical therapy practice, while well-suited to the purpose, was far too expensive. Using IBUS data, the RCAP consulting team was able to model the revenues that Mr. Kakouris’ practice could expect in his market area. This financial model determined that Mr. Kakouris’ business would become insolvent in a matter of months – just as his lender feared. Once the initial plan was cast aside, Mr. Kakouris was able to work with the RCAP consulting team to develop a new strategy.
Today, Mr. Kakouris has a business plan that will provide a return on his investment, a budget for leased space that is appropriate for the Boylston, Massachusetts area, data-driven projections for his lenders and a professional marketing strategy – all of which cost him nothing but his time. If not for RCAP’s Open for Business Program, Mr. Kakouris would have never received financing, or worse, taken on debt for a plan that would have only succeeded in bankrupting him. In the case of Jimmy Kakouris and many other entrepreneurs around the country, bringing human capital to bear meant the difference between failure and success.