Kinesiology Practice Running Costs
To run a Kinesiology Practice in 2026, expect total monthly operating expenses around $47,000, driven primarily by payroll and rent Your initial fixed overhead, including rent ($5,000) and utilities ($800), totals $7,500 per month before staffing Payroll is the main cost lever, projected at $34,587 monthly for 65 full-time equivalents (FTEs) While projected 2026 monthly revenue is $54,700, the business is expected to incur an annual EBITDA loss of $227,000 in the first year, indicating significant upfront investment and ramp-up time Breakeven is projected to take 26 months, reaching February 2028 You need a strong cash buffer, as minimum cash required hits $356,000 by January 2028 This guide details the seven core running costs you must track to manage cash flow effectively in the early years
7 Operational Expenses to Run Kinesiology Practice
| # | Operating Expense | Expense Category | Description | Min Monthly Amount | Max Monthly Amount |
|---|---|---|---|---|---|
| 1 | Payroll and Staffing Costs | Payroll and Staffing Costs | Wages are the largest expense at $34,587 monthly for 65 FTEs in 2026, requiring careful management of clinician utilization rates. | $34,587 | $34,587 |
| 2 | Clinic Facility Rent | Clinic Facility Rent | Clinic Rent is a fixed $5,000 monthly expense, representing a major non-negotiable component of the $7,500 fixed overhead base. | $5,000 | $5,000 |
| 3 | Client Acquisition Marketing | Client Acquisition Marketing | Marketing is a variable cost starting at 50% of revenue in 2026, which translates to about $2,735 monthly based on $54,700 revenue. | $2,735 | $2,735 |
| 4 | Utilities and Maintenance | Utilities and Maintenance | Utilities are estimated at a fixed $800 per month, covering essential services like electricity, water, and internet access for the practice. | $800 | $800 |
| 5 | Practice Management Software | Practice Management Software | Practice Management Software is a fixed $400 monthly cost, crucial for scheduling, billing, and electronic health records (EHR). | $400 | $400 |
| 6 | Clinical Supplies and COGS | Clinical Supplies and COGS | Clinical Supplies represent 10% of revenue, a small but necessary variable cost of goods sold (COGS) tied directly to treatment volume. | $5,470 | $5,470 |
| 7 | Professional Liability Insurance | Professional Liability Insurance | Professional Liability Insurance is a mandatory fixed cost of $300 per month, protecting the Kinesiology Practice against claims. | $300 | $300 |
| Total | All Operating Expenses | $49,292 | $49,292 |
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What is the total monthly running budget required to sustain operations before achieving profitability?
Before achieving profitability, the total monthly budget required to sustain operations for the Kinesiology Practice is $91,317, as current Year 1 revenue of $54,700 is insufficient to cover the $47,010 defined expense base plus 90% variable costs, making an immediate review of Is Kinesiology Practice Currently Generating Profitable Revenue? essential.
Defining the Fixed Expense Layer
- Monthly fixed overhead is set at $7,500.
- Fully loaded payroll costs total $34,587 per month.
- This results in a known semi-fixed operating base of $42,087.
- The target expense base mentioned is $47,010, which suggests other minor fixed costs exist.
Variable Cost Impact
- Variable costs are projected at a high 90% of generated revenue.
- At $54,700 in revenue, variable costs consume $49,230.
- The total required running budget hits $91,317 ($42,087 + $49,230).
- This means the practice burns $36,617 monthly operating at this volume.
Which cost categories represent the largest recurring financial commitment and how can they be optimized?
Payroll at $34,587 monthly is the dominant recurring cost for the Kinesiology Practice, representing 736% of other running costs, while fixed overhead sits much lower at $7,500. The immediate financial pressure point is ensuring 65 FTEs (Full-Time Equivalents) are utilized efficiently, as current projections show capacity utilization only hitting 50%–60% in 2026.
Payroll vs. Overhead Reality
- Monthly payroll commitment hits $34,587.
- This figure is 736% of the remaining running costs base.
- Fixed overhead is a much smaller $7,500 monthly.
- Payroll is the single largest lever for cost management right now.
Staffing Levels and Utilization Gaps
- You currently staff 65 FTEs across the practice.
- Projected capacity utilization for 2026 is only 50%–60%.
- This gap suggests you might be paying for capacity you aren't using.
- Review hiring plans against What Is The Current Growth Trend Of Kinesiology Practice?
How much working capital or cash buffer is necessary to cover operating losses until the breakeven date?
You need a minimum cash buffer of $356,000 secured by January 2028 to cover operating losses until the Kinesiology Practice hits breakeven in February 2028, which is 26 months out; understanding this runway is crucial, especially when considering initial setup costs, which you can review in detail regarding How Much Does It Cost To Open A Kinesiology Practice?. This financing must specifically account for the cumulative $227,000 EBITDA loss projected through Year 1.
Covering Year 1 Burn
- Finance the $227,000 cumulative EBITDA loss projected for Year 1.
- This loss represents the primary cash drain before revenue stabilizes.
- Monitor practitioner utilization rates closely; they defintely impact monthly cash burn.
- Ensure capital deployment matches the projected monthly operating deficit.
Runway to Profitability
- Target a minimum cash reserve of $356,000 ready by January 2028.
- The breakeven date is projected for February 2028.
- This demands a 26-month operational runway from startup.
- Structure financing to cover all cumulative losses until that point.
If initial client volume is 20% lower than projected, how will we cover the fixed costs and payroll?
If initial client volume for the Kinesiology Practice drops 20% below projections, you must immediately calculate the resulting dollar gap in your contribution margin to determine how much fixed cost coverage you’ve lost before hitting spending triggers.
Modeling the Margin Shortfall
- If you projected $100,000 in revenue, your contribution margin (CM, revenue minus direct variable costs) is $91,000. If volume falls 20%, revenue hits $80,000, dropping the CM to $72,800.
- That means you suddenly have $18,200 less cash flow available to cover payroll and overhead, so you need to know your current fixed burn rate right now. Check What Is The Current Growth Trend Of Kinesiology Practice? to see if this drop is typical for the sector.
- If your fixed costs plus payroll are $75,000, you move from a $16,000 surplus to a $2,200 monthly deficit instantly. That’s a tight spot.
- You need to know your break-even revenue point based on the actual lower volume; don't plan using the old, higher target.
Setting Spending Guardrails
- Establish a hard trigger: if marketing spend exceeds 50% of actual revenue, you must halt all non-essential acquisition efforts.
- If revenue is $80,000, your marketing budget cannot exceed $40,000, period. This protects the remaining margin needed for payroll.
- If the shortfall persists for two consecutive months, you must defintely pause planned hiring expansions, even if you feel the need for more practitioners.
- Delaying one planned hire saves substantial overhead, often $6,000 to $8,000 monthly in fully loaded costs, which buys you time.
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Key Takeaways
- The total monthly running budget required to sustain operations in 2026 is projected to be approximately $47,010 before achieving profitability.
- Payroll constitutes the largest financial commitment, dominating expenses at $34,587 monthly for 65 FTEs.
- Achieving breakeven is a long-term goal projected for February 2028, necessitating a minimum cash buffer of $356,000 to cover cumulative losses.
- Controlling staffing utilization and managing high variable costs, which consume 90% of revenue, are critical for navigating the 26-month ramp-up period.
Running Cost 1 : Payroll and Staffing Costs
Wages Dominate Costs
Payroll is your single largest operating expense, totaling $34,587 monthly based on 65 full-time equivalents (FTEs) planned for 2026. This expense must be managed via clinician utilization rates, since high staffing costs leave almost no room for error against projected revenue. You need high patient volume to cover this base.
Staffing Cost Inputs
This $34,587 figure represents the total monthly outlay for your 65 clinicians in 2026. To verify this, you need the average monthly salary per FTE and the associated employer burden for taxes and benefits. It sets the baseline for your entire operational budget structure.
- FTE headcount planned: 65
- Total monthly wage outlay: $34,587
- Yearly projection: 2026
Manage Utilization
Since wages are fixed by headcount, you must ensure every clinician is productive. Paying for idle time is the fastest way to burn through cash reserves. Focus on scheduling efficiency rather than just adding more staff right now.
- Watch utilization rates daily.
- Tie hiring schedules to booked capacity.
- Avoid paying for unused clinical hours.
Margin Pressure
With projected revenue near $54,700 and fixed overhead around $7,500, every dollar spent on staffing must generate proportional revenue. If utilization drops, your high fixed labor cost crushes your contribution margin quickly. That’s a defintely precarious spot to be in.
Running Cost 2 : Clinic Facility Rent
Rent's Fixed Impact
Clinic rent is a non-negotiable $5,000 monthly cost, forming the bulk of your initial fixed overhead structure that you must cover before seeing net profit.
Rent Calculation Inputs
This $5,000 covers the physical space for your Kinesiology Practice operations. It's a fixed input, meaning it doesn't change with patient volume. This expense anchors your $7,500 fixed overhead base, which is critical for break-even analysis. You need signed lease terms to lock this number down defintely.
- Fixed monthly cost: $5,000.
- Part of $7,500 overhead base.
- Lease agreement dictates amount.
Managing Space Costs
Since rent is fixed, optimization focuses on maximizing revenue per square foot. Avoid signing long leases early on without clear utilization projections for your clinicians. If the facility is too large, the extra space inflates your break-even point unnecessarily. Look for shared space options initially.
- Maximize patient density.
- Avoid oversized commitments.
- Review lease terms carefully.
Overhead Anchor
The $5,000 rent is 66.7% of your listed fixed overhead ($5,000 / $7,500). This high percentage means achieving profitability hinges heavily on hitting patient volume targets quickly. High fixed costs demand aggressive sales targets from day one.
Running Cost 3 : Client Acquisition Marketing
Marketing Cost Shock
Client acquisition marketing starts as a 50% variable cost in 2026, meaning every dollar earned is matched by fifty cents spent on finding new patients. At projected $54,700 monthly revenue, this translates to $2,735 going straight to marketing spend. You must aggressively optimize this cost now.
Marketing Spend Inputs
This marketing line item covers costs to attract active individuals aged 25-55 needing movement science care. The estimate relies on 50% of projected revenue, which is $2,735 when revenue hits $54,700 that year. Inputs are patient volume and the price per treatment. Honestly, that percentage is high for a service business.
- Variable cost: 50% of revenue.
- 2026 projection: $2,735/month.
- Based on $54,700 revenue.
Controlling Acquisition Rate
Reducing this 50% spend requires focusing on referral loops from satisfied clients and post-operative professionals. Avoid broad digital ads until you prove Customer Acquisition Cost (CAC) is low. A better goal is dropping this to 15% within 18 months. If onboarding takes 14+ days, churn risk rises.
- Prioritize organic referrals first.
- Measure Cost Per Acquisition (CPA).
- Target 15% variable marketing cost.
Margin Impact
Since payroll is $34,587 and rent is $5,000, high marketing spend eats all operating margin before you even cover supplies. You need strong patient retention to justify this initial 50% acquisition rate. Defintely watch utilization closely.
Running Cost 4 : Utilities and Maintenance
Utility Baseline
Utilities are a predictable fixed cost of $800 monthly for the practice. This covers essential services like electricity, water, and the required internet connection. Treat this amount as non-negotiable overhead in your initial modeling.
Utility Budget Inputs
This $800 estimate is a fixed monthly input for the practice's operational budget. It bundles electricity, water usage, and internet access needed for scheduling and electronic health records. Since it's fixed, it doesn't scale with patient volume, unlike supply costs.
- Electricity usage estimate
- Water usage estimate
- Internet service fee
Managing Utility Spend
Because this is fixed overhead, savings come from efficiency, not volume cuts. Shop for better internet plans if you're paying premium rates. Monitor electricity use during off-hours to avoid surprises. Defintely lock in multi-year utility contracts if possible.
- Bundle internet services for discounts.
- Audit lighting for energy efficiency.
- Review water usage patterns quarterly.
Overhead Impact
The $800 utility cost contributes directly to your fixed operating base, which must be covered before achieving profitability. If your clinic rent is $5,000, this utility expense represents exactly 16% of that major fixed component. This cost must be absorbed by utilization rates.
Running Cost 5 : Practice Management Software
Software Baseline Cost
Practice Management Software costs a fixed $400 per month, which is non-negotiable overhead for running clinical operations smoothly. This system handles core functions like patient scheduling, processing payments via billing, and maintaining legally required Electronic Health Records (EHR). It’s a baseline requirement for compliance.
Budget Impact
This $400 fixed monthly fee covers the technology stack needed for patient flow. It supports the 65 FTEs expected in 2026, ensuring clinicians can book appointments and submit claims efficiently. This cost is small compared to the $34,587 monthly payroll, but it directly impacts revenue capture.
- Covers scheduling and billing modules.
- Essential for EHR compliance.
- Fixed cost, scales with zero volume.
Optimization Tactics
Since this is a fixed cost, optimization means negotiating terms or choosing the right tier. Avoid paying for unused features like advanced analytics if you’re just starting out. Many providers offer tiered pricing; make sure you aren't paying for features needed defintely only by larger groups.
- Check for annual prepayment discounts.
- Audit feature usage quarterly.
- Ensure integration doesn't require expensive add-ons.
Compliance Check
Don't treat this software as optional; it underpins your ability to bill correctly. If the chosen system can't handle specific payer requirements for billing, you risk delayed cash flow or compliance fines. This $400 is cheap insurance against operational chaos.
Running Cost 6 : Clinical Supplies and COGS
Supplies: 10% of Revenue
Clinical supplies are a variable cost of goods sold, representing exactly 10% of revenue. This means if monthly revenue hits $54,700, you budget $5,470 for supplies. It’s a direct measure of treatment volume, not overhead.
Inputs for Supply Cost
This cost covers consumables needed per session, like bandages or specific treatment aids. To estimate it accurately, track units used per treatment multiplied by unit price. For your projected $54,700 revenue, supplies will defintely cost $5,470 monthly.
- Track usage per patient visit
- Negotiate bulk pricing
- Reconcile against utilization rates
Controlling Variable COGS
Manage this cost by standardizing treatment protocols to control waste. Don't let clinicians hoard inventory; implement a check-out system for specialized items. Look at supplier volume discounts; moving $10,000 in spend might unlock a better tier.
- Standardize supply kits
- Audit inventory monthly
- Consolidate purchasing power
Supply Cost Signal
This 10% variable cost acts as a direct operational efficiency metric. If patient volume increases but supply costs don't scale proportionally, you are gaining margin. If supplies rise faster than treatments, you’re losing money on every session.
Running Cost 7 : Professional Liability Insurance
Insurance Mandate
Professional Liability Insurance is a required fixed expense for your Kinesiology Practice. Budget $300 per month for this coverage. This policy shields the business against potential claims arising from professional services rendered to patients. It's non-negotiable compliance spending.
Cost Breakdown
This mandatory cost covers claims alleging negligence or error in providing movement science services. The input is a flat monthly premium of $300, regardless of patient volume. It sits within the total $7,500 monthly fixed overhead base for the clinic operations.
- Fixed monthly premium.
- Covers professional errors/omissions.
- Essential for compliance.
Managing Risk
You can't cut this cost, but you can manage the underlying risk exposure. High claims frequency will raise future premiums defintely. Focus on rigorous documentation and adherence to evidence-based protocols to keep claims low. Avoid bundling services without checking coverage limits.
- Document every patient interaction.
- Review coverage annually.
- Do not skimp on limits.
Action Item
Treat the $300 insurance payment like rent; it must clear every month for operational continuity. If you scale to multiple locations or add specialized services, immediately reassess the required coverage limits with your broker to prevent underinsurance gaps.
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Frequently Asked Questions
Total monthly running costs are approximately $47,010 in 2026, primarily driven by $34,587 in payroll Fixed costs like rent and utilities total $7,500 Variable costs, including marketing and supplies, account for about 90% of revenue, so growth requires tight cost control