Skip to content

Helped Client Save Millions

A national medical association contacted Ground Floor Partners seeking help with developing a business plan to set up their own in-house testing facility for members. Each year the association brought in several hundred physicians for several days of oral examinations. The association had been leasing space from a hotel for several years, and while the arrangement seemed to be working reasonably well, the board believed they could set up their own in-house testing facility and then rent the space out to other groups to make a profit.

The board asked Ground Floor Partners to help them develop a business plan for the proposed facility.

Problems Appear

Initially, this looked like a fairly straightforward project. We would research other groups that needed testing centers (demand), identify and research other testing facilities (supply), and compare the two sides. We assumed there was modest supply but plenty of demand.

However, our research quickly revealed the opposite: demand was shrinking and supply was increasing. The Airbnb, flex space, and shared office space movements were all growing, while the demand for specialized testing facilities was shrinking.

Another issue was that we were ten years into the economic expansion since the Great Recession, so construction and real estate prices were near historical highs. This was especially so in the neighborhoods of greatest interest to the association.

On top of all this, because our client needed a rather large and unique space, the landlords all insisted on long term leases, in the range of 5-10 years.

We concluded that if they went ahead with the new testing facility, they would lock in high costs now, and be vulnerable to potentially lower leasing rates from their tenants in the future.


We developed a simple financial model for the business and ran several different scenarios. The model indicated the association could easily lock in a $500,000 annual loss each year for the next 5-10 years.

We also contacted several commercial real estate brokers and tenant representation agents to get their opinions. They agreed that the concept was flawed and suggested exploring alternatives.


We presented our findings to the board. They reviewed our findings and decided to follow a much safer course. The association abandoned the project and instead decided to rent space from another group that had already invested in a new facility. Our research and advice helped the association enter into an attractive, flexible solution, and potentially saved them a minimum of $2.5 million dollars over the next five years.

Get Started Today

Is your business working as hard as you are? We help small businesses and non-profits get to the next level. Make your business better, faster, stronger.

"Tactics without strategy is the noise before defeat."
- Sun Tzu
"There is always a better strategy than the one you have; you just haven’t thought of it yet."
- Brian Pitman, former CEO of Lloyds TSB
"What’s the use of running if you are not on the right road?"
- German proverb
"Planning is an unnatural process; it is much more fun to do something. The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression."
- Sir John Harvey-Jones
"Change is inevitable, growth is intentional"
- Glenda Cloud
"Chaos in the world brings uneasiness, but it also allows the opportunity for creativity and growth."
- Tom Barrett
"The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dreams."
- W. Arthur Porter
A fool with a plan is better than a genius without a plan."
- T. Boone Pickens (from his father)
"Success is doing a thousand little things the right way … over and over again."
- Charles R. Walgreen Sr.
"The general consensus of the board was we've got nothing to lose by doing a feasibility study. That'll give us data, not just feelings and what-ifs."
- Robert Haskell
"There can be no talk of when until a feasibility study is completed."
- Viktor Khristenko
“You can observe a lot just by watching.”
- Yogi Berra
"Slow and steady wins the race."
- Unknown
"Observe the turtle: He progresses only with his neck out."
- American Indian saying
"Complicare e facile. Semplificare e difficile."
- Bruno Munari
"I have missed more than 9,000 shots in my career. I have lost almost 300 games. On 26 occasions I have been entrusted to take the game winning shot ... and missed. And I have failed over and over and over again in my life. And that is why I succeed."
- Michael Jordan (in a TV commercial for Nike)
"Measure what is measurable, and make measurable what is not so."
- Galileo
"You've got to be careful if you don't know where you're going 'cause you might not get there."
- Yogi Berra
"Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world."
- Harriet Tubman
"Work like you don't need the money. Love like you've never been hurt. Dance like nobody's watching."
- Satchel Paige
When the river rises, the fish eats the ant. When the river falls, the ant eats the fish.
- Thai proverb