. Defining your customer base, referral sources
A non- profit considering the addition of for profit geriatric care management agency is mashing two cultures. Will they fuse? Begin my doing a market analysis .
The first thing that a non profit would be wise to do is to define the customers they wish to serve with a possible new private care management practice. These aging customers and their adult children will purchase your product of geriatric care management services. You start by defining the ideal client who will pay for and can afford your GCM services. In essence this will take creating a new business plan for your GCM for- profit business, to complement the business plan for your existing non- profit agency.
The market analysis includes a definition of the target client’s age, income, family structure, and level of chronic care needs. Income becomes an important criteria, as care management services are almost entirely private pay – which is a significant difference for most non-profit organizations.
I can’t overstate the importance of this shift, as your non-profit would now be providing care management services to a clientele largely made up of households with income greater than $100,000 up to $500,000 or more. Your new GCM business would need to attract clients who have an average income level in the top ten percent.