To be a financially savvy aging life or geriatric care manager you need to build a financial model Financial_modeling at the start of your business.
In building a financial model, start with the first year and project out 2 to 5 years. Estimate your annual revenue, and then calculate your gross margin potential (i.e., the selling price of your geriatric care management products. For example, Care Management Plus will be sold to the customer for $100 an hour, and cost of goods sold will be $25.00 an hour to staff plus employment taxes plus overhead expenses). Calculate your margin. You must make a profit and sometimes that means raising fees. Include how much money is needed to fund the venture and a history of the owner’s finances. Also, mention people who will offer audits of the business’s success or failure, such as an accountant.
The financial planning template a provides a good place to start the planning process.Find that template to do this in the 4th edition of Handbook of Geriatric Care Management out in September.