Budget Development: Private Pay and the Cost of Doing Business
Congratulations! You’ve worked hard to develop a sound business concept that will allow you to open up a successful Private Pay agency. You’ve researched it, you’ve stayed up late at night outlining the perfect business concept, and now you’re ready to rock ‘n roll. But, stop! Before you take another step towards realizing your dream, you have to develop a budget. (I heard that groan!)
Your budget needs to include everything: all your start-up expenditures, e.g., logo development, web page design, business cards, etc., as well as the time it takes for you to develop and start your agency. If you are doing this work, figure out a fair salary and pay yourself. If you are hiring an outside person or resource to help you, factor in that fee as well. Identify key caregiving and office staff, and identify what you will realistically have to pay them to compete. Add that figure to your budget.
In this day and age, you will need a website as well as printed materials to support your new business (brochures, business cards, letterhead, envelopes, etc.). You might need to hire someone to help you with writing and design as well as programming. It is also likely you will need to find a good local printer to give your printed materials the polish they need to “wow” potential clients. Next, turn your eye to any licensing fees and office expenses you might require (telephones, computers, copy machines, etc.).
This may feel like a lot, but it’s a realistic snapshot of the funds you will need to open your doors and stay afloat. Writing it all down, while perhaps painful, is the best way to know whether or not you’ve literally got what it takes to run a new business. Please feel free to shoot me an email at gkenyon@kenyonhcc.com, if you need further assistance.
Category: Agency Startups, Due Diligence, Finances, Ginny's Blog