In our last two instalments, we explained how to calculate gross margins and net margins for each of your NDIS service lines, and discussed non-chargeable time and how to minimise it. We’ve left the most challenging subject until last – NDIS overheads.
The reason this subject is difficult is that the longer you’ve been in business and the bigger your organisation size, the more difficult it will be to squeeze or remove overheads.
The unfortunate fact is that current NDIS providers of core supports who have transitioned from block funding to NDIS funding will probably be bleeding cash, for three reasons: Continue reading…
Our ‘ex-accountant’ Brendon Grail shares some of his Activity Based Costing knowledge, in accessible terms that are relevant to NDIS.
Retail businesses understand (and are arguably obsessed by) their gross margin for every product on the shelf. Alas, we don’t meet many NDIS providers who can quote the percentage margins for each of their NDIS services.
In the world of tight, capped NDIS pricing, we suggest that every CEO and CFO should have those figures top of mind. Boards are also likely to be increasingly interested in this subject if they see balance sheet runways (i.e. the number of months of operating costs they hold in current assets) shortening.
The question we often get asked by disability providers is, how can we calculate margins without going through a complicated activity based costing exercise?
In the last instalment of Foreword, we looked at two of the key aspects of a business model in the NDIS world – understanding your market, and service delivery.
We looked at five steps to better understanding your market – analyse customer demographics, analyse customer needs and wants, calculate total prospective market size, map competitors and map your services to the NDIS price guide. Continue reading…
It has been estimated by some economic commentators that two-thirds of current disability service providers will not exist by 2020 due to market disruption as a result of NDIS. The Federal Government is comfortable with this because it is confident that new providers will emerge and many existing providers will grow to meet the massive surge in demand brought about by the doubling in size of the disability services pie.
Changing the fundamentals
Before you dive into the details of changes to your business processes and systems, it’s worth taking a step back. Continue reading…
As part of a government funded program of work, CBB is working with 80 disability service providers across South Australia, as they transition to NDIS. To kick off the program, we ran a survey with providers to understand what work they had done already, and how they felt they were performing, across six key areas:
Understanding the market
Marketing and pipeline
Compliance, quality, systems and processes
Business model and financials
Workforce, leadership and governance
We posed a range of statements across these areas, and asked organisations what they had in place already, and what was in their future plans. Continue reading…
Last month, we kicked off a major program assisting South Australian disability service providers’ transition to the NDIS. (Read our previous article about What worries disability providers the most about NDIS) As part of our program development, we’ve been unpacking the focus areas disability service providers need to address to survive – and ultimately thrive – under the NDIS.
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Community Business Bureau would like to acknowledge the traditional owners of the lands on which we work and live, the Kaurna, Larrakia, Wajuk and Wonnarua people, and the Boon Wurrung and Woiwurrung (Wurundjeri) peoples of the Kulin Nation. We recognise their continuing connection to land, waters and culture, and we pay our respects to their Elders past, present and emerging.