What is financial sustainability?

A few years ago The Global Language Monitor reported on the Top 50 Global Business Buzzwords of the time.

A few of the words that made it onto the list are unsurprising, such as ‘Game Changer’, ‘Big Data’ and ‘The Cloud’, while others are a bit more out of the left field – for example, ‘Flounder’, ‘Herding Cats’ and ‘Low-Hanging Fruit’.

In the number three (3) spot, after ‘Content’ and ‘Social Media’, but before ‘Transparency’, was ‘Sustainability’. This versatile term has been used to describe everything in the business world from a company’s eco-friendly practices to its financial status.

It’s the latter element – known as financial sustainability – that all business owners hope to someday achieve and it’s our goal of how we are #makingagedcarebetter

What is financial sustainability?

A business that has achieved financial sustainability is one that is selling a product or service at a price that not only covers their expenses but also creates a profit.

How do you achieve it?

In order to reach this state, you need to develop a plan that outlines your long-term goals and the resources you’ll need to achieve them. In addition to this, you need to keep a watchful eye on your company’s cash flow, to ensure your outgoing expenses aren’t greater than your incoming funds.

In the aged care sector, this also involves understanding how much support you can expect through the Aged Care Funding Instrument (ACFI). If you bank on getting more money from this scheme than you actually receive, this could have serious consequences for your business.

In 2020, Mirus Australia adds Strength in Numbers. Is the short answer is how we deliver on financial sustainability For more information about revenue, admissions and workforce strategies for financial sustainability, check this out from co-founder, James Price.