Financial
September 11, 2024
|Senior living communities face unique challenges — from fluctuating occupancy rates to regulatory compliance. However, developing a financial plan helps offset these risks. Financial stability ensures members receive quality care while allowing the organizations to adapt to a changing landscape.
A financial plan for senior living organizations serves as a roadmap by clarifying resource allocation and helping others make informed housing, staff, and investment decisions. Combined with additional insights from tools like Sage Intacct reporting, your financial plan serves as a communication tool, allowing stakeholders to grasp the organization's financial health and strategic direction.
Understanding the foundations of successful financial planning can help set your team up for success. The basics of developing a financial plan include budgeting, forecasting, and reporting — each playing an important role.
Don't create a financial plan simply because — there needs to be a strategy behind it, with clear goals, identified key performance indicators (KPIs), and action plans. A strategic financial plan aligns with the organization's mission and vision, ensuring that every decision supports its long-term goals.
Start by assessing your organization's financial position, including revenue streams, cost structures, and needs. Set realistic and achievable goals off of that baseline, such as increasing profitability or expanding services.
Next, identify KPIs. KPIs are not just numbers. They set guidelines that help organizations track their progress. For senior living communities, KPIs may include:
By regularly monitoring these indicators, organizations can identify areas for improvement and adjust accordingly, giving a clear sense of direction and purpose.
Market analysis is critical to any financial plan for senior living organizations. Understanding market trends, competitor strategies, and demographic shifts allows organizations to position themselves strategically and capitalize on new opportunities.
Market analysis examines local competition, consumer preferences, and regulatory changes in your industry. It can identify emerging trends and potential threats.
Another area is identifying the needs and preferences of your members. This includes understanding members and their families' most valued services and amenities to attract and retain them by aligning offerings with market demand.
Technology is pivotal in financial planning. Advanced software solutions like Sage Intacct reporting offer powerful budgeting, forecasting, and reporting tools, enabling senior living organizations to streamline processes and improve accuracy. Here’s how:
The key is to strike a balance between strategic planning and adaptability so that your organization can respond to changes in the market and continue to thrive. When developing a financial plan, don't rule out technology; conduct a thorough market analysis and stay resilient to position your organization for growth.
Partnering with the right technology provider ensures that your financial plan is seamlessly aligned with your tools and processes.
Chadd Arthur is a seasoned professional with over 25 years of experience in the non-profit sector, specializing in process improvement and the strategic alignment of organizational goals with technology solutions. Leveraging his extensive expertise, Chadd conducts regular strategic assessments for organizations, guiding them towards enhanced efficiency and effectiveness. With a profound passion for aiding clients in recognizing the value of process improvement, Chadd leads our team in secure technology solutions that directly contribute to their mission success. His commitment to excellence is evident in his contributions to the industry, including participating in panels and serving as a thought leader to a network of non-profit professionals. Chadd earned his MBA from Indiana University Bloomington and resides outside the greater Chicago area. Chadd not only brings a wealth of knowledge and experience but also a dedication to making a meaningful impact in the non-profit space.
Imagine you're leading a nonprofit that has just received news that your key technology vendor is merging with another company. The immediate...
Operating a nonprofit organization comes with its own set of challenges. Understanding how to grow your nonprofit effectively is crucial for...
At enSYNC, we want to empower associations and nonprofits to make well-educated decisions. If you want our industry knowledge (and other free guides) sent directly to your inbox, fill out the form below.