A Guide to Aligning Costs to Profitability in Your NDIS Business (Copy)

Running an NDIS business is more than just delivering support services and making a quick buck!

Business sustainability and the financial considerations that drive business require detailed financial management, requiring the capability to align direct, indirect corporate costs and statutory obligations.

1.      Understand NDIS Pricing Structure

Understanding NDIS pricing for different services is essential for setting rates and managing your budget.

The NDIS is almost static. Therefore, financial management of direct costs, indirect costs and statutory costs are the key pillars to setting financial objectives for the business.

With profitability being one of the key sub-pillars to financial objectives, to begin with, it has to be financial sustainability.

2.      Track and Manage Your Operational Costs

Managing costs is fundamental to maintaining profitability. Many NDIS providers struggle with rising operational costs, especially when dealing with staff wages, insurance and compliance-related expenses. The key is tracking these costs in real-time and identifying areas for improvement.

• Utilise financial management software designed for providers that can help track expenses, monitor cashflow and identify trends in spending.

• Conduct regular financial audits to ensure you are operating within your budget and any inefficiencies are identified early.

• Reduce administrative burden by streamlining any administrative processes, billing and invoice automations.

3.      Maximise Staff Efficiencies

Salaries are one of the largest cost categories of your NDIS business since staff are the backbone of quality care. Maximise cost efficiencies by:

• Training staff for empowerment, compliance and cooperation to inspire motivated, leading and productive teams.

• Optimise schedules and shifts planning for peak periods, reduce wasted time and line up schedules with shift work platforms.

• Outsource non-core activities to allow the team to focus on core tasks.

4.      Monitor and Adjust Services and Business Model Regularly

Your NDIS business and access to funding will evolve over time. Regular pricing, cost structure and service reviews will ensure costs and profits are consistently optimised.

• Track industry trends and changes like NDIS funding or regulation changes.

• Hold regular strategy sessions with the team to evaluate how the business model is performing. Strong business structures, strategies and operations will enable you to pivot efficiently.

Transform Business Consultancy, based in South Australia, knows the importance of transparent leadership, compliance, risk management and stakeholder engagement. By embracing these pillars of governance, businesses can transform challenges into opportunities and embark on a journey towards sustained success.