Need some serious help. I am creating a business plan for a ambalutory infusion company. However, with a nursing background I have no clue on how to start my financials. How do I calculate my revenue? where do I start. I have figured out the basics ....I think.


Basic informatoin
Charges for
Iv Infusion 1st hour $310.00
Iv Infusion ea. additional hour $150.00
IV infusion - sequential (up to 1 Hour) $150.00
IV Infusion - Concurrent (up to 1 Hour) $150.00

OPeration hours
M-F 8-5:30

Looking at your other posts, I have to wonder if you're really prepared to start a business.

As for the financials... there's a whole heck of a lot more to do than just figure out revenues, and if you're stuck there, I'm not sure how you're going to deal with your financial records. (Please understand I'm not attempting to cut you down... just looking at it from a realistic standpoint.)

If you know what your charges are, how do you not know what your revenue is? I don't even understand the charges because I don't know that business. What's the difference between an additional hour and a sequencial? What's a "concurrent." You would know what all that means and how to figure it out more than I would. (I can do math, but not if I don't know what it even means.)

I'm kinda thinking you need to be getting yourself an accounting book from the library or something and be reading up on some basics of how to keep track of your financial records. Reading up on small business tax wouldn't hurt either.

Morgaine300,

Thank you for your insightful response. However, the business plan that I'm working on is for a school project. However, I’m trying to learn as much as possible but got stuck with the financials. As I was goggling I came across this website and thought it would be of some help. I just want a starting point or a guide that will help lead me in the right direction.

I understand that a company makes its profits from its customer based on what is charged. For ex: do you just calculate the # of customers X’s the actual cost of the product = sales/ revenue?

There isn't enough info given to know how to calculate it. It wouldn't be by the number of customers because they aren't charging by the customer. They're charging by the hour. And I can't answer because I don't understand those charges. If they are just outright telling you how many hours of each item (even if I don't understand what it means), then you only need multiply. If they're giving you other information and wanting you to interpret it so that you know how to charge it, I can't do that for a business I know nothing about. I've basically already stated that I don't understand those charges.

Morgaine300,

I believe these are the outright charges per hour + charges for additional treatment.If a patient needs additional time then i think I would charge them for the additional hour. so instead of just the initial charge of $310.00 It would be $310.00 + $150 = $460..i think.

So to keep it simple:
Question: since the sales are not calculated by the number of customers. Could be be calculated by # of chairs with in the facility x's the hours of operation?

Example: a non chemo procedure for 1 hour will cost 310.00. if i schedule appts for all six chairs and am full to capacity for the whole day (9.5 hours) would i

Calculate 9.5 hrs x 310. cost x 6 (# of chairs operating)? = $17,670. wouldn't this be my revenue for the day?

I really do appreciate all your assistance..its helping me think things through

What if you're not full to capacity? And since the charge for the first hour is different than the charges for additional hours, and then there's "sequential" and "concurrent" charges, whatever the heck those are, then you could never be consistent throughout a day. Your method assumes that all chairs are full, that someone is in each of those chairs every hour of the day, AND that there are only initial-hour charges.

And that is never going to be the case. If you'd stop worrying about accounting, and just imagine this happening for real, I think you will realize that's never going to work. At 2:00 in the afternoon you've got 5 chairs full, one person has been there 3 hours, another just got there, another has been there a half hour; two hours ago all 6 chairs were filled; one person is almost done and then 2 chairs are going to be empty. Now don't you think that's a little more realistic?

When I said not to do it by the customer, I meant that you don't have a "per customer" charge that you can multiply out by the number of customers. When you say to calculate by "the number of customers," that's meaning there's ONE charge that is the same for every customer so that you can based on it how many customers you had. But that isn't the case.

But that doesn't mean you can't figure out what a charge is for any one individual customer. But that charge is figured based on the hourly charges.

You're kinda making this difficult, not keeping it simple. If you walked into this place as a customer and stayed 2 hours, you'd have the initial first-hour charge plus an additional hour. So how much are they going to charge you? They have to figure that out anyway to know what to charge the customer, right? Any time you have customers, you have to know what to charge them. Again, I certainly was never saying you can't figure out the total charge for any given customer. You have to.

Then add up the total customer charges.