Real-Life Math -- Solution
The clinic costs $942,673.
$1,000,320 - $942,673
= $57,647. This is how much you have left for payroll and other expenses.
Each
of your therapists makes $45,000 per year.
$45,000 / 12
months = $3,750 per month
$3,750 x 3 months = $11,250
$11,250
x 3 therapists = $33,750
$57,647 - $33,750 = $23,897.This is how much you have left after paying your therapists.
Now
you must also subtract the wage for your receptionist, who makes $30,000 per
year.
$30,000 / 12 months = $2,500 per month
$2,500
x 3 months = $7,500
$23,897 - $7,500 = $16,397
But
you haven't accounted for your wages yet! You will make the same wage as your
co-therapists. So subtract another $11,250 from $16,397, leaving you with
$5,147 for other overhead expenses, such as heating, electricity and water.
You
decide to borrow an extra $10,000 from the bank, in case of emergency.
"You
will always have to use math to a certain degree when you go into business
for yourself," says Monique Haziza, a movement therapist. "A lot is done by
an accountant, but you still have to figure out what fees to charge your patients
and stay within your budget with what wages to pay your workers. So basic
math, if nothing else, is very important to know."