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Chapter 16
Financial Forecasts
and Budgets
Generally, physicians are the type of people either fascinated with numbers
or daunted by them. Many small business owners are in these two camps.
The numbers in financial reports reflect past decisions but are not the deci-
sions themselves. They are the effect of the decisions. If you can forecast
how much money you will make each month in medical services, concierge
membership fees, and product sales (if any), you will be able to produce
a budget that tells you how much you will be able to spend on rent, staff
salaries and your own salary, equipment, and other business expenses for
your practice.