Planning the Nonprofit Startup Business Planning

1. Planning the Nonprofit Startup Business Planning

2. Introductions • Name • Organization’s Mission • Organization Status • Are you a 501(c)3 • # of staff/volunteer • board size • Why Here?

3. Planning: Key Points • Planning is everything: good planning makes implementation easy • Planning provides structure, understanding, common language • Provides for “plan-based” management • Nonprofit planning IS Business planning • Establishes a roadmap to compare results as the venture proceeds from paper to reality. Why Plan?

4. Planning Your Business: The First 10 Questions • What’s the need you’re trying to meet? • Where do you want to be and how do you plan to get there? • What are you going to do? • How are you going to know you’ve succeeded? • What’s it going to cost? • Who’s going to pay for it? • How are you going to let people know about it? • Who’s your team? • What are the next steps? • How are you going to present your plan?

5. Planning Your Business: Getting the Answers… • What’s the need? • Where do you want to be? • What are you going to do? • How will you measure success? • What’s it going to cost? • Who’s going to pay for it? • How will people know about it? • Who’s your team? • What are the next steps? • How will you present it? • Needs assessment • Strategic plan • Program plan • Evaluation plan • Budget • Fundraising plan • Marketing plan • Board/Staff recruitment • Implementation plan • BUSINESS PLAN

6. Step 1: Conduct a Market & Needs Assessment • What is the need you are trying to meet? • Who has this need? Who will benefit? • Who’s the competition / collaboration? • What will be unique about your service? • Will the benefits outweigh the costs?

7. Step 1: Conduct a Market & Needs Assessment (How?) • Research • Interviews • Focus Groups • Questionnaires

8. Step 2: Recruit Your Board / Staff • Minimum of 5 (unrelated) board members • Board members are committed to the mission and have the necessary professional skills • They reflect the diversity of the community served • Train the board • Staff your organization

9. Step 3: Engage in Strategic Planning Continually! • The ROAD MAP • Vision-mission-goals-strategies-action plan • A management (and planning) tool • Do it continually

10. Step 4: Develop Your Programs • Clarify goals • Research similar programs • Consider evaluation • ID Resources • Budget your programs • Establish a timeline

11. Step 5: Create a Budget • Annual operating budget • Proposed by staff/finance committee, Approved by board • Budgets should guide program work • Program budgets should be monitored

12. Step 6: Develop a Fundraising Plan • Base on program & organization’s needs • ID Possible revenue sources • Plan for long-term sustainability • Relationships, relationships, relationships! • Ongoing communication, inclusion • Honor commitments, respect privacy • Timely report-writing • OUTCOMES

13. Step 7: Develop a Marketing Plan • What are your marketing goals? •  Fundraising •  Advocacy •  Program Usage •  Membership • Who are your target audiences? • What’s your product? • What are the major benefits to promote? (Gary J. Stern, Marketing Workbook for Nonprofit Organizations, Vol. 1: Develop the Plan. Amherst H. Wilder Foundation, 2001.)

14. Step 8: Develop an Evaluation Plan • Define your desired outcomes • Establish targets and benchmarks • Identify indicators • Quantitative and qualitative evaluation • Incorporate evaluation results into program management and re-design

15. Step 9: Develop an Implementation Plan • Create a “mega-”operating plan • Expand and strengthen your board, if necessary • Hire staff and/or volunteers • Open an office, purchase supplies • Develop relationships • Establish policies and systems for strong financial management and accountability • Evaluate programs, monitor budgets and review plans CONTINUALLY!

16. Step 10: Prepare a Business Plan • Pull it all together! • Why? • Fundraising tool • Marketing tool • Management tool • Models • http://www.cfnpe.org/ • Needs assessment • Board recruitment • Strategic plan • Program plan • Budgeting • Fundraising plan • Marketing plan • Evaluation plan • Implementation plan

17. Step 11 • Standards for Excellence® code

18. Resources • Blazek, Jody. Financial Planning for Nonprofit Organizations. John Wiley & Sons, Inc., 1996. • Brinckerhoff, Peter C. “How to Write Your Business Plan,” Nonprofit World, Vol. 17, No. 2, pp. 10-11. • Brinckerhoff, Peter C. Nonprofit Stewardship: A Better Way to Lead Your Mission-Based Organization. Fieldstone Alliance, 2004 • Brody & Weiser, “A Pocket Guide to Business Planning,” Branford, CT • Grobman, Gary M. The Nonprofit Handbook: Everything You Need to Know to Start and Run Your Nonprofit Organization. White Hat Communications, 2005. • Hummel, Joan M. Starting and Running a Nonprofit Organization: second edition. University of Minnesota Press, 1996. • http://www.managementhelp.org • McNamara, Carter. Field Guide to Nonprofit Program Design, Marketing and Evaluation, Authenticity Consulting, 2002. • Schlef, Aileen. “Creating a Not-for-Profit Business Plan,” Creative Alliance Communications, 1998. • Stern, Gary J. Marketing Workbook for Nonprofit Organizations, Volume 1: Develop the Plan. Amherst H. Wilder Foundation, 2001.

19. Thank You