Planning the Nonprofit Startup Business Planning

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

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. 3 Why Plan?

Planning Your Business: The First 10 Questions 1. What’s the need you’re trying to meet? 2. Where do you want to be and how do you plan to get there? 3. What are you going to do? 4. How are you going to know you’ve succeeded? 5. What’s it going to cost? 6. Who’s going to pay for it? 7. How are you going to let people know about it? 8. Who’s your team? 9. What are the next steps? 10. How are you going to present your plan? 4

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 5

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? 6

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

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 8

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

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

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 11

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 12

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? 13 (Gary J. Stern, Marketing Workbook for Nonprofit Organizations, Vol. 1: Develop the Plan. Amherst H. Wilder Foundation, 2001.)

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 14

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! 15

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

Step 11 Standards for Excellence® code 17

Resources Blazek, Jody. Financial Planning for Nonprofit Organizations. John Wiley & Sons, Inc., Brinckerhoff, Peter C. “How to Write Your Business Plan,” Nonprofit World, Vol. 17, No. 2, pp 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, Hummel, Joan M. Starting and Running a Nonprofit Organization: second edition. University of Minnesota Press, McNamara, Carter. Field Guide to Nonprofit Program Design, Marketing and Evaluation, Authenticity Consulting, Schlef, Aileen. “Creating a Not-for-Profit Business Plan,” Creative Alliance Communications, Stern, Gary J. Marketing Workbook for Nonprofit Organizations, Volume 1: Develop the Plan. Amherst H. Wilder Foundation,

Thank You 19