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A fresh, compelling approach to establishing a sustainable, results-driven nonprofit business plan.
Nonprofits often use the terms “strategic planning” and “business planning” interchangeably, but a good business plan goes beyond the traditional strategic plan with its focus on mission and vision, goals and objectives. The Nonprofit Business Plan, created by the nationally recognized nonprofit consultant experts at La Piana Consulting, helps your nonprofit organization understand what a strategic business plan is and why you need one, then provides a practical, proven process for creating a successful, sustainable business model. This groundbreaking resource further explains how your nonprofit can determine whether a potential undertaking is economically viable—a vital tool in today’s economic climate—and how to understand and solve challenges as they arise.
With detailed instructions, worksheets, essential tools, case studies, and a rigorous financial analysis presented clearly and accessibly for executives, board members, and consultants, The Nonprofit Business Plan is also an important resource for non-specialist audiences such as potential funders and investors. This innovative step-by-step guide will provide your team with a solid set of business decisions so that your nonprofit can achieve maximum results for years to come.
“This new book is a very useful and timely complement to The Nonprofit Strategy Revolution. Having reaped the benefits of that book, we are now changing our business model to further our mission by developing new revenue streams.” —James Firman, Executive Director, National Council on Aging
“This book will prove an indispensable guide to business planning for nonprofit leaders and a great tool to help students of nonprofit management learn how to assess a business model and build a better one.” —Kevin Kearns, Professor, University of Pittsburgh
“A great read that will meet the needs of nonprofit leaders.” —Michael Mortell, Director, Strategy Counts!; Intellectual Capital Division, Alliance for Children and Families
“After reading this book, organizational leaders will have a clear understanding of the components of good business planning and a practical understanding of why and how to go about the process.” —Lillian Roselin, Program Officer, John Muir/Mt. Diablo Community Health Fund
Table of Contents
Acknowledgments 4
Preface 5
How this Book is Organized 8
Chapter 1: What is a Nonprofit Business Plan and Why do You Need One? 10
Business Planning Defined 12
The Value of a Business Plan 15
Business Planning and Strategic Planning: the Essential Differences 17
The Right Plan for the Situation 24
Chapter 2: Getting Started 28
The Six Basic Business Planning Questions 31
Case Study: Knowledge Force – Part 1 48
Chapter 3: Understanding and Assessing Your Business Model 58
Step 1: Examine Your Scope 60
Step 2: Assess your Economic Logic 63
Step 3: Evaluate Your Organizational Capacity 68
Case Study: Knowledge Force – Part 2 70
Chapter 4: Developing Your Plan 73
Clarifying Strategic Intent 75
Market Research and Market Positioning 76
Case Study: Knowledge Force – Part 3 83
Operations and Infrastructure 89
Case Study: Knowledge Force – Part 4 94
Governance and Management 97
Case Study: Knowledge Force – Part 5 100
Key Collaborative Relationships 102
Significant Partners 103
Case Study: Knowledge Force – Part 6 104
Marketing Strategy 106
Case Study: Knowledge Force – Part 7 107
Financial Projections and Fund Development 108
Monitoring, Evaluation and Measuring Impact 108
Risk and Risk Mitigation 110
Conclusion 115
Chapter 5: The Financial Dimension of Your Business Plan 116
Building Financial Projections 116
Three Important Financial Statements 117
Seven Steps to Building Financial Projections 119
Seven Do’s and Don’ts 142
Conclusion 143
Chapter 6: Pulling it All Together 144
Case Study: Knowledge Force – Part 8 152
Business Plan as Roadmap 157
Chapter 7: Planning for Growth: Two Scenarios 159
Assessing the impact of a new program on an existing organization 160
Chapter 8: Business Plan as Decision-Making Tool 164
Engaging your key colleagues in the decision 165
Attracting funders to a winning idea 166
Acknowledging when a venture or an idea is unworkable 167
Conclusion: Go out and Make it Happen! 169
Appendix A Sample Business Plan: Knowledge Force 171
Appendix B Financial Projections Template 172
Glossary 180