January 12, 2015
A business plan is like a road map. It can help you get where you’re going. It also can tell you that it may not be a good idea to begin the journey.
Whether it’s in the for-profit or nonprofit world, money is the fuel that provides the power to run an organization. In the for-profit world, a business plan helps convince investors to either lend or commit their money to an organization. In the nonprofit world, a business plan can be used as a basis for grant proposals, fundraising projects, staffing and operations.
How do you get started? The first thing to consider is who will write your plan. It may be a good idea to find someone who can be totally objective and ask the cold, hard questions that need to be asked.
- What costs are involved in delivering services?
- How many staff members will be needed, and what kind(s) of skills should they have?
- From where will the services be provided?
- What are overhead costs? This last question should take into account all costs, preferably over a three-year period.
Other questions to be answered include:
- How will costs be paid for?
- Who will pay for services and how much?
- What funding sources are available – grants, foundations, individual support?
There are three basic items that must be included in a business plan: Program, Operations and Financials. Each section should be expanded on by including the following:
Program – Needs assessment, program description and community partners
Operations – Organization, governance, staff, start-up needs and/or ongoing operational needs, communications and outreach, program evaluation, and problems and solutions
Financials – Start-up income/expenses, ongoing expenses and projections
Your CPA can help you write a business plan for your organization to get you on the road to success.
This article was originally posted on January 12, 2015 and the information may no longer be current. For questions, please contact GRF CPAs & Advisors at email@example.com.