A non-profit organization’s founding objective, like that of any other, is to create an institution that advances society and has a good influence on the community. The desire to succeed may get you going, but building a successful, financially secure brand that changes the world for the better requires more than simply good intentions, Yitzhak D Stern notes.
Building a Non-Profit Business Plan
A non-profit business strategy needs to have a distinct vision and purpose that are supported by quantifiable targets. The non-target profit’s market, the services or goods it will offer, how it aims to make money and maintain its financial viability, and finally, what sets the non-profit apart from other organizations, should all be mentioned in the business plan.
What Makes Up a Business Plan for a Nonprofit?
A feasibility study will assist in determining whether the organization has a probability of succeeding and is the first stage in drafting a non-profit business strategy. To find out if there is a market for the non-profit’s services or goods, part of the feasibility study includes market research. In order to understand what other businesses are doing in the same industry and how the non-profit may set itself apart, the study should also contain a competition analysis.
The next step is to begin creating the business plan after the feasibility study is finished and it has been proven that there is a demand for non-services profits or goods. The executive summary, which gives a summary of the complete business plan, should be written first. The corporate description that follows provides more information about the nonprofit, its goal, vision, and values, Yitzhak D Stern states.
The target market should be the main topic of the following section of the business plan. This includes being aware of the non-intended profit’s audience, their needs, and the best way to reach them. This part should also include an explanation of the marketing mix, which consists of the 4Ps of marketing, i.e. product, pricing, location, and promotion.
A summary of the non-profit’s financials should be given in the fourth section of the business plan. This covers the start-up costs, ongoing costs, and sources of income. To ascertain when the non-profit will turn a profit, this part should also include the break-even analysis.
The appendix, which concludes the business plan, contains further information such as market research data, competitive analyses, feasibility study findings, and financial predictions according to Yitzhak D Stern.
A Guide on Writing a Non-Profit Business Plan
In order to condense the detailed outline, here is a step-by-step guide to creating a business plan for a business intended to be not-for-profit:
- First, carry out a feasibility analysis
- Writing the executive summary is step two
- Next, define the nature of business
- Define the target market in step four
- Describe the marketing mix next
- Then, talk about the finances
- Lastly, add any supporting documentation
Writing a non-profit business plan may seem like a difficult undertaking, but if you divide it into smaller phases, it becomes doable, Yitzhak D Stern explains. Following the advice above will ensure that you cover every crucial component of your nonprofit organization and give it the best chance of success.