Non-profit enterprises are a type of business. Although there are significant differences between a for-profit organization and a non-profit, many of the same rules apply. Non-profits need comprehensive planning just as much as a business. One of the most important tasks for any start-up non-profit has to be the development of a business plan. This training session aims to teach participants how to make a business plan of a non-profit organisation. During the training session participants will be able to create the business plan for non-profit organisations and understand how they should manage their resources.
There are a variety of styles and formats used for business plans. The content of the plan is much more important than rigid adherence to a specific format. Useful questions to ask when developing the business plan are:
The new entrepreneurs should also outline:
Finally, in the process of business planning the risks of unfavourable changes in the operating environment should be addressed. For example, many non-profits rely on government contracts or grants, so they should think what will happen, if the particular sources of income does not exist in the future.
There are a variety of styles and formats used for business plans. The content of the plan is much more important than rigid adherence to a specific format. Although the Business Planning for Nonprofits is mostly a way of answering,
You can think of a business plan as a narrative
or story which is explaining how the non-profit will thrive given its
activities, its sources of revenue, its expenses, and the inevitable changes in
its internal and external environments over time. According to Propel
Non-profits[1], business plan should have
4 components that identify:
[1] https://www.propelnonprofits.org/resources/transforming-nonprofit-business-models/
There are a variety of styles and formats used for business plans. The content of the plan is much more important than rigid adherence to a specific format. Although the Business Planning for Nonprofits is mostly a way of answering,
These questions and their answers, will give pillar of the business plan. The new entrepreneurs should think also while planning
After this procedure, they should consider the potential for changes in basic assumptions about the non-profit’s operating environment. For example, many non-profits rely on government contracts or grants, so they should think what will happen, if the particular sources of income will not exist in the future. Though that way the planning of business plan is helping the non-profit and its board be prepared for future risks
You can think of a business plan as a narrative or story which is explaining how the non-profit will thrive given its activities, its sources of revenue, its expenses, and the inevitable changes in its internal and external environments over time. According to Propel Non-profits, business plan should have 4 components that identify:
A business plan of a non-profit organization must explain which will be the income sources to support the charitable non-profit’s activities.
A business plan of a non-profit organization must explain which will be the income sources to support the charitable non-profit’s activities. The plan should address both the everyday costs needed to operate the organization as an entity, as well as costs that are specific to the unique programs and activities of the non-profit. The plan may include details about the need for the organization’s services (a needs assessment) and about the likelihood that certain funding will be available (a feasibility study) or about changes to the organization’s technology or staffing that will be needed in order to successfully advance its mission. Non-profit organization should contain also in their business plan a “competitive analysis” describing what other entities may be providing similar services. Finally, the business plan should list important assumptions, such as that the organization’s reserve policy to have at least six months’ worth of operating cash on hand at all times.
Discussion:
Discuss in group the following questions:
Activity: Business plan development
During this activity the youth worker will distribute to participants the attached form SE-HUB_BusinessPlan_Template. Participants can work in groups or individually and starts completing the template with the assistance of the youth worker. Below is a list of possible questions that could be written on the flipchart or distributed as handouts to help participants formulate better their goal and to assist the planning process:
Q1. Which of the following is not an explanation for why non-profit organizations tend not to write formal business plans?
a. A lack of understanding of the process or benefits of business planning
b. Pressure on doing, rather than thinking, or gathering information
c. No data being available
d. The belief that strategic planning is for larger organisations
Q2. Which of the following is not a good reason for writing a business plan?
a. Assessing the feasibility of a business or project
b. Setting objectives and budgets
c. Though this knowledge is important, writing a business plan involves much more than this
d. Calculating how much money is needed
Q3. A good business plan will answer 3 straightforward questions. Indicate which of the following not one of these is.
a. Where have we been?
b. Where are we now?
c. Where do we intend going?
d. How do we get there?
Q4. The following statement refers to which plan? “A formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.”
a. Marketing plan
b. Operational plan
c. Business plan
d. Strategic plan
Q5. Usually business plan should have some components that identify (more than one answer is possible):
a. Revenue sources/mix
b. Operations costs
c. Staff costs
d. Capital structure
https:// https://www.youtube.com/watch?v=v-5w8iGsrx8www.youtube.com/watch?v=w_F72yxxlwo
Writing a business plan is one of the main pillars to create a business. It is a hard procedure but worth when you have the final outcome in front of you. As soon as someone will finally finish with his/her business plan must not let the business plan turn to mush just sitting on a shelf. It is really important to revisit and revise it frequently, according to the changes and the needs. New entrepreneur should be glad that will start a non-profit organization with a well-thought out plan and they should keep it up to date.
https://www.thebalancesmb.com/why-do-i-need-a-business-plan-for-nonprofit-2502272
https://www.councilofnonprofits.org/tools-resources/business-planning-nonprofits
https://www.propelnonprofits.org/resources/transforming-nonprofit-business-models/ https://grantspace.org/resources/knowledge-base/business-plans/
https://grantspace.org/resources/knowledge-base/business-plans/