Business Planning

Lessons Learned Guiding Principles

  • In many respects a business plan is like a program proposal or plan, and some funders use the terms interchangeably. 

  • Driven by the strategic plan, a business plan forecasts the revenues and expenditures for each initiative cash flow from one or more programs – or funding streams…


  • In many respects a business plan is like a program proposal or plan, and some funders use the terms interchangeably. 

  • Driven by the strategic plan, a business plan forecasts the revenues and expenditures for each initiative cash flow from one or more programs – or funding streams. 

  • The business plan must ensure that the new initiative will be full cost recovery or generate a surplus (though some initiatives may intentionally run a deficit). The expenses must include an appropriated cost for administration and overhead or it will not contribute to organizations growth and sustainability.

  • A business plan should be created for each new initiative; as well, a master business plan can be created which integrates the forecasted flow from all programs/services provided.  It is in this process that you explore and envision a financial model and its fit with your mission.


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Food For Thought

Thinking about pricing represents a culture change within and outside a non-profit organization.  This can cause tensions – you need to respond to the community, realize where you are gaining financially and politically: some things you can give away, some things you may want to sell due to time and money invested, or an opportunity for revenue generation to support other parts of your operation.

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