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.
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.
