Lessons Learned Key Success Factors in Business Planning
If funding will be based on a fee-for-service arrangement (e.g., x hours of instruction to y learners over z weeks), be sure that your estimates of client volume are sound, and that client volume will be sufficient to sustain the program financially.
The above is especially true of outcome-based funding (e.g., funding based on the successful placement of clients in a full-time paid position for at least 3 months following the program). In this case, not only are accurate estimates of client volume critical, it is also important to have a realistic estimate of the likely percentage of successful clients – i.e., deemed successful according to the funder’s criterion.
Be conservative - consider your organization’s cash flow – allow for start-up costs such as advertising, recruitment of personnel, program marketing/promotion, purchase or leasing of equipment and expenses associated with making a new site ready (e.g., renovations).
Don’t let your reserve funds simply be put into a savings account earning 2% or 3% interest. Learn to invest responsibly, but don’t invest without developing an investment policy first.
Check out the sample Investment Policy by clicking here. Feel free to adapt and modify as you see fit to best suit your agency. Courtesy of KEYS, Kingston.
