If you looked at the life history of several wealthy men that have walked the path of earth, chances are that you may have realized a pattern.
What is a Business Plan? It Is Used to Plan for a New Venture A business plan is often prepared by for-profits, nonprofits or a government agency when undertaking a new venture, which is: Starting a new organization, product or service or Expanding, acquiring or improving any of the above.
There are numerous benefits of doing a business plan, including: To identify an problems in your plans before you implement those plans. To get the commitment and participation of those who will implement the plans, which leads to better results.
To establish a roadmap to compare results as the venture proceeds from paper to reality. To achieve greater profitability in your organization, products and services -- all with less work. To obtain financing from investors and funders. To minimize your risk of failure. To update your plans and operations in a changing world.
To clarify and synchronize your goals and strategies. For these reasons, the planning process often is as useful as the business plan document itself.
However, this can be confusing since a Strategic Plan is conventionally interpreted to be a plan that is focused on the entire organization, including to clarify its purpose and priories and how those priorities will be addressed over a specific time. Others view the financial information in an overall Strategic Plan to be a business plan.
However, this view can be confusing for the same reason as interpretation a Business Plan and Strategic Plan to be the same. Business Plans vs Strategic Plans Core Contents of a Business Plan Business plans appear in many different formats, depending on its purpose and audience and also the complexity of the venture.
However, most business plans address the following five topic areas in one form or another. Business summary -- Describes the organization, product or service, summarizing its purpose, management, operations, marketing and finances.
Market opportunity -- Concisely describes what unmet need it will or does fill, presents evidence that this need is genuine, and that the beneficiaries or a third party will pay for the costs to meet this need.
Describes credible market research on target customers including perceived benefits and willingness to paycompetitors and pricing. People -- Arguably the most important part of the plan, it describes who will be responsible for developing, marketing and operating this venture, and why their backgrounds and skills make them the right people to make this successful.
Ideally, each person in the management team and key program and technical folks are indicated by NAME. Implementation -- This is the how-to section of the plan where the action steps are clearly described, usually in four areas: Marketing builds on market research presented, e.
Financial plan includes, e.
A break-even analysis is often included in this section. Contingencies -- This section outlines the most likely things that could go wrong with implementing this plan and how management is prepared to respond to those problems if they emerge. In many cases, an organization will already have in its possession some of the information needed for preparing a business plan.
For example, in the case of nonprofits, grant proposals often contain some of this information. How to Translate Between For-Profit and Nonprofit Plans For-profit and nonprofit business plans have many similarities, even though the phrase "Business Plan" is usually associated with a for-profit organization.
Some of the terms are different, but in most cases, the words in a for-profit Business Plan can be readily translated into words more commonly associated with nonprofits.
For example, "balance sheet" is what nonprofit call a "statement of financial position", "profit and loss statement" or income statement is essentially the same as a "statement of financial activities".
Also, the core contents of a Business Plan as listed above are very similar to the core contents of a nonprofit Program Plan because a nonprofit product or service is conventionally referred to as a program.
See Different Names for Similar Concepts.
Before you start a major venture, there are several considerations about yourself that you should address.Browse Nonprofit Business Plans: Nonprofit Food Bank Business Plan Helping Hand is a non-profit organization working to alleviate hunger in Johnson County by soliciting, collecting, growing, and packaging food for distribution through a network of service agencies and programs that serve our target population groups.
A Sample Non-Profit Organization Business Plan Template Are you about starting a non-profit organization? If YES, here is a complete sample non-profit business plan template & feasibility report you can use for FREE.
A startup's business plan may be quite brief while the business plan for a mature nonprofit may be quite long. Business plan formats for nonprofits vary according to the type of organization, but several elements are universal. Strategic Business Plan Framework. Strategy Designer™ is a collaborative planning tool aimed at business and nonprofit organizations' management teams creating their strategic business plans.
for the core staff and program. Consequently, in the summer of , this organization became a nonprofit corporation. While at the UM and during the past five years as a nonprofit, Reach Out has mobilized hundreds of college-age adolescents and adults, business people, retirees, and other community members to form ongoing relationships with youth.
Sample business plan for a social enterprise (Propel Nonprofits) Join your state association of nonprofits for special opportunities, such as assistance with business planning, as well as strategic planning.