To create this article, volunteer authors worked to edit and improve it over time. A nonprofit is a business just as a for-profit business is and should prepare a comprehensive business plan.A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved.
She has a Bachelor of Arts in psychology from the University of Wisconsin and a Master of Arts in organizational management from the University of Phoenix.
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Preparing a business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. a good business plan can help to make a good business credible, understandable, and attractive to someone who is unfamiliar with the business.
Writing a good business plan can’t guarantee success, but it can go a long way toward reducing the odds of failure." The format of a business plan depends on its presentation context.Internal factors for non-profit organizations may include the ability to generate capital through fund-raising and grant writing activities, the availability of skilled staff or access to tools and resources.External factors may include economic impacts, the growth or decline of the organization's target audience or the emergence of other needs for funding that may not have been anticipated (e.g., major disasters may divert funds from local agencies to national groups). Her work has been published in "Entrepreneur," "Complete Woman" and "Toastmaster," among many other trade and professional publications.Even non-profit organizations are businesses that need to be managed appropriately.Business plans are essential, and their benefits are the same for non-profit as well as for-profit businesses.Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation.A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.An internally-focused business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors.This allows success of the plan to be measured using non-financial measures.When developing a plan, the first step is revisiting the mission, vision and values of the organization to ensure that they are still accurate and appropriate.All of the ensuing activities should be designed to ensure alignment with the mission, vision and values toward the pursuit of clearly identified goals.