Developing a Business Plan

The information contained in this site is of general nature and should not be acted upon in your specific situation without further details and/or professional assistance

A business plan is the written product of the business planning process.  It addresses and integrates:

	Where an organization is today
	What the key market, technological, management, financial, and other conditions are
	What the goals of the organization are
	How the organization realistically expects to achieve those goals

The scope of a business plan may be:

1. Organization-wide “road map”

2. Operating guidance for a department or function

3. Feasibility for proposed project or activity

The objectives of a sound business plan include:

Development of Ideas about how the organization should operate in the future (a plan)

To provide operating guidelines and to serve as a measurement tool against which actual performance can be assessed over time (benchmark)

To be able to communicate with outsiders (donors, funders, lenders) what the organization plans to do – possibly with help from them

 

Methodology for developing a Business Plan for a Not-for-profit organization

	Establishment (re-establishment) of Mission
	Competitive analysis
	Definition of objectives
	Goal setting
	Action plan development
	Budgeting
	Drafting the Plan document
	Implementation and follow-up

The format of a business plan is not fixed and will vary between organizations and based on the purpose of the business plan  The principal element of a sound business plan for not-for-profits, however, would generally include the following:

	Cover Sheet
	Executive Summary
	Table of Contents
	Major Assumptions
	History Section
	The Mission
	Definition of the Organization
	Definition of the Market
	Description of What is to Be Provided
	Management Structure
	Strategies, Objectives, Goals & Tactics
	Financial Data
	Appendices

Reference Sources that may be helpful may be found at "Resources"

	Be brief
	Do not make vague or unsubstantiated statements
	Be realistic with estimates, forecasts and assessing market and other potentials
	Be sure that objectives are clear
	Avoid erroneous perceptions from the past