by Andria Pitterson-Powell, founder of Dynamic Outcomes for Exceptional Students (DOES) and Jasen Autism Sensory Environment (JASE),
If you’re interested in starting a nonprofit, it’s important to have a vision for community impact along with a clear mission to stand out from other organizations. Creating a business plan will help clarify these things and lay out the steps needed to reach them. It’s an essential step for mapping out your nonprofit’s structure and can be useful for securing grants and attracting donors and volunteers.
Initially, as you work on launching your nonprofit, it will be important to first check the general market to see if there is already a similar organization in the community you want to serve. If you can confirm there is a gap, that’s a great sign, and you’ll want to do more research. The good news is that you don’t have to do it alone. Organizations like SCORE are groups of professionals who come together to provide mentorship and help others launch their businesses.
Once you have a vision for your organization and you’ve found a mentor or someone who can provide reliable advice, it’s time to create your business plan.
Here’s what to include in your plan:
A Registered Business Name.
This sounds self-explanatory, but the process of finding a name can be tougher than it sounds. The name should have purpose and describe your business in some way. Once you’ve settled on a name, you’ll have to check to see if the name you are thinking of is already in use. You can search for trademarks, or even just Google the name.
If someone else does have your business name, it’s back to square one. If you’re in the clear, it’s time to register your business name. You’ll also need to know what the type of business is (Nonprofit, LLC, Corp, etc.). Consulting a lawyer or accountant can help with this step.
A Market Study to Establish a Location with Need.
If you’ve made it to this step, you’ve already done an informal study to find out if there is a need in your community for your nonprofit. Now it’s time to look at demographics to decide which area has the greatest need.
Personally, when I launched my Autism Sensory Center, my market study showed me the perfect location – in a 5-6 mile radius of two autism schools, and within a mile radius of an elementary school with autism units. In addition, I added the information into my business plan that 1 in 36 children are diagnosed with autism to show how my business will affect the wider community.
Once I had decided where there was a need, I did more research which included driving around and searching the internet for other centers like mine, as well as talking to parents, teachers, friends and neighbors to get a better understanding of my community’s needs. Ask a bunch of questions!
Plans for How Your Business Will Be Funded.
Next you’ll have to think of how to fund your business. Your local Chamber of Commerce and the Small Business Administration will have a long list of funding sources. It will be up to you to figure out how to approach these sources and network to partner with other people and organizations to get your vision off the ground. This is a critical area for many organizations who have a great idea, but just aren’t able to make a viable income to keep their vision going.
You’ll want to include analysis and projections of your funding outcome depending on variables. Are there variable costs vs costs? Where is the break even point in your organization when you will start making a profit? This will ultimately help you get the funding you need when you can show this step has been clearly thought out. You’ll also want to include an analysis of the competition. They may not even be near you, but they are competing with you.
The business plan is a guide. Not only will it help you to stay on track, but it provides a blueprint for how you are going to get to where you want to go. After a successful year, you’ll be able to look back to see how closely you stayed in line with your projections and adjust goals for the following year.
Andria Pitterson-Powell is an accountant, controller, educator, advocate for special needs communities, and the founder of Dynamic Outcomes for Exceptional Students (DOES), a 501(c)(3) nonprofit organization dedicated to improving the lives of families with exceptional students and Jasen Autism Sensory Environment (JASE), a sensory center dedicated to creating indoor play environments for children with autism.
