Business Plan FAQs
All businesses and nonprofit organizations should have an up to date business plan.
What is purpose of the business plan?
The business plan is used for many reasons, including:
- Obtaining capital from investors
- Applying for grants and receiving contributions
- Obtaining business loans
- Determining business and organization strategies
- Estimating and budgeting
Should I prepare the business plan prior to starting my business or organization?
Yes, the business plan will help you as you go through the process of setting up your business, obtaining capital for the business and determining you mission and growth strategy. Your business plan will help you get your new business off to a good start.
Should a nonprofit organization have a business plan?
A nonprofit organization definitely needs a business plan. The business plan will help you to determine the goals and mission of the organization. With a business plan in hand, you will have a well prepared document to share with grantors and contributors. The business plan will serve as a key piece as you raise funds for your nonprofit organization.
What are some of the key parts of a good business plan?
Some key parts of the business plan include:
- A mission statement
- Goals and objectives
- Markets served
- Financial projections and estimates
- Marketing strategies
- And it is important that the business plan be detailed and easy to understand.
Who will I share my business plan with?
- Grantors and contributors
- Lenders and investors
- Management of the organization
How does the business plan help determine start-up expenses?
The business plan will list all assets and expenditures (along with dollar amounts) that you must incur before you can start operating. You may incur expenses for computers, furniture, office supplies, consultants, lawyers, travel, etc. The business plan will list these items and the expected cost. The business plan then includes a section on how you expect to obtain funding for the start-up expenses.
After I get the business plan, what should I do next?
Share the plan with all interested parties, including grantors, lenders, management, etc. Management should review the business plan frequently. This will help you stay focused on your mission, goals and objectives. You should also revise the business plan as the organization grows and evolves.
My business / organization has a net loss in year one. Is this normal?
This is normal. Your new business or organization will have to spend money in year one to purchase items for operation. Also, it will take some time for the new organization to bring in income and for new customers or contributors to learn about your organization.
Summary on Business Plan FAQs
You should modify your business plan as your business or organization evolves; but always keep the business plan aligned with your organization mission.
We prepare the business plan and point you in the right direction. Management must then implement the plan and grow the organization.
As you start and grow your business or organization, always make appropriate estimations of your financial, human, legal, accounting and marketing resources.
