NICNE NICNE Development Development WorkshopWorkshopDEVELOPING A BUSINESS PLAN Jeff Fahrenwald, AVP Graduate and Community Education

•WelcomeWelcome•Mission and SWOTMission and SWOT•Business Plan Development ProcessBusiness Plan Development Process

– Business ModelBusiness Model– Leadership TeamLeadership Team– Market Market – Competitive RiskCompetitive Risk– OperationsOperations– FinancialsFinancials

•Conclusions and Executive SummaryConclusions and Executive Summary•Closing RemarksClosing Remarks

Agenda

Business Plan Development Workshop NICNE Rockford CollegeBusiness Plan Development Workshop NICNE Rockford College

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 3 Development Workshop

Mission StatementMission Statement• Can you clearly state your agency’s reason for

existence and what you are striving to become in the future?

• Can you explain this to others in less then one minute?• Does the mission help guide your thoughts and actions • Does the mission expand or limit your opportunities? NICNE MISSION: To build capacity among nonprofit

organizations to reach the highest levels of service and management excellence, by providing information, education, consultation, and resource supports.

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 4 Development Workshop

Developing a Business PlanDeveloping a Business Plan• Start with an idea– Look at your current offerings– Look at your competitions offerings– Understand your REAL core competencies– Look at the unmet needs of current

individuals and groups that you serve– Look at unmet needs in the community– Look “one step over” from where you are

• Example – Rockford College BSMS

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 5 Development Workshop

SWOT AnalysisSWOT Analysis• Strengths• Weaknesses• Opportunities• Threats• Works better with a team who knows your

organization• Use your mission statement• You can rewrite your mission statement if

there is not a good fit and the opportunity fits well with your real core competencies

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 6 Development Workshop

Business ModelBusiness Model• Briefly idea / program• Summarize the key technology, concept,

or strategy • Fit with mission• Timing and location• Community needs addressed

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 7 Development Workshop

Goals and ObjectivesGoals and Objectives• Strategic goals and objectives• SMART goals– Specific– Measurable– Action oriented– Relevant– Time bound

• Three to five year horizon

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 8 Development Workshop

Leadership TeamLeadership Team• Executive Director, board members,

volunteers staff, outside advisors• Previous accomplishments / experiences

related to idea or program• Champion(s)• Additional help and support

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 9 Development Workshop

Market SummaryMarket Summary• Summarize past, present and future– Note changes in market (leadership, players,

market shifts, costs, pricing, or competition) that contribute to your opportunity

• Potential• Price• Location

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 10 Development Workshop

Plan to Win OpportunityPlan to Win Opportunity• Promotional strategy– Public relations– Personal selling– Advertising– Customer / Client service

• Costs• Partnerships

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Competitive RiskCompetitive Risk• Summarize the competition• Similar offerings• Competitive advantage• SWOT again• Market size and potential

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 12 Development Workshop

OperationsOperations• Resource requirements for:– Personnel– Technology– Space– Distribution– Products– Support services– Liability

• Strategic alliances

TimelineTimeline• Time to market• Critical steps• Capital requirements• Measure of success• Exit strategy

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 14 Development Workshop

Key Timeline IssuesKey Timeline Issues• Near term– Key decisions and issues immediate or near-

term – Consequences of decision postponement

• Long term– Issues needing long-term resolution– Consequences of decision postponement

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 15 Development Workshop

Financial PlanFinancial Plan• High-level financial plan – Financial model– Cost and pricing assumptions

• Annual revenues and expenses for three years

• Cash flow for three years• Balance sheet for three years• Start up costs• Sustainability • Capital raising strategies

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 16 Development Workshop

Risks and RewardsRisks and Rewards• Summarize risks• Minimization strategy• Expected rewards– Financial– Social – Organizational– Other

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 17 Development Workshop

Creating an Executive SummaryCreating an Executive Summary• Conclusion to document• Executive summary– Last written – first read– Page or two– Highlights of each area

04/20/2304/20/23 Business Plan Business Plan ROCKFORD COLLEGEROCKFORD COLLEGE 18 Development Workshop

Closing RemarksClosing Remarks• Final questions• Thank you for participating• Business Plan Competition