January, 2004 -by Peter C.
Brinckerhoff
Happy New
Year!
To SUBSCRIBE: If you are not already
receiving the MBM Newsletter, simply send an email tosubscribe@missionbased.com. You
will be added to our mailing list and begin receiving your own copy next month.
Anti-spam promise: Your email address will not be sold, lent, or
passed on to any other person or organization. In addition, I don't use
Microsoft Outlook or Outlook Express for my mail server, so if a worm
ever gets into my computers, it won't steal your address!
To UNSUBSCRIBE: If you no longer wish to
receive this newsletter, send an email to
unsubscribe@missionbased.com
and you will be promptly removed from the mailing list.
A new
format and focus for the MBM Newsletter...
This month, I will
start a full year of focusing each issue of the Mission-Based Management
Newsletter on a particular topic, such as Fund Raising, Boards of
Directors, Start-up, and the like. This change comes from the many emails I get
asking for more information about something I touched on in the newsletter, or
about issues surrounding a current topic of concern to the not-for-profit
sector.
Such a focus will require a few changes in the format. In each
issue, we'll start with a discussion of the topic itself, from a manager's
point of view. Then, we'll look at resources on this topic, both websites and
web-based articles, as well as 2-3 of the best books that my be of help to you.
Next, where applicable, we'll turn to software that can help in the topic
area.
Finally, since I can never shut up about the broad importance of good
marketing in proving your mission efficiently and effectively, I'll give you
some marketing ideas related to the topic.
At the bottom of this issue
is my current schedule of topics for the first six months of 2004. The last six
months is still not set, so if you have suggestions of things you'd like to
see, email me at peter@missionbased.com, and I'll
be happy to consider it. I hope you like the new format and focus. As always,
any and all suggestions are welcome.
I hope that 2004 is a great year
for you and your organization. |
| This Month: Business Development |
Each month, this area will take you to
a number of my favorite and most helpful sites regarding the topic of the
month.
|
Management
Tip of the Month
Each month, I'll start with a
discussion of my perspective on the topic, and give you a few hands-on ideas to
consider. |
|
Recommended Publications
Here, I provide you with my 2-3 best
recommendations on printed materials that can help you become more
mission-capable. |
Technology
Here, I provide you any good software
regarding the month's topic, and some suggested uses of the tech to better your
organization. |
|
Marketing
Tip
How does marketing effect business development?
That should be apparent, if not now, certainly after you finish reading this
tip.
|
Next
Issue
In February, we'll look at issues surrounding
Fund Raising. |
Websites of the
Month
This section will include sites of interest on the
month's topic. I urge you to give each a look, as they often cover different
areas or have a different focus on the topic area..
| Helpful Websites
for Business Development |
| Roberts
Development Fund |
A foundation that is on the
cutting edge
of social enterprise issues. |
The
National Center on Nonprofit
Enterprise |
NCNE helps managers and
leaders of nonprofit organizations make wise economic and business
decisions. |
| Sample
Business Plans |
If you are thinking about
developing a new business, expanding an existing service, or moving into a new
service area, the development of a business plan is a crucial step. See how the
for-profits do it, and take the best of what you find from this excellent
site. |
| Ashoka.org |
Ashoka keeps track of what is
going on in nonprofit business development worldwide. Check the site for a
variety of good resources. |
Back to
Top
Management Tip of the Month
Business
Development Overview
Nationally, thousands of not-for-profits are
turning to outside businesses to supplement and broaden their income streams.
Since 1982, I have helped hundreds of not-for-profits throughout the country
examine their capabilities in this area and have assisted them in developing
their business plans. The development of good business plans by a
not-for-profit is a complex enough issue to merit an entire book by itself
(which is why I wrote Social Entrepreneurship). Here, I want to review
the steps of business plan development, focus on the preparation of financials
and review the big mistakes people make in preparing their financials.
Hopefully, this advice will help you avoid the big pitfalls in business
development and will excite you sufficiently so that you will take the time to
read the other resources listed in this issue of the newsletter.
First a reality check: no business is going to make
you independently wealthy as an organization, nor is it going to make you
independent of your current major source of funding. Nearly all of our clients
come to us and state that one of their main reasons for wanting a new business
is to "become financially independent of the state (feds, county, foundation,
United Way)." Sorry, this is not going to happen. The services that your major
funders will pay for may not be provided by anyone else, and, in all
likelihood, they will continue to be a major part of your income stream far
into the future. But you can, by expanding your income sources, become less
dependant on the major funders. But independent? Not likely.
Secondly, remember that business income is OK and
will not result in a threat to your 501(c)(3) status unless it grows to dwarf
your charitable functions. Also, most of you will start new ventures that are
related to your mission anyway. Why? Because it's what you know, and if you are
a professional in education or in the arts or in substance abuse treatment, you
are not going to start a Wal-Mart, or an engineering firm. People take what
they know and find new markets for it. You will too, and so, in most cases
(about 90% of our clients), the business that you start will result in more
services being provided.
Now, the steps of the process in very brief
form
1. Review your mission statement
2. Assess your organizational willingness to take
risk.
3. Decide what the mission outcome of the business
idea will be.
4. Generate business ideas that match community
wants with your organizational core competencies
5. Develop preliminary and final feasibility studies
.
6. Develop a full business plan.
7. Implement and monitor your plan.
The business planning process is designed to reduce
your organizational risk. Only proceed to the next step if the risk you are
taking is manageable.
If you found this hint helpful, there are
lots more management, marketing, and technology ideas for you in the "Ideas"
section at www.missionbased.com.
Check them out--they're free.
Back to
Top
Print Resources
As I mentioned at the top, this space is used
each month to provide you with the two-to-three best print resources for the
month's topic.
My recommendations in the management area are:
1. Social Entrepreneurship: The Art of Mission
Based Venture Development by you know who...no surprise here.
2. Enterprising Nonprofits, by Greg
Dees, et.al
3. Strategic Tools for Social
Entrepreneurs, also by Dees, et. al.
If you want more information on these
recommendations, click on the cover image and you will go the page about the
book on Amazon.com. There, you can look at more info about the book, and read
some reviews before you decide whether or not to purchase or look for this book
at your local library.
Note: If you want more
recommendations on publications in a wide variety of areas, go to the
publications section of my website:
www.missionbased.com/publications.htm
Back to
Top
Technology Ideas .
Business Development and Technology
It should be no surprise to you that if you are
thinking about expanding a service, starting a new one, or considering a joint
venture (all of which fit into my definition of "business development" above)
that there are tech assists for you. Let's run through a few primary areas to
consider
Business Research. If you are considering
expanding or a joint venture, you need to know the lay of the land, what is
happening in your chosen industry, and how it will match up (or conflict) with
your core competencies. Start by going to your state's Department of Business,
or Commerce sites. These agencies will have a great deal of business-specific
information and data, usually broken out by industry. Also check your local
chamber of commerce for links to research sites.
If you are interested in larger scope research, go
to www.ceoexpress.com and look
at their business research section. CEOExpress is a set of links to excellent
resources of all types, and I have had great success with their business
research links.
Software: There is good business planning
software, and bad business planning software. The only one I recommend without
hesitation to my clients is BizPlanPro from Palo Alto Software.
www.paloalto.com Not only is the software
($99 on the Palo Alto site) easy to use, flexible, and thorough, but it forces
you to think through the key questions. Best of all, the software contains over
400 sample plans. At the site you can also look at some industry specific tools
for business development as well.
Finally, in business development, you will almost
certainly run scenario after scenario. Remember that this is really what
electronic spreadsheets such as Lotus and Excel were created for. If you
haven't used your spreadsheet for a while, it might be worth your time to go
back through your online tutorial. You'll remember stuff you have forgotten,
and probably discover new features that will help you as you ponder your
options.
If you found this hint helpful, there are lots
more management, marketing, and technology ideas for you in the "Ideas" section
at www.missionbased.com. Check them
out--they're free.
Back to
Top
Training
Schedule for Peter Brinckerhoff
Here is my speaking schedule for the next couple of
months. I will be adding a bunch of dates in the next couple of weeks, so check
my website if you are interested in seeing me in person.
Below you'll see the date, location, and topics.
For more information on a particular speaking engagement, get in touch with the
contact person listed in the right hand column, or
email me.
For more information on my availability throughout
the next 12-18 months, available topics, sample agendas, and fees go to
www.missionbased.com/training.htm
Marketing Tip
The key question in marketing your
business?
You should know, from reading this part of my
newsletter, that asking is central to any good marketing effort. Finding out
what your customers want requires asking them. The biggest mistake you can make
is saying "Oh, I've been doing this for x years...I KNOW what my markets want."
You may well know a LOT about what the markets want. But do you know enough to
invest organizational resources? Ask.
And here's the key question to ask, as you go
through your feasibility studies.
Do people want (not need) what I am selling
(providing) in the way that I am providing it, at the time and location I am
providing it for the price that I am providing it? If the answer to this
question is not yes, yes, yes, & yes, you are doomed. So ask this question
early and often in your business planning efforts.
If you want to see more about this in detail, take
a look at more about my book
Mission-Based Marketing; Second
Edition
And, if you found this hint helpful, there are lots
more management, marketing, and technology ideas for you in the "Ideas" section
at www.missionbased.com. Check them
out--they're free.
Back to
Top
Future Topics in 2004
for the Mission-Based Management Newsletter....
| February |
Fund Raising |
| March |
Volunteers |
| April |
Financial
Management |
| May |
Online
Marketing |
| June |
Transparency |
| July |
Start-up |
| August |
|
| September |
|
| October |
|
| November |
|
| December |
|
| Send me
your topic suggestions at peter@missionbased.com |
Back to Top
|
|
|
Copyright 2006,
Corporate Alternatives, inc. |
|
