Received from "Fred" (not his real name).
"I
guess I need a business plan writer. I am trying to recruit board members for
my new nonprofit and all the ones I want on the board want to see a business
plan, preferably one done by an outsider. I don't understand why I should do a
business plan. I'm going to be a nonprofit, not a business. Even if it was a business, what's the use of
filling out a bunch of phony financial stuff when I have no idea what the numbers
really are? And why do they care about my "competitors"? I think this is just a waste of money, but I
would like a quote so I can explain why I can't do this right now."
Have you ever felt like Fred? You're supporting your
nonprofit (or your fledgling small business) with your own credit cards, and now someone
you apparently respect or at least see value in being associated with, wants
you to spend more money on something other than your mission. WHY?
First, Fred doesn't seem to understand the legal
responsibilities inherent in serving on a board. To him, these are just names
in front of titles. The people he is approaching know that isn't true. Before
they commit, they want to know that this has a chance of (a) succeeding) and
(b) will not expose them to unnecessary legal complications.
Second, it was fairly obvious that Fred hasn't thought about
the financial realities of being in business, even if that "business"
is a charity. Like so many people, he
assumes that because the goal is awesome and a lot of people will be helped,
the money is just going to flood in to support the mission. That's probably why
his potential board members want an outsider to do the plan.
What the business plan will do is give focus and clarity to
the process of fulfilling Fred's
dream. It will ground him in the day-to-day realities of making that dream a
reality.
Might it also force him to see that the way he wants to go
about realizing that dream isn't feasible at the beginning? Absolutely.
That's what I think stops a lot of people from writing a
business plan. Sometimes it's simply a
case of them not knowing what it takes to get to the end goal. Sometimes it's a case of not wanting to know.
I write business and strategic plans, and the number one frustration for my clients is
that the plan doesn't support their idea of how much money they will make or
attract on the timeline they envision. In other words, reality doesn't line up
with the timeline of the dream. Done properly, business plans will sidestep the
pitfalls of unreasonable expectations.
I can tell them what the norms are, what's a reasonable rate
of growth, research competition or funding streams and get average cost of
doing business figures, but if they need or want a six figure income and I
don't see that happening in one year, I can't tell them that it will happen.
You do, or have a business plan done, to prepare you for
reality. Then you can show potential associates that you recognize not just the
benefits, but also the problems. You can show you have a strategy to deal with
the problems so the benefits are realized as quickly and efficiently as possible.
You plan to manage challenges, instead of being managed by them. A plan helps
you to realize that your dream involves entering a marathon, not a sprint.
I gave Fred his quote and wished him luck. I hope he follows
through and his dream comes true.
No comments:
Post a Comment