Business Plan

A business plan is one of the principal operating tools for an organization to manage its business and communicate its ideas to others. The business plan outlines the organization’s medium-term strategy for ensuring operational and financial sustainability. It will drive and inform the operational plan.

A sustainable non-profit organization will have, and implement a business plan that:

• Identifies actions and responsibilities over a one to three year timeframe;
  
  
• Involves stakeholders in the planning process;
  
  
• Describes business history, mission, products/services, market, competition, leadership team-(Board, staff and volunteers), governance, fund development, financial statements/forecasts, administrative procedures and technology supports;
  
  
• Is reviewed and updated annually based on strategic direction;
  
  
• Links planning with the budget process through the development of a long-term financial plan highlighting key funding sources; and
  
  
• Defines how the business plan results will be measured.

Smaller organizations seldom have or need both a business plan and an organizational plan and usually combine components of each into one plan.

A Business Plan outlines how the strategic plan will be implemented within a prescribed budget.