Non-Profit Business Plan Template

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									This is a template that provides information about how to coordinate and operate a
nonprofit organization. This wholly encompassing template covers all of the necessary
details, such as non-disclosure agreements, executive summaries, programs, products,
service, market analysis, management, organization, community development, strategy,
operations, financing, development, milestones, risks, contingencies, and exit strategy.
This document is ideal for any individual or entity that wants guidance on how to operate
a successful nonprofit organization.
                     Business Plan/Proposal
                                      For Non-Profits



                                       Prepared By:
                                  Insert your name/organization



                                              Of:

                                Insert organization name and logo



                                     Insert version and date




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BUSINESS PLAN NON-DISCLOSURE AGREEMENT

By possessing or reading this plan you accept the following:

By proceeding within this document (the “Plan”), you, any company, entity or organization that you are
employed by or are otherwise the agent of, and all other employees thereof, (collectively, “Recipient”) and
{Insert Business Name Here} (’The Organization’), agree that:

   The plan has been submitted by The Organization to Recipient solely for the purpose of evaluating a
    potential investment by Recipient in The Organization. The plan is not for use by any other person (s) or
    for any other purpose, and may not be reproduced, disseminated or otherwise disclosed to any person (s),
    other than any employees or agents of Recipient, including, without limitation, any legal counsel or
    accountants, of Recipient, who have a need to know the contents of the Plan in connection with the
    evaluation of a potential investment in The Organization (collectively, “Representatives”) who agree to the
    confidentiality provisions herein. Recipient shall be responsible for any and all acts of its Representatives.

   Recipient agrees to hold in the strictest confidence, and not use or disclose to anyone other than the
    employees of Recipient, its Representatives and The Organization, the information contained in the Plan
    or supplied to the Recipient, orally or in writing, by The Organization (the “Confidential Information”).
    Confidential information includes, without limitation, concepts, cost data, techniques, design, work in
    progress, and other technical know-how, the identity of customers, suppliers, and subcontractors of The
    Organization, financial, marketing and other business information, or any other trade secrets of The
    Organization disclosed by The Organization to Recipient or its Representatives or any summaries,
    analyses or other documents bases thereon. Confidential information further includes any information The
    Organization has received from others, which The Organization is obligated to treat as confidential or
    propriety. If the Recipient has any questions as to what comprises Confidential Information, the Recipient
    agrees to consult with an officer of The Organization prior to making any disclosure thereof.

   It is further agreed that any violation of this agreement by the Recipient or its Representatives will cause
    irreparable injury to The Organization and that The Organization shall be entitled to extraordinary relief
    in court, including, but not limited to, temporary restraining orders, preliminary injunctions, and permanent
    injunctions or other equitable relief. If court proceedings are required to enforce any provision or remedy
    any breach of this agreement, The Organization shall be entitled to an award of reasonable attorney’s
    fees incurred in connection therewith.

   This business plan does not constitute an offering. Any offering will be made by a definitive offering
    agreement. This plan has been submitted on a confidential basis solely to determine if selected
    individuals or organizations have an interest in making an equity investment.




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Table of Contents

1.0        Executive Summary .......................................................................................................... 5
2.0        The Organization.............................................................................................................. 5
3.0        Programs, Products & Services ......................................................................................... 7
4.0        Market Analysis ............................................................................................................... 8
5.0        Management and Organization ........................................................................................ 8
6.0        Community Development………………………………………………………………………………………………..8
7.0        Strategy and Implementation ......................................................................................... 10
8.0        SWOT Analysis ............................................................................................................... 12
9.0        Operations ..................................................................................................................... 13
10.0 Financing Requirements ................................................................................................. 14
11.0 Development & Milestones ............................................................................................ 15
12.0 Risks & Contingencies .................................................................................................... 16
13.0 Financial Data Assumptions & Highlights ........................................................................ 16
14.0 Exit Strategy .................................................................................................................. 17




Appendices
      A.   Start-up Expenses and Capital Requirements
      B.   Monthly Surplus or Deficit Statement
      C.   Monthly Balance Sheet
      D.   Monthly Cash Flow Statement
      E.   Monthly Financial Ratios
      F.   Five-Year Surplus or Deficit Statement
      G.   Five-Year Balance Sheet
      H.   Five-Year Cash Flow from Operations
      I.   Five-Year Financial Ratios
      J.   Management Team Resumes
      K.   Photos of Location
      L.   Other Supporting Documentation




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1.0       Executive Summary

         The executive summary is the first written page (s) of your business plan which highlights
          the overall intent of the business and the plan itself.

         The executive summary establishes the tone of the business plan and should capture the
          attention of the reader and or investor.

         The first paragraph should convey a vivid and concise description of the organization and
          its main objectives.

         The second paragraph should describe why there is an opportunity and how you plan to
          capitalize on it.

         The third paragraph should contain a brief overview of the leadership team and how and
          why they are capable of executing the plan.

         The closing paragraph of the executive summary should include a brief summary of the
          financing requirements, capitalization of funds and/or the usage of funds.

         The executive summary serves as the first impression to investors/stakeholders and should
          not exceed 2 pages in length.

2.0       The Organization

          2.1    Leadership and Legal Structure

                    List the key stakeholders of the organization, including:
                          o board members
                          o staff
                          o clients
                          o community members

                    Describe how the organization will be registered and/or structured in this
                     section (i.e. 501(c)(3), 501(c)(4), 501(c)(6).

                    Indicate whether your organization will be tax exempt or not.

          2.2    Location

                    List the physical address (including city and state) of the organization.
                    Include any other locations or facilities that will be owned, occupied or
                     operated by the organization.

          2.3    Organization Description and Background



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                   Provide a brief description of the organization, its history, and how the idea
                    came to be.
                    Include a brief overview of the programs or services offered.
                   Describe how the organization will benefit the public or meet the needs of the
                    community.

        2.4     Objectives
                 Include a list of organizational objectives.
                 Include at least 5 objectives that are consistent with the organization’s mission.

                Example:

                   To provide mentoring and tutoring to at risk teens within the local community.

        2.5     Mission & Values

                   Include a mission statement for the organization.
                   Include at least 4-5 core values that are consistent with the organization’s
                    mission.

                Example:

                   Customer Commitment- Build respectful relationships within the community that
                    cultivate trust

                   Financial – Commit to financial goals that maximize profits in the support of our
                    values and community

                   Quality – Provide the highest level of quality services and programs


                   Financial – Commit to financial goals that maximize profits in the support of our
                    values and community

        2.6     Building, Layout and Design

                   Describe the size of the building in terms of square footage.
                   Describe the layout and design of the space.
                   Include architectural drawings or images.
                   Highlight key features of the building.

                Example:
                 Energy Efficient
                 Environment Friendly
                 State-of-the-art Technology



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        2.7     Construction
                 Provide a brief description of the construction company.
                 Include a construction timeline.

3.0     Programs, Products & Services

        3.1     Programs
                 Describe the programs offered by your organization.
                 Specify the # of programs being offered.
                 Describe the benefits of the programs being offered and who will benefit from
                   them.
                 Include charts and/or graphs that capture your program mix, such as the pie
                   chart below.




        3.2     Products
                 Describe the products offered by your organization.
                 Specify the # of products being offered.
                 Describe each product in detail.

        3.3     Services
                 Describe the services offered by your organization.
                 Specify the # of services being offered.
                 Describe each service in detail.




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4.0     Market Analysis

        4.1     Target Market Demographics and Characteristics
                 Geographical location
                 Population (# of families, youth, teens, elderly)
                 Income levels
                 Client or customer lifestyle
                 Household size

        4.2     Market Focus
                 Describe which markets you will focus on in terms of percentage.
                 Explain the strategy that will be used to attract these markets.
                 Specify the timeframe for capturing these markets.


5.0     Management and Organization

        5.1     Management team
                 Describe the core management team.
                 Include position descriptions.
                 Discuss individual qualifications and years of experience.
                 Include an organization chart.


                Example:

                Organization Chart




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        5.2       Staffing
                   Describe the staffing levels of the organization.
                   Explain how the planned staff is proportionate to the size of the organization,
                      based on the program and services offerings.
                   Include a chart that captures monthly personnel expenses.


                  Example:
                  Four managers will oversee the organization and report directly to the Board of
                  Directors. Staff employees will consist of 40 full-time employees and 15 contractors.
                  All employees will be fairly compensated and will receive basic healthcare benefits.
                  Employee profit sharing will be offered in the future.

                     4 Management employees (1 Full-time, 3 Part-time, $70K annual salary)
                     40 staff (Full-time, $9/hour)
                     15 contractors (Part-time, $8/hour)

                  The organization will begin operations with 75% of its planned employees and
                  contractors. The remaining 25% will be hired in month four of operation, to
                  accommodate the projected increase in client/customer patronage.

                  Monthly Personnel Expenses - Year 1




6.0     Community Development

                 Describe how your organization will impact the community.
                 Focus on community development, involvement and improvement.

Our organization pledges to:

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             Offer an array of services and programs to at risk teens

             Create at least 60 jobs/positions (45 employees and 15 contractors)

             Create local construction jobs during site preparation and new building construction

             Support the environment by constructing a green building that uses solar panels,
              skylights, cisterns, recycled box materials, making it more energy efficient and
              environment friendly

             Source from local suppliers when possible

             Provide complimentary pick-up/drop off services (primarily for the elderly and those in
              need) within a one mile radius of our facility

             Promote education and awareness on health, wellness, and nutrition

             Promote residential development

             Support smaller enterprises through business partnerships and alliances

             Build loyalty and contribute to a sense of community among local residents

             Have a long-lasting, positive impact on the area


7.0     Strategy and Implementation

        7.1      Marketing Strategy Overview
                  Summarize your overall marketing strategy in terms of goals and objectives.
                  List key milestones.

        7.2      Marketing Tactics
                  List and describe the individual strategic marketing efforts and tactics that will
                   be implemented.

                 Example:
                 Trademarks, Logos, Slogans
                 Customer Surveys
                 Print Advertisements
                 Public Relations
                 Commercials
                 Direct Mailings
                 Cold Calling
                 Web and Email Marketing

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        7.3     Marketing Budget
                 Describe where you will concentrate your efforts in terms of dollars.
                 Include a chart to capture the major categories of your marketing budget.

                Example:




        7.4     Fundraising Strategy
                 Describe your fundraising strategy.
                 List the sources and types of funding that will be solicited.
                 Include a breakdown of the funding requirements, in terms of dollars and
                   percentages.
                 Describe the process you will employ for evaluating and monitoring fundraising
                   efforts.

        7.5     Sales/Funding Forecast
                 Prepare a monthly sales/funding forecast for the first year of operation.
                 Prepare annual sales/funding forecasts through year 5.
                 Include historical sales/funding data, if available.




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        Example:




                                       Annual Fundraising Forecast
      $120,000

      $100,000

       $80,000
                                                                                         Corporate Giving

       $60,000                                                                           Community Partnership Program

                                                                                         Cash Donations

       $40,000                                                                           Government Grants



       $20,000

              $-
                        Year 1       Year 2       Year 3      Year 4       Year 5


8.0     SWOT Analysis

        8.1        A SWOT Analysis
                    List and describe your existing or potential strengths, weaknesses, opportunities
                      and threats.
                    Include a SWOT analysis chart or table.




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                                                          Example:

                                                     Overcome weaknesses to pursue opportunities
                                                     Strengths                                  Weaknesses




                                                                                                                                              Establish a defensive plan to minimize threats
                                                        Central location in community             Location not in heavy traffic area
      Pursue opportunities that fit with strengths




                                                        Community based employees                 Limited marketing resources
                                                        High quality operational procedures       Poor community reputation
                                                        In-house employee training and cross      Establishing awareness in community
                                                         training program
                                                        Unique programs and services
                                                        Complimentary transportation


                                                     Opportunities                              Threats

                                                                                                   Ability to maintain and secure on-going
                                                        Partnerships with community                funding
                                                        Unmet demand for programs and             Intolerable supplier/distributor price
                                                         services                                   increases
                                                        Community involvement & support           Similar services or programs




                               8.2                        SWOT strategies
                                                           Explain how you will use your strengths to overcome your weaknesses; and
                                                           Explain how you will capitalize on opportunities to mitigate threats.

9.0                            Operations

                               9.1                        Organization Model
                                                           Describe your organizational model with respect to the strategy for managing
                                                             the overall operation.
                                                           Focus on the key attributes that will ensure the organization runs smoothly and
                                                             efficiently.

                               9.2                        Hours of Operation
                                                           List daily hours of operation.
                                                           Include holiday or seasonal schedule and special closings.

                               9.3                        Systems, Equipment and Software
                                                           List and describe the type of systems, equipment and software required for
                                                              operations.
                                                           Include cost estimates or quotes.

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        9.4     Employee Training and Development
                 List and describe the employee training and development programs that will be
                  implemented.

        9.5     Facilities
                 Include a description of the facilities and what they will be used for.


        9.6     Suppliers and Distribution
                 List major suppliers and distributors.
                 Provide a brief background, including location, services provided, and existing
                   customers of suppliers and distributors.
                 Include letters of commitment from suppliers and distributors.
                 Include cost estimates for supply and distribution.

10.0 Financing Requirements

        10.1    Total Capital Requirements
                 Include the total amount of capital required and how it will be used.
                 Include land purchases, building construction costs, start-up expenses, cash
                   reserves and any other ways the capital will be used.

                Example:

                Our organization requires $4.1million dollars in capital to start-up the new non-
                profit organization. These funds will be used for land purchases and building
                construction costs ($3M) and start-up expenses ($1.1M), with a cash reserve of
                $260K to cover the first two months of operating expenses. (See APPENDIX A: Start-
                Up and Capital Requirements for a detailed breakdown)

        10.2    Secured Funding
                 Describe sources of funding that have already been secured or obtained to fund
                   the project.
                 Include a detailed breakdown of the sources, amounts, and percentages.
                 Include grants, cash donations, or any other forms of funding already received
                   or secured.

        10.3    Total Financing Requirements
                 Describe the total financing requirements and the proposed structure in terms
                   of interest rate, terms and conditions.
                 Include a chart that captures a breakdown of the financing request.

                Example:

                Total financing requirements are $3.4M. Our organization is requesting $2.4M in
                bank loans with a 15 year term at 8% interest and $1M in private funds raised
                through bonds.
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                The bond structure and terms are:

                   2,000 bond units issued at $500,
                   Interest rate 12.5%,
                   Interest Payable commences Dec 1 of Year 3




11.0 Development & Milestones

        11.1    Completed Actions
                 Prepare a list of completed action items and significant milestones relevant to
                   the business plan.
                 Include the month and year each item was completed.

        11.2    Actions to Be Completed
                 Prepare a list of actions to be completed.
                 Estimate the month and year each action will be completed.

        11.3    Timeline
                 Include a bulleted chronological timeline of the completed actions, milestones,
                   and actions to be completed.

                Example:
                   Awarded $X by Company XYZ for building demolition and construction   Dec 2009
                   Secured buying rights for a structure from ABC                       Feb 2010
                
                             st
                    Secured 1 $50K from investor                                         Jul 2010
                   Purchased the first major parcel of land for development             Sep 2010
                   Town Hall/Investors Meeting                                          Apr 2011

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                   Secure private Investor funding                               May 2011
                   Obtain letter of commitment for bank financing                Jun 2011
                   Apply for licensing and permits                               Jun 2011
                   Purchase final pieces of land for development                 Jul 2011
                   Finalize floor plan, design and architectural drawings        Jul 2011
                   Construction begins                                           Sep 2011
                   Marketing efforts begin                                       Sep 2011
                   Signing of Lease agreements                                   Jan 2012
                   Signing of distributor/supplier contracts                     Jan 2012
                   Construction complete                                         Apr 2012
                   Hire staff                                                    Apr 2012
                   LEED Certification                                            Jun 2012
                   First Day of Operation                                        Jul 2012
                   Achieve first year funding requirements of $X                 Jul 2013


12.0 Risks & Contingencies

                12.1    Risks

                   List and describe the known risks or potential risks associated with your
                    organization.
                   Describe the process or the manner in which these risks will be addressed or
                    mitigated.

                Example:
                Loss of a key employee
                Supplier/distributor delays due to natural disasters
                Fundraising challenges

                12.2    Contingency Planning

                   Include a contingency plan (back-up plan) based on conservative estimates or
                    worst case scenarios for budgeting and forecasting revenue, funding and
                    expenses.

13.0 Financial Data Assumptions & Highlights

        13.1    Financial data assumptions
                 Include only the main assumptions driving the organization, financial budgets
                    and forecasts:

                Example:

                Income Statement
                 Fundraising, 65% of total revenue.
                 Cost of programs, products and services,43.4%
                 Tax Exempt Status
                 Fully burdened labor rate, 12% of revenue on average
                 Employee benefits 20%, taxes 10%
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                       Cost of overhead, 22% of sales
                       Average revenue growth rate, 21% in year 2, 7% years 3-5
                       Average surplus,7%

                  Balance Sheet
                   Straight-line depreciation, 30 years- building, 10 years - furniture/refrigeration,
                     5 years- computers/registers

                  Cash Flow
                   Cost of debt: bank loan, 15 years at 5%, convertible bond 5 years at 8%

                  Financial Ratios
                  See APPENDIX: MONTHLY FINANCIAL RATIOS and APPENDIX J: FIVE YEAR FINANCIAL
                  RATIOS

            Customers
                Avg. Sale per customer/per week, $51.31
                # of customers, 3,464 in Year 1
                Avg. customer growth rate = Avg. sales growth rate
                Avg. disposable income, $38,923

        13.2       Financial Highlights
                   Highlight the key financial performance measures, including sales, gross profit,
                      operating profit and net profit. Detailed financial statements should be
                      included in the appendices.

            Example:

            FIVE YEAR FINANCIAL HIGHLIGHTS          Year 1       Year 2         Year 3         Year 4      Year 5
            Funding                           $   800,000 $    968,000 $    1,035,760 $    1,108,263 $ 1,185,842
            Direct Costs                      $       -    $       -    $         -    $         -    $      -
            Gross Surplus %                          100%         100%           100%           100%        100%

            Expenses                          $   745,000 $    819,500 $     901,450 $      991,595 $ 1,090,755
            Surplus Before Interest & Taxes   $    55,000 $    148,500 $     134,310 $      116,668 $ 95,087

            Net Surplus                       $    40,000 $    133,500 $     119,310 $      101,668 $     80,087
            Net Surplus %                              5%          14%           12%             9%           7%


14.0 Exit Strategy

        14.1      Exit strategy
                   Describe your plan for exiting the organization.
                   Include at least two different options for exiting the organization.

                  Example:
                  Liquidation in times of unrecoverable financial losses
                  The sale and/or transfer of the organization



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