The question that needs to be answered is what is a non-profit? It may be better to start with what is a non-profit not. They are not exclusively on donations or grants from federal, state or county funds. They do not ask for money and it is given to them. True they are provided some funding through federal set aside programs, state subsidies and some county funds but this only comprises between 30-40% of their operating budgets. They must find other means to fund the rest of their businesses. Though some organizations receive more or less funding, this article is describing vocational work center entities or organizations that help provide employment or training activities for underemployed individuals. However, non-profit businesses range from places of worship, vocational work centers to the NFL. However, did you also know that a non -profit can be a restaurant or a retail store? A common misconception with the general population that non-profits do not make money and if they do make a profit, they give it all away. Otherwise, the public believes that non-profits are not allowed to make money. However, this is not accurate. Non-profit businesses are... businesses. True a nonprofit runs programs that benefit its clients or members, are tax exempt and many also have volunteers. They are simply defined as they cannot produce dividends for investors, they provide income for the employees/clients, and they foster work or their mission benefits its members and the community. Profits can be disbursed or invested for the intended use in the future for extension of programs that meet the organization's mission.
Non -profit businesses are mission driven entities. Meaning that all activities must further their mission statement. A work center or sheltered workshop is a non-profit that may have the mission of vocational training or work activities for those with disabilities. Their core activities must revolve around furthering work related activities for those they serve.
Knowing roughly how non-profits function how can they ever compete with for profit businesses? As I mentioned before a restaurant or store can be a non-profit also.
When a nonprofit is thinking of venturing into the for profit world with a business venture there are a few things that are essential to their success.
Number 1: Non-profit organizations that are thinking about breaking into a sector that is primarily comprised of for profit businesses is to educate communities. They need to make sure they interact with the community on a regular basis educating everyone they meet on how non-profits work. People honestly do not understand until you tell them. To sell to people they must understand what your organization does and how it works. You can never do this enough. Tell them and tell them again. Let them know you are thinking about branching out. You may find support in the most unlikely places. Make an effort to be connected to your local community. Join chambers, community groups and be involved in community events. Constant contact makes others recognize you and gives your organization exposure. Vital for consideration for the for profit business you are planning on starting.
Number 2: Make sure that everyone knows the company mission. It should be included in all printed material, your website, business card etc...in addition, on the tip of your tongue when speaking with someone new.
Number 3: Never assume that you know it all. This is key. You can always learn something new. Whether you have done something for 20 years or this is your first venture never assume you cannot learn from someone because of who he or she are or how he or she look. Be open to others suggestions, assistance and use them as a springboard for your ideas. They just might see things in a perspective different from your own. This can help when branching out into the for profit world especially if you have been in the nonprofit sector for some time.
Number 4: Do extensive feasibility studies. If you think that, you want to do a franchise, investigate all options and see how the various ones fit your mission. Gain as much information about a program you are thinking about, make lists of pros, and con's of each.
Number 5: Though part of the feasibility study look extensively at staffing to run this new venture. Non -profit staffers usually have varied duties and assume many roles. If you are thinking about existing staff taking over the program in addition to their normal duties (even if they share the responsibilities) discuss with them. Make sure they know what is going to be expected of them. It really is vital to look at staffing before starting the venture and I believe that many overestimate the capacity of their current staff to handle more.
Number 6: Make sure that the mission is the reason for this new program. As you narrow down your search using the feasibility studies and always make sure that you can answer this one question. Does it help up meet or further our mission? Then list 10 ways how it does so.
When thinking about expanding your company's program services, careful planning and following the 6 suggestions above will give you good start in making an informed decision. A decision that will make an impact for the individuals receiving your services as well as the community where it is located.
Your business is in business to fulfill a mission and that should be central to your existence. A nonprofit in today's world has many options to expand their services so that they can expand their service reach and make a difference in others lives. Make sure that you plan carefully to ensure success and always be proud of the services you provide your clientele.
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