Let’s say that your nonprofit organization is a car, and your business model as Kate describes it in her article below is its engine, and it is fueled by your staff and $$, and its drivers are the Executive Staff and Board.
We’d like you to consider these questions:
Read Kate's article below to learn more about how your Business Model is analogous to the things you find under the hood of your car - parts that must work together in order for the car to go forward. Then join us for our seminar: Designing Your Engine: Business Models that Power Mission to hear directly from our 4 panelists who will describe how they have rebuilt their engines and convinced their Drivers to get on Board. Register today as seats are limited.
Does Your Engine Work? Adapting Your Business Model to a Changing Reality
Let’s start with: What is a business model? In the nonprofit sector a successful Business Model results in delivering high-quality programs and services that meet mission. For many of the nonprofits we work with, their business model is at the core of the issues they need to address in order to remain financially stable to carry out their mission. A few examples:
Sound familiar? These examples illustrate that a nonprofit’s business model encompasses its financial picture - money in, money out, and what assets are needed to ensure financial stability and consistent mission delivery. However, a common misconception is that a business model is solely about dollars and cents, and can be easily read on financial reports. Rather, the business model is the design for how an organization creates and delivers value to its clients/community in a sustainable way.
Your financial picture is not your Business Model; rather, it is THE RESULT of the business model. Revenues, expenses, and assets don’t exist in a vacuum. Each of those dollars that go in and out are connected to the strategies, processes and activities that happen within a nonprofit that lead to successful mission delivery. And those strategies, processes and activities are impacted by numerous factors, some of which are in your direct control, and some of which are not. READ THE REST OF THE ARTICLE HERE
We'd love to hear what kind of car you are driving or what your dream car would be. Use the comment section below or write to us at Leslie@BonnerSphar.com and Kate@BonnerSphar.com