Sustainability & Business Model Cohort Kickoff Steve Zimmerman, - - PowerPoint PPT Presentation

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Sustainability & Business Model Cohort Kickoff Steve Zimmerman, - - PowerPoint PPT Presentation

Mar 18, 2023 463 likes •892 views

Sustainability & Business Model Cohort Kickoff Steve Zimmerman, CPA, MBA Spectrum Nonprofit Services @SpectrumSteve Welcome Our Timeline Phase Process Step Format Dates Sustainability Theory Business Model Overview Webinar Kick

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Sustainability & Business Model Cohort Kickoff

Steve Zimmerman, CPA, MBA Spectrum Nonprofit Services

@SpectrumSteve

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Welcome

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Cohort Process Description Intended Impact Direct Beneficiaries Define Programs Mission Impact Assessment Profitability / True Costs Sustainability Theory Business Model Overview Market Analysis Framework Revenue Analysis Key Messages of the Matrix Map Communication & Reporting Peer Learning Phase 1: Foundations

  • f

Sustainability Phase 2: Business Model Data Phase 3: Business Model Analysis & Strategy Phase Process Step 1 Day In- Person Session Webinar Kick Off Webinar 1.5 Day In- Person Session Webinar

Format

Webinar Coaching (25 hours shared among all organizations) *All webinars from 12:00 PM – 2:00 PM ET (unless otherwise noted) December 10 9:00 AM – 3:00 PM ET November 6*

  • Feb. / Mar.

April May / Jun.

Dates

January 22*

Our Timeline

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 An in-depth understanding of your

  • rganization’s business model as picture

by the matrix map, and a framework for making ongoing strategic decision to strengthen your business model. This includes:

– A statement or outline of intended impact; – Knowing the true full costs and profitability of your programs; – A structured discussion to assess the relative impact

  • f each program;

– Knowledge of the organization’s revenue mix;

 Initial strategic priorities to strengthen the

  • rganization’s business model and

sustainability.

Cohort Goals

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 Sustainability Overview  Nonprofit Business Models  Nonprofit Markets  Matrix Mapping Process  Your Goals  Next Steps

Our conversation

Feel free to chat questions to us during the webinar

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What is Sustainability?

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Financial Strategy

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Impact Strategy Financial Strategy

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Financial sustainability (the ability to generate resources to meet

the needs of the present without compromising the future)

and Programmatic sustainability (the ability to develop, mature,

and cycle out programs to be responsive to constituencies over time.)

  • - Nonprofit Sustainability: Making Strategic Decisions for Financial Viability

Defining Sustainability

Sustainability encompasses both:

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Defining Sustainability

So what’s the answer?

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“A business model is a company's plan for making a profit. It identifies the products or services the business will sell, the target market it has identified, and the expenses it anticipates”

  • -- Investopedia

Defining Business Model

What is a business model?

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Defining Business Model

Business Model Examples

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  • Those paying for funds are often not the same as those

receiving services and may value the service differently

  • Donors can restrict funds
  • We often “price” work at below actual cost
  • We may draw on volunteers and in-kind donations
  • We are not expected to be profitable, but we must be.

Defining Business Model

But, nonprofit business models work differently than for-profit models

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Defining Business Model

Different strategies, same mission

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Defining Business Model

Nurturing the business model requires constant consideration of:

  • Nonprofit Quarterly
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Impact Strategy Financial Strategy

Your hypothesis about which impacts will engage human and financial participation

Defining Business Model

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Your hypothesis about which impacts will engage human and financial participation

  • From here, a chosen set of mission specific and fund

development activities that work together to achieve BOTH mission impact and financial viability.

  • Every organization’s set of activities is unique and

represents management’s and the community’s best thinking of how to be sustainable.

Defining Business Model

Operationalizing Your Business Model

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Defining Business Model

But how do we see our business model?

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The Matrix Map

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The Matrix Map

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Permanent Collection Learning Center Exhibits Film Education Store Fees Membership Individual Giving Government Funding Planned giving 1.00 2.00 3.00 4.00 $(300,000) $(100,000) $100,000 $300,000 $500,000 $700,000 Impact Profitability

Sample Matrix Map

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Matrix Map Overview

  • What we do (bubbles)
  • Mix of mission-

specific (blue) and fund development programs (green) (color of bubbles)

  • Where we are investing our resources

(size of bubbles)

  • The net financial results of each activity (horizontal axis)
  • Relative mission impact of each activity (vertical axis)
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Matrix Map Process

Articulate Intended Impact Define Programs Assess Mission Impact Determine Profitability Analyze Revenue Plotting Your Map

Analyzing Your Map

Making Strategic Decisions

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Starting with Impact

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Profitability

Determining Profitability

Surplus Surplus Surplus Surplus Deficit Deficit Deficit Deficit Surplus Organization

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The Matrix Map

What is the right revenue strategy for

  • ur
  • rganization?
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SHOW ME THE MONEY!

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“Maintaining multiple, highly diverse revenue streams can be problematic when each requires, in essence, a separate business. Each calls for specific skills, market connections, capital investment, and management capacity.”

Clara Miller “Shattering the Myth About Diversified Revenue” Chronicle of Philanthropy, September 2010

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How do we find the “right revenue” strategy?

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The Matrix Map

COMMUNITY

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The Nonprofit Market

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Matrix Map Process

Articulate Intended Impact Define Programs Assess Mission Impact Determine Profitability Analyze Revenue Plotting Your Map

Analyzing Your Map

Making Strategic Decisions

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SUSTAINABILITY is an orientation, not a destination.

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Sustainability involves ongoing decision making about your business model.

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Tools for Decision Making

Decision Making

Intended Impact Statement True Cost / Profitability Template Mission Impact Assessment Revenue Analysis Templates Market Analysis Framework Matrix Map & Strategic Imperatives Implementation Templates

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Leadership Impact Strategy Financial Strategy

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What are your goals for this project? Write down the 1 – 3 most important lessons / skills you hope to achieve through this program.

Goal Setting

Your Turn

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Cohort Process Description Intended Impact Direct Beneficiaries Define Programs Mission Impact Assessment Profitability / True Costs Sustainability Theory Business Model Overview Market Analysis Framework Revenue Analysis Key Messages of the Matrix Map Communication & Reporting Peer Learning Phase 1: Foundations

  • f

Sustainability Phase 2: Business Model Data Phase 3: Business Model Analysis & Strategy Phase Process Step 1 Day In- Person Session Webinar Kick Off Webinar 1.5 Day In- Person Session Webinar

Format

Webinar Coaching (25 hours shared among all organizations) *All webinars from 12:00 PM – 2:00 PM ET (unless otherwise noted) December 10 9:00 AM – 3:00 PM ET November 6*

  • Feb. / Mar.

April May / Jun.

Dates

January 22* 6 – 8 Hours None 2 Hours Refine / communicate as needed None

Homework

6 Hours

Our Timeline

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You’re not alone . .

The Spectrum team is here to help:

Steve Zimmerman

stevez@spectrumnonprofit.com 414.226.2322

Steve Strang

sstrang@spectrumnonprofit.com 414.727.4676

Chris Fink

chrisf@spectrumnonprofit.com 414.727.1029

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Next Session: In-Person

  • Intended Impact
  • Define Programs
  • Mission Impact Assessment

Cohort Website

http://spectrumnonprofit.com/troweprice/ Next Steps