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Mae, with Wonder Girls, asks:
Q: I am seeking some insight and advice. I am with a start up organization that will be a women's association/membership. Our organization consists of seven core programs that have the opportunity to involve earned income strategies. We would also like to have a foundation which reaches a certain target market in addition to expanding our mission as well as a mix of social enterprises. Because we are a start up, does anyone have any advice on things I should look out for, do or don't do?
Patrick O'Heffernan responds:
First, seven seems like a lot of programs for all of them to be "core". Is there one that holds your identity as an organization - your signature program that helps the world - so that foundations immediately understand what you are about?
Secondly, it sounds like for a start up, you are biting off an awful lot of stuff. Developing earned income is a major project in itself. Unless you have a significant staff with experience in each of the projects you have listed, and especially in the earned income strategies, you should pick one and develop it into a profitable income stream before branching out.
Since you did not indicate what your capitalization is and what your
strategies are, I have to stay somewhat general, but here are five points to take into consideration:
1. Is your goal clear to the world as well as to you?
Seven programs, even if each one is tightly connected to your goal, can each get off course as time goes by, leaving you with seven mini-organizations, each of which is under-funded and under-staffed.
2. Are you capitalized to see through your revenue strategy?
Developing a market and a profitable revenue stream that changes with market changes and continues to grow is a long term commitment that require intense work. It will take about three times longer than your least optimistic timeline unless you have adequate capital to sustain the organization while you grow the business.
3. Do you have the skills you need, especially marketing?
NPOs often view marketing as an afterthought and when they get around to it, they under-fund it and try to do it without research or professional skills. If your revenue strategies involve selling stuff or services, at the beginning you must have the talent on board to understand the market you are entering and devise a competition strategy that fits that market and your strengths. Budget as much for this, or more, than for the program during the start up phase.
4. Do you have the management depth to do all of this?
Managing one program can be challenging; managing seven plus income generation will take someone with a lot of management training and experience -- at least five years running start-ups and large organizations.
5. Watch the politics!
Every body pulls together at start up, but when things go wrong - and they will - the knives come out. And when things go right and there are more resources, the knives can come out as the stakes go up. Keep your finger on the organization's pulse, listen, listen, listen, and be fair and truthful all the time so you are not seen as a advocate as the sides develop.
Starting up
Sounds like you have some of the pieces, but I would make sure you have people on board who have worked in the private sector. One thing about running a business that many folks from NPOs are not ready for is competition. FPO's are used to fighting for market share and they can be brutal, unfair and even illegal, but it goes with the territory. Get a copy of Jerr Boschee's book of case studies of organizations that have done what you are attempting, The Social Enterprise Sourcebook.
Re: WonderGirls
Thank you Patrick for responding to my question. I would have responded sooner, however I had limited access to the computer. However, I have returned to offer more insight.
The organization's mission is to advance and empower women internationally. (Short version)
To clarify - the core program is broken down into seven different departments which will aid in the empowerment and advancement of women. Our signature program will be the Core program so to speak which happens to have seven departments or components. Example: Health & Wellness Education, Economic Development etc...
As of now, we are currently developing our parent organization which consists of the core program. We are not ready to develop earned income, rather they have the potential to be earned income. For example fee for service - fees collected through a seminar, membership fees etc. We have a 10 year plan which includes expansion to further our mission, however our focus and work is going into developing the NPO.
When I say we are start up, we are start up. We only have a business proposal and we are handling the legal aspect now on making us a legal entity.
The thought has crossed my mine that we it seems as if we have seven mini organizations because our departments cover personal development in a wide range, rather than just say economic development. What advice do you have to prevent them from becoming separate and function together? More interdependent, not independent or dependent.
I have taken marketing courses and will be taking a social marketing course. In addition our human resources coordinator is recruiting marketing talent now.
While I do not have a MBA, I do have over 5 years of non profit experience, in addition I have a certificate in leadership development, as well as a degree in business management. The rest of the staff all possess there BA's in different fields. I will be applyig for an Executive Management program, when we become an official organization. I am also an Alumni that offers regular training on a consistent basis. All staff will be taking management courses as well as other courses. Professional development is not only apart of what we will offer women, it is something we believe in offering to ourselves.
We also have a prominent lawyer on our advisory board who has powerful ties to alot of people. We are currently an all volunteer run organization with different women from different backgrounds.
Thanks!