In the world today it is widely known that there are two main business classifications Non-profit and For profit business’s. Firstly lets define the two classifications –
For Profit Business is a business which is ran to make a profit, to be precise a Net Profit which is the monies left after deducting the expenditures form the sales.
Non Profit Business is a business/organisation that has committed legally not to distribute its net profit to its member parts i.e. directors, trustees or staff.
There are many similarities between the two business types we are looking at today. Whether you are looking to run a non-profit or a for profit business the business basics are the same each has to create a profitable income through providing a good service as is the core reason behind any business.
Below we will highlight ten strategies for running your non-profit business like a for profit business
- Business Planning Having a solid plan and business structure accomplishes greater profitability and functionality for ANY business. Your business plan should highlight the purpose, the objectives and expected growth of your business. It also has the benefit of highlighting any problems that may arise, and provides a good comparison between paper and reality.
- Fulfil a Need both profit and non-profit business need to fill a gap in the marketplace or community. If there is no requirement for your business to exist then its success at generating income is fundamentally floored.
- The People both types of business are ran by the people it employs so finding the right people to fit within your organisation will maximise its success.
- Provide a Good Service – providing a good service is key to making a success of your business. This will generate a good reputation among clients, customers and associates alike and therefore more business.
- Make a Profit Non and For profit business’s both need to make a profit, for fundamentally different causes but the need to generate more revenue than expenditure exists for both.
- Branding creating and having a company brand is very important to create awareness through marketing.
- Marketing – you need to generate awareness of your business and its services. The best way to do this is through marketing. Both types of business can incorporate the same strategies to draw the attention of your potential customers.
- Website in today’s world EVERY business needs a company website, it has many benefits from making your business more professional to providing information to your potential customers and existing clients as well as providing an avenue for invaluable data capture.
- Social Media Marketing regardless of whether you are a plumber or charity, social media marketing should now be a fundamental part if you’re marketing strategy. Social media provides the opportunity to reach a target audience specified by age, gender, relationship status, likes and dislikes and geographic area. No other form of marketing will enable you to do this so proficiently.
10. Communication – communication with potential and existing customers is the vital and provides a vital aspect of providing a good service which in turn helps profitability.