The document discusses the components and purpose of business plans and grant proposals. It notes that both require outlining an intervention to address an identified need or problem, presenting a budget and resources, and providing financial analysis to demonstrate feasibility. However, business plans have an internal focus to convince an organization's decision-makers and typically seek funding from the organization or banks, while grant proposals have an external focus on outside funders like foundations or government agencies. Key components of business plans include identifying the problem, defining the product or service, analyzing the market, developing budgets, conducting additional financial analysis, creating a timeline, and stating feasibility and conclusions.

1. CHAPTER 10: WRITING A BUSINESS
PLAN
• Describe the components included in most
business plans, and their purpose
• Explain why a special purpose budget is an
essential component of a business plan
• Identify at least two types of financial analysis
useful in developing a business plan
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2. BUSINESS PLAN & GRANT
PROPOSALS BOTH:
• Convince the reader there’s a need or problem
that must be addressed
• Outline an intervention, purchase, or program
that addresses the concern
• Present a budget & review of needed resources
• Financial analysis supports feasibility
• Provide a convincing rationale to obtain money &
other resources to accomplish specific goals &
objectives
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3. BUSINESS PLANS VS. GRANT
PROPOSALS
Business plan:
• Internal focus to convince
your organization’s decision
makers or yourself
• Funding source typically
your organization or bank
• Purpose to increase
profitability
• Proprietary
Grant proposal:
• External focus to convince
outside funders
• Funding source typically
private foundation or
government agency
• Purpose often to respond to
need & develop programs
• Community based
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4. PLANS AND PROPOSALS COMPARED
TO A LOTTERY TICKET
Amount of work invested
up-front:
– Lottery ticket: assume
6 minutes
– Plan or proposal: 600 minutes
(10 hours)
– Considerably more work to
prepare a plan or proposal
• Approaches or reaches
publication quality
• Requires planning, thought,
teamwork, coordination
Odds of reward:
– Lottery ticket: assume one to
18 million
– Plan or proposal:
• Varies and can be targeted
or improved
• 1:20 as a guess-timate
– Odds of winning the lottery
approach zero
– Odds of getting your plan or
proposal funded are
uncertain but MUCH greater
than zero
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5. NURSE ROLES IN BUSINESS
PLANS
• Entrepreneur
• Intrapreneur
• Principal proponent
• Supportive role
• Making a business case for improving patient
care and profitability
• Team player and team leader
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6. WRITING SKILLS
• Proofreading
• Avoid jargon, spell out terms, be clear
• Executive summary
• Organization and logical flow
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7. BUSINESS PLAN COMPONENTS
• Problem or need identification
• Product definition
• Market analysis
– Continue or end here. If continued:
• Budget estimates
– Continue, revise or end here. If continued:
• Additional financial analysis
– Continue, revise or end here. If continued:
• Timeline
• Conclusion and feasibility statement
– Accept, reject, or revise the business plan
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8. PROBLEM OR NEED
IDENTIFICATION
• First step and first section of business plan
• Useful questions:
– Is this a problem that can be solved by a new
program or other intervention?
– What is the political context of the problem?
– How well does the business plan fit with the
organizational mission, values, and goals?
– Where does this problem rank compared to other
departmental and organizational priorities?
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9. PRODUCT DEFINITION
• Describe the specific product
• Explain ways the product can be provided
• Identify required resources
• Timeline to implement the program
• Trends that might affect the program
• Provide alternative scenarios for comparison
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10. MARKET ANALYSIS
• Market share
• Identify:
– Clients and client mix
– Payors and payor mix
– Competition, strengths,
and weaknesses
– Demand for product or
service
• Consider anticipated
change – any or all of
above
• Alternative approach
– Regulatory requirements
– Quality initiatives
• Addressing the
regulatory
requirements or quality
initiatives related to the
proposed plan or
project can be the basis
for the market analysis
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11. BUDGET ESTIMATES
• Capital budget: start-up costs
• Operating expense budget
• Revenue budget (if revenue-generating)
• pro forma P&L statement
• Include overhead expenses per policy
• More in-depth analysis if profitability is
uncertain at this point
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12. ADDITIONAL FINANCIAL
ANALYSIS
• Break-even analysis: will the project cover its
costs, make a profit?
• CBA: will savings cover or exceed costs?
• CEA: is this the best alternative?
• Determine cost savings, program feasibility
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13. TIMELINE, FEASIBILITY STATEMENT,
AND CONCLUSION
• Specific
• Realistic
• Gantt chart useful to
visualize the timeline
Feasibility statement:
•Bias to ignore infeasibility
of project
•Will save money if ending
infeasible project at this
stage
Conclusion:
•Brief summary to wrap
up the document
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14. ELEVATOR SPEECH
• Brief: three to five minutes
• Overview of project, including budget and
financial analysis results
– How much will the program or project cost?
– Will the program or project save money or
generate revenue and profit?
• Convincing
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