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
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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
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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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