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Enhancing Your Revenue Stream

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Revenue generation requires focus. Nonprofits and associations benefit from stakeholder network participation in developing new revenue streams.

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Enhancing Your Revenue Stream

  1. 1. Enhancing Your Revenue Stream Institute for Organization Management Victoria G. Axelrod Principal Axelrod Becker Consulting www.axelrodbecker.com 7/31/06
  2. 2. Learning Objectives <ul><li>Evaluate Various Avenues to Bring Revenue into the Organization </li></ul><ul><li>Examine New Sources of Revenue: </li></ul><ul><li>Fund-Raise, Sponsor, Partner, Collaborate </li></ul><ul><li>Earned Income </li></ul><ul><li>Address Financial and Legal Implications with different Revenue Streams </li></ul>
  3. 3. Chambers as Networks
  4. 4. Business Strategy <ul><li>Who are you? </li></ul><ul><li>Who is in Your Network? Who is on your board? </li></ul><ul><li>Who are your constituents? Stakeholder Network? </li></ul><ul><li>Where are you going – Strategic Intent </li></ul><ul><li>Time frame, Milestones, Outcomes </li></ul><ul><li>Core Competencies – what are you good at </li></ul><ul><li>Resources </li></ul>
  5. 5. Business Strategy 4 “Cs” <ul><li>Context </li></ul><ul><li>Customers </li></ul><ul><li>Constraints </li></ul><ul><li>Competencies </li></ul>
  6. 6. What are Your Core Competencies? <ul><li>End Products/Services </li></ul><ul><li>Core Products/Services </li></ul><ul><li>Core Competencies </li></ul><ul><li>Earned Income opportunities can be found on any of these three levels. </li></ul>
  7. 7. Value Proposition <ul><li>Clear statement of what the customer receives. </li></ul><ul><li>Strong value propositions deliver tangible results like: </li></ul><ul><li>Increased revenues </li></ul><ul><li>Faster time to market </li></ul><ul><li>Decreased costs </li></ul><ul><li>Improved operational efficiency </li></ul><ul><li>Increased market share </li></ul><ul><li>Decreased employee turnover </li></ul><ul><li>Improved customer retention levels </li></ul>
  8. 8. Value Proposition 2.0 <ul><li>Co-creation with customers – Think: </li></ul><ul><li>Amazon </li></ul><ul><li>eBay </li></ul><ul><li>Lego </li></ul><ul><li>iTunes </li></ul><ul><li>Procter & Gamble </li></ul><ul><li>“prosumers” – producer and consumer </li></ul>
  9. 9. What Can You Create with Your Network? <ul><li>The network creates the content </li></ul><ul><li>You provide the infra-structure </li></ul><ul><li>Monetize the experience: </li></ul><ul><li>- License </li></ul><ul><li>- Fee for Service </li></ul><ul><li>- Franchise </li></ul><ul><li>- Sponsor </li></ul><ul><li>- Partner </li></ul><ul><li>- Foundation Funder </li></ul>
  10. 10. Current Revenue Stream Is this the Right Mix for Your Strategy?
  11. 11. Why Should I Partner with You? <ul><li>Criteria from Both Parties </li></ul><ul><li>- Brand development </li></ul><ul><li>- Value Added Services/Special Products </li></ul><ul><li>- Market Industry Niche </li></ul><ul><li>- Customer or Constituent Base </li></ul><ul><li>- Financial Gain </li></ul><ul><li>Evaluation of Success </li></ul><ul><li>Separation Clause </li></ul>
  12. 12. Business Plan <ul><li>A business plan - detailed road map you need to have for each venture. </li></ul><ul><li>Plan categories help you quickly determine go or no go. </li></ul>
  13. 13. Legal & Financial Options <ul><li>Establish for-profit entity </li></ul><ul><li>Remain as nonprofit </li></ul>
  14. 14. References and Resources <ul><li>Jody Blazek Unrelated Business Income: A Primer , National Center for Nonprofit Boards, July/Aug 1999. </li></ul><ul><li>Alan R. Andreasen &quot;Profits for Nonprofits: Find a Corporate Partner,&quot; </li></ul><ul><li>Harvard Business Review , Volume 24, #6, pp. 47, Nov-Dec 1996 </li></ul><ul><li>Brad Caftel &quot;Business ventures for nonprofits: finding the right legal structure,&quot; Grantsmanship Center Magazine , Winter 1997. </li></ul><ul><li>Reviews the pros and cons of creating a separate for-profit subsidiary when a nonprofit starts a business venture. </li></ul><ul><li>Community Wealth Ventures, Inc., and Powell Goldstein Frazer & Murphy LLP. Legal and Tax Structures: An Introduction for Entrepreneurial Nonprofit Organizations , Washington, DC, 2002. </li></ul><ul><li>www.ventures.yale.edu </li></ul>
  15. 15. References and Resources
  16. 16. References and Resources <ul><li>Securing Your Organization's Future: A Complete Guide to Fundraising Strategies (Paperback) by Michael Seltzer </li></ul><ul><li>The Future of Competition: Co-Creating Unique Value with Customers (Hardcover) by C. K. Prahalad , Venkat Ramaswamy </li></ul><ul><li>The Hidden Power of Social Networks: Understanding How Work Really Gets Done in Organizations (Hardcover) by Robert L. Cross , Andrew Parker , Rob Cross </li></ul><ul><li>Alliance Advantage: The Art of Creating Value Through Partnering (Hardcover) by Yves L. Doz , Gary Hamel </li></ul>
  17. 17. Summary <ul><li>Evaluate Various Avenues to Bring Revenue into the Organization </li></ul><ul><li>Examine New Sources of Revenue: </li></ul><ul><li>Fund-Raise, Sponsor, Partner, Collaborate </li></ul><ul><li>Earned Income </li></ul><ul><li>Address Financial and Legal Implications with different Revenue Streams </li></ul>
  18. 18. Thank You! Contact [email_address] 212-369-2885

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