How to Start a Community Center
Starting a community center can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful community center.
Importantly, a critical step in starting a community center is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .
Download our Ultimate Business Plan Template here
14 Steps To Start a Community Center :
- Choose the Name for Your Community Center
- Develop Your Community Center Plan
- Choose the Legal Structure for Your Community Center
- Secure Startup Funding for Your Community Center (If Needed)
- Secure a Location for Your Business
- Register Your Community Center with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Community Center
- Buy or Lease the Right Community Center Equipment
- Develop Your Community Center Marketing Materials
- Purchase and Setup the Software Needed to Run Your Community Center
- Open for Business
1. Choose the Name for Your Community Center
The first step to starting a community center is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your new community center:
- Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
- Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
- Think about marketing . Come up with a name that reflects the desired brand and/or focus of your community center.
2. Develop Your Community Center Plan
One of the most important steps in starting a community center is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to private or public funding sources to raise capital for your business.
Your business plan should include the following sections:
- Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your community center.
- Company Overview – this section tells the reader about the history of your community center and what type of community center you operate. For example, are you a recreational, senior citizen, multicultural, or youth community center?
- Industry Analysis – here you will document key information about the community center industry. Conduct market research and document how big the industry is and what trends are affecting it.
- Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
- Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
- Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
- Product : Determine and document what products/services you will offer
- Prices : Document the prices of your products/services
- Place : Where will your business be located and how will that location help you increase sales?
- Promotions : What promotional methods will you use to attract customers to your community center? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
- Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
- Management Team – this section details the background of your company’s management team.
- Financial Plan – finally, the financial plan answers questions including the following:
- What startup costs will you incur?
- How will your community center make money?
- What are your projected sales and expenses for the next five years?
- Do you need to raise funding to launch your business?
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3. choose the legal structure for your community center.
Next you need to choose a legal structure for your community center and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
1) Sole proprietorship
A sole proprietorship is a business entity in which the owner of the community center and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
2) Partnerships
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a community center together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
3) Limited Liability Company (LLC)
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a community center include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
4) C Corporation
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a community center is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
5) S Corporation
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your community center, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
4. Secure Startup Funding for Your Community Center (If Needed)
In developing your community center plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a community center to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a community center that they believe has high potential for growth.
There are also several grants to start a community center.
5. Secure a Location for Your Business
The best way to find a location for your community center is to evaluate your needs and find a spot that meets those requirements. Consider things like the amount of space you’ll need, the accessibility of the location, and what kind of facilities are available. You can also look for locations that are central to your community or have an existing organization nearby.
Once you’ve identified some possible locations, it’s important to visit the site and take a closer look at the space. This will help you determine if the location is right for your needs. You’ll also want to talk to the property owner or manager to get an idea of what the terms and conditions would be for using the space.
6. Register Your Community Center with the IRS
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
7. Open a Business Bank Account
It is important to establish a bank account in your community center’ name. This process is fairly simple and involves the following steps:
- Identify and contact the bank you want to use
- Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
- Complete the bank’s application form and provide all relevant information
- Meet with a banker to discuss your business needs and establish a relationship with them
8. Get a Business Credit Card
You should get a business credit card for your community center to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
9. Get the Required Business Licenses and Permits
You will need to obtain a business license and a zoning permit to start a community center. You may also need to obtain other permits, depending on the nature of your business. For more information, contact your local licensing authority or zoning board.
10. Get Business Insurance for Your Community Center
There are multiple types of insurance you’ll need to run a community center.
Some business insurance policies you should consider for your community center include:
- General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
- Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
- Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
- Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
- Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
- Professional liability insurance : This protects your business against claims of professional negligence.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
11. Buy or Lease the Right Community Center Equipment
The necessary equipment for a community center can vary greatly depending on the size and purpose of the center. However, some essentials include tables and chairs, a sound system, a stage, and possibly kitchen facilities.
12. Develop Your Community Center Marketing Materials
Marketing materials will be required to attract and retain customers to your community center.
The key marketing materials you will need are as follows:
- Logo : Spend some time developing a good logo for your community center. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
- Website : Likewise, a professional community center website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
- Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your community center.
13. Purchase and Setup the Software Needed to Run Your Community Center
To run a community center, you’ll need some essential software. First, you may want to use a content management system (CMS) such as WordPress to create a website for your center. These systems typically include features such as user registration, forums, and blogs that will help people in the community stay informed on the programs available and get the most out of your center. Additionally, you may want to invest in some accounting software to manage the center’s finances and budget.
14. Open for Business
You are now ready to open your community center. If you followed the steps above, you should be in a great position to build a successful business and know everything you need about how to start a recreation center. Below are answers to frequently asked questions that might further help you.
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How to Start a Community Center FAQs
Is it hard to start a community center.
It can be hard to start a community center, but it can also be quite rewarding. There are a few things you can do to increase your chances of success:
- Start by researching the different types of community centers and the needs of the local community.
- Make sure your community center location is accessible and welcoming to everyone.
- Develop a clear vision for what you want your community center to achieve.
- Raise funds and get support from local government agencies or other organizations.
- Hire qualified staff and volunteers.
- Promote your community center and get people involved.
How can I start a community center with no experience?
There are many ways to start a community center with no experience. One option is to look into community or religious programs that are already in place and see if there is a way to join or partner with them. You can also check out a non-profit organization in your local community. Another option is to reach out to your local government or Chamber of Commerce and see if there are any grants or funding opportunities available for community center start-ups. Finally, reach out to local businesses and civic organizations to see if they would be interested in partnering with you on your community center project. No matter which route you choose, the most important thing is to get started and to keep moving forward.
What type of community center is most profitable?
There is no definitive answer to this question as it depends on a variety of factors, such as the location of the community center and the type of services offered. However, some centers are more profitable than others. For example, a community center that offers child care services can be quite profitable. Additionally, a community center that is located in a high-traffic area is more likely to be profitable than one that is not.
How much does it cost to start a community center?
Starting a community center typically costs between $50,000 and $100,000. However, the cost can vary greatly depending on the size and location of the center, as well as the type of programs offered.
What are the ongoing expenses for a community center?
Some common ongoing expenses for a community center can include rent or mortgage payments, utility bills, necessary repairs and maintenance, staff salaries, and programming costs.
How does a community center make money?
A community center can make money in a few ways: through memberships, donations, fundraising events, and grants. Some community centers also offer classes or rent out space for events.
Is owning a community center profitable?
There are a few reasons owning a community center can be profitable. Community centers can offer classes and workshops that will bring in new customers. Another reason is that community centers can be used as event venues, which can bring in rental income. Finally, community centers can offer space for businesses to operate, which can bring in additional revenue.
Why do community centers fail?
Most community centers fail because they do not generate enough revenue to sustain themselves. Typically, a community center will have to charge membership fees to maintain operations. However, if the community center is not able to attract enough community members, it will eventually have to close. Additionally, many community centers rely on government funding, which can be unreliable. If the government decides to cut funding for a community center, it may have to close its doors. Finally, poor management can lead to the failure of a community center. If the staff is not properly trained or if the center is not run efficiently, it will likely fail.
Other Helpful Business Plan Articles & Templates
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Community Center Business Plan
Used 4,947 times
You can use this Community Center Business Plan Template, it is perfect for anyone desiring to open and run a society center. It gives the center’s owner an outline of areas that must be disseminated with the investors to earn an acquisition.
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Community Center Business Plan Template
Prepared for:
[Client.FirstName]
[Client.LastName]
Prepared by:
[Sender.FirstName] [Sender.LastName]
Table of Contents
Executive summary, site and operations, strategic theory, marketing plan, management team, financial summary, mission statement:.
[Center.Name] plans to empower young people in the community to participate in events with great opportunities. In addition, it opens doors to better communication between the local people and builds job opportunities for the unemployed.
[Center.Name] promises to hold an average of (number) events during the year. We also aim to conduct events to help people quit drugs and start earning for themselves. (Continue the vision according to the mission)
History of [Center.Name] :
(Mention the history and the reason behind this plan)
Possible Accomplishments:
[Center.Name] aims to achieve the following accomplishments at the end of its first year:
Host (Number of events)
Collect (Amount in dollars) of donation
Invite (Number) of people for events
The proposed location of the community center is in [Center.StreetAddress] . This location has been selected for the following reasons.
The site is closer to the residential area.
It can be reached by various means of transportation
The location is safe.
Operation and staffing:
We aim to hire the following people for our community center with their required operating hours:
Manager -Full-time
Accountant-Full-time
Administrative team-Full-time
Cleaning staff-Part-time (full-time on the days of the events)
Site operating hours:
(Explain the number of hours and days the center would stay open and closed)
The proposed location will stay open from Monday to Friday from 9 am to 8 pm. On Saturdays, the site will open at 10 am and close at 4 pm unless there is a planned event. The center will stay closed on Sundays.
(Purpose of the community center)
The goals behind this community center are:
Create opportunities and events in a safe environment
Bring both adults and kids together under one roof
Enhance links and connections within the community
Success key factors:
(Mention the factors that may make the center a success)
These factors will help us make this community center a success.
Perfect location
Mission to hold various events within a year
Strong management team
The [Center.Name] aims to influence people to build their skills and knowledge through various informative events. Moreover, it wants to develop a sense of security and brotherhood within the community through its different gatherings.
Target Market:
Our target market comprises people of all ages living within a radius of (distance) from the community center. We don’t prefer including people outside this location as our guests because of security issues.
Target Population:
The target market has an estimated population of (number) . The total number of people can be divided into categories:
Women (Number)
Men (Number)
Children (Number)
Advertising and Promotion:
We wish to promote our center and its activities through methods such as:
Newspapers (Mention how)
Social media platforms (How)
(Founder Name) is the founder of this center and the idea. They believe in building a strong community and therefore want to go ahead with building this center. The founder has a degree in (Subject) and vast experience managing big teams and conducting small and big-scale events.
(Founder Name) wishes to hire the following staff members for the community center.
Manager: Responsible for looking after the daily needs of the center and its employees
Administration Head: Responsible for booking events, managing staff for events, and ensuring quick implementation of marketing plans
Accountant: Responsible for looking after the yearly profit and loss accounts. Also, they shall be responsible for calculating all the funds received as donations.
Menial staff: Responsible for answering calls and running basic errands
Cleaning staff: Responsible for keeping the center clean
Other: (Mention their responsibilities)
Revenue and Cost Driver:
[Center.Name] shall earn its profits from giving its space for rent to various companies to hold events. Besides, it shall also earn revenue from the sale of event tickets arranged by the center itself.
The main cost drivers are the site's rent and the staff's salaries. Moreover, the center will also incur a high expense on marketing in its first year.
Investment Requirements:
[Center.Name] plans to earn an initial investment of (Amount in dollars). It aims to spend the investment on the following expenses:
Initial rent and security of the site
Purchase furniture
Initial renovation required for the community center
Key Assumptions and Forecasts:
Here are our community center’s projected financial statements.
(Include profit and loss account, cash flow statement, and balance sheet for the next three years)
[Client.FirstName] [Client.LastName]
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Community stories
What Is A Community Business Model & How To Create One
Community building
Nov 8, 2023
Understanding and building a community business model
A community business model enables the magic of human connection to fuel business growth and revenue.
In this digital age, we're transcending the old brick-and-mortar mindset and knitting together networks of passionate people in digital spaces.
At its core, a community business model isn’t just about transactions; it's about interactions. It’s the art of transforming conversations and shared interests into a thriving ecosystem that’s as profitable as it is personable. We’re talking about a space where members don’t just consume; they contribute, co-create, and connect.
What makes this model stand out? It taps into the very human need to belong and exchange value, not just in terms of money, but through support, insight, and shared experiences. It's an arena where every participant is both audience and actor, shaping the community's journey and, by extension, the success of the business itself.
This is the modern marketplace – diverse, dynamic, and driven by the desire to forge more than just profits, but partnerships and possibilities. Let’s dive in and learn more!
Features of an online community business model
The online community business model is like a garden that grows relationships and opportunities. Here's how:
Engagement: It's the lifeblood of the community. Just like a group chat buzzing with daily updates, an online community thrives on the regular exchange of ideas, feedback, and content. Your communityThese aren't just passersby; these are your regulars, the ones who pop by not just to see what's new but to chime in, cheer on, and chip in.
Exclusivity: This is your VIP lounge in the digital world. Membership offers a golden ticket to a curated experience that's just for insiders. It's about creating that special 'members-only' jacket feeling, offering content, discussions, and events that aren’t available to just anyone scrolling by.
Scalability: Think of your community as a megaphone. What starts as a whisper in a small group can amplify across the globe. Online communities aren't limited by physical seats or the size of a conference hall; they can expand endlessly, reaching people across the globe.
By blending these features, an online community business model creates a world where people feel seen, heard, and valued – and that's a place where they want to stick around and grow.
10 reasons why more and more businesses are adopting a community business model
From giants like Airbnb to individual coaches, there's a palpable shift toward community business models, and it’s not hard to see why. They're not just a trend; they're a response to a growing demand for authenticity and shared experience in the business world.
Here's why businesses are increasingly embracing the community way:
1. The power of belonging
People crave connections. Community business models offer a sense of belonging that goes beyond transactional relationships.
When customers feel like part of something, their loyalty skyrockets, and they become natural brand ambassadors.
2. Trust translates to transactions
Communities build trust through transparency and shared values. In an era of skepticism, trust is gold.
A recommendation from a community member carries more weight than any advertisement.
3. Engagement equals retention
Engaged customers are happy customers. A vibrant community keeps users coming back for the conversation, not just the product.
Retention is often more cost-effective than acquisition, making community models financially savvy.
4. Economy of scale
Online communities allow businesses to scale rapidly. A small local business can become an international community brand without a proportional increase in costs.
The scalability of community models allows for global reach with a local feel.
5. Crowdsourced innovation
Communities are hotbeds for innovation, offering a diverse range of insights and ideas.
Businesses can tap into this resource for product development, leading to offerings that are more likely to meet market needs.
6. Shared values, amplified impact
Community business models often revolve around shared causes or beliefs. This can amplify a business's impact on social or environmental issues.
Consumers increasingly support businesses that stand for something beyond profits.
7. Adaptability in a dynamic market
Community-led businesses can pivot with agility, guided by real-time feedback from their members.
This adaptability is critical in a market where consumer preferences and technology evolve at breakneck speed.
8. Digital advantage
As more of life and commerce move online, community models align naturally with the habits of digital natives.
Online communities are where conversations happen and decisions are made, making them the perfect place for businesses to engage and grow.
9. The emotional connection
Emotional connections can create powerful brand loyalty. Communities foster these connections by humanizing businesses and making each member feel seen and heard.
In a community model, businesses aren't just selling a product; they're providing an experience and identity.
10. The network effect
Communities grow in value as they expand. Each new member increases the network's value, not just for the business but for every other member.
This network effect can create exponential growth and brand strength.
Community business models are more than a fleeting trend; they're a reflection of our innate desire for connection and a strategic response to the evolving landscape of consumer behavior.
By adopting a community-centric approach, businesses can achieve deeper, more meaningful engagement with their audience, leading to a loyal customer base and sustainable growth.
Core metrics for community business success
Now, let’s get practical! In this section, we will look at the factors that make up the nerve center of your community business model. Here, we're going to unpack the essentials that keep the engine running and the lights on.
Think of this as your community's health checkup—where we measure vitals like Annual Recurring Revenue (ARR), get a grip on membership fees, monitor the churn rate, and figure out just how much each member pads out your bottom line.
Ready to roll up your sleeves and dive deep? Let's get into the nitty-gritty of what makes a community business model not just survive, but thrive.
Annual Recurring Revenue (ARR)
ARR isn't just a fancy acronym; it's the bread and butter of your community business. Imagine you run a subscription-based fitness community. If each member coughs up $20 a month for access to your exclusive workout videos and forums, and you've got 1,000 members, that's $20,000 per month, or $240,000 a year. Now, that's your ARR. To boost those numbers:
Upsell with personalization: Got a member hooked on yoga? Offer them a premium package with exclusive live sessions.
Refine your offerings: Listen to what your community clamors for, then deliver. More demand can justify a price hike.
Reduce friction: Make joining a no-brainer. Sleek sign-up processes and diverse payment options are key.
Membership charges
Pricing is like Goldilocks' porridge: it's got to be just right. Too high, and you'll scare people off. Too low, and you'll undervalue your service. Finding the sweet spot involves:
Knowing your worth: Research what others are charging. If you've got something extra, don't be shy to price it in.
Test the waters: Testing is your friend - trial different price points and see what sticks.
Bundle of joy: People love a good deal. Bundle services together for a price that feels like a steal but still keeps your ledger in the black.
Membership churn
Churn is the arch-nemesis of your ARR. It's the rate at which folks wave goodbye to your community. The goal? Keep it low. Imagine if out of 100 new members, 10 bail each month. That's a 10% churn rate, and that's tough on growth. To plug the leak:
Engage, engage, engage: The more involved members are, the likelier they are to stick around. Webinars, shoutouts, and community spotlights can keep them engaged.
Feedback loops: Not feeling the love from some of your members anymore? Ask why. Exit surveys can offer insights you need to make stay-worthy changes.
Value ladder: Regularly introduce new perks or content to keep the membership fresh and valuable.
Profit per customer
Finally, let's talk about profit per customer (PPC). This is the average moolah each member brings in. To figure this out, subtract the costs of serving that member from the revenue they generate. If it costs you $5 in resources to maintain a member who pays $20 monthly, your PPC is $15. Crank it up by:
Cross-sell: Offer related products or services. Think workout gear for our fitness buffs.
Referral programs: Members can be your best marketers. Offer them incentives to bring in friends.
Streamline operations: Automate what you can and keep the service costs down.
To wrap this section up, keep these figures under your hat and regularly check on them. They're the compass that can guide your community business model to the promised land of sustainable profitability.
Blueprint for creating an online community business model
Building an online community business model isn't just about launching a platform and waiting for people to show up. It's about crafting a space where engagement and value meet.
Next up, we’re going to walk you through an essential checklist on how to get your community business off the ground and thriving.
1. Niche and value proposition
Identify your target demographic: Look into market research, survey potential users, and analyze competitors to understand who can benefit most from your community.
Articulate a clear value proposition: Define what sets your community apart. Host brainstorming sessions, seek feedback from peers, and draft a proposition that resonates with your target audience.
Validate your concept with potential members: Use tools like social media polls, online surveys, or conduct focus group discussions to see if your community concept piques interest.
2. Platform selection
Research and compare platform features: Make a list of must-have features, read reviews, and try out demos to find the best fit.
Test the user experience for ease of use: Have a group of users navigate the platform to ensure it’s intuitive and enjoyable to use.
Ensure there's scope for scalability: Plan for future growth by ensuring the platform can handle increased traffic and additional features or services.
Disciple helps businesses build their own beautifully branded apps to enhance their user experience and streamline their operations.
3. Membership guidelines
Draft community guidelines and policies: Write down the do’s and don’ts, considering legal advice to cover all bases.
Establish a process for onboarding members: Create welcome materials and a guided process to help new members find their feet quickly.
Create a system for handling violations: Implement a fair and transparent process for managing and enforcing rules when they are broken.
4. Content strategy
Map out content themes and types: Plan your content calendar around topics your members care about, using a mix of formats like articles, videos, and infographics.
Schedule regular content delivery: Use scheduling tools to ensure consistent content release times, keeping your community engaged.
Plan for member-generated content: Encourage and facilitate community members to create and share their own content to increase engagement and investment.
5. Monetization strategy
Choose your primary revenue streams: Evaluate different models like membership fees, sponsored content, or affiliate marketing to find what aligns with your community's values.
Design a pricing model: Consider the perceived value of your community and member affordability when setting prices.
Create a balance between free and paid content: Decide what will be freely available and what requires payment, ensuring a mix that satisfies both members and your bottom line.
6. Engagement and participation
Implement daily engagement tactics: Set up daily prompts, challenges, or discussion topics to keep members coming back.
Recognize and reward contributors: Highlight member contributions, offer rewards or badges for participation, and make members feel seen and valued.
Organize regular virtual events or meetups: Plan and host webinars, live Q&As, or online social events to keep the community spirit alive.
7. Growth strategy
Develop a marketing plan: Craft a strategy that includes content marketing, SEO, and social media advertising to attract new members.
Set up a referral program: Encourage current members to invite friends by offering them incentives for each new member they bring in.
Leverage social media for outreach: Utilize social media platforms to share valuable content, interact with potential members, and promote your community.
8. Feedback loop
Regularly solicit member feedback: Use surveys, suggestion boxes, and direct communication to gather opinions on what’s working and what’s not.
Monitor community engagement metrics: Keep an eye on analytics like active daily users, time spent on the platform, and discussion thread activity to measure engagement.
Be open to making iterative improvements: Use feedback and engagement data to continuously refine and improve the community experience.
9. Measuring success and scaling
Establish key performance indicators (KPIs): Define what success looks like with metrics like member growth rate, engagement levels, and revenue.
Analyze data for insights into member behavior: Use tools to track your KPIs and understand member habits and preferences.
Identify opportunities for scaling up: Look for trends in your data that suggest readiness for more advanced features, additional staff, or new market segments.
Remember, a community business model thrives on the collective contribution of its members, so every step you take should aim to bolster that collective spirit.
As we've explored throughout this article, the community business model represents more than a mere strategy; it embodies a shift towards inclusivity, sustainability, and mutual growth. By fostering strong relationships with customers and creating an environment where feedback is not only heard but actively sought, businesses can unlock unparalleled levels of engagement and loyalty.
This model isn't for every entrepreneur or enterprise, but for those who resonate with its principles, the community business model can be a powerful cornerstone for a thriving, purpose-driven business. It asks for a commitment not just to financial objectives but to the values and collective vision shared by the business and its community.
If this resonates with you, then delving into the community business approach might just be the transformative step your business needs to foster a lasting legacy and achieve meaningful success.
As you consider adopting a community business model, it's vital to choose the right platform to house your community. Disciple stands out as a platform that comprehensively supports the creation and growth of online communities, helping you align your business with the values of inclusivity and mutual growth.
What is a community business model?
A community business model is a strategy that businesses use to engage customers and stakeholders in an ongoing dialogue, where their feedback and participation directly influence the business's products, services, and policies. This model emphasizes building a loyal customer base and creating value that extends beyond financial profits to include social and environmental impact.
How does a community business model differ from traditional business models?
Unlike traditional business models that focus primarily on transactions and revenue, a community business model prioritizes building relationships and fostering a sense of belonging among its customers. It relies on active engagement, collaborative innovation, and shared values to drive business growth and create a lasting impact.
What are the benefits of a community business model?
Benefits include increased customer loyalty, more meaningful brand engagement, innovative ideas from community feedback, diversified revenue streams, and the potential for social and environmental impact. Additionally, community-driven businesses often experience more resilient and sustainable growth.
Can a community business model work for any type of business?
While a community business model can be adapted to many types of businesses, its success largely depends on the business’s willingness to invest in community engagement and the relevance of this model to their customer base and industry. Businesses must evaluate their goals, resources, and customer dynamics to determine if this approach is suitable.
How do I start transitioning my business to a community business model?
Transitioning to a community business model involves several steps, including identifying your core community, developing engagement platforms or forums, establishing community guidelines, and creating feedback mechanisms. It also requires a willingness to adapt business practices based on community input and a long-term commitment to nurturing the community.
See how a Disciple community app can elevate your business
More resources.
Why coaches are moving away from Patreon
Membership Businesses: Meet The Female Founders Leading the Way
A Guide On How To Sell Memberships Online
Case studies
Responsible disclosure
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BUSINESS PLANNING TOOLKIT
The Business Plan
Writing a business plan helps you to understand every component of your business from communicating your ideas and building a framework for decision-making and management. It serves as a reminder of your goals and for tracking the business’s performance. The plan is a tool to articulate investment needs, capital assets, business partnerships, and customer loyalty. If you take the time and energy to create a comprehensive business plan then you will be on the road to minimizing your risks while directed toward success.
Business plan outlines are basically all the same. There are different ways to complete a business plan from using self-guided books, working with a professional consultant or participating in a business plan class. You need to be realistic about how you work best, your time and the quality of results you want.
Business Plan Template
BUSINESS PLAN OUTLINE
The quality of the information is more important that the quantity
1. Executive Summary
(This section is written last)
Write a brief description of the business including Mission Statement and overview of the Market Analysis, Competition, Organizational Structure, short and long term goals and the feasibility of the business.
2. Business Mission Statement, Goals and Objectives General Description of the Business
- Write a Mission Statement that will guide your work. A mission statement is only a few sentences long describing the purpose of the business, who you are, what you do, what’s important, and why you do it.
The mission of the Franklin County CDC is to stimulate a more vital, rural economy, to maximize community control over our future economic destiny, and to expand opportunities for low and moderate-income residents.
For a restaurant: Raina's Kitchen is a great place to eat, combining an intriguing atmosphere with excellent, interesting food that is also very good for the people who eat there. We want fair profit for the owners, and a rewarding place to work for the employees.
- List short and long term goals followed by measurable objectives that describe what needs to be accomplished in the next few years once you are in business. A goal describes the activity to be accomplished. The objectives outline the steps needed to be completed before reaching the goal. Make sure to include deadlines. (Activities that need to be done before you are i n business are called actions steps different from goals)
Short Term Goal 1: Sales goals of $XX,XXX within 2 years
Objective A: Retail sales $XX,000 in first year growing to % more in year 2
Objective B: Wholesale sales $XX,000 from XX accounts in year 1 to XX in year 2
Objective C: Website sales $X,000 in year 1 with % increase in year 2
Short Term Goal 2: Marketing goals to reach 200 customers in 2 years
Objective A: Advertising through print and radio media reaching XXX customers
Objective B: Social networking using facebook/linked In reaching XXX contacts
Objective C: Market research through interviews, surveys and industry trends yearly
Short term Goal 3: Operations goal to reduce waste by XX%
Objective A: Review administrative processes and paper consumption
Objective B: Review production processes to minimize waste
Objective C: Review marketing materials purchased and inventory control systems
Long Term Goal: To pay off loan in 5 years
Objective A: To increase principle amount each month
Objective B: Seek refinancing if rates go down
Objective C: Reduce unnecessary spending
- back to top -
3. Background Information - Provide background information on the Industry
- Describe current and future industry trends — Is the industry stagnant, growing or mature? Are there new people entering the field? Are people in the industry specialists or generalist? How has legislation affected the industry?
Use this link to search for the industry that best fits your business:
Search for industry classification code
How to do research using the local Library
Contact a local reference librarian to help locate the most recent reports for free:
1) IBIS industry report that describes the industry and trends
2) MINTEL report on various target customers to better understand buying motivations
for example: Mintel report: Local procurement
"Interest in locally procured food and non-food items is enjoying significant growth.
A number of powerful trends are responsible for this:
- Sales of organic foods are exploding from $2.6 billion in 2004 to an estimated $5.2 billion in 2008
- A number of popular books and celebrity endorsees have made the concept of local procurement and being a locavore hip.
- The recession has driven some Americans to purchase from local merchants in the belief it will support their local economies...
- A growing number of Americans are adopting "Positive Eating" following a diet based on seasonal vegetables, nuts, berries and other health foods...
- Websites like Craigslist have made local procurement as easy as clicking a mouse.... "
Instructions in how to locate industry research materials from the MA Library system
1) Go to the Boston Public Library
2) Get a BPL e-card
3) Become familiar with the resources BPL Electronic Databases
- Business/Company Resource Center for trade journals, plus company histories, ranking/data, industry reports.
- Visit the D&B Million Dollar directory of 14 million U.S. companies; identify customers, competitors and suppliers.
- Gale Virtual Reference Library for dozens of research encyclopedias including many business encyclopedias
- Past Newspapers
- General Business File which includes business journals and magazines
- Trade journals
- Mergent Online reports on 30,000 public companies worldwide (includes SEC finlings, annual reports)
- TableBase - a "data" database-market share data, company/brand rankings and forecasts.
- Describe how this business fits into the industry
What makes this business special or unique to the industry and competition?
(from sample business plans website https://www.bplans.com/samples/sba.cfm )
4. Organizational Structure — Business Structure, Management, and Personnel
- Describe the Business’s Legal Structure
SOLE PROPRIETOR , all business assets and debts, profits and losses is your individual responsibility. PARTNERSHIP, two or more people share capital, earnings, and losses. If one partner should die, the partnership is void. LIMITED PARTNERSHIP , similar to partnership except one person is a general partner with more control and the other is a limited partner with less control. CORPORATIONS are owned by shareholders with board of directors and officers. SUBCHAPTER S CORPORATION is a corporation but taxed as a partnership or sole proprietor. LIMITED LIABILITY COMPANY (LLC) is a blending of the corporate and partnership structures providing owners with limited risk to personal assets and tax advantages. COOPERATIVE is owned and operated by a group of individuals for their mutual benefit.
- Describe Government regulations, taxes, contracts, and leases
Personal Income Tax Business Income Tax Sales Tax Property Tax Business License Fees Employee Payroll Tax /Withholding Hiring Regulations OSHA Consumer Protection Regulations: Warranties Commerce Regulations — Professional Licenses — Business Registrations — Uniform Commercial Code Zoning Regulations Environmental Regulations Other Regulations Specific to your business
For more specific information on government regulations, click here .
5. Management
- Describe the responsibilities of the management team including owners and staff. Include an organizational chart listing roles and responsibilities
- Describe the Advisory Team you rely on for support. Possible members include an attorney, accountant, insurance agent, financial & business counselor, and associates in the field.
- Describe the services you outsource . Possible services include a payroll service, bookkeeper and independent contractors.
- Explain the personnel plan for employees : recruiting, hiring, retaining, firing, employee benefits and organizational chart.
- Describe the risk management strategies related to liability, property, health, and life insurance.
6. The Marketing Plan
Would you take a long trip without an itinerary? Make a cake without a recipe? A Marketing plan, part of a business plan, explains what you want to accomplish, and how you plan to do it. As a small business owner your resources and time are limited so you need to make more good decisions that are beneficial. A marketing plan will clarify your thinking and prevent you from spending on the wrong items.
The Marketing plan is your strategy to capture a select market. A typical way of describing a strategy is found in the marketing mix composed of the 5 P’s, the product/service, placement, promotion, positioning, and people. The objective is to organize this mix to accomplish the goals of the marketing plan.
The FCCDC can help you identify who the customer is, how you reach them, and reminds you to stay focused because, “You can’t be everything to everyone!”
- Describe the P’s of Marketing by seasonality and growth potential: Product/Service, Placement, Promotion, Positioning, People.
Product/Service: Describe what you are selling emphasizing the features, benefits and seasonality of the product. Know what you are selling. You should be able to talk about the product or service with style and confidence.
Features : Describe product and/or service by concrete descriptions like size, color, taste, weight, hours, activity, workshop, training, etc.
Benefits : Describe the product and/or service by intangible descriptions like how the customer would feel after using the product or service ("peace of mind") confidence, educated, comfortable.
Placement: Describe the surroundings that highlight the product or service. You don’t want to place the candy next to the toothbrushes or wedding rings next to books on divorce.
Where will you be selling? examples:
Product : In retail stores, farmers markets, consignment shops, specialty food stores, fairs and festivals, online...
Service : Collaborating with alternative health professionals, contractors, promoting workshops & classes, downtown office.
Promotion: Describe the following:
Marketing materials : (What is the look and feel?) Logo, product descriptions, labels, business card, hang tags, brochure, postcard, sign, website...
Media : Describe how you will use newspaper and radio
Social Media : Describe costs and benefits of using social media
Incentives : Describe costs and benefits of using coupons, giveaways, and gift certificates
Positioning: Describe how your business relates to other alternative choices your customer will be choosing from. Make sure the image, customer service and quality fit with the target customer you are trying to reach.
People: Determining the characteristics of your customers will help you with pricing, packaging, labeling, and product placement. The more products/services you offer, the larger the market potential.
Examples of customer characteristics include income level, education, marital status, household type, location, or occupation. Defining purchasing influences of your customers is another way to profile potential customers.
Example of business customer characteristics: Industry (segment), location, size, quality, price, technology, uniqueness.
Other customer traits to examine: – Basic need for love, good heath, beauty – Buying patterns reflected in quality, price, trends and convenience – Cultural orientations liberal, conservative, religious, – Interests in gardening, cooking, athletics, reading,
environment, arts
Refer to the U.S. Census to obtain information
- Competition: Alternative Choices for the Customer — Describe each competitor by identifying their features and benefits. One way to compare the competition is to create a chart as follows: Plot each competitor comparing their price and quality to each other. Then select where you think your product belongs. The main competitors will begin to stand out.
Other ways to describe competitors: Products, Price, Quality, Selection, Service, Reliability, Stability, Expertise, Reputation, Location, Appearance, Sales Methods, Credit Policies, Advertising, and Image.
Describe your competitive advantage and disadvantages.
- Environmental Sustainability — Determine how your business impacts the environment and society by considering the community, local-ness of materials and supplies, social capital, transportation, energy, toxins, water, air quality, and marketing.
Explain specific ways you will improve the impact of your business.
See The Environmental Sustainability Business Checklist for helpful information for the marketing strategy.
- Finding Information for your Plan — Collect descriptive information to evaluate the market potential. There are many resources available for collecting information. Check out the Franklin Regional Council of Governments where you can get traffic counts and statistics. Ask the reference librarians to direct you to specific information.
7. Operating Controls
- Describe cash management procedures such as cash or accrual basis tracking.
- Describe the systems used to track accounts receivable and accounts payables.
- Describe who will be responsible for handling sales receipts, reconciliations of bank accounts and petty cash .
- Describe person responsible and internal management procedures related to purchasing, inventory control, customer service, pricing and quality control .
- Describe pricing strategy and relation to competition . How retail price was determined, cost per unit and how changes will be incorporated into strategy.
- Describe quality control procedures .
8. The Financial Plan
An essential component in business planning details your financial needs and resources. The following worksheets will assist you in identifying your personal financial picture, business start-up expenses, repeating monthly business expenses, monthly profit and loss statement, and a yearly cash flow income & expense projection. Complete the financial worksheets as realistically as possible. Clarify your assumptions at the bottom of each page. Information explained in the previous parts of the business plan need to relate to the Financial Plan.
Example: If the Marketing Strategy refers to monthly advertising in the newspaper and radio there must be a corresponding amount for that expense.
Alan Singer, Business Lending Program Manager, often says, “Part of what makes a business plan work is really understanding your business. Finances and financial planning are just two of the tools in managing your businesses resources.”
Personal Credit History If you’re planning to approach a lender you will want to make sure your credit report is accurate. If your credit report is wrong it may take a few months to make a correction.
Credit Reporting Agencies Get a free credit report yearly www.annualcreditreport.com
As a Massachusetts resident you are entitled to one free credit report per year from:
EXPERIAN PO Box 2002, Allen, Texas 75013-0036 Request Phone: (888) 397-3742 www.experian.com
TRANSUNION Consumer Relations 2 Baldwin Place, Crum Lynne, PA 19022 Request Phone: (800) 888-4213 Dispute Line: (800) 916-8800 www.transunion.com
EQUIFAX 5505 Peachtree Dunwoody Road, Suite 600 Atlanta, Georgia 30374 - 0241 Request Phone: (800) 997-2493 Dispute Line: (800) 944-1122 www.equifax.com
For personal credit problems: Consumer Credit Counseling Services 1-866-515-2227 www.moneymanagement.org Credit counseling (24/7 by phone and internet) debt management plans, credit score tools and resources.
Sources of Financing
- Family or Friends
- Credit Cards (Personal or Business)
- Community Development Corporations (see the FCCDC's Lending section)
- Alternative Lenders
- Loan Guarantor
- Loan Brokers
- Customer Deposits
- Franchising
- Insurance Companies
How to Borrow Money from People You Know Friends and Family can be a source of financing. There are several parts to borrowing money starting with setting up a loan documentation, payment processing, and payment tracking and accounting.
- Prepare appropriate business planning documents
- Write a loan agreement with terms and conditions
- Meet with an attorney
- Maintain good payment records
TIP – Be aware of the following:
- The dollar value of assets that have been accumulated in your business can be used as business equity and potential collateral for a lender.
- Good personal financial health lays the foundation for good business financial health.
- Include Health Insurance as an expense or explain how your coverage is being paid.
- Business Planning classes at the FCCDC provide support for completing the business plan.
LOAN TYPES: Short-Term Loan: Generally used to meet short-term needs, such as inventory purchase or short-term liquidity problems; repayments made within one year.
Intermediate Loan: Repayment made within three to five years. Generally used for permanent expansion or to acquire equipment.
Long-Term Loan: Used for real-estate purchases or for business start-up.
The C’s of Credit – Criteria used by lenders to determine whether to grant credit and credit terms
Credit History: What is the credit rating of the business and the individual?
Character: Does the owner have the ability and intent to manage the business?
Capacity: What is the ability of the business to repay the loan?
Collateral: What is the equity contribution for the loan?
Conditions: Is the business sustainable?
Capital: What is the loan amount and purpose?
What you need to know before approaching a lender:
1. Know how much money you need to borrow. 2. Identify how you plan to use the money. 3. How will the money be repaid by the business.
9. Feasibility Action Statement
This section describes and prioritizes the actions needed to move forward to implement the plan for year one. Set up a calendar that itemizes the actions, time and who is responsible. Integrate the objectives from Part 2.
Action Step 1: TO COMPLETE BUSINESS PLAN BY DEC 15 Read business plan book by Sept 15. Meet with business counselor by Sept 30. Develop & Complete Market Survey by Oct 15 Research and Compile Information by Nov 15 Write Plan by Dec 1 Share plan with business counselor for feedback by Dec 10 Make corrections to plan Dec 13
Action Step 2: OBTAIN FINANCING BY MARCH
Research Financial Institutions to determine best fit by Jan 15 Presentations to Lenders by Jan 20 Projected acceptance by Lender by Feb 20 Compilation of additional materials for lenders by Feb 28 Develop alternative plan if denied March 15 (see FCCDC Loan Program)
Action Step 3: BEGIN START-UP PHASE OF BUSINESS JULY 1 Find location, renovate and move in by May 15 Finalize Marketing Plan & Materials by May 20 Purchase Materials & Supplies by June 1 Target opening for June 20
10. Supporting Documents
- Resumes of key people
- Personal Financial Statements
- Photographs of product, equipment, marketing materials
- Market Survey results
[tabby title="Building the Business Team"]
Building the Business Team
Consider these points when hiring personnel or consultants.
- Interview professionals and make sure they understand your business plan and relate well with you. Prepare questions ahead of time.
- The cost of personnel may be the greatest expense of the business.
- Hiring, training and empowering your employees can create a cooperative team that will motivate and reward peak performance.
Hire your employees carefully
- Review resumes and check references.
- Consult your state business resources to find out what questions you can and cannot ask in an interview.
- Always get a signed waiver from a potential employee allowing you to conduct a background check.
- If your new employee isn't working out, then it's wise to let them go as soon as possible.
- Business owners often say it is the employees they should have fired but didn't who cause them the most grief.
Give employees meaningful feedback
- Some employees need more guidance than others to do a good job.
- Always let employees know what is expected of them and let them know when they have done a job well.
- Establish company rules, and be sure all employees understand these rules, and why they exist.
- Encourage questions.
Provide employees a clear description of their job responsibilities
The best way to clarify a person's roles and responsibilities within a business is to create a job description. This can also serve as an outline for measuring job performance.
Creating a "Personnel Policy Manual" can also create better employees. The manual should include the business overview and mission statement, employment policies, conditions of work, wage compensation, benefits plan, training and development, travel and relocation stipend, absence policy, termination and retirement procedures, equal opportunity employment statements and procedural requirements.
Motivate Employees regularly
- Attending meetings regularly being honest and compensating hardworking employees, are good ways to motivate employees.
- Listening and reacting to employees often helps the business, and motivates employees.
- You can compensate employees with salary, vacation time, sick time, holiday leave, insurance investment coverage and profit sharing.
Decide on business communication details early! It's important.
- Schedule employee meetings, meet with lawyers, accountants and bankers on a regular basis, or be in contact through the phone or e-mail.
- For business operations, use a tack board or create inboxes, e-mail accounts or a business operations journal.
- Empower your employees by creating a safe environment for employee input.
- To fulfill communication expectations, maintain personnal files as well as vendor and customer files.
- Document confrontations, conversations, and actions taken.
[tabby title="Hiring Employees"]
Hiring Employees
You will need to fill our Form SS-4. This can be done online at the Internal Revenue website. (This website is also an excellent resource for information.)
You will also need a state employer identifier number. The state number will usually be the same as your federal employer identification number however you still need to register with the state to let them know you will be subject to employment taxes. Massachusetts requires all new businesses to file and pay their taxes online. For additional information, visit the Massachusetts Department of Revenue website.
You will need to register with the Massachusetts Department of Unemployment Assistance for state unemployment taxes. This is done with Form 1110-A available at the Massachusetts website.
Before any employee starts work for you, it is necessary to secure from them a completed W-4. New hires must be reported to Massachusetts within 14 days or a $25 penalty may be imposed upon the employer. Also it is necessary to have employees complete an I-9 to assure your potential employees are legally allowed to work in the U.S.
Also, before your hire your first employee, you must have workers compensation insurance. Your local insurance agent should be able to assist you.
The IRS and Massachusetts websites are a wonderful resource to guide you through the considerable number of forms and filing requirements.
Cost of payroll to the employer example:
FICA and Medicare: 7.65% FUTA for the first $7000 of wages per employee is 0.8% Mass unemployment: Depending on the kind of business and employee turnover could be 2% - 15% for the first $ 14,000 of wages per employee. Workers compensation insurance: Directly related to payroll and depends on nature of business ranging from 0.005% - 100%
See this resource for child labor laws and best practices for hiring teens.
[tabby title="Health Insurance"]
Health Insurance
Research and compare programs.
Franklin County Chamber of Commerce The Insurance Partnership 1-800-399-8285 National Association for the Self Employed 1-800-232-6273 Trade Associations
[tabby title="Networking"]
Business planning involves collecting information and assessing the quality of its usefulness. Today we are bombarded with information from so many directions that filtering the essential information becomes a regular task. Planning a business takes being a "Jack or Jill of all trades." You can't know everything but you can think strategically. Networking with people creates an opportunity to receive a personal recommendation for suppliers, vendors, real estate opportunities, potential employees, professional consultants, sales leads, electricians, sign makers, the list is endless. Hearing from someone about the positive and negative will help you determine who is right for the job.
Networking groups can be beneficial to you, your business and also the community. There are all types of networking groups, for example the Chamber of Commerce, local business associations, Rotary Clubs, Kiwanis, Women's Business Organizations, Toastmasters, Business Networking International, Guilds and Trade Associations to name a few. Building business relationships creates a give and take that can take time to develop but in the end are rewarding.
How To Begin To Network
What do you seek to learn about? Sales leads, new suppliers?
Create a list of people you feel comfortable approaching for a referral. Prioritize that list in an order of most connected to least connected. Practice your ask on a friend or family member. Keep track of results and always say thank you.
[tabby title="Advertising"]
Advertising Advice
Avoid making these common mistakes.
1. You forget the real reason you advertise. Tip: To increase your sales and profits.
2. You don’t have specific objectives for your advertising. Tip: Be specific, decide on measurable objectives.
3. Your advertising is written for the wrong people. Tip: Create your advertising for potential buyers – not suspects.
4. You worry about whether people will "like" your advertising. Tip: Your not in a popularity contest. Worry about if it will be seen, read, and believed by people. It must be informative and persuasive enough to get them to act.
5. You confuse "attractive" advertising with "effective" advertising. Tip: Advertising is more effective if it looks "newsy" not "addy."
6. You equate “creativity” with advertising effectiveness. Tip: An advertisement which offers a simple solution to the reader’s problem will be substantially more costeffective than one with a dazzling creative concept.
7. You think biggest is best. Tip: You need the most cost effective unit you can buy to achieve your goals. Smaller more frequent advertising may be more effective.
8. You create advertising to solve your problem – not the reader's problem. Tip: Remember that the reader is concerned with their problem not yours. Evaluate how you include competitors.
9. Your advertising fails to start with its 'big gun'. Tip: The advertisement is your sales presentation. It should say something very important, very quickly.
10. You talk product features instead of customer benefits. Tip: Your customer wants to know what your product or service will do for them. Product features (glossy paint) are not product benefits (durable, scratch-resistant, washable, etc.).
11. You forget to establish the NEED for what you’re selling. Tip: Explain why the reader needs your product.
12. You say it — but don’t prove it. Tip: "Fluff" doesn’t sell. Use case histories and testimonials to support your claims.
13. You spend your money on advertising that’s funny, cute or clever. Tip: You’re not in show business to entertain. You’re in business to sell.
14. You don’t seek tangible, measurable results from your advertising. Tip: Get something in your advertising to attract a response so you can measure the effectiveness of each ad in each publication.
15. You don’t like "long copy." Tip: Your advertisement should attract a potential buyer. They need information to make a buying decision.
16. You’re concerned with style instead of content. Tip: Does your ad have information that may stop someone using a competitive product and start using yours?
17. You insist upon advertising that is "different." Tip: Make sure your advertising informs and sells.
18. You fail to say immediately how you can benefit the reader. Tip: Be direct. Get to the point.
19. You don’t understand the importance of the headline. Tip: The right headline can attract the people who need the product your selling. Don’t use cute, clever or indirect headlines. Your ad will not be read by the people who need your product.
20. You’re too 'advertising campaign' oriented. Tip: Test to find out your most effective advertisement. Use that as a control until you develop a better ad to replace it.
21. You never think about WHY people read a publication. Tip: To get news or information. If your advertising offers none – you’re in trouble.
Download this page as a PDF
[tabby title="Business Planning Worksheets"]
Worksheets and checklists can help you organize your business
Financial Worksheets: Personal Balance Sheet (fillable PDF) Profit and Loss Statement (fillable PDF) Start-up Cost Worksheet: One Time Expenses (fillable PDF) Start-up Capital Worksheet: Repeating Expenses (fillable PDF) Income and Expense Projections (fillable PDF) Cash Flow Projections Cash Flow Projections as Excel Spreadsheet Personal Financial Statement
Marketing and Advertising Worksheets: Developing a Market Survey Market Planning Checklist Advertising Advice Advertising Ideas Checklist
Operational Structure & Operating Controls Worksheets: Job Description of a Business Owner Legal Structures Government Regulations
General Business Worksheets and Checklists: Environmental Sustainability Checklist Location Checklist Real Estate Lease Checklist Manufacturer's Site Planning Checklist Leasing vs. Purchasing Equipment Checklist
Business Training Events are listed on the training calendar .
[tabby title="Government Regulations"]
Government Regulations
Business regulations.
Massachusetts Information Privacy Laws New data privacy laws went into effect March 1, 2010, and all businesses must comply - regardless of the size or location of your business. If you take checks, debit or credit card payments, keep social security info (for employees or others) or drivers license numbers, you must comply. Businesses that use personal information of Massachusetts residents must have a Comprehensive Written Information Security Program (WISP) and have policies and practices in place to safeguard personal information against identity theft. More information
Sales Tax Some businesses are required to collect sales and use taxes from customers that will in turn be paid to local, state or federal governments.
Self-Employment Tax Every working person contributes to Social Security and Medicaid. As self-employed, you contribute through a selfemployment tax through your personal income taxes.
Business Taxes As a business owner, you are required to file state taxes though your personal income taxes. Business tax forms and information can be found by contacting the Department of Revenue’s Customer Service Bureau.
Business Licenses Depending on your business type and it’s location, you may be required to obtain licenses, certificates or permits. Check with the license office in the city or town your business will be located to find out what is required.
Fictitious Business Name The county recorder has a list of business in their office. You must apply for a business license using a business name that is not already being used by another business.
Business Insurance Protect your business against unforeseen events. Business insurance may be required by law. Contact your insurance agent or broker for more information.
Resale Certificate This permit allows products to be purchased, tax free, for resale. To apply for this certificate, you must have a State Issued Employee Identification number (EIN). Information and applications can be found by contacting the Massachusetts Department of Revenue, Sales and Use division.
Employee Identification numbers (EIN) All businesses must have this number to pay social security, federal withholding and federal unemployment to the IRS. You can obtain the application at most SSI offices. You can download the application (SS-4) from the IRS website or by requesting one over the telephone. If you tele-TIN the completed application, it would be processed immediately.
Zoning Regulations Depending on your business type check with the office in the town hall or city your business will be located to find out zoning restrictions.
Environmental Regulations Some business may have to comply with environmental regulations that mandate responsibility and awareness. Some examples: Hazardous Material, Petroleum storage, Wetlands regulations, USDA regulations, FDA Regulations, DEQ Regulations
EMPLOYEE REGULATIONS
Workman’s Compensation If an employee is injured on the job this insurance will cover medical bills. Policies can be obtained by contacting your insurance company.
State Withholdings You are required to deduct from employees pay for state payroll taxes. Information can be found by contacting the Dept of Revenue & Division of Unemployment Assistance.
Federal Withholding Some businesses may need to withhold Federal Income Tax, Social Security, and Unemployment taxes. Information can be found by contacting the Internal Revenue Service.
Hiring Regulations Businesses are required by law to abide by nondiscrimination regulations. Some interview questions are illegal. Hiring a person under-18 years of age requires a business to follow guidelines outlined by the Department of Labor.
Safety and Health Regulations All business with employees must comply to Occupational Health and Safety regulations. Information can be found by contacting the Federal Occupational Safety and Health Administration (OSHA).
[tabby title="Launching a Food Venture"]
Launching a Food Venture
The Western Mass Food Processing Center (FPC) is available to help guide you along the path to the success of your product. FPC members have access to complete technical support including business planning, product development, regulatory compliance, manufacturing, marketing, and distribution of wholesale and retail products.
Our facility provides access to shipping, receiving, dry and refrigerated storage, and commercial processing equipment. In addition, we regularly offer workshops, exhibitions, and other opportunities to network with other small- and medium-scale food ventures.
We advise that entrepreneurs develop a basic business plan, perform small batch testing, and understand the complexities of cost and technical requirements for manufacturing food products before fully launching into production. With food products, the first priority is food safety. Know and understand all relevant regulations affecting your product before you move ahead. The Western Mass Food Center is here to assist you in merging the basic business plan with the details of food manufacturing, distribution, marketing and sales.
See our Food Processing Center section for more information on our services, facilities and membership rates, along with member bios.
Getting Started Checklist
- Business plan narrative : Explain your business concept and product attributes. Describe your market, and the outlets where your product will be sold. Explain how you will manufacture, sell, and deliver product to customers.
- Product development : Start with your home-scale recipe, and record all ingredients by weight. Perform small batch testing to perfect recipe. Keep records of the cost and source of all materials and ingredients used.
- Lab review : for any shelf-stable product, an outside lab should review your recipe or process to verify that the finished product will be safe for consumers. Establish the shelf-life of the product.
- Get ServSafe Certified : You can take a class or study materials online and then take the ServSafe test. To find a ServSafe class nearby , go to ServSafe,com or check the Greenfield Community College listings
- Develop a draft or mock-up of the label and packaging. Remember, the packaging is often the first and only contact the consumer has with your product. Your package must do the selling without you there in the store.
- Work with commercial suppliers of food products to obtain the best pricing for your product. Develop a worksheet for each product to help you calculate the cost of each unit.
- Complete worksheets for your overhead expenses and sales projections. You'll find downloadable worksheets in the Business Planning Worksheets section.
- Work with the FCCDC and Food Center staff to develop pricing that includes all your costs, profit, and distributor costs.
- Obtain general and product liability insurance.
- Register your business with the FDA.
- Apply for all required licenses.
- Print your label once approved by the regulators.
- Get out there and sell, sell, sell!
Regulatory Agencies
Wholesale License to Manufacture and Distribute Food: Mass Department of Public Health, Food Protection Program 305 South Street Jamaica Plain, MA 02130 Telephone: (617) 983-6700 https://mass.gov/dph/dphhome.htm
Retail Food Service License (Pushcarts, catering, farmstand): Greenfield Health Department Town Hall, Greenfield, MA 01301 (413) 772-1404
USDA: Regulates meat and poultry products for wholesale: Food Safety Inspection Service (FSIS) (402) 221-7400 https://www.fsis.usda.gov/
Food and Drug Administration (FDA)Domestic Food Producer Registration: https://www.cfsan.fda.gov/~furls/ovffreg.html
General information https://www.cfsan.fda.gov/list.html
Laboratory Analysis/Process Review Office of Dr. Olga Padilla Zacor ATTN: Elizabeth Keller Cornell University/NYSAES 630 West North St., Geneva, NY 14456 (315) 787-2273 [email protected] www.necfe.org
General Food Business Resources
- Northeast Center for Food Entrepreneurship
- New England Extension Food Safety Service
- Department of Agricultural Resources "Food Processors Resource Manual" https://www.mass.gov/agr/markets/specfood/ 251 Causeway St., Suite 500 Boston, MA 02114 (617) 626-1753
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Nonprofit and community organizations are way different than traditional businesses, making it crucial to have a well-thought-out plan to ensure streamlined operations.
This library of community and nonprofit business plans here can inspire and guide you as you begin to plan your organization. So, don’t worry; we got you covered on that part.
Let’s learn more about these sample nonprofit plans, starting with their benefits.
Benefits of using an industry-specific business plan example
Believe it or not, using an industry-specific business plan example is the best and probably the quickest way of writing a business plan.
Doubt it? Hold, this may change your perception; an extended list of the benefits of using an industry-specific business plan template.
- Inspiration : Reading a business-specific template can be incredibly helpful in getting content inspiration. Furthermore, it helps you gain insights into how to present your vision, mission, and service offerings.
- Risk-free method : You are taking a reference from a real-life, let’s say, charity business plan—so you know this plan has worked in the past or uses a method subscribed by experts.
- Deep market understanding : Analyzing and reading such examples can provide clarity and develop a deeper market understanding of complex industry trends and issues you may not know but relate directly to the realities of your organization landscape.
- Increased credibilit y: A business plan developed using an example follows a standard business plan format, wisely presents your business, and provides invaluable insights into your business. There’s no question it establishes you as a credible business owner, demonstrating your deep market understanding.
- Realistic financial projections : Financial forecasting being a critical aspect of your plan, this real-life example can help you better understand how they project their financials—ultimately helping you set realistic projections for your business.
These were the benefits; let’s briefly discuss choosing a business plan template for a nonprofit that best suits your business niche.
Choosing a Nonprofit or Community Business Plan
This category has multiple business plan templates for various nonprofit, charity and community centers. With many similar organization types and templates, you may not find the most suitable one through manual scrolling.
Here are the steps to consider while choosing the most suitable business plan template.
Identify your organization type
Are you going to be a community center? A shelter home helping the homeless? Or a food bank serving those in need?
Asking yourself these questions will help you identify your nonprofit type, which will help in choosing a niche-specific business plan template.
Once you identify your nonprofit business type, you can choose between templates for different business segments.
Search for the template
We have an in-built search feature, so you can easily search for a business-specific template using your business type as a key term. Once you have the search results, choose the most suitable one. Simple as that.
Review the example
Look closely at the content of the sample business plan you are considering. Analyze its sections and components to identify relevant as well as unnecessary areas.
Since all the Upmetrics templates are tailored to specific business needs, there won’t be many fundamental customizations. However, a hybrid business model targeting multiple customer segments may require adjustments.
No big deal—you can view and copy sections from other business plan examples or write using AI while customizing a template.
That’s how you find and select the most suitable business plan. Still haven’t found the perfect business plan example? Here’s the next step for you.
Explore 400+ business plan examples
Discover Upmetrics’ template library and find the right business plan template for your needs . Upmetrics is a modern and intuitive business plan software that streamlines business planning with its free templates and AI-powered features. So what are you waiting for? Download your example and draft a perfect business plan.
From simple template to full finished business plan
How to write a business plan
Guide published: 6 may 2020 minute read.
The resource provides information, support and templates to help you produce a Business plan for your charity or community group.
A business plan is important to help manage your organisation by stating your objectives and how and when you aim to achieve them. Your business plan be useful as a point of reference for staff, trustees, potential investors and other stakeholders in your organisation.
This resource covers all of the main areas your need to consider when producing a business plan. These range from writing your mission statement to defining and describing your services, making financial projections to carrying out risk analyses.
This guide is for all community groups but has a focus on cooperatives.
What will I learn?
- What a business plan is and why you need one
- Writing a mission statement
- Describing your products and services
- Explaining your social impact
- Knowing your market
- Writing a marketing plan
- Identifying the key people involved in your organisation
- Your organisational structure
- Making financial projections
- Carrying out a risk analysis
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Home > Business > Business Startup
20 Small Town Business Ideas To Meet Your Community’s Needs
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Small towns provide a unique opportunity for business owners. They often offer lower costs, less competition and a tight-knit community that can help spread the word about a new company with minimal marketing efforts.
Of course, every small town is different. Just because a business thrives in one community doesn’t mean it will turn a profit in another.
It’s critical to do your research and understand your target audience before starting any business. With a limited population, you need to ensure your company can generate enough consistent revenue to make your new venture worthwhile.
Here are 20 small town business ideas to get you started.
Small town business ideas to meet your community’s needs
1. coffee shop.
A cozy coffee shop can be a hub of community in a small town, providing a warm atmosphere for people to gather and catch up.
Running a coffee shop requires long hours and hard work. You’ll need to invest in lots of equipment, including high-quality coffee machines, grinders and brewing equipment. You’ll also need well-trained staff who make your customers feel welcomed. A good location that’s easily accessible to morning commuters is also key.
2. Ice cream shop
A classic ice cream shop can bring joy to people of all ages. During the summer, your ice cream shop can become the go-to destination for customers looking to beat the heat.
If you’re located in a cold climate, you can operate the business on a seasonal basis or expand to offer non-frozen items like soup and sandwiches to keep customers coming back all year long.
3. Hardware store
With fewer big-box stores, a hardware store can fill a crucial need for the community. While hardware stores require a significant investment in inventory and infrastructure, you can start small and grow over time.
4. Antique shop
Small towns are often rich in history, and an antique shop can tap into that nostalgia. Antique stores can thrive in downtown areas — especially if your community attracts tourists — and support other small business owners by renting out booth space.
5. Fitness studio
Small towns may not have the same fitness options as big cities, which could help your new business thrive.
If you focus on offering classes like yoga and pilates, you’ll save tons of money on expensive gym equipment. You’ll need to pay for trained instructors, but otherwise, you can control costs.
For example, if you open a yoga studio and charge $10 a class, you can bring in $300 for a single one-hour class with 30 students. Running several classes a day can help make your fitness studio profitable in no time.
6. Local tours
Are you a walking encyclopedia about your town’s history and architecture? If no one is offering tours of notable landmarks or regional attractions to tourists, you could have a corner on the market.
The best part? There’s hardly any overhead or startup costs, save marketing expenses. You can put your knowledge of the area to good use — and spin up a profitable business at the same time.
Love to bake? Starting a bakery might sound like a dream, but with hard work and the right business plan, you can make it a reality. You’ll need to identify where your bakery can fill a need in your small town. For example, you could become the first wedding cake baker in the county who offers delivery.
You can start a bakery business at home and expand to a retail location over time. You’ll need to familiarize yourself with food handling permits and regulations in your state and invest in some industrial-grade baking equipment before you get started.
8. Day care
If you love kids and have experience in education or child care, opening a day care can be a rewarding experience.
Parents in small towns often struggle to find quality child care, and a day care that offers a safe and nurturing environment can be a real lifesaver.
You can offer part-time care after school or a nursery for babies and infants. You can operate the business out of your home, and child care is a service that’s always in demand. Just be aware that you’ll need to get an operating license and state regulations may limit how many children you can watch.
9. Food truck
Food trucks can help fill demand in small towns where dining options are limited. Food trucks are also more cost effective than operating a full brick-and-mortar restaurant.
You can partner with breweries or wineries, and become a staple at local events like farmers markets. You can also make your food truck available for private events, like weddings and birthday parties. News spreads quickly in small towns, so it won’t take long for your food truck company to attract a following.
10. Bed and breakfast
Many small towns are short on lodging options for out-of-town visitors. While opening a hotel or motel requires millions of dollars, a quaint bed and breakfast can fill a need in the local market with fewer startup costs.
That’s not to say operating a bed and breakfast is a walk in the park. You’ll need to manage reservations, clean rooms and invest in basic guest amenities, like fresh linens. You’ll also need to comply with local laws and regulations.
11. Thrift store
Small towns often have limited shopping options, so a well-run thrift store can be a treasure trove for bargain hunters.
You can source your inventory from local donations, yard sales and even online marketplaces to keep costs low.
12. Cleaning service
People are busier than ever and a cleaning service can tap into that market.
You don’t need a degree or a physical storefront to operate this business, which can help you keep overhead costs low. You can offer a range of services, from basic cleaning to deep cleaning, and even organizing services.
Maybe your small town has a lot of older residents. Marketing your business to seniors who have limited mobility could help you build a loyal customer base.
13. Auto repair
Auto repair is always in demand, especially in small towns where people rely on their vehicles to get around. When someone’s car breaks down or starts experiencing issues, they may not be able to drive it all the way to a bigger city to get it serviced. That’s where a small town auto repair shop can shine.
14. Gas station
A gas station can be one of the few essential services that residents and visitors need on a regular basis. As a result, gas stations can generate consistent demand, even in an economic downturn.
Getting started is costly but a gas station can also operate a convenience store or car wash, generating additional revenue.
Some small towns have more gas stations than nearly any other business. But if there’s a lack of competition or a vacant gas station for sale, opening a shop could be a smart move.
15. Lawn service
People need their lawns mowed and many are willing to pay for it. Lawn care services are a great scalable business: You can start small with a few clients, offering basic lawn care services, like mowing, raking leaves and trimming hedges.
Over time, you can grow your business to fit the needs of your small town residents. You might offer pest control, landscaping or tree removal services if there’s a lack of local competition in the area. To stay profitable all year in colder climates, you could include snow removal and shoveling services.
16. Hair salon or barber shop
People need multiple haircuts a year, which is a huge money making opportunity. Hair salons can also serve as a hub for the community, and customers will appreciate having a local stylist who knows their preferences.
Real estate can be cheaper in small towns, so if you’ve always dreamed of opening your own hair studio or barber shop, a rural location could help you save money on rent. As an owner, you could rent space to other stylists too.
With good management and a solid marketing strategy, a hair salon can be a successful small town business.
17. Tow truck service
Towing services are essential, especially in areas where people rely on cars as their primary mode of transportation. In a small town, there may not be many options for towing services, which can supply you with a steady stream of customers.
You can expand your business with other services, such as jump-starting dead batteries, unlocking cars and changing flat tires. Each service you add can boost revenue for your small town business.
Of course, you’ll need some automotive experience and startup money to buy a tow truck (think $75,000 to $150,000). You’ll also need to hire staff who are knowledgeable about the equipment. But with the right people and tools in place, operating a towing service can be a great way to make money.
18. IT and computer services
Are you good with technology? With more people working remotely, providing IT services in people’s homes can make your business a valuable addition to the community.
Alternatively, you could open a small storefront for computer or cell phone repair. When someone’s cell phone or computer stops working, they often turn to the closest repair shop to get it serviced as quickly as possible.
You’ll need to effectively market your business to help get the word out. But once you build your reputation as a tech wizard, it’s only a matter of time before jobs start rolling in.
19. Photography
From weddings to professional headshots to high school graduation photoshoots, a trusted and experienced photographer can make great money in a small town.
If you’re passionate about photography, you likely already have the equipment and editing software you need to get started. Building relationships is key since a bulk of your business will likely come from referrals and word of mouth.
20. Tanning salon
Other than the initial cost of buying a few tanning beds and renting a small location, a tanning salon has very few overhead costs. At $1,500 to $3,000 a piece, you could purchase four tanning beds for less than $12,000, which is much less expensive than opening other types of stores, such as a restaurant or even a hair salon. You can charge customers for a monthly subscription or a one-time fee.
You’ll need to research the demand in your small town first. Women frequent tanning salons more than men, so finding ways to advertise to this demographic is important. You might consider offering a discount or incentive to stylists at hair and nail salons who help send clients your way.
Picking the right small town business idea
Small communities offer a lot of opportunities for entrepreneurs, but don’t let that small-town charm blindside you.
Here are some tips to keep in mind when starting a small town business.
- Conduct market research: Identify any gaps in the market that your business can fill. Get a pulse on what the community needs and is willing to pay for by speaking with residents, local business owners and other leaders in town.
- Develop a business plan: A business plan outlines your goals and strategies. It should also include information on your target market, competition, marketing strategy and financial projections. A business plan is also required if you need to secure funding from lenders and investors.
- Understand your competition: Ideally, you want to be the only business in town that offers a particular product or service. If other businesses exist, you need to determine if your idea is truly unique enough to attract the steady customer base needed to ensure long-term growth. People tend to be loyal to what they know, so if you open a new business, you’ll need to gain people’s trust and build your reputation.
- Secure funding: Some businesses are cheaper to launch than others. If your business requires a physical storefront or multiple employees, you’ll likely need funding from outside sources, such as a small business loan . Carefully research how much it will cost to start your business, then identify funding options with low interest rates. A one-stop shop — like Lendio or Nav — can help you sort through your options all in one place.
Customize your website with an easy-to-use site builder that’ll make your brand look professional and polished in no time.
Resources for small town business owners
Starting a small town business can feel intimidating, especially if this is your first company. Connecting with the right resources can make the difference between struggling and thriving in your community.
Your local chamber of commerce
Getting involved with other small business owners is a great way to stay abreast of changes in the community, and it can be a valuable resource for growing your company.
Chambers of commerce can also provide access to mentorship programs, business directories and marketing opportunities.
You can find contact information for your local chamber of commerce online.
SCORE is a volunteer nonprofit organization supported by the U.S. Small Business Administration that connects business owners with mentors from similar fields for free.
The organization provides in-person mentoring at more than 230 local chapters as well as remote mentoring via email, phone and video.
U.S. Small Business Administration
The U.S. Small Business Administration is a federal agency that provides support and resources to small businesses. They offer business counseling, training, education and access to financing.
The SBA also has a network of local offices and resource partners, including Small Business Development Centers, which provide free or low-cost assistance to small businesses.
Networking events
Networking can be a great way to find new clients, develop professional relationships and promote your business.
In a small town, networking events may be more informal, such as a weekly meetup of business owners at the local coffee shop.
But don’t be afraid to network outside your immediate community. Getting perspectives from businesses outside your small town can help you grow.
Make sure to bring business cards and other marketing materials to hand out, and be prepared to talk about your business and what makes it unique.
PRO TIP: You don’t need to be a social butterfly to thrive at networking events. Here’s how to network for introverts .
Rachel Christian is a Certified Educator in Personal Finance and a senior writer at The Penny Hoarder. She focuses on retirement, small businesses, investing and taxes.
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If you are planning to start a new community center, the first thing you will need is a business plan. Use our Northern Park - Community center business plan example created using Upmetrics business plan software to start writing your business plan in no time.. Before you start writing a business plan for your new community center, spend as much time as you can reading through some samples ...
Your Community Building A practical handbook for people running buildings in local communities ... 58 The Budget and Business Plan are at the Heart of Managing the Centre 58 The Budget 59 A Cautionary Tale ... 173 A Reaching Out Action Plan 173 Key Elements of the Plan 174 A Word of Caution 174 More Detail on Some Aspects of
Importantly, a critical step in starting a community center is to complete your business plan. To help you out, you should download Growthink's Ultimate Business Plan Template here. Download our Ultimate Business Plan Template here. 14 Steps To Start a Community Center: Choose the Name for Your Community Center; Develop Your Community Center Plan
Community Center Business Plan . Used 4,947 times . You can use this Community Center Business Plan Template, it is perfect for anyone desiring to open and run a society center. It gives the center's owner an outline of areas that must be disseminated with the investors to earn an acquisition.
Understanding and building a community business model. ... Use scheduling tools to ensure consistent content release times, keeping your community engaged. Plan for member-generated content: Encourage and facilitate community members to create and share their own content to increase engagement and investment. 5. Monetization strategy
Business plan outlines are basically all the same. There are different ways to complete a business plan from using self-guided books, working with a professional consultant or participating in a business plan class. You need to be realistic about how you work best, your time and the quality of results you want. Business Plan Template. Business ...
Benefits of using an industry-specific business plan example. Believe it or not, using an industry-specific business plan example is the best and probably the quickest way of writing a business plan. Doubt it? Hold, this may change your perception; an extended list of the benefits of using an industry-specific business plan template.
Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and ...
The resource provides information, support and templates to help you produce a Business plan for your charity or community group. A business plan is important to help manage your organisation by stating your objectives and how and when you aim to achieve them. Your business plan be useful as a point of reference for staff, trustees, potential ...
Get a pulse on what the community needs and is willing to pay for by speaking with residents, local business owners and other leaders in town. Develop a business plan: A business plan outlines your goals and strategies. It should also include information on your target market, competition, marketing strategy and financial projections.