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Starting a Nonprofit? You are Still an Entrepreneur!

When you think of entrepreneurship, you probably don't think of those socially conscious individuals toiling to launch a nonprofit. In fact, many nonprofit founders and executive directors don't consider themselves entrepreneurs either. But in this current market, the same skills that drive for-profit businesses to success are necessary in developing and building effective nonprofits.

The official definition of an entrepreneur is a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk. The expanded and commonly understood definition includes the individual's innovative attitude and big picture thinking. Successful nonprofit founders and leaders are no different. They are willing to put most everything on the line to make a difference in the world around them. They are highly motivated to change the world, or at least their piece of it. And the future of nonprofit leadership will require the tools and skills of the best for-profit entrepreneurs.

Entrepreneurs who find success in the for-profit sector generally do so by finding better, faster, and smarter ways of doing what has already been done. Yes, there are those who invent an entirely new product or industry, but they are rare. Most thriving small to medium-sized businesses are run by people with solid business fundamentals, a keen perspective on the future, and a sufficient knowledge of the actual operations of the business. They use these skills of looking back, looking forward, and acting in the present to identify and exploit opportunities as they come. At the same time, they are better positioned to identify and deal with threats to their company's well-being.

Nonprofit leaders need to apply these same skills in order to realize their mission and vision. They need to look beyond how things have always been done and find innovative ways to reach donors and clients. They need to keep an eye on the nonprofit sector, watching the trends and opportunities as they develop. They need to know their competition, both in terms of the donor dollar and the population they serve, and find creative ways to work together without defeating each other's purpose. They need to work with the target population to ensure they are providing the optimum programs and services to combat the particular social ill.

Most importantly, nonprofit leaders can no longer afford to rely on their passion and commitment to drive success. Business fundamentals are critical. Nonprofit corporations are still businesses -- they simply have a different stated mission. For-profit ventures have a single stated mission -- to turn a profit. Nonprofit missions obviously vary, but the better the organization is managed, the more likely they are to accomplish their goals.

In order to grow and develop a nonprofit, the same efficiencies employed by for-profits must be implemented. Savvy donors want to know that their hard-earned contributions are being used wisely and that the management of the nonprofit has the skills to run a tight ship. Volunteers and staff are more productive and bought-in if the managers have a clearly established path. And clients are better served by an organization on the cutting edge of programs and management.

The new founders and leaders of nonprofit organizations need to take on the persona of entrepreneurs. They need a strong balance of the big picture, management skills, and operational efficiency. They need to be prepared for the inevitable changes in interest and culture and poised to strike at valuable opportunities as they come. Passion and commitment are still at the core of nonprofit organizations, but blending in entrepreneurial concepts will allow that passion to truly deliver the impact nonprofits are after.

About the Author

LaunchX.com is dedicated to training entrepreneurs to turn their good ideas into great companies. The LaunchX System provides step-by-step education in the mindset and skill set entrepreneurs need to succeed. Our program includes intensive seminar training, key business software, and specialized workbooks that teach you the fundamental skills you need to achieve your financial and worklife goals through entrepreneurship. Register today for our introductory course and see what LaunchX can do for you!