Confessions of A Social Entrepreneur

Eight Pieces of Advice for Nonprofit Start-ups (Part III)

by Chataun Denis on 01/03/11

Do not quit your day job!!! Since you are likely financing your own start up, take baby steps. Do not let passion override rational decision making. Do not take out a lease on a building for a new day care if you know it will not pass inspection and you know you do not have money for repairs. This may sound insane but I see these types of mistakes made all the time.

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Eight Pieces of Advice for Nonprofit Start-ups (Part II)

by Chataun Denis on 12/16/10

Write a business plan. I can’t say this enough. The cliché if you fail to plan, you plan to fail is very true, especially as a nonprofit. As a registered tax exempt organization you’re being held accountable by the IRS. As a sole proprietor, Limited Liability Corporation, or Partnership you’re not. Not only is the business plan a way to help you stay compliant, it details your plans for recruiting partners, board members, donors, and volunteers. It is the document that describes the course of action to reach your goals. Trying to manage this information in your head is a recipe for mental illness.

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Eight Pieces of Advice for Nonprofit Start-ups (Part I)

by Chataun Denis on 12/07/10

The first piece of advice is to anticipate financing the start-up of your company with personal funds. It's highly likely that you won't be awarded grant funding during your first two years in business. The days of getting a grant simply because you have a great idea are long gone. Today, funders want to see two years of measurable outcomes before they even consider your application. Businesses start and fail every day. If you can prove that your company has longevity, can generate a surplus, and can make a positive difference then you're a excellent candidate for a grant award.

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The Challenges of Entrepreneurship (part III): Be Aware, the Road to Success May be Slow

by Chataun Denis on 12/01/10

For the last couple of weeks, during my time of introspection, I have been conflicted and disappointed by my lack of external results. Yes, I have made some progress, but not the progress I had hoped for when starting 2 1/2 years ago. This disappointment has caused me to grow weary of theories about positive thinking. We hear from motivational speakers that positive thinking is the key that unlocks the door to success. What they fail to add in many cases, is that it is not the only key. I am learning that the door to success has several locks with positive thinking being one. Other keys that determine success are: patience (because success doesn't occur overnight) and determination (the will to keep going when doubt arises, and more than likely it will).

The last four months have been an emotional rollercoaster of uncertainty. Marketing is proving to be more of a challenge than I anticipated. And, because I have a menial budget to work with, I have to resort to the less costly and free marketing avenues. Because these products are free they are very time-consuming; time that could be spent accumulating billable hours. However time consuming if I want to stay in business, investing time in marketing is critical.

The mantra that I preach to my clients, "Diversify Your Fundraising Strategy" applies to for-profits and nonprofits alike. Whether it's maintaining current levels or reaching new levels of success for your business, you must evolve with the market. If your programs are no longer working, change the model. Our survival at the end of 2010 is going to require of us greater mental tenacity, perseverance, and innovation. Our ability to be resourceful and efficient during this economic evolution will determine our existence or nonexistence at the end of the next 9 months.

Call Today To Put Your Mission In Motion! (770) 286-3128

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The Challenges of Entrepreneurship (part II): Be Aware, the Road to Success May be Slow

by Chataun Denis on 11/08/10

I am grateful to still be in business despite recent economic events that have negatively affected so many. I am fortunate to have realized success for two consecutive years and if I am to survive a third, I must go well beyond positive thinking. I must constantly be looking for ways to adapt my business model with ever-changing market conditions. As a consultant to nonprofits, my previous model emphasized grant writing fees as my primary source of income. After the wall-street crash in 2008 it became apparent that this model would not withstand the volatility of the economy. As a consequence of sharp declines in portfolio values, foundations and corporations are unable to provide charitable contributions at the levels they had before.

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The Challenges of Entrepreneurship (part I): Be Aware, the Road to Success May be Slow

by Chataun Denis on 10/22/10

One of my fellow bloggers discussed the notion of positive thinking not being the end-all-be-all cure. I completely agree. As an entrepreneur, things are not going to go as expected all the time. If you are new to entrepreneurship, you are likely to underestimate the start up process and overestimate your benchmark of success. What I mean is your eagerness and passion for your product may cloud your vision to the realities of the challenges of starting a business from the ground up.

Lacking experience in starting a business, you just are unsure of what to expect. You can have the best business plan, top rate market research, and a phenomenal marketing strategy, but there still will be unexpected challenges. I firmly recommend not quitting your day job. Starting a business and generating sufficient income to pay yourself a full time salary is quite the challenge, especially, if you’re working with very little start up funds. Because I work with entrepreneurs interested in starting a nonprofit, and in most cases, they have no money, no business plan, and no idea how to run a nonprofit, I make them aware in the very beginning that quitting their day job in the near or distant future is likely not going to happen.

To learn more information about how you can earn a living, while living your passion contact us today, (770) 621-5817!

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Grant Research for Beginners, The Importance of the 990

by Chataun Denis on 10/06/10

To the novice grant writer or researcher, the process of finding grant prospects can be overwhelming as there are thousands of giving entities across the United States. The million dollar question here is, how do you narrow your search? Grant databases are probably the best sources for finding funders. There are a few tried and true ones I rely on when conducting research for my clients.

Foundation Search Online and Foundation Directory Online are the two I tend to use most consistently. Both are fee based but very helpful. There are free databases available for use as well. Foundation Center, a national nonprofit library of sorts, has a pretty extensive database which can be used onsite for free.

To read the full article, visit the tips page.

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Do Grants for Individuals Really Exist?

by Chataun Denis on 09/16/10

Generally speaking, I would propose that the general public doesn't fully understand how grants work, and as a consequence, they fall prey to the attractive ads, paying hundreds and sometimes thousands of dollars for cds, books, and workshops that leave them just as empty handed and confused as ever before. For those of you who don't know the correct definition of a grant, a grant is free money, this is true. However, individuals who are looking for home improvement grants or a grant to finance the start up of a business are not the traditional recipients of grants.

There are two groups that qualify for grants. The first group falls under a category I like to call institutional. These are your 501c3 nonprofit businesses. Now, for those of you who don't know what a 501c3 is, it's a profit generating business that is organized for charitable purposes and can receive tax deductible gifts. In other words, it's a tax shelter for people who have money to give away in exchange for a tax write off. The second group is non-institutions. Individuals and non-501c3 civic groups fall under this category. Again, most grants are awarded to institutional groups that have Internal Revenue Service approved 501c3 tax exempt status. If you do not have a registered tax exempt business, then you would fall under the category of non-institutional.

Now, let’s discuss how individuals and civic groups can go about finding grant opportunities. Although there is ‘free money’ available, remember it is not money that can be used for anything of your choosing. As a grant applicant, you'll have to meet certain qualifications, and the qualifications are very specific and targeted to unique groups of individuals.

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"Which is more difficult to run: a for-profit business or a nonprofit of equal size?"

by Chataun Denis on 08/12/10

One of my fellow colleagues posed a question in one of the Linked-In groups of which I am a member. She asked "Which is more difficult to run: a for-profit business or a nonprofit of equal size?"

My response was that, "I don't know that I would say that a nonprofit is more difficult to run than a for-profit. I see them both as the same, with the exception of the tax deduction benefit. Any social based business should have as one of its primary goals the making of profit. If the business, whether for profit or not, doesn't have money to deliver the service, then the point is mute anyway. I think a balance of "hard skills" which I'll define here as the effective use of traditional business principles, and soft skills, the passion to want to make a difference, make the perfect storm of possibilities, a social enterprise. I know it's easier said than done, but if it's your life's purpose, as someone said in a previous post, it'll all work itself out." What do you all think? One of my fellow colleagues posed a question in one of the Linked-In groups of which I am a member. She asked "Which is more difficult to run: a for-profit business or a nonprofit of equal size?"

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Saving during Slow Business Cycles

by Chataun Denis on 07/10/10

Business occurs in cycles, or periods. Some periods will be slow. Some will be very busy with high revenues. As entrepreneurs operating under these realities, we must set aside dollars so that when sales are at their lowest we will have a financial cushion. I understand that many of us are operating at a loss and can’t yet afford to save because we haven’t made a profit. My response is…find a way!

1. Find a way to save $10, $25, $100 per month. Start with any minimal amount. Over time your small deposits will add up to a big safety net.

2. Find a way to increase your revenues. Develop a new product. Increase your prices. Generate more sales.

I know this is easier said than done. But, if you believe in yourself and the mission of your business, you must find a way. If you are living your passion, the way will be made clear. You only have to be responsive when the guiding voice within you speaks. One more thing, don’t give up when you find the process is taking longer than you had anticipated.

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