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Turning the Tables: Presenting a Business Value Proposition

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Part 9 from the Win-Win for the Greater Good series

The usual nonprofit/for-profit scenario is that the for-profit organization is providing funding in a more philanthropic manner, while the nonprofit is seeking funding to meet the needs of its organization’s mission and services to the community. Business value is rarely part of the equation. Yet providing a mutually beneficial business value is what creates a strong attractiveness to work together and subsequently, a much more lasting bond between the organizations.

Think about the typical situation. A nonprofit organization has a particular need or program it wishes to develop that requires external funding. They write up a carefully prepared description of this need, how many people it will impact and how this need or program will further their community mission. They certainly will estimate the amount of money that seems reasonable to request from a corporate funder. This amount may be based on the for-profit’s past giving history to this organization, or what the for-profit has given to other nonprofits before. The nonprofit is very careful not to ask for too much, yet they want to ask for enough to impact their need.

The nonprofit also realizes that the corporate funder or local business is probably being approached by many other nonprofit organizations seeking funding. So they want their presentation to have dramatic impact, a strong case for funding. That is usually the nonprofit’s primary focus - a strong argument for the needs of their cause.

Now let’s turn the tables and look at this situation from the for-profit organization’s point of view. Imagine you are a for-profit executive who has been listening to or reading proposals like these typical nonprofit pitches, over and over again. And in walks a nonprofit executive with a well thought out, business value proposition which clearly shows that by working with their nonprofit your for-profit business will receive multiple benefits - benefits such as increased sales of your products or services, ways to increase the morale of your employees, opportunities that will raise your brand awareness, and a long list of other benefits. Now that is a very different approach. Which would be most effective?

What I mean by business value proposition is that each side addresses the marketing and business objectives of the potential partner. They have done their homework, read the other organization’s promotional materials and annual report, conducted an Internet search for press coverage and other information about their potential partner, maybe even talked to a friend who works or volunteers at that organization, and so they have a good understanding of the business priorities of this potential partner. With this understanding, they put together a presentation which shows that by working with their organization (for-profit, nonprofit, education or government), multiple benefits towards the others business or mission objectives can be achieved through a partnership.

This is the business value proposition approach, and it is by far the most successful way to create a lasting cross-sector partnership and bring multiple benefits to all partners. By understanding this business value mindset you have a huge advantage over your competition, no matter which sector or side of the partnership equation you come from.

I have worked with well over 150 nonprofits and rarely have I seen nonprofits utilize this business value proposition approach. Yet this is exactly how for-profit businesses operate internally. A corporate marketing or sales proposal will not see the light of day unless it provides a solid business value proposition for increasing their business. In other words: If it doesn’t make dollars, it doesn’t make sense.

So it cuts both ways. If you don’t take the effort to understand the needs and business objectives of your potential partner, how can you possibly expect them to want to support and engage in the needs and business objectives of your organization? Of course the good news is, when you present a solid business value proposition and carefully listen to theirs, you have the foundation for a truly successful cross-sector partnership.

Please visit www.bruceburtch.com for more information and to view Win-Win for the Greater Good.

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