Friday, September 7, 2012

Nonprofit Business Model Shift - Nonprofit Business Planning

A nonprofit's business model includes defining the revenue sources that will offset expenses and possibly generate additional resources to pursue mission.

In an interesting twist, "boutique" movie theaters in San Francisco are opting to?adopt?a nonprofit status and/or depend on philanthropy to stay in business.? And, the argument makes sense when we appreciate that the role of "boutique' movie theaters is to bring alternative cinema to the public.? But the business model for traditional movie theaters -- ticket sales and the snack counter really doesn't keep the boutique thriving and subsequently, non-mainstream cinema thriving.? Should the boutique movie theater started with this business model in the beginning?? Maybe...? It all comes down to truly understanding audience needs and wants and the cost of doing business.

Here's a link to the Wall Street Journal article on this topic.

Source: http://nonprofitboardcrisis.typepad.com/nonprofit_business_planni/2012/09/nonprofit-business-model-shift.html

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