Like most commercial organizations, non-profit organizations and social enterprises should strive to keep their fixed costs as lean as possible. Those that do this properly will be more likely to survive financial shocks and stresses, and create dynamic and sustainable organizations.
While many of these organizations have already achieved this state, this article targets those social entrepreneurs who believe their organizations have become too expensive to maintain on an ongoing basis, or are about to enter a risky and uncertain financial territory.
This article shares some important lessons I’ve learned through assisting these organizations to develop budgets, build financial models and review their financial structure.