In another hub, I mentioned that, just as a charitable organization can benefit from honestly thinking of its donors as investors, a for profit business can likewise improve its own success by emulating certain best practices of a nonprofit organization. How?

By far the most important advantage a nonprofit business model ever has over a for profit model is that it is naturally built around a cause. This isn't to say that many for profit companies are not likewise created to serve a cause, but a for profit business model's only ultimate purpose is to stay in business by earning a profit.

Now, I will also grant that there can be much discussion between what separates the "cause" of earning a profit from any other cause - especially given that a "nonprofit" must generate adequate revenue to signal the market of its worthiness of continuing its own operations, but the basic intention of the two different models fundamentally differs based on cause vs. profit.

That said, I come back to the point that the "cause" of the business itself is a very powerful tool - both in raising money, and in creating a plan around which you can succeed.

Raising money in a nonprofit largely consists of going yo potential donors, communicating why you exist and are worthy of their support, and asking for contributions (investments). It's really that simple. The process has to be nuanced based on who it is you are asking, how much money you need, what kind of expenditures it will cover, etc., but the process remains the same no matter what the variables are.

This is true in a for profit business as well. The primary difference is that you are likely to expect that much of the inflow of resources will come from "sales" as well as investments, and in fact must be driven by sales in the end, but as you attract needed investment, you will go through the same process a nonprofit follows as you seek the funds you need to sustain operations.

In a for profit model, most wise business people learn quickly that showing a set of financial projections with lots of numbers, displaying a pattern of growth and intended profit, is essential to success in attracting funding. But savvy investors recognize that it is easy to replicate numbers from one business plan to another - the real potential to be demonstrated in the start up phase is in the core message, i.e "What is your cause, i.e. purpose, and why is it worthy of my support?"

This is where the skill and experience of successful charitable ventures really can be useful to an entrepreneurial company designed to make a profit - possibly a very large profit.

Defining, refining and communicating your mission statement and bigger message can be your ally in raising money. True, having a product that has succeeded already - to point to and say, "this is what we are about" gives you a great advantage in the marketplace, especially with new investors, but if you don't have that, you can't say it. Instead, you need to be able to cast a vision.

Tell your prospects, "this is how we will change the world if we are successful" - and you need to believe it! It does not have to be in a way that will transform civilization - it may be as simple as a new twist on apple pie, but every positive change has value, and it has value to millions of people.

So, keep it simple! Yet, be direct, sincere and focused and eventually success will follow.

Andrew Thompson is an attorney working with start up and businesses to build successful strategies for achieving their long term objectives. Contact Andrew today to find out more about how they can help your business succeed.