Instructor Technical Assistance Webinar MENTAL HEALTH FIRST AID-USA Building a Business Plan Presenter: Bryan V. Gibb Director of Public Education National Council for Community Behavioral Healthcare
Building a Business Plan You are on-board - sold on Mental Health First Aid USA How do you convince others to support the program in your community? Develop a well thought out plan!
Potential Stakeholders: Organization Management State Authorities Private Grant Makers Local and Community Groups Interest Groups Private Investors / Customers
Planning Process Strategic Plan Gather Information Articulate Vision, Values & Mission Establish Goals Identify Competitive Advantages & Disadvantages (SWOT & PEST)
Planning Process Business Plan Reflects Strategic Plan Operational in Nature Detailed Often includes a resource ask
Planning Process Feasibility Study New ventures Target Markets Resources Needed Risk / Reward
Business Plan Overview Although a business plan may be simple or complex, almost all will include some form of the following: Executive Summary Organizational Overview Products, Program or Services [MHFA] Marketing Plan Operational Plan Management or Organizational Team Major Milestones - timeline Financial Statements Considerations Funding Request Exhibits
Plan Components: Executive Summary A broad overview of Mental Health First Aid, and the plan Alignment of the plan with the organization s Vision, Values & Mission Need in the community and how MHFA fits this need Brief intro on marketing, pricing, operations
Plan Components: Organizational Overview Outline of the existing structure of the organization How MHFA fits into this structure as a new unit, or as part of an existing training or public education program Expansion plans of the organization, how MHFA fits into these plans Strategic Partnerships
Plan Components: Products, Programs or Services An overview of the organizations products, programs or services, and the consumers of each A detailed description of MHFA How MHFA fits with existing offerings augment, compliment, compete, replace Specific audiences / consumers of MHFA
Plan Components: Marketing Plan Who is your customer or your constituency? Trends/changes for the market The Need for MHFA Competitive forces Distribution channels/promotion efforts Costs of marketing activities Put samples of materials in appendix
12
Questions?N 13
Plan Components: Operational Plan Start-up Instructor Certification Registration, payment, materials Venue, food & beverage Course follow up Accounting
Sample Budget: Onondaga County, NY Mental Health First Aid * The following budget is based on 25 participants and 2 trainers Budget Item Amount Description Minimum - 15 participants, maximum 25 participants. The fee structure is $125/person for 15-20 participants, $100/person for 21-25 Training Fees $2,500 participants MHFA Manuals $250 $10/person Program Supplies $75 $3/person Subtotal $2,825 Optional Expenses Room Rental $300 $150/day for 2 days $5/person/day for 2 days + Breakfast $275 10% admin fee $8/person/day for 2 days + Lunch/Snacks $440 10% admin fee TOTAL $3,840 15
Plan Components: Management Team Bios of each team member: Instructors, Admin, Management, Marketing
Plan Components: Major Milestones Timeline Start-up First courses Program Evaluation Expansion
MHFA Year One Plan Presented Plan Approved Instructors Certified Launch Marketing Deliver Courses 9/30/2009 11/1/10 February 2010 3/17/10 4/15/10 Review Evaluations, market additional courses Submit grant requests for year Two Media Placement, PR Incorporate feedback Adjust Plan for year Two Approve Plan for year Two Market courses for year two May 2010 6/1/10 6/15/10 July, 2010 8/4/10 August, 2010 9/28/10
Plan Components: Financial Plan Start up costs Marketing costs Pricing Expected Revenue Assumptions Pro forma Income Statement (P&L) (appendix) Pro forma Statement of Cash Flows (appendix) Pro forma Balance Sheet (appendix)
Quick MHFA Product Pricing Scenario Analysis 12 Hour, two-day MHFA Scenario A Scenario B Scenario C Revenue Tuition $100 $125 $125 # of Participants 25 20 15 Total $2,500 $2,500 $1,875 Expenses Venue $300 $300 $300 AV Manuals $250 $250 $250 Misc Materials $75 $75 $75 Food & Beverage $720 $720 $720 Trainer Fee Trainer expenses Total Expenses $1,345 $1,345 $1,345 Net $1,155 $1,155 $530 Margin 46% 46% 28% 20
Sample 4-year MHFA Income Statement 10 trainings in year one, 15 in year two, 20 in year three, 25 in year four Revenue Year One Year Two Year Three Year Four Tuition $ 25,000 $ 37,500 $ 50,000 $ 62,500 Grants $ 10,000 $ 10,000 $ 15,000 $ 20,000 Total Rev $ 35,000 $ 47,500 $ 65,000 $ 82,500 Expenses Training $ 13,450 $ 20,175 $ 26,900 $ 33,625 Web, curriculum, Marketing Salary & Benefits $ 15,000 $ 20,000 $ 25,000 $ 30,000 Start-up $ 5,000 Total direct $ 33,450 $ 40,175 $ 51,900 $ 63,625 Indirect $ 4,683 $ 5,625 $ 7,266 $ 8,908 Total Expenses $ 38,133 $ 45,800 $ 59,166 $ 72,533 Net $ (3,133) $ 1,701 $ 5,834 $ 9,968 Margin -9% 4% 9% 12% 21
Sample Cash Flow Spreadsheet Year One January February March April May June Revenue Tuitions $2,500 $0 $2,500 $2,500 $2,500 $5,000 Grants $10,000 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 Total $12,500 $0 $2,500 $2,500 $2,500 $5,000 Expenses Traing Exp $1,345 $0 $1,345 $1,345 $1,345 $2,690 Misc $6,250 $1,250 $1,250 $1,250 $1,250 $1,250 Total $7,595 $1,250 $2,595 $2,595 $2,595 $3,940 Starting Cash $0 $4,905 $3,655 $3,560 $3,465 $3,370 ending cash $4,905 $3,655 $3,560 $3,465 $3,370 $4,430 July August Sept Oct Nov Dec Revenue Tuitions $2,500 $0 $2,500 $2,500 $2,500 $0 Grants $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 Total $2,500 $0 $2,500 $2,500 $2,500 $0 Expenses Traiing Exp $1,345 $0 $1,345 $1,345 $1,345 $0 Misc $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 Total $2,595 $1,250 $2,595 $2,595 $2,595 $1,250 Starting Cash $4,430 $4,335 $3,085 $2,990 $2,895 $2,800 ending cash $4,335 $3,085 $2,990 $2,895 $2,800 $1,550 22
Plan Components: Considerations Funding Request What you need to make all of the above work What you want from each source internal, grantor, public Specific Ask
Plan Components: Appendix Organizational Materials org chart, brochures MHFA materials Sample Marketing Materials Pro Forma statement of cash flows Pro Forma income statement Pro Forma balance sheet
Navos Business Plan Mental Health First Aid Business Plan I. Summary of Organization: Mission ~ Improving the quality of life of people vulnerable to mental illness by providing a broad continuum of care. Business Model ~ Largest private Nonprofit Mental Health Agency in the State of Washington and serves all of King County, which provides a comprehensive continuum of care to include an Inpt. Psychiatric Hospital and an extensive Outpt Program, which serves all ages. Strategy for the MHFA Program ~ The three most poignant objectives for the MHFA Educational Community Outreach program are to reduce the negative stigma regarding mental illness out in the community; to educate the layperson regarding how to recognize the signs/symptoms of mental illness and empower them with the tools to adequately provide basic first aid interventions for common mental health challenges; and to provide a comprehensive list of mental health resources in the local community. The MHFA training program will be the catalyst to move in this new direction. Additionally, it is our intent to implement a didactic presentation on MHFA to all of our Out Patient support staff at Navos and to offer this training to the support staff of the 19 independent Agencies within the Navos Consortium. Strategic Relationships ~ Navos has a long history of strategic relationships within the local and state levels of community mental health. David Johnson, EdD, CEO, is the Chair of the Washington Community Mental Health Council. We have strategic relationships with several schools of secondary education, to include: Seattle University, University of Washington, Seattle Pacific University, Highline Community College, Shoreline Community College, South Sound Community College, etc. 25
Navos Plan (cont.) II. Marketing Strategy: Niche Market Analysis ~ The following is the list of organizations that are registered with the National Council to have permanent staff as Certified MHFA Trainers. To adequately fulfill our commitment to increase the educational community outreach program, it is essential for Navos to take the lead in King County to promote and deliver this potentially life-saving information to the layperson in our local community. King County ~ Navos Mental Health Solutions Valley Cities Counseling and Consultation Community Psychiatric Clinic State of Washington ~ Kitsap Mental Health Cascade Mental Health Center Quality Behavioral Health Compass Health Behavioral Health Resources Lower Columbia Mental Health Center Spokane Mental Health Catholic Family & Child Services Marketing Scheme ~ Initial contact with a potential training site (e.g., local college campus) will be done by phone, followed by a brochure and a cover letter explaining the benefits of the MHFA training in association with the Navos Educational Community Outreach program. The message or selling point is to promote the MHFA training as an imperative component to the wellness and safety of all students, teachers and support staff in our education system and other community based programs. 26
Navos Plan (cont.) Advertising ~ It is proposed to include a link on the Navos Website regarding the MHFA training program to include the brochure and scheduling information. The color brochures and flyers can be made in-house at Navos by the Education Office. Posters/flyers will be posted at a local venue to advertise the MHFA training. This can be done two ways: Internal advertising for the support staff to attend the MHFA training a particular venue (e.g., local college). Or external advertising, when the venue is sponsored by an organization / agency, but it is lacking enough participants to hold a full class. Packaging the Product ~ Training workbooks will be provided to each attendee of the MHFA training. This will be included in the cost of the training. The wholesale cost of the workbooks is $ 20.00, which much of this expense will be reimbursed by the grant from MHTP (see below). Additionally, The Navos Education Office will develop a comprehensive list of local community resources to be assistive in the areas of Mental Health and other related topics. Management and Customer Service ~ The Navos Education Office will be responsible for the development and distribution of the above mentioned marketing materials, community resources, and the scheduling of the MHFA training venues in King County. The complete MHFA training program takes 12 hours of didactic and video presentation. (It will be broken down into 4 sessions of 3 hours each, which will be accommodated by most organizations.) III. Finance: Grants ~ The Washington Community Mental Health Council in association with the Mental Health Transformation Project (MHTP) will provide additional support for Mental Health First Aid. The MHTP is providing the funding for one $900 mini-grant for each regional team to support a training course in their community, as well as to provide reimbursement for the purchase of training workbooks provided to each community participant. We have enough funding to reimburse for a total of 500 workbooks statewide, which are currently priced at $ 19.95 each plus tax and delivery. ROI ~ The MHFA training is an imperative component to the wellness and safety of all students, teachers and support staff in our education system and other community based programs. It is recommended to offer the MHFA training at a participant cost of approximately $ 100.00 per person. This is a relatively small cost, due to the extensive information that is transferred during the 12 hours of training. In addition to the new source of revenue, the value of the ROI is enhanced by this educational community outreach program because it will increase our social capital in the arenas of networking and strategic relationships. 27
Questions?? 28
Mental Health First Aid USA A recording of this webinar & the power point will be available on the website 48 hours after it has ended. Visit us on the web at www.mentalhealthfirstaid.org for more information. Get updates on trainings, relevant news & more on Facebook become a fan of Mental Health First Aid USA Expand your network, join the Mental Health First Aid Group! For any further questions, contact Bryan Gibb at bryang@thenationalcouncil.org or Susan Partain at susanp@thenationalcouncil.org or 202.684.3732. 29