Why Start-Ups Struggle & How to Overcome It

Starting a nonprofit is an exciting journey, but it comes with significant challenges. In a recent interview, Dr. Susan Nichols, a nonprofit consultant with over 30 years of experience, shared valuable insights on how organizations can refine their systems and structures to bridge the gap between mission, business, and community needs. Through her firm, C3, she equips nonprofit leaders with the strategies necessary to build sustainable, impactful organizations.

1. Shifting the Focus from Founder to Community

One of the most common struggles for nonprofit founders is keeping the focus on the community rather than personal vision. While founders often start with a clear idea, it's essential to remain flexible and responsive to the actual needs of the people served. Dr. Nichols emphasized the importance of research, listening, and allowing the nonprofit to evolve organically.

Key Takeaway: Your nonprofit should be driven by the needs of the community, not just your personal aspirations. Continually assess and adapt to ensure alignment with those you serve.

2. Adopting a Business Mindset

Many nonprofit founders struggle because they don’t initially recognize that their organization is a business. Dr. Nichols stressed that nonprofits must operate with the same level of business acumen as for-profit companies. This includes developing policies, managing finances, forming a board, and building sustainable operations.

Key Takeaway: Early on, embrace the reality that your nonprofit is a business. If you lack business skills, find partners or advisors who can help you build a strong operational foundation.
 

3. Understanding the Role of Leadership

A critical turning point for many nonprofit startups is the realization that the founder is not the sole owner. Once a nonprofit achieves 501(c)(3) status, it essentially belongs to the board and the community it serves. Dr. Nichols highlighted the importance of deciding early whether to serve on the board or as the executive director, as each role carries different responsibilities and limitations.

Key Takeaway: Be prepared for the transition from founder to leader or employee. Establish clear governance structures early to ensure long-term sustainability.

A Real-Life Example of Success

Dr. Nichols shared her experience of launching an after-school program for children in a high-need community. She spent nine months researching and forming partnerships before implementing the program. By engaging local stakeholders—including apartment management, volunteers, and churches—she created a sustainable initiative that directly addressed community needs.

Key Takeaway: Thorough research, strong community partnerships, and a willingness to adapt are crucial for success. Nonprofits thrive when they empower local communities rather than imposing external solutions.

Overcoming the Challenges

The reality is that most nonprofits don’t make it past the 10-year mark. However, those that do tend to adopt a business-oriented mindset early, maintain strong community connections, and build sustainable operational frameworks.

Through her consulting work, Dr. Nichols helps nonprofit executives and their boards move from feeling overwhelmed and reactive to becoming confident, proactive visionaries. Whether a nonprofit is in its building phase, nurturing its growth, or revitalizing operations, Dr. Nichols provides the insight and structure needed for long-term success.



🚀 Join the Experience! Dr. Nichols will be the featured speaker at Sunday Social on June 22nd, where she'll dive deeper into nonprofit sustainability and success strategies. Don’t miss this opportunity to learn from one of the best—see you there!