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34
I
Nonprofit
Performance
Magazine
JOHN F. KILPATRICK
Starting Sustainably
I
n the business incubator world, the
prevailing framework is the Lean Startup
proposed by Eric Ries in 2008, which focuses
on understanding the needs of your customers
to avoid investing valuable time designing
features or services they do not want. Based
on lean manufacturing principles, the intent
is to eliminate wasteful practices during the
development phase in order to have a better
chance of success without requiring large
amounts of outside funding, elaborate business
plans or the perfect product. This framework
helps startups focus on developing a scalable,
repeatable business model.
All too often in the nonprofit world, we operate
from the mindset of a cause without taking into
account the business model.There’s a reason for
this phrase: Your 501(c)(3) designation is a tax
status, not a business strategy. Helping military
veterans is one of the biggest causes out there
with the growing recognition that there are
many needs to meet. With that in mind, we
were determined to develop Veterans Recovery
Resources with a focus on a sustainable business
model from the outset to help veterans with
substance abuse issues not only recover, but
thrive over a lifetime. We understood that if our
business model was not sustainable, our cause
would be irrelevant.
Understanding Our Customers
In understanding our customers, Veterans
Recovery Resources had a head start, because
we are veterans and have lived it. The idea for
Veterans Recovery Resources came to me
through time and experience. I am a combat
veteran of Operation Desert Shield/Storm
(1990-91), Kosovo (2005-06) and Kuwait
(2015). I also have 12 years as an intelligence
analyst in the U.S. Marine Corps Reserve and
over 18 years as a Medical Service Corps Officer
in the U.S. Army Reserve, including an eighteen
month tour at the Pentagon in the Office of the
Surgeon General (2009-10). I have walked in the
shoes of veterans and those in recovery over the
last 30 years. I have experienced the challenges
facing veterans in receiving the timely and
quality care they need, as well as the community
fellowship that is key to leading a successful life.
But that isn’t enough when you’re starting a
new business. We use our personal experience
in the military to point out that you really can’t
just run on a hunch, even when you’re the one
who has lived it. We have to validate it in the
market by talking with potential customers,
alliances and competitors. We must have a
solid grasp on the needs of potential clients and
any gaps in the market through primary and
secondary research, a continuous process because
it constantly changes. This was a key step for