Starting a non-profit can seem like such a lofty pursuit that it's obvious why sometimes the entrepreneurs who start them overlook this simple fact: it's still a business. Despite the fact that non-profits are designed to help the community—or the even the world—that doesn't mean you can ignore the cold reality of balance sheets and cash flow.

Just like a lot of other businesses, non-profits are feeling the squeeze, so if you're planning on starting such an organization in this market, you've got to be realistic. Just because your company has access to grant money that most start-ups don't, it's not reasonable to inflate costs in your business plan because you can. Trust us—Uncle Sam has been tightening his belt just as much as bank lenders and some investors. So what's that mean for you? Maybe rethink listing the purchase of that $25 million building your non-profit "needs" in your business plan's start-up costs.

The trick is to start small, keep your overhead low, and most important, decide how the business will sustain itself once the grant money runs out. Realize this: just like any other business, non-profits cannot rely on grant money alone to support their entire organization. Because money will go out, money has to come in. Multiple organizations like the Human Society have fundraising events, benefits, and auctions, while also charging for their services. That's right—just because you're operating a non-profit doesn't mean that you have to offer your services for free. In fact, most non-profits charge for their services simply because it's the only way to stay in business, particularly when times are tight and donors are scarce.

Does all this sound like common sense? Then you've already got a leg up on getting your non-profit started the right way. For everyone else, here's the take-home message (once again): a non-profit is still a business.