community enterprise start-ups
DESCRIPTION
Slides from Locality's 'Community Enterprise Start-Ups - Key Considerations' webinarTRANSCRIPT
Community Enterprise start-ups
Sophie Michelena
Development Manager
The context…
The Locality way…
Introductions
Who do you represent today?
1. A community organisation
2. A company/social enterprise
3. A local authority
4. A support organisation
5. A consultancy firm
Poll 1:
1. What is a community enterprise?Legal Matters
2. Income generationIncome mix
3. Markets & Business planning
4. Finance & Keys for success
CONTENTS
...for & by a defined community
A social enterprise…
What is a community enterprise?
SocialEnterprise
Charity / VCS
Private Sector
Charitable Income Commercial Income
What is a community enterprise?
£
social
environmental economic
Community Ownership ?
Profit Distribution?
Pathways to Enterprise
Community Enterprise
Community Project
Community Asset
Enterprise Start up
What is a community enterprise?
What is your legal structure?
1.We are unincorporated2.We are incorporated 3.I don’t know
Poll 2:
1. Social enterprise is it for me?
Unincorporated: not a separate legal body
Legal Matters
Advantages
Quick to set up
Light touch regulation
Relatively informal
Disadvantages
Risk of employing
Risk of contracts/ transfers of land
Personal liability /disputes
1. Social enterprise is it for me?Legal Structures: Form Follows Function
Registered charity of
some form
Company Limited byGuarantee
Provides childcare services
CICOwning and operating
market garden
Company Limited byShares
Owns and runs pub
Trading Subsidiaries / hybrid structures
2. Legal StructuresLegal Matters
Q & A session 1:
The Right BalanceIncome Generation
A little help?Income Generation
Funding reliantIncome Generation
CollapseIncome Generation
Work with othersIncome Generation - TIPS
AdaptIncome Generation - TIPS
DiversifyIncome Generation - TIPS
- grow food - run educational programmes
- run a vegetable bag scheme
Growing Local is Going Local
Income mix – an example
•
GRANTS TRADING WITH THE PUBLIC
CONTRACTING FOR PUBLIC SERVICES
ASSET DEVELOPMENT
Income Mix - types
Q & A session 2:
WHAT is needed in YOUR area???
•
Markets
How much information have you got from listening to your community’s needs and doing market research/competitor analysis?
-Not much at all
-Some, could do better
-Enough, happy with it
-We have lots of useful data
Poll 3:
Business PlanningWhy write a business plan?
• understand your organisation and where it’s going
• raise awareness & obtain approval/funding from others
• from a concept to the detail
• help you track progress
The Planning Hierarchy
MISSION
AIM AIM AIM
Obj Obj Obj Obj ObjObj
Outputs
Outcomes
ImpactsResults/ Deliverables
Strategic Planning
BusinessPlanning
Business Planning
Broad Brush Business PlanSummary
Description of the project and its objectives
Description of management and governance processes
Market assessment
Estimate of capital costs
Estimate of fixed revenue costs
Estimate of variable revenue costs
Projection of capital funds
Projection of revenue income
A cash flow
Breakeven and sensitivity analysis
Risk Assessment
Q & A session 3:
Finance Needs
–Development Finance – grow change or die - (for R&D, new project development, investment readiness, future planning)
–Capital development – acquiring assets - for refurb, new build, equipment
–Working Capital – –Early trading–Monthly turnover
What Do You Want It For?
• Local or National Grants• Big Lottery• Community Foundations
• Social investors• Key Fund• Charity Bank, Triodos Bank, Unity Bank
• Community investors• Share issue• Donations/crowdfunding
–http://locality.org.uk/projects/power-change/investment-support/
Financial & Social Capital
Keys for success
?
1. Know your USP2. Be ‘business like’ – negotiate3. Be outward looking and opportunistic4. Have the confidence to invest in an idea 5. Take Business Planning seriously 6. Strong risk management (but being willing to
take risks)7. Think about customers (not just beneficiaries)8. Sell your service and organisation9. Skills, knowledge, experience in your field10.ENTERPRISING ATTITUDE
What score did you get out of 10?
•1-3
•4-6
•7-9
•10
Poll 4:
Q & A session 4:
Sources of supportPower to change
http://locality.org.uk/projects/power-change/
Guides and support tools
http://locality.org.uk/projects/power-change/resources-tools/resources-
community-enterprises/
Contracts/Services pre-feasibility
http://mycommunityrights.org.uk/community-right-to-challenge/grants/
Thank you!
If you want to network with others Locality convention
17 & 18 Nov, Cardiff
Join our next webinar oncommunity enterprise
Dates TBC
locality.org.uk/subscribe/