Community enterprise start-ups

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Slides from Locality's 'Community Enterprise Start-Ups - Key Considerations' webinar

Text of Community enterprise start-ups

  • 1. Community Enterprisestart-upsSophie MichelenaDevelopment Manager

2. The context 3. The Locality way 4. Introductions 5. Poll 1:Who do you represent today?1. A community organisation2. A company/social enterprise3. A local authority4. A support organisation5. A consultancy firm 6. CONTENTS1. What is a community enterprise?Legal Matters2. Income generationIncome mix3. Markets & Business planning4. Finance & Keys for success 7. What is a community enterprise?A social enterpriseSocialEnterprise...for & by a defined communityCharity /VCSPrivateSectorCharitable Income Commercial Income 8. What is a community enterprise?socialCommunityOwnership ?ProfitDistribution?environmental economic 9. What is a community enterprise?Pathways to EnterpriseCommunityProjectCommunityAssetEnterpriseStart upCommunity Enterprise 10. Poll 2:What is your legal structure?1.We are unincorporated2.We are incorporated3.I dont know 11. Legal Matters1. Social enterprise is it for me?Unincorporated: not a separate legal bodyAdvantagesQuick to set upLight touchregulationRelatively informalDisadvantagesRisk of employingRisk of contracts/transfers of landPersonal liability/disputes 12. Lega1l .S Stroucciatul reenst:e Frporrimse F iosl liot wfosr Fmuen?ction 13. 2. LLeeggaall MStartutec trusresTrading Subsidiaries / hybrid structuresRegistered charityofsome formCompany Limited byGuaranteeProvides childcare servicesCICOwning and operatingmarket gardenCompany Limited bySharesOwns and runs pub 14. Q & A session 1: 15. Income GenerationThe Right Balance 16. Income GenerationA little help? 17. Income GenerationFunding reliant 18. Income GenerationCollapse 19. Income Generation - TIPSWork with others 20. Income Generation - TIPSAdapt 21. Income Generation - TIPSDiversify 22. Income mix an exampleGrowing Local is Going Local- grow food - run educationalprogrammes- run a vegetable bagscheme 23. GRANTS TRADINGWITH THEPUBLICIncome Mix - typesCONTRACTINGFOR PUBLICSERVICESASSETDEVELOPMENT 24. Q & A session 2: 25. MarketsWHAT is needed in YOUR area??? 26. Poll 3:How much information have you got from listening toyour communitys needs and doing marketresearch/competitor analysis?-Not much at all-Some, could do better-Enough, happy with it-We have lots of useful data 27. Business PlanningWhy write a business plan? understand your organisation and where itsgoing raise awareness & obtain approval/fundingfrom others from a concept to the detail help you track progress 28. The Planning HierarchyMISSIONAIM AIM AIMObj Obj Obj Obj Obj ObjOutputsOutcomesImpacts Results/DeliverablesStrategicPlanningBusinessPlanningBusiness Planning 29. Broad Brush Business PlanSummaryDescription of the project and its objectivesDescription of management and governance processesMarket assessmentEstimate of capital costsEstimate of fixed revenue costsEstimate of variable revenue costsProjection of capital fundsProjection of revenue incomeA cash flowBreakeven and sensitivity analysisRisk Assessment 30. Q & A session 3: 31. Finance NeedsWhat Do You Want It For?Development Finance grow change or die -(for R&D, new project development, investment readiness,future planning)Capital development acquiring assets - forrefurb, new build, equipmentWorking Capital Early tradingMonthly turnover 32. Financial & Social Capital Local or National Grants Big Lottery Community Foundations Social investors Key Fund Charity Bank, Triodos Bank, Unity Bank Community investors Share issue Donations/crowdfunding 33. Keys for success1. Know your USP2. Be business like negotiate3. Be outward looking and opportunistic4. Have the confidence to invest in an idea5. Take Business Planning seriously6. 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? 34. Poll 4:What score did you get out of 10?1-34-67-910 35. Q & A session 4: 36. Sources of supportPower to change and support tools pre-feasibility 37. Thank you!If you want to network with othersLocality convention17 & 18 Nov, 38. Join our next webinar oncommunity enterpriseDates