Workshop 3, Business Planning

Gareth NashCo-operative and Mutual Solutions Limited

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Community shares: key elements

Business model

Community building

Offer document

Governing

document

CommunityShares

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Key elements:◦ Necessary skills and experience◦ Time and resources◦ Track record in sector/business◦ Strong links to the target community◦ Patience and staying power

Development team

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Key elements:◦ A development team◦ A committed community◦ A viable business model◦ An appropriate governing document◦ A financing plan◦ An offer document

A viable proposal?

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Key elements:◦ Does the idea address an acknowledged

community need, ambition, aspiration?◦ Has there been positive media coverage?◦ Can you define and measure the target

community?◦ What mechanisms/plans exist for contacting and

communicating with the target community?

A committed community

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Key elements:◦ Analysis of any historical and potential future

performance◦ Changes/enhancements/capital investment to

existing business◦ Analysis of competition/other similar businesses◦ Market research analysis to justify this investment◦ Will the proposed trading activity generate

sufficient profits to reinvest and pay return to investors

Viable business model

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Key elements:◦ Scale of the community investment sought and

the size of the target community◦ Proposed return for the community investors◦ Sources of capital: grant, shares and loans◦ Purchase of fixed assets vs working capital◦ Cash flow including allowances for the future

withdrawal/redemption of capital

Financing plan

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Crisis? Ethical thinking Greening the local economy Utilise local resources to benefit the community

1. Can community needs, interest, ambitions/aspirations be met through a social business model

2. If the business model is appropriate and the venture needs capital, community investment might be an ideal way of building community involvement

Starting points

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First approaches/responses Assessment/feasibility and barriers Developing commitment/momentum and

support Technical and environmental assessment Business development and planning Going through the planning process Raising finance (and funding) Legal and governance Systems and pre-trading activities Recruitment of board and staff

Stages in the development process

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What is the size and nature of the community – population and physically?

What income can realistically be generated? Long lead times – how can the feasibility

and development work be financed? Going through the planning process Site and land acquisition

Assessment, feasibility and barriers

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Getting a team together Gaining community support – probably a public

meeting/series of public meetings/focus groups Communication with and/or visits to existing

successful community renewable projects Ongoing community communication – the reality

and/or illusion of progress PR campaign

Developing commitment/momentum and support

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Is there a viable business? What needs to be done technically and

economically to make a viable business? Can other activities be brought in to support

the business? Are there any troops? How strong is

community support? How will the business be managed?

Business development and planning

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Need to decide if the proposal is an exempt offer or requires authorisation

Even if exempt, necessary to prepare business plan and offer

Define community and start building a “register of interest” as soon as possible

Establish a web presence and e-mail communications with interested parties

Arrange public meeting(s)

Marketing and Promotion

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Developing a membership base Ensuring it is maintained (churn) and

enhanced in future years Developing new board members Developing existing board member’s skills

Succession