Earning income: How to develop a more sustainable mix


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The presentation was a workshop at Evolve 2014: the annual event for the voluntary sector in London on Monday 16 June 2014.

The presentation was chaired by Craig Carey from Social Enterprise UK and looks what a social enterprise is and how to earn sustainable income.

Find out more about the Evolve Conference from NCVO: http://www.ncvo.org.uk/training-and-events/evolve-conference

Published in: Government & Nonprofit
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Earning income: How to develop a more sustainable mix

  1. 1. Workshops AM6: Earning income: How to develop a more sustainable mix Craig Carey, Programme Manager, Social Enterprise UK Kathryn Uche, Chief Executive, CAYSH Jeremy Hime, Business Development Manager, CAYSH
  2. 2. Social Enterprise UK • Established in 2002 as the national body for social enterprise (as a coalition) • Membership organisation: nearly 700 members; reach to over 12,000 through founding partners • Bring together all the different forms of social enterprise under one umbrella • Main purposes: • Supporting social enterprises to thrive • Developing the evidence base for social enterprise • Influencing policy and political agendas (with govt) • Showcasing the benefits of social enterprise • Broker, facilitator, market builder
  3. 3. What is Social Enterprise? Social enterprises are businesses driven by a social purpose. They: 1. Have a social mission set out in their governing documents 2. Are independent businesses that earn more than half of their income through trading 3. Reinvest or give away at least half our profits towards our social purpose 4. Are controlled or owned in the interests of the social mission 5. Are accountable and transparent in the way they operate and about the impact they have Often have an asset lock and use a range of different legal structures.
  4. 4. Social Enterprise in the UK – state of play • c. 70,000 social enterprises in the UK (5% of all businesses) • Contributing c.£20 billion to the UK economy and employing over 1 million people. • Operate in almost every sector: from health and social care, to renewable energy, transport, retail and housing • There are many routes to becoming a social enterprise including:  spinning out of parts of the public sector  entrepreneur-led organisations  charities becoming more business-orientated
  5. 5. What is Social Enterprise NOT? • A fast and easy route to quick £ / silver bullet • A change of legal structure • Fundraising • Suitable for ALL charities / charitable activities • Going over to the dark side (off mission)
  6. 6. Why the social enterprise model? Added social value / greater impact Social Investment Innovation Reinvest profits for social purpose Engaging stakeholdersCultural fit Accountable + sustainable modelEffective use of resources Access harder to reach groups
  7. 7. Two main approaches > Setting up a trading arm to sit alongside the charity > Changing the whole charity into a social enterprise
  8. 8. What to consider? > Know why are you doing it > Discuss with your stakeholders > Legal structure & business model > Write the business plan
  9. 9. > Don’t be afraid of the ‘P’ word – PROFIT! > Remember the culture trumps structure! > Work out - who really are your customers and how are you going to reach them? Is there a market demand? > Mix up your trading activity – different products/services, customers & types of income > Don’t forget the expenses column
  10. 10. > Delivering new services – don’t deviate from what you are good at! > Get the pricing right (vs. perceived value)! > Measure your impact & quality – creating social value > It takes time and money to do – NO shortcuts! > Be persistent – not an easy journey!
  11. 11. Purpose of the business plan To give you and other stakeholders confidence that – > You are going in the right direction > There is a market need > The finances add up > You have the right people doing it Otherwise it will not succeed!!
  12. 12. Magnificent Business Plan - 8Ms! 1. Mission 2. (Understand) Market 3. Money 4. Measurement 5.(Wo)manpower 6. Marketing 7. Mitigation (Risk) 8. Masterplan
  13. 13. London Early Years Foundation Sector: Children Nurseries CEO: June O’Sullivan http://www.leyf.org.uk Model: Former charity started 1903 now a social enterprise Overview: The London Early Year's Foundation (LEYF) is the UK’s most well-known and respected childcare social enterprise, providing day care and parenting support to a diverse mix of families in 25 community, workplace and Children’s Centre nurseries across six London boroughs. How we help children: Through our unique curriculum, we focus on each child’s cognitive, social, emotional and physical development. The quality of our learning environments and excellence in childcare is recognised through parental feedback as well as external assessment.
  14. 14. Street League http://www.streetleague.co.uk The organisation: Originally founded as an organisation working with homeless people in 2001, we now work with 16 to 25-year- olds who are not in employment, education and training (NEET). What they do: Street League is one of the most exciting, dynamic and fastest-growing charities in the UK. We specialise in changing the lives of young people from disadvantaged backgrounds through the power of football. Structured football and education 'Academy' programme, with two hours (over 8 weeks) in the classroom and two hours on the pitch each day. It also offers nationally-recognised qualifications. Scaling up: Multiple franchise model now with 10 locations
  15. 15. Further reading resources Get Legal http://www.getlegal.org.uk/ CIC Regulator http://www.bis.gov.uk/cicregulator/ Charity Commission http://www.charity-commission.gov.uk/ SEUK website http://www.socialenterprise.org.uk/ NCVO website http://www.ncvo.org.uk/
  16. 16. craig.carey@socialenterprise.org.uk www.socialenterprise.org.uk
  17. 17. Workshop – AM6 Social Enterprise for Charities Earning income: how to develop a more sustainable mix
  18. 18. Objective • To give a realistic and engaging account of why and how CAYSH transitioned from a charity to a social enterprise model
  19. 19. Contents • Who we are • The Idea • Why Social Enterprise? • Main Challenges • Growth of the Service • Top Tips • Contact Us
  20. 20. Who we are Kathryn Uche Chief Executive CAYSH Jeremy Hime Business Development Manager CAYSH Enterprise CIC
  21. 21. • Who we are • What we do • Where we work • How long we’ve been doing it
  22. 22. We now operate in every South London borough
  23. 23. The Idea • A changing environment • Rising needs of service users • 2010 Spending Review
  24. 24. The Idea • Charity expansion – into new borough • Existing security services expensive and not fit for purpose • Recognised gap in the market • Confidence in the belief that we could do it better!
  25. 25. The Idea • Value for money • Quality of service • Training and expertise • Values and principles
  26. 26. The Idea • New contract acted as an incubator to the idea • Supportive Local Authorities • Over reliance on Supporting People income
  27. 27. CAYSH Concierge Services CAYSH Concierge Services provides a unique approach to security provision in supported housing that protects the interests of vulnerable people first and foremost whilst delivering reduced costs and reduced incidents for commissioners and the local community.
  28. 28. CAYSH Concierge Services
  29. 29. Why Social Enterprise? • Potential surplus • Culture • Governance • Guidance - SEUK
  30. 30. Challenges • Fear • Cultural change • Buy in • Resistance
  31. 31. Challenges • Staying strategic whilst being operational • Turning blue sky to reality • Getting the finances right • Balancing business and charity approach
  32. 32. Keeping Residents Safe
  33. 33. 2013 2014 600k 1.5m 11 Staff 50+ Staff 150 SUs 350 SUs
  34. 34. Concierge Service Growth • Financial • Personnel • Customers / location • Systems • Business strategy and vision • Reputation • Confidence
  35. 35. • Get help! • Build the team – from Trainee to Trustee • Have a plan B • Stay focused • Don’t give up • Good communication • Do not be afraid to make mistakes Top Tips Advice for any charity leaders considering a social enterprise route
  36. 36. Launched culture of enterprise New office – new opportunities Maintain vision and confidence The next idea…
  37. 37. Many of life’s failures are experienced by people who did not realize how close they were to success when they gave up. Thomas Edison
  38. 38. Contact us Kathryn Uche Chief Executive CAYSH kathryn.uche@caysh.org Jeremy Hime Business Development Manager CAYSH Enterprise CIC jeremy.hime@caysh.org
  39. 39. Evolve 2014