Gareth NashCo-operative and Mutual Solutions Limited
Business model CommunityGoverning Communitydocument Shares building Offer document 2
Key elements: ◦ Necessary skills and experience ◦ Time and resources ◦ Track record in sector/business ◦ Strong links to the target community ◦ Patience and staying power 3
Key elements: ◦ A development team ◦ A committed community ◦ A viable business model ◦ An appropriate governing document ◦ A financing plan ◦ An offer document 4
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? 5
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 6
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 7
Crisis? Ethical thinking Greening the local economy Utilise local resources to benefit the community1. Can community needs, interest, ambitions/aspirations be met through a social business model2. If the business model is appropriate and the venture needs capital, community investment might be an ideal way of building community involvement 8
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 9
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 10
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 11
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? 12
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) 13
Developing a membership base Ensuring it is maintained (churn) and enhanced in future years Developing new board members Developing existing board member’s skills 14
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.