presentation given in February 2012 to cohort of small business owners as part of Manchester Metropolitan University's programme to support small business growth
1. What’s on the menu?
financing options for small and social enterprises
2.
3. Traditional sources of cash
•
Equity (dragons and
•
Personal savings angels)
•
Family and friends •
Factoring
•
'sweat equity' •
Retained profits
•
Debt (bank loans,
overdraft) •
Grants
Adrian Ashton
4. social enterprise “specials”
CDFI
Community shares
Social impact bonds
Loan stock
'In-kind'
crowd-funding
Adrian Ashton
5. Do you have the right type of
income?
Adrian Ashton
6. Some problems with grants...
Lead time
Restrictions on use
Cash-flow implications
Admin time/cost in monitoring & reporting
Risk of 'claw back'
Risk to credibility
Adrian Ashton
7. What do you need the cash for?
Dealing with failure ('rebooting' the business)
fashion/credibility
Validation (reassuring yourself)
Set-up
Development
Working capital
Adrian Ashton
8. Why you’re ‘un-fundable’
(you don’t give people what they want...)
• Their money back (loans, equity)
• Financial Return (loans, equity)
• Social Return (grants, loans, equity)
• Outputs & Outcomes (grants)
• Security (loans)
• Partners (grants, loans)
• Exit Strategy (equity)
Adrian Ashton
9. Further sources info & reading
•
Unlocking the potential – a guide to finance
Social Enterprise UK
•
http://www.ncvo-vol.org.uk/sfp
•
http://www.knowhownonprofit.org/funding/social-in
•
Simply Finance Co-operativesUK
Adrian Ashton