1. Getting a grip on
Business Planning!

2. Why do it?
 A key part of the process of setting up a new organisation
 Very likely to be required by your parent body
 What does a business plan do?
 Describes key features of your idea in a clear, concise and organised way.
 Communicates your idea and help you understand the things you need to get
your consortium up and running.
 Provides useful preparation for the procurement process and be a key reference
document for you and your stakeholders.
 If you’ve never written a business plan before, don’t be daunted.
Writing the document itself is fairly straightforward.
31/10/12 All rights reserved © Mutual Ventures Ltd 2011 2

3. What’s in a business plan?
 Key components of a business plan:
1. Vision
2. Market analysis
3. Service definition
4. Operating model
5. Governance
6. Legal form
7. Team
8. Stakeholders and communications
9. Resources and finances
10.Transition plan
31/10/12 All rights reserved © Mutual Ventures Ltd 2011 3

4. Is there a market for your
services?
 As a new organisation, you will be looking to secure contracts with
contracting authorities.
 Be aware of the key dynamics of the market that you will be
competing in?
 What do the customers want?
 Who are your competitors?
 How will you price your service? What will you need to charge to
make your consortium viable?
31/10/12 All rights reserved © Mutual Ventures Ltd 2011 4

5. Same service? New services?
 Forming a new organisation gives you the chance to help deliver
better services within the community:
 Be creative
 What is going to make your service special, different, unique and successful?
 Think about your track record and the skills and experience that
your team can bring to bear.
 Look at the services you have been providing with a critical eye
(using the market analysis)
 Opportunity to make changes and expand the scope of your offer
that will genuinely improve outcomes for your community.
31/10/12 All rights reserved © Mutual Ventures Ltd 2011 5

6. How do you want to govern the new
organisation?
Two main options:
Governance via a broad membership
 Will this be representative?
 How would the governing board be selected?
 Is a practical model for a commercial organisation?
Governance via a selected/representative Board
 Composition of the Board
 How would the board be appointed?
 Role/power of the Board
 Who is the Board accountable to?
31/10/12 All rights reserved © Mutual Ventures Ltd 2011 6

7. What resources will you need?
 What resources will you need to deliver your service? How will it be
shared between the different members of the consortia?
 When thinking about your costs, start by listing out all the resources
needed to provide the service. For example:
 Staff
 Insurances
 Office supplies
 Travel costs
 Property / Premises
 Equipment
 Technology
 Back office support,
 Governance costs, etc
31/10/12 All rights reserved © Mutual Ventures Ltd 2011 7

8. Andrew Laird
Director
andrew@mutualventures.co.uk
07779754553