The document discusses key elements to consider when developing a community business, including having the necessary skills, resources, and track record. It emphasizes the importance of a development team, committed community, viable business model, governing documents, financing plan, and offer document. The document also outlines various stages of developing a community business from initial feasibility assessments to ongoing governance and membership growth.

1. Gareth Nash
Co-operative and Mutual Solutions Limited

2. Business model
Community
Governing Community
document Shares building
Offer document
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3.  Key elements:
◦ Necessary skills and experience
◦ Time and resources
◦ Track record in sector/business
◦ Strong links to the target community
◦ Patience and staying power
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4.  Key elements:
◦ A development team
◦ A committed community
◦ A viable business model
◦ An appropriate governing document
◦ A financing plan
◦ An offer document
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5.  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?
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6.  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
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7.  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
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8.  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
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9.  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
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10.  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
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11.  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
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12.  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?
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13.  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)
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14.  Developing a membership base
 Ensuring it is maintained (churn) and
enhanced in future years
 Developing new board members
 Developing existing board member’s skills
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