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Risky business - business model innovation in infrastructure

Presentation to NAVCA CORE about the work we have done in changing the business model of support to frontline voluntary and community organisations.

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Risky business - business model innovation in infrastructure

  1. 1. Business Model Innovation - Risky Business - CVATplus CORE - York Naomi Sampson Development Manager 18 September 2013
  2. 2. Presentation overview About Tameside and CVAT Our history of income generation Key questions we asked ourselves Planned vs. organic growth Culture change Where are we now? Next steps Important principles / lessons learnt
  3. 3. About Tameside and CVAT Part of greater Manchester city region Population 220,000 • 51st most deprived area in England ‘Established’ VCS relatively small CVAT – new organisation (formerly Tameside Third Sector Coalition and Volunteer Centre Tameside) • Income £850,000, 27 staff • Good relationships with sector and partners • Traditionally done some ‘low key’ income generation
  4. 4. Our Income Generation Journey 2008 (?) increasingly asked: • “do you know a consultant who can.....” • “could you do....” Board aware of ‘impending financial doom’ • Lots of eggs in same basket • Target to diversify income  Formed income generation sub group • Board and staff involvement
  5. 5. Some key questions for us What are we good at? What assets have we got? What do people want to buy? What could we do that could be profitable? How would it fit with our mission, aims and values? How much financial risk do we want?
  6. 6. Marketing: why T3SCplus? Strong awareness of our ‘brand’ across greater Manchester Plus = “in addition to” Helps demonstrate that activity is on top of ‘core’ offering • Helps us to differentiate what is ‘free’
  7. 7. ‘CORE’ SERVICE Generic infrastructure services ‘Free’ to frontline groups in Tameside ‘ADDED VALUE’ SERVICES DEVELOPING ORGANISATIONS Governance reviews Strategic and Business planning ‘Fit for Purpose’ reviews Performance Coaching CIVIC PARTICPATION Participatory events Improving 3rdSector ‘Voice’ GRANT SCHEME DEVELOPMENT & MANAGEMENT Scheme evaluations Participatory Budgeting EQUALITY AND DIVERSITY Obligations and ‘in practice’
  8. 8. Organic or planned growth? Planned growth • Positive: • Clear strategy / goal • Easier to see what success looks like • Negative: • Higher start up cost • Higher financial risk Organic growth • Positive: • Can try different ideas out / flex • Lower financial risk • Negative: • No focal point
  9. 9. Organic or planned growth? • CVATplus grown organically • No clear brand or strategy until this year • Low levels of investment • No start up cost • No dedicated staffing • Marketing cost = £500
  10. 10. Culture change - internally Expectations within staff team • “everyone can do something” We’re charging: can we meet the quality expectation? We’re asked our view / expertise – it’s okay to ask about payment! Financial systems and processes Growing skills
  11. 11. Culture change - externally Honesty with frontline organisations Ensuring we still meet our mission One size doesn’t fit all – flexibility Alternatives ways to ‘pay’ for services
  12. 12. Money, money money (a-ha) Income generation target factored into budget • But its not real money ‘til we’ve secured it • Risk if not achieved – deficit position / reserves What is the real cost? Cashflow is king • Agree payment profiles with clients • Invoice promptly
  13. 13. Where are we now? • 2012/13 generated £64,227 • Variety of products delivered • Business planning / ‘Fit for Purpose’ reviews • ‘Building third sector engagement’ for 2 LAs • Grant programme development / grant management • Bespoke training delivery • equality and diversity; sustainable funding, volunteering • Clearer about pricing model • Separate trading arm • Exploring a membership ‘offer’
  14. 14. Development Service A ‘Self Serve’ – via website (with online assessment tool which then produces report and signposts you to relevant resources online and e-learning courses. Optional 1 hour mentoring session with DW (can be done online/telephone) to help steer in right direction to relevant resources. Free (except e- learning charge) B 3-5 hours IAG / mentoring – likely to be used for: • Start up support (legal form; governing doc; committee dev; planning) • Funding advice – development of bids / critical friend service • Problem solving – financial management •Volunteering support re best practice •Accessing courses within L&S programme (online or f2f) • Supported/underpinned by provision of toolkits / resources Free C Performance Improvement Service (intensive support 5 hrs +); may use Specialist Support Fund to cover) • Strategic / business planning • Bespoke training • Quality Assurance work • Funding strategy development work • Marketing strategies £ (based on charging model)
  15. 15. Important principles for us / lessons learnt Fit with mission, aims and values Core offering remains free at point of access ‘Pay what you can afford’ • CVATplus for Tameside VCS orgs Not always about ‘money’ – other ways of doing business e.g. sharing
  16. 16. Important principles for us / lessons learnt Bringing people with us • Staff and stakeholders Happy clients best form of advertising Work with associates you trust Understand your costs Be aware of your competition and your USP
  17. 17. Contact details Naomi Sampson Community and Voluntary Action Tameside – CVAT Website: Tel: 0161 339 4985 E-mail: