Gkg Bus Plan Devt Framework 5
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Gkg Bus Plan Devt Framework 5 as PDF for free.
More details
- Words: 8,694
- Pages: 26
Business Plan Development Framework
GKG
G r ay -K i ng & G r ay L t d The Old Music Hall, 106-108 Cowley Road, Oxford OX4 1JE
GKG
G r ay -K i ng & G r ay L t d
Page 1 of 26
Introduction This Framework has been written to provide clear guidance that will enable you to write a comprehensive Business Plan. It is designed to be used by community and voluntary organisations which are focussing on social benefit results, even if the organisation will be a trading enterprise. If the resultant plan is clear and effective, it becomes a working document, able to be provided as a ‘snapshot’ at any time for any purpose – investment, negotiation, visioning and more. Often there is a question as to the difference between a Feasibility Study and a Business Plan. A Feasibility Study is an exercise to understand whether an organisation’s idea is at all possible. It will contain elements which may eventually be used in a Business Plan, as it will have demonstrated a study of financial implications, market demand and capacity to deliver. The Business Plan is written after the possibility of an enterprise begins to look like a probability. There will usually be one large Business Plan for a whole organisation and a range of smaller ones for individual projects or strands of work. The smaller ones can often be used for proposals or applications. They key is that they always link to the overall plan and always are aligned to the overall purpose of the whole organisation.
E Gray-King 2003 With thanks to FBO Regen Support and Direct Support Adapted with thanks from Myplace Support 2009 Issue 5
GKG
G r ay -K i ng & G r ay L t d
Page 2 of 26
Filling in the Framework The sections following have been broken up into the sections eventually to be included in your final Business Plan. For each section, there is a table with up to four parts: Objective Issues Activities and Resources Appendices The Objectives are the purpose of the Business Plan section indicated; how the section is relevant to your overall activities and plan. The Issues mentioned are the thoughts to be considered all around the section indicated; issues about preparing information for the section and what readers might want to see and why. The Activities and Resources part prompts you to activities or resources which could help compile information for the section and may name specific planning tools. These could be available from a range of sources. The Appendices part lists documents relevant to the section which could be added to your final Business Plan. If they are essential attachments, the section will indicate this. Each section can include not only what your organisation or project delivers in activities or services at the time of writing this plan, but also what it intends to deliver. After the table in each section is a sample piece of text, to help you understand the expected content of the section. The sample is just that – a tiny flavour of what you could include. Your actual text may run to paragraphs or pages. It is not unusual for a Business Plan to come to 40 or more pages, particularly for a social benefit organisation. All through this guidance document are references to ‘your organisation’ and to ‘your project’. The term organisation in this document means the whole body of your people and work, no matter its legal entity – social enterprise, voluntary and community group, public sector centre and many more. The term project refers to one strand of activities or programme you plan to run or to develop. Though it may seem obvious, it is important to make this distinction clear in your Business Plan. It is not unusual for an organisation to need a separate plan for a new project and for there to be a number of Business Plans held by an organisation, all linked into the highest level plan. A word about appearance and production. Your Business Plan cover should not be too cluttered and needs to include the Title, Author (the organisation), Contact details and the Draft or Issue number and Date. Think carefully about colours and style – a very colourful document speaks about an organisation differently from a black and white document. Think about reproduction costs, paper style and size. Also, as any effective Business Plan is a living document which will change and develop as an organisation changes and develops, it is suggested that you store a Business Plan electronically, rather than produce it in formal print. Not only will this be more cost effective than printing hard copies in bulk, but also it can be used easily as a resource for other kinds of documentation. Also, good organisations keep developing! A Business Plan needs to be able to be changed when necessary.
GKG
G r ay -K i ng & G r ay L t d
Page 3 of 26
1 Project Overview
This whole section, expanded in the three tables following, makes up an extended executive summary. It tells the history of the organisation, the ethos of the organisation and the bare bones summary of the plans for the future of the organisation. It is this section which shows the organisation’s or project’s sense of purpose.
1.1
History and Vision
Objective
This section allows a concise overview of how the organisation or project came to be and what are the future anticipations. In essence, it is the executive summary of the organisation and of the development described in the rest of the Business Plan.
Issues:
This small section will most likely be the last to be written, after all the other details have been made clear. Information needs to include brief milestone descriptions from past practice of the organisation and expected milestones for the next three years (or period the plan covers).
Activities and Resources
There are none suggested here, as this section is a summary of those which follow.
Appendices
There will be none, as this section is a summary of those which follow.
*Sample text: “X became a registered charity in 2001 after successful community work since 1998. Serving the Y population of B area, it provides N activities and hopes to expand to include M activities for Z, recently moved into A area.”
GKG
G r ay -K i ng & G r ay L t d
Page 4 of 26
1.2
Mission Statement
Objective
The mission statement is usually a single sentence and summarises the spirit and values of your organisation.
Issues:
This is the deep underlying reason why your organisation does what it does – because it believes in something. This is generally the only place in a business plan for such a statement. The remainder of the plan is how you will put into action a delivery based on the values from this statement.
Activities and Resources
There are none suggested here, as this section is a summary of those which follow.
Appendices
There will be none, as this section is a summary of those which follow.
*Sample text: “X believes in the value of the Y population and their unique ability to contribute to B area (geographical area or body of interest). X development project will raise the profile of this previously excluded community.”
1.3
Project and Activities Outline
Objective
This section is to make clear exactly what the organisation or the project/s of the organisation will do.
Issues:
It is not the detail, but the core headline statements of what will be done, by and for whom, and with what resources. This will be a very much edited headline from a great deal of detail which will have been collated and will be expanded in Section 2.
Activities and Resources
There are none suggested here, as this section is a summary of those which follow.
Appendices
There will be none, as this section is a summary of those which follow.
*Sample Text: “X runs a series of drop-in sessions for people with Y. It will extend its inclusion programme by: expanding drop in for people with Y from one session to three per week appointing a specialist worker in N, who will work with a newly recruited team of volunteers for people with Y during the extended drop in sessions. adding a bursary scheme to the M unit, so that people with Y on low incomes may receive services.”
GKG
G r ay -K i ng & G r ay L t d
Page 5 of 26
2 Services, Market and Demand
The whole of this section, expanded in the eight tables following, places the organisation in its locality, demonstrates that the organisation has researched the potential, both in terms of delivering such an idea alongside other delivery organisations in a locality and the realistic demand for it from potential service users. It demonstrates what kind of beneficial changes are anticipated. It is the key core of the Business Plan, setting out why it is believed that the projects or organisation will succeed. Each following table is essentially the breakdown of this sentence: In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
2.1
Locality and demographics (Project position)
Objective
This section demonstrates that the organisation is aware of its neighbourhood and has a good sense of being part of a wider community. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
Issues:
Information in this section is very important for an organisation focussing on work for the wider social benefit. You need to include information on: Population, Age range (if pertinent), Industry and Transport, any issues of social isolation, Crime, Education, etc; Any important social changes or transitions in the area Whether your locality is a government regeneration area or other development area
Activities and Resources
Appendices
Information about your area can be found at www.upmystreet.com and at www.neighbourhoodstatistics.gov.uk which will also include information from the 2001 Census Neighbourhood Renewal Areas and other useful information can be found at www.neighbourhood.gov.uk and at www.renewal.net and your local council may have data which you can access. Any specific demographic detail which is important to demonstrate
*Sample text: Locality and demographics “X covers the geographical area of A and B., with many sparsely populated hamlets. Local transport has been cut back and there is no provision for the Y population to access core services. ”The areas of A & B are part of the designated Health Action Zone.
GKG
G r ay -K i ng & G r ay L t d
Page 6 of 26
2.2
User Groups, Clients, Customers (the Market)
Objective
This section will show the sorts of people who will use the activities or services from your organisation or project - the people who will or who are likely to benefit. This part of this section is the description of the market and will set out the results of market research. The numbers and changes you hope to achieve for them will be set out following in Section 2.6, Outcomes and Outputs. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
You need to describe the people who will be using the organisation or project activities or services. Issues:
Activities and Resources
Appendices
Different sorts of organisations use different language when giving a term to the people who use or benefit from their activities. For trading organisations, the words clients and customers describe one and the same sort of beneficiary – the ones who buy the activity product or service. For voluntary sector support organisations, users and clients could be interchanged and mean the people who attend activities or receive support. It is important to be clear how you will use these terms and to use them consistently throughout your plan. You may want to commission or to conduct a full market research activity to investigate the populations you wish to reach. Some results will be in this section; others at 2.3. Investigate monitoring and evaluation records from your organisation’s present activity to show existing project usage as evidence for your anticipation of growth Any market research reports or evidence
*Sample text: “Three main age groups come to the X drop in sessions: 35% 16 and under, 28% the 1759 age range and 37% 60 and over. Our research shows that when we extend these sessions, we will be able to reach more under 16s, the numbers of which have grown around our centre. Appendix III shows the result of our market research.”
2.3
User Based Research (the Demand)
Objective
GKG
G r ay -K i ng & G r ay L t d
This section is used to show the evidence of the need for your organisation or project, and that the need has been established not only by those who will deliver the activities, but predominantly by those who will benefit by it. The information gained from this research will be used in creating your outcomes (summarised in Section 1 and detailed below, Section 2.6).
Page 7 of 26
In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
Issues:
This is often the weakest area of a Business Plan. You are looking to prove that your project is needed and that you have proven results from any user market research. This is the section which proves that projects or organisations are design led by those who will use them, not design led by those who believe they already know the need.
Activities and Resources
Appendices
You may want to commission or to conduct a full market research activity to investigate the populations you wish to reach. It is suggested that this activity engages with your intended beneficiaries to a significant degree and uses a variety of participation methods. Some results will be in this section; others at 2.2. You may want to commission or to conduce an Options Appraisal to investigate how what you are planning has been chosen to best suit your intended Market and therefore demonstrates the demand for your project or organisation.
Any evidence, say a table, of target groups contacted, research tools used and responses. Any evidence of an Options Appraisal, say a table of Options, criteria for selection and ranking against that set of criteria to conclude your choice of services.
*Sample Text: User Based Research “Y conducted a number of focus groups where members of Y population usually meet. Not only did they welcome the idea of extended drop in sessions, they suggested N, M and P. Appendices III and IV show the full Market Research analysis. Our Options Appraisal, summarised in Appendix V, demonstrated the need for this particular new service for this client group.”
2.4 Government Policy Landscape Objective
Issues:
GKG
G r ay -K i ng & G r ay L t d
This section shows whether your organisation or project delivers any services which are the duty of a local statutory body (Council, Health Trust etc) or are in any other way to be strategically placed within Government priorities. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
Page 8 of 26
This section is about whether your organisation helps deliver what the government intends to deliver from any public sector bodies. For instance if your organisation or project runs lunch clubs, it could well be helping a local Health Trust comply with National Service Frameworks to do with health improvement.
Activities and Resources
Appendices
If you do not already know how your organisation fits any government agenda, it is worth making inquiries of the partnerships officers of any of your local statutory bodies. They will know how they may work with local community organisations and will know how your organisation could fit with their activities. Any evidence, say a table, of your activities, the statutory obligation name and the way your organisation delivers to this duty.
*Sample text: “Y’s drop in sessions include a lunch club once a week. This is in partnership with the NPCT and contributes to their work on the NSF for coronary heart disease.”
2.5 Services, Market and Demand Matrix Objective
The objective of this section is to make very obvious what you intend to do, matched up to who you will do it for and why you will do it. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
This matrix is to show what you will provide or deliver and to set that out alongside the information in sections 2.1. 2.2, 2.3, and 2.4. This matrix is, in itself, a tool to help you see if what you have planned is clearly linked to demonstrable need and demand.
Issues:
The left hand column will have the details of all your organisations’ activities – the ‘services’ of the matrix. This is a new list, not in previous sections. It may be a headline of a whole service delivery category with bulleted details, or it may be the name of an individual service. When the Business Plan is complete, each line of this matrix, set alongside the matrix in Section 2.6, may become an independent funding proposal or small project plan. The middle column will indicate the details in section 2.1, locality and demographics and section 2.2 – the ‘market’ of the matrix The third column will show the user research and statutory requirements found in sections 2.3 and 2.4 – the ‘demand’ for your organisation or project
Activities and
GKG
G r ay -K i ng & G r ay L t d
Activities carried out for previous sections
Page 9 of 26
Resources Appendices
A list of the services with more detailed descriptions.
*Sample text: Services
Market
Demand Focus groups showed that mums from A area preferred some shopping time alone and that dads, when job hunting, did not feel ‘free’ to play with children in the week XYZ Department Family skills agenda, outlined in Anti-Social Behaviour White Paper1 Work with the school showed that creative activities would help with confidence and allow issues to be raised in a safe environment ABC Department Young Persons agenda, outlined in Guidance CDF
Dads n’kids Saturday 10-12
Thursday Late Thursday nights theatre workshop
XYZ Information Service Provision of information on welfare benefits and advocacy Details: XYZ welfare fact sheets in each surgery ‘Your rights week’ linked to benefit awareness campaigns in (location) and (location) home visits to provide information when necessary Training of Volunteers Provision of advocacy information Liaison with the local ABC Scheme
GKG
G r ay -K i ng & G r ay L t d
Young unemployed dads from XY area with children
!6-18 year olds from ABC school who have been at risk of exclusion
Community engagement work over two months raised recurring issues Evidence from NPCT demonstrated inappropriate use GP services because of lack of other generalist services NMO Department Older Peoples agenda, outlined in White Paper UVF Council Local Strategic Framework strand Y on Older people demonstrates commitment to raising standards for Older People
Older people in poor quality housing Older Farmers who are skill excluded Older people in rural isolation Disabled and frail older people Older people on low incomes Housebound older people Older people with ill health
Page 10 of 26
2.6 Outcomes and Outputs Objective
This section shows the intended changes which your project or organisation is intended to bring or to engender in your users, clients or customers and to detail how many people you expect will benefit. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
Issues:
Your market and demand research, detailed in Section 2.2 and 2.3, above, will give evidence for the outcomes you hope to achieve and the numbers aligned to them – the outputs. Outcomes and outputs can be confusing. Outcomes are changes, described in words which show change such as more, less, fewer, increased, etc.. Outputs are the numbers of things to achieve the change. Quite simply, you are hungry (baseline). You eat two sandwiches (output – one eating session). You are full (outcome). If you are using your business plan to apply for funding, these numbers will be important. Often a funder will divide the sum requested by the numbers expected to benefit to arrive at a ‘cost per output’ figure. In the table below, the first column is the same as in the table at Section 2.5, though in lengthy descriptions, a summary is used. (compare the bottom left block in this with that at 2.5)
Activities and Resources
Activities from Sections 2.2 and 2.3
Appendices
Any extended tables if there is not enough room in the body of the plan
Activities from any service planning for the services entered at 2.5
*Sample text:
Services Dads n’kids Saturday 10-12
Outcome
Thursday Late Thursday nights theatre workshop XYZ Information Service Provision of information on welfare benefits and advocacy
GKG
G r ay -K i ng & G r ay L t d
More confident fathers Stronger family relationships Less stressed mothers More confident young people Increased courage to seek specific support on a range of issues More healthy older people Reduced fear in accessing information Increased confidence in
Output
10 fathers and 15 children at each session from a range of 30 families each Saturday in term.
Maximum 25 young people at each session from a wider group of 50; 13 sessions each term
1000 leaflets distributed 2 Your Rights weeks in each year 30 home visits each quarter 40 volunteers trained
Page 11 of 26
self management Increased visibility of appropriate information
Advocacy information produced for 100 leaflets and 2 web sites
2.7 Monitoring and evaluation Objective
This section demonstrates that the project intends to monitor its progress, intends to use the monitoring constructively for evaluation and development. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
This section is about performance. Is what was intended actually happening and are the anticipated changes being achieved? Often, this part of a project is lost until a deadline demands it. However, it is critical not only to be able to show effectiveness, but also to find evidence later used in marketing, Section 2.8 below. Those statements of commendation can be used during the life of a project much more effectively than at the end. Issues:
You will need to work with the outcomes and outputs created earlier and go to two more issues; what does a successful outcome look like and how will you gather the evidence for it. The description of a successful outcome is a success indicator and the how you gather evidence is a success measure. So, more confident people (outcome) is seen by more appropriate requests for information (indicator) and therefore we keep a record of information requests (measure – number of clear requests compared to unclear requests this month compared to last month. Often successful outcomes are called Soft Outcomes, as they are often things which are difficult to count or measure, seldom counted in numbers. As outcomes are more/less comparative words, then soft outcomes are also comparative.
Activities and Resources
Soft Outcome monitoring structures are widely available. You may want to conduct an electronic search using those words. The Charities Evaluation Service provides a range of Outcomes Champions which help organisations set up Outcome monitoring.
Appendices
Any monitoring methods details and monitoring timeplans
*Sample text: “Y’ monitors its activities by regular sign in logs (also used for fire safety), exit questionnaires and focus groups. A full list of monitoring activity is found at appendix VII. All monitoring information is fed into our quarterly review meetings which we use for evaluation and development.”
GKG
G r ay -K i ng & G r ay L t d
Page 12 of 26
2.8 Marketing Strategy (Publicity and Outreach) Objective
This section is to demonstrate that, once you know your potential users or clients and why they will need or want the services your organisation or project is planning, you have organised strategies to inform your potential users of your services. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and
then tell about what we are doing.
Issues:
In commerce, this is a detailed plan to sell a product or service. In the social sector, this is a plan to attract the people who will most benefit from your activities or services. Your strategy will need to demonstrate that you have reasonable expectations, know your target group/s well and have chosen appropriate methods of contact. Marketing is not just reaching the customer or client directly. It may also include negotiating with other organisations or advocates to be able to reach your beneficiaries. The information you collect from your Monitoring and Evaluation, Section 2.7, above, will give much content to any publicity and marketing exercise.
Activities and Resources
Marketing strategy tools, including those which include potential users in eventual marketing activities
Appendices
Any marketing plan, demonstrating the marketing activity, the potential target group and the potential outcome and costs.
*Sample Text: “Y’ plans its marketing approach at the same time as planning new activities, so that it is aware of potential users at all times. Outreach workers take leaflets to X at their schools and busses along the route from A area to the project have posters. We work with XYZ group to meet their users and likewise, we advertise their activities. See Appendix VII for a full list of marketing activities.”
GKG
G r ay -K i ng & G r ay L t d
Page 13 of 26
3 Capability
This entire section, expanded in the six tables following, is to demonstrate that your organisation or project is literally able to do what it intends to do. It will detail that nonfinancial resources are available, that clear management structures are in place, that adequate training has been identified, that communications are clear and planned and that there is enough physical equipment and space to appropriately run your activities or services. It will also show that there is a robust assessment of potential risks to any part of the organisation or project and the measures which will be used to measure and manage risks.
3.1 Staffing Objective
Issues:
This section details the people who will plan, manage and deliver whatever the organisation or the project is intending to deliver. In addition to employed staff, this section will detail all volunteer staffing levels and arrangements, including members of any management committee, board of trustees or board of directors. You will need to demonstrate adherence to employment law (working time regulations, health and safety, etc), to equal opportunities legislation and to good practice in volunteering. In the case of a sole proprietorship or a small team organisation or a new organisation, this section will require the equivalent of a CV from each person – the reason the people are capable to do what is intended in this plan. The Table following may be used to describe staffing. Management workshops Organisational development tools
Activities and Resources
Appendices
GKG
G r ay -K i ng & G r ay L t d
If you are not already aware of all regulations regarding employment, you could contact your local Job Centre Plus who will inform you. Your local Council for Voluntary Service could help with volunteering protocols. Depending on the purpose of your Business Plan, you may be asked to append job descriptions, terms of reference for both employees and volunteers as well as copies of your equal opportunities and other employee and volunteer policies.
Page 14 of 26
*Sample Text: “X employs 2 full time and 5 part time people and is helped by 17 volunteers. The table below shows their job titles, hours and tasks undertaken.”
Job Title
Existing New responsibiliti responsibilitie es s
Staff Type (E, V, A, S, C, K)*
Team
Supervisor
*Key: E = employee, V = volunteer, A = apprentice, S = secondment, C = contractor, K = in kind staff, paid by others and delivering to this 3.3 Management Structure with Management Diagram Objective
Issues:
This is to demonstrate that your organisation or project is well managed with clear lines of accountability. Your structure should indicate not only the relationship between all the people who manage and deliver your activities, but also their relationship to the decision making of the organisation. The structure will show employed and volunteer workers as well as any management committee members, trustees or directors. There will need to be clarity about the management and strategic fit of each type of staff including employees, volunteers, apprentices, secondments, contractors and in kind staff, paid by others and delivering to this (college tutors, say, teaching in off college locations).
Activities and Resources Appendices
Management workshops Organisational development tools Employee and Volunteer Audit tools None unless specified by potential funders
*Sample Text: “Y’s management committee meets monthly, taking reports from the Projects Coordinator about the activities from Y. Each member of the committee is a liaison person with many areas of the organisation or with individual activities of the centre. Our In Kind tutors work within our local project teams. The chart below indicates the lines of responsibility:”
3.4 Training Objective
GKG
G r ay -K i ng & G r ay L t d
The purpose of this section is to demonstrate that your organisation or project is aware of the need for on-going training for every aspect of the
Page 15 of 26
organisation and has built in appropriate arrangements.
Issues:
Every activity or service of an organisation or project is subject to some kind of legislation or aligned to good practice which will require knowledge from personnel. For this, training needs to be a regular part of the on-going work of the organisation. In addition, each individual is entitled to training for personal and corporate development.
Activities and Resources
If you are not sure what training is required for the individuals in your organisation or project, you could contact your local authority for advice
Appendices
Any training plans, blanks of individual training records and any other evidence
*Sample Text: “Y meets twice yearly with each employee to review training needs. X days are set aside for each worker and there is a regular link with the Health and Safety training department of the District Council.”
3.5 Internal and external communications Objective
Issues:
This section demonstrates that your project or organisation understands and implements clear communications both inside the organisation and to appropriate people outside it. You will need to demonstrate how both workers and users of your organisation or project are invited to communicate, both in writing and verbally; that there are systems and procedures for people to know that they can communicate with the organisation and that what they communicate will be handled appropriately. If there are confidentiality issues in the project or service you are operating, they would be included here, as well as any protocols for the use of the web, email or telephones. This section is also about your external information to the general public or to organisations to which you have to report. Different from the information in the Marketing section, this section would include information about your Annual Report and how it is presented as well as any regular external reporting.
Activities and Resources
Communications policies (use of emails, confidentiality agreements, etc) can be obtained from a range of sources.
Appendices
Any copies of reports or of internal communications protocols or guidelines
*Sample Text:
GKG
G r ay -K i ng & G r ay L t d
Page 16 of 26
“Y maintains an intranet and allows all staff to use email for reasonable personal use, and access to the web for work use only.”
3.6 Equipment and Accommodation Objective
Issues:
Activities and Resources Appendices
This section is to show that your organisation or project has the right sort and the right amount of space and equipment to conduct what is planned. This section will show that you are well equipped to run your project or organisation with a range of resources, from physical space to furniture and technical equipment. It should also show how you intend to maintain your equipment and accommodation – any service agreements, maintenance contracts or insurances. This section is also where you will demonstrate your adherence to any Disability legislation. You will want to show that if you have a number of projects running within an organisation, that you have the space. You may want to show if users have had any input into the design of what is available. If your project or organisation conducts outreach or travelling activities or services, this section will be where you demonstrate the suitability and safety of that equipment as well as arrangements for storage and transportation. If you are providing a new service or activity for a user group with whom you have not worked before, you could contact support organisations dealing with that group to understand what specialised equipment could be needed. If your organisation or project is large or complex, you might want to give floor plans, maintenance schedules or other documents demonstrating the good management of your resources.
*Sample Text: “Y is run from the first and second floors of a significantly redeveloped Victorian church building. A lift has been installed to allow access to our suite of 5 meeting rooms and 2 offices A travelling ICT suite is stored in password protected cupboards.”
3.7 Risk Analysis Matrix Objective
This section is to show that you are fully aware of what could go wrong in any part of your organisation or project, how likely that would be and what you would do to manage the difficulty.
Issues:
You need to work through not only what could hurt your services or activities, such as fewer people than anticipated or an unexpected departure of a partner service provider, but also consider your staffing
GKG
G r ay -K i ng & G r ay L t d
Page 17 of 26
or other resource implications. After ranking according to how likely a potential risk might be and how much of an impact it would make if it did happen, you need to consider the ways in which you will monitor and manage each risk. Your final matrix may be three columns – the risk, the rating and the resolution. Project and organisational risk is not just about health and safety, physical risk. It is also about risk to service delivery from any range of sources. It is important to bring risk analysis to the whole of an organisational life, not just to the physical equipment. Activities and Resources
If you have never compiled a risk register and ranked risks, you could contact your local authority for help.
Appendices
If your organisation is complex, then a full risk analysis should be appended. Otherwise, it may be included in the body of this plan.
*Sample Text: “Y regularly evaluates its activities and services (see section 2.6) and has analysed risk as below:
Risk Too few people attending
Rating M
X local authority reallocation of resources
3.8
H
Resolution Go back to marketing strategy to check decisions Monitor attendance figures weekly rather than monthly until attendance picks up Meet weekly with activity leaders to develop both improvement and exit plans Analyse amount of LA contribution Management meeting to develop both funding strategies and exit strategies
Legal Requirements
Objective
This section is where your organisation or project demonstrates that it complies with legislation relevant to a range of obligations for your work. There will be legal obligations on a range of issues similar for all projects such as Health and Safety, Disability access, Equal Opportunities, Data Protection and Insurance.
Issues:
Depending on what your organisation or project’s activities are or whether there are employed staff, there may be other legal obligations such as Employers Liability Insurances, Working Time Directive adherence and Acceptable Use policies. There many be legal requirements for the specific beneficiaries of your
GKG
G r ay -K i ng & G r ay L t d
Page 18 of 26
organisation or project
Activities and Resources
Appendices
If you need information on what legal requirements apply to your organisation or project, there are a number of overall support organisations which could help you from Business Links to Councils for Voluntary Organisations to your local authority. If you break down your projects to what they do, who they are done for and where they are located, then you could find more detailed information on requirements from other projects which do what you do, other projects who work with similar people and other projects which work in your area. If your Business Plan is for a wide range of readers, you will need to write into your plan that you hold the relevant policies or insurances. If your Business Plan is part of a funding application, you may need to append copies of policies or insurances notes
*Sample Text: “The Y centre holds and adheres to policies on Data Protection, Disability Access and Health and Safety. Its Equal Opportunities policy was written after a workshop with users.”
GKG
G r ay -K i ng & G r ay L t d
Page 19 of 26
4 Collaborations
This entire section, expanded in the four sections following, will detail any relationships which exist with your organisation or project and it will show your knowledge of other organisations or projects in the same field as yours. It will demonstrate any partners you have, the status of the partnerships and the agreements for those partnerships. You will be able to relate if your organisation or project is funded by agreement from a statutory body.
4.1 Partnership Roles Objective
This section is to identify If your organisation or project is comprised of a number of independent organisations or projects which will run or currently run the activities or services outlined in this business plan.
Issues:
Partnership is a well used word, often making the definition unclear. For the successful running of the organisation or project you intend, the definition needs to be detailed with each partner. Partners can contribute their interest, their time and their money, and not all partners will contribute each. This section will help you describe what the partner will contribute to the overall activity or service.
Activities and Resources
Partnership or stakeholder workshops or planning tools
Appendices
If your partnerships are numerous or complex, a table showing partner names and contributions would be helpful.
Partner audits
*Sample Text: “Y project is made up of four core partners and six consultant partners. A pays employee Z and contributes Human Resources support, B pays employee X and contributes human resource support, C provides office space and D provides service delivery expertise. All other partners give consultancy expertise for the whole of the project.”
GKG
G r ay -K i ng & G r ay L t d
Page 20 of 26
4.2 Partnership Arrangements Objective
Issues:
Activities and Resources Appendices
This section is to detail all the relationships outlined in section 4.1 All formal details of partnership are included here – definitions agreed for each partner, terms of reference, commitments to contributions and agreements about expectations. A table showing the partner name on the left, the partner type in the middle and the detail of the contribution on the right would be useful if the list is more than three to four partners. Sample partner agreements. Depending on the purpose of this business plan, you may need to include copies of partnership agreements for each individual partner.
*Sample Text: “Partners in the Y project sign up to three types of agreements – service provider partner, resource provider partner and training provider partner. Terms are from a series of single deliveries to a long term arrangement. The table below indicates the partnership arrangements:”
4.3 Service agreements Objective
This section is to demonstrate legal commitment from an outside body to purchase the services of your organisation or project.
Issues:
The reality of this relationship may feel like partnership, but service agreements are literally the buying of your organisation’s or project’s activity or service by a statutory or other body or organisation. This section is to show if you have such agreements and the terms of them.
Activities and Resources
If you have such agreements, the purchasing authority will have documentation you may, or must, use.
Appendices
Sample service agreements. Depending on the purpose of this business plan, you may need to include copies of individual service agreements for each statutory purchaser.
*Sample Text: “Y runs three lunch clubs per week; two for the elderly of A area one of which is funded by the NVK Council and the other by XYZ Charity. The third, for B area school children, is funded by the Education Authority. See agreements at Appendix X.”
GKG
G r ay -K i ng & G r ay L t d
Page 21 of 26
4.4 Competition Objective
Issues:
This section is to demonstrate that your organisation or project is completely aware of the similar types of organisation or projects to yours which are operating in the same locality and/or with the same client group. It will be unlikely indeed that your organisation or project is completely unique; more likely that what your organisation or project does is different enough to attract your users. This section is to show how much you have investigated other provision and if you are in dialogue with them. Your position will be stronger if you are able not only to show you know what is in your locality, but also to show if you are in networking relationship with them. This activity will also show why your project or organisation is necessary. It will show what is unique to you, no matter what similarities exist.
Activities and Resources
Market research style research tools (see Section 2.3)
Appendices
-
*Sample Text: “Y is one of five such projects in A area, yet specialises in drop in sessions.. Project coordinators and workers as possible meet together quarterly and regularly refer users to each other, ensuring each user has the best provision for their needs.”
GKG
G r ay -K i ng & G r ay L t d
Page 22 of 26
5 Funding
This entire section is where your organisation or project demonstrates that it understands the whole of financial commitments and understands all the detailed aspects of those commitments. It will show how your organisation or project intends to raise its money and monitor its expenditure, how it manages and plans its finances and what its fundraising strategies are for the future. This section of your business plan will need to demonstrate that all the other sections of your business plan are financially possible.
5.1 Income Generation and Monitoring Objective
This section is where your organisation or project shows it fully anticipates the range of income necessary and the duty to monitor that income. This is often the most fragile part of any organisation or project and deserves more time that most would prefer to give it. A working rule is to exaggerate expenditure and to underestimate income. When considering income, for a commercial or a social benefit organisation or project, consider trading income, income from grants and donations, income from sponsorship and in-kind income – resources given to your organisation or project from which you benefit, but for which you do not have to pay cash.
Issues:
With the information you gain in this Section 5.1 and below, 5.2, you will need to prepare a budget, the number of years determined by the reason for your business plan (i.e. 5 years for some funders, 3 years for others). This will show income and expenses in general headlines. You will also need to prepare a first year cash flow forecast, showing all the income and expenditure in fine detail. It is critical to consider income generation when a new project or building is planned. A service is never working at capacity when it opens and there may need to be income to cover the time as it grows from start to capacity. If any of your income is expected to come from funders to whom you have made applications, it will need to be specified that it is anticipated, but not guaranteed income. If you are showing in-kind income, you will need to show documentation committing those figures. Finally, you will also need to demonstrate that you have robust enough financial monitoring systems to properly handle and account for the money you raise.
GKG
G r ay -K i ng & G r ay L t d
Page 23 of 26
Activities and Resources Appendices
Sustainability workshops or planning tools If you have not prepared cash flow forecasts or budgets before, many templates are available from GKG. Three to five (or other) year Budget First Year Cash Flow Forecast
*Sample Text: “Y project intends to eventually generate all its income from the sales of services, but will establish itself with a grant from the X fund and one year in-kind support from County Council. See cash flow at Appendix XII” 5.2 Expenditure and Monitoring Objective
This section is where your organisation or project shows it understands the range of costs necessary to run the project or organisaion and the duty to monitor that expenditure. The information gained in this section will be merged Section 5.1 to create the cash flow forecast and long term budget. Frequently, organisations have more difficulty ‘second guessing’ costs as compared to income. Especially if a project is new, or is using a new resource, this truly is a guessing game, as until a project is running or the building is in use, the real costs will not be known. But it is critical to smart guess costs, as this is information used in pricing and in any funding appeal. Also, until a project is running at capacity, it may not earn the income to cover the initial costs. Therefore the costs need to inform what monies may cover the build up period.
Issues:
Costs can be guessed in a range of ways. If you break down your projects to what they do, who they are done for and where they are located and from what sort of facilities they are delivered, then you could find more detailed information on costs from other projects which do what you do, other projects who work with similar people, other projects which work in your area and other facilities such as yours. If your project or organisation has physical possessions such as buildings and equipment, there will be costs to maintain, repair and replace these. Such costs are frequently missing from cash flow forecasts. Other frequently missing costs are about managing volunteers. They are not paid, but incur expense in management time, training and other agreed support.
Activities and Resources Appendices
Sustainability workshops or planning tools If you have not prepared cash flow forecasts or budgets before, templates are available from GKG. Three to five (or other) year Budget First Year Cash Flow Forecast
GKG
G r ay -K i ng & G r ay L t d
Page 24 of 26
*Sample Text: “Y project expects limited costs at start, with many resources being given in kind as start up support. However, as it develops it will accept more of the core cost so that by year 3 it is completely independent. See cash flow at Appendix XII”
5.3 Financial Planning and Management Objective
This section is to demonstrate that your organisation or project is taking funding seriously enough to plan ahead for sustainability and that it has the right systems in place to manage finances.
Issues:
Your organisation or project will need to show that there are a number of people responsible for finances - not accounted for in the hands of one or a few. You will need to show the meetings of your organisation which make financial decisions, the delegation of those decisions, the accounting dates, whether there are charity or VAT implications and whether any external financial experts are contracted. You will need to show any regular financial management exercises.
Activities and Resources
Sustainability workshops or planning tools
Appendices
Any table of financial planning measures.
*Sample Text: “Y’s finances are discussed at every management meeting, comparing actual figures against budgeted figures compiled by a contracted in bookkeeper. Budgets are agreed at the meeting before financial year end and accounts are audited two months after year end. The management meeting agrees petty cash protocols.”
5.4 Fundraising Strategy Objective
Issues:
GKG
G r ay -K i ng & G r ay L t d
This section is for largely grant dependent organisations or projects to demonstrate that they are planning ahead, past the immediate grant awards. Your organisation or project will need to show awareness of all the issues from all previous sections of your business plan. Such awareness will allow your organisation or project to investigate funding opportunities which apply to your locality, to your client base, to your type of project, to your sort of partnerships and more. A fundraising strategy will show that you are aware of the types of funding available to you, the time necessary for making applications and for learning of awards, and the amounts you are likely to be able to receive. It will also show that you are aware of any funding distribution protocols or timing from your funders. Your strategy will Page 25 of 26
also show a range of funding types and sources, securing your organisation against single funder vulnerability. Activities and Resources
Sustainability workshops or planning tools
Appendices
Any timetable showing the funder or funding stream you have decided, the amount requested or expected and the anticipated award or income.
*Sample Text: “Y’s funding team meets quarterly to review its applications outstanding, to explore new funding streams and to delegate funding applications. See appendix XIV for details of the funding strategy.”
Gray-King & Gray Ltd 2009
GKG
G r ay -K i ng & G r ay L t d
Page 26 of 26
GKG
G r ay -K i ng & G r ay L t d The Old Music Hall, 106-108 Cowley Road, Oxford OX4 1JE
GKG
G r ay -K i ng & G r ay L t d
Page 1 of 26
Introduction This Framework has been written to provide clear guidance that will enable you to write a comprehensive Business Plan. It is designed to be used by community and voluntary organisations which are focussing on social benefit results, even if the organisation will be a trading enterprise. If the resultant plan is clear and effective, it becomes a working document, able to be provided as a ‘snapshot’ at any time for any purpose – investment, negotiation, visioning and more. Often there is a question as to the difference between a Feasibility Study and a Business Plan. A Feasibility Study is an exercise to understand whether an organisation’s idea is at all possible. It will contain elements which may eventually be used in a Business Plan, as it will have demonstrated a study of financial implications, market demand and capacity to deliver. The Business Plan is written after the possibility of an enterprise begins to look like a probability. There will usually be one large Business Plan for a whole organisation and a range of smaller ones for individual projects or strands of work. The smaller ones can often be used for proposals or applications. They key is that they always link to the overall plan and always are aligned to the overall purpose of the whole organisation.
E Gray-King 2003 With thanks to FBO Regen Support and Direct Support Adapted with thanks from Myplace Support 2009 Issue 5
GKG
G r ay -K i ng & G r ay L t d
Page 2 of 26
Filling in the Framework The sections following have been broken up into the sections eventually to be included in your final Business Plan. For each section, there is a table with up to four parts: Objective Issues Activities and Resources Appendices The Objectives are the purpose of the Business Plan section indicated; how the section is relevant to your overall activities and plan. The Issues mentioned are the thoughts to be considered all around the section indicated; issues about preparing information for the section and what readers might want to see and why. The Activities and Resources part prompts you to activities or resources which could help compile information for the section and may name specific planning tools. These could be available from a range of sources. The Appendices part lists documents relevant to the section which could be added to your final Business Plan. If they are essential attachments, the section will indicate this. Each section can include not only what your organisation or project delivers in activities or services at the time of writing this plan, but also what it intends to deliver. After the table in each section is a sample piece of text, to help you understand the expected content of the section. The sample is just that – a tiny flavour of what you could include. Your actual text may run to paragraphs or pages. It is not unusual for a Business Plan to come to 40 or more pages, particularly for a social benefit organisation. All through this guidance document are references to ‘your organisation’ and to ‘your project’. The term organisation in this document means the whole body of your people and work, no matter its legal entity – social enterprise, voluntary and community group, public sector centre and many more. The term project refers to one strand of activities or programme you plan to run or to develop. Though it may seem obvious, it is important to make this distinction clear in your Business Plan. It is not unusual for an organisation to need a separate plan for a new project and for there to be a number of Business Plans held by an organisation, all linked into the highest level plan. A word about appearance and production. Your Business Plan cover should not be too cluttered and needs to include the Title, Author (the organisation), Contact details and the Draft or Issue number and Date. Think carefully about colours and style – a very colourful document speaks about an organisation differently from a black and white document. Think about reproduction costs, paper style and size. Also, as any effective Business Plan is a living document which will change and develop as an organisation changes and develops, it is suggested that you store a Business Plan electronically, rather than produce it in formal print. Not only will this be more cost effective than printing hard copies in bulk, but also it can be used easily as a resource for other kinds of documentation. Also, good organisations keep developing! A Business Plan needs to be able to be changed when necessary.
GKG
G r ay -K i ng & G r ay L t d
Page 3 of 26
1 Project Overview
This whole section, expanded in the three tables following, makes up an extended executive summary. It tells the history of the organisation, the ethos of the organisation and the bare bones summary of the plans for the future of the organisation. It is this section which shows the organisation’s or project’s sense of purpose.
1.1
History and Vision
Objective
This section allows a concise overview of how the organisation or project came to be and what are the future anticipations. In essence, it is the executive summary of the organisation and of the development described in the rest of the Business Plan.
Issues:
This small section will most likely be the last to be written, after all the other details have been made clear. Information needs to include brief milestone descriptions from past practice of the organisation and expected milestones for the next three years (or period the plan covers).
Activities and Resources
There are none suggested here, as this section is a summary of those which follow.
Appendices
There will be none, as this section is a summary of those which follow.
*Sample text: “X became a registered charity in 2001 after successful community work since 1998. Serving the Y population of B area, it provides N activities and hopes to expand to include M activities for Z, recently moved into A area.”
GKG
G r ay -K i ng & G r ay L t d
Page 4 of 26
1.2
Mission Statement
Objective
The mission statement is usually a single sentence and summarises the spirit and values of your organisation.
Issues:
This is the deep underlying reason why your organisation does what it does – because it believes in something. This is generally the only place in a business plan for such a statement. The remainder of the plan is how you will put into action a delivery based on the values from this statement.
Activities and Resources
There are none suggested here, as this section is a summary of those which follow.
Appendices
There will be none, as this section is a summary of those which follow.
*Sample text: “X believes in the value of the Y population and their unique ability to contribute to B area (geographical area or body of interest). X development project will raise the profile of this previously excluded community.”
1.3
Project and Activities Outline
Objective
This section is to make clear exactly what the organisation or the project/s of the organisation will do.
Issues:
It is not the detail, but the core headline statements of what will be done, by and for whom, and with what resources. This will be a very much edited headline from a great deal of detail which will have been collated and will be expanded in Section 2.
Activities and Resources
There are none suggested here, as this section is a summary of those which follow.
Appendices
There will be none, as this section is a summary of those which follow.
*Sample Text: “X runs a series of drop-in sessions for people with Y. It will extend its inclusion programme by: expanding drop in for people with Y from one session to three per week appointing a specialist worker in N, who will work with a newly recruited team of volunteers for people with Y during the extended drop in sessions. adding a bursary scheme to the M unit, so that people with Y on low incomes may receive services.”
GKG
G r ay -K i ng & G r ay L t d
Page 5 of 26
2 Services, Market and Demand
The whole of this section, expanded in the eight tables following, places the organisation in its locality, demonstrates that the organisation has researched the potential, both in terms of delivering such an idea alongside other delivery organisations in a locality and the realistic demand for it from potential service users. It demonstrates what kind of beneficial changes are anticipated. It is the key core of the Business Plan, setting out why it is believed that the projects or organisation will succeed. Each following table is essentially the breakdown of this sentence: In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
2.1
Locality and demographics (Project position)
Objective
This section demonstrates that the organisation is aware of its neighbourhood and has a good sense of being part of a wider community. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
Issues:
Information in this section is very important for an organisation focussing on work for the wider social benefit. You need to include information on: Population, Age range (if pertinent), Industry and Transport, any issues of social isolation, Crime, Education, etc; Any important social changes or transitions in the area Whether your locality is a government regeneration area or other development area
Activities and Resources
Appendices
Information about your area can be found at www.upmystreet.com and at www.neighbourhoodstatistics.gov.uk which will also include information from the 2001 Census Neighbourhood Renewal Areas and other useful information can be found at www.neighbourhood.gov.uk and at www.renewal.net and your local council may have data which you can access. Any specific demographic detail which is important to demonstrate
*Sample text: Locality and demographics “X covers the geographical area of A and B., with many sparsely populated hamlets. Local transport has been cut back and there is no provision for the Y population to access core services. ”The areas of A & B are part of the designated Health Action Zone.
GKG
G r ay -K i ng & G r ay L t d
Page 6 of 26
2.2
User Groups, Clients, Customers (the Market)
Objective
This section will show the sorts of people who will use the activities or services from your organisation or project - the people who will or who are likely to benefit. This part of this section is the description of the market and will set out the results of market research. The numbers and changes you hope to achieve for them will be set out following in Section 2.6, Outcomes and Outputs. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
You need to describe the people who will be using the organisation or project activities or services. Issues:
Activities and Resources
Appendices
Different sorts of organisations use different language when giving a term to the people who use or benefit from their activities. For trading organisations, the words clients and customers describe one and the same sort of beneficiary – the ones who buy the activity product or service. For voluntary sector support organisations, users and clients could be interchanged and mean the people who attend activities or receive support. It is important to be clear how you will use these terms and to use them consistently throughout your plan. You may want to commission or to conduct a full market research activity to investigate the populations you wish to reach. Some results will be in this section; others at 2.3. Investigate monitoring and evaluation records from your organisation’s present activity to show existing project usage as evidence for your anticipation of growth Any market research reports or evidence
*Sample text: “Three main age groups come to the X drop in sessions: 35% 16 and under, 28% the 1759 age range and 37% 60 and over. Our research shows that when we extend these sessions, we will be able to reach more under 16s, the numbers of which have grown around our centre. Appendix III shows the result of our market research.”
2.3
User Based Research (the Demand)
Objective
GKG
G r ay -K i ng & G r ay L t d
This section is used to show the evidence of the need for your organisation or project, and that the need has been established not only by those who will deliver the activities, but predominantly by those who will benefit by it. The information gained from this research will be used in creating your outcomes (summarised in Section 1 and detailed below, Section 2.6).
Page 7 of 26
In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way.
Issues:
This is often the weakest area of a Business Plan. You are looking to prove that your project is needed and that you have proven results from any user market research. This is the section which proves that projects or organisations are design led by those who will use them, not design led by those who believe they already know the need.
Activities and Resources
Appendices
You may want to commission or to conduct a full market research activity to investigate the populations you wish to reach. It is suggested that this activity engages with your intended beneficiaries to a significant degree and uses a variety of participation methods. Some results will be in this section; others at 2.2. You may want to commission or to conduce an Options Appraisal to investigate how what you are planning has been chosen to best suit your intended Market and therefore demonstrates the demand for your project or organisation.
Any evidence, say a table, of target groups contacted, research tools used and responses. Any evidence of an Options Appraisal, say a table of Options, criteria for selection and ranking against that set of criteria to conclude your choice of services.
*Sample Text: User Based Research “Y conducted a number of focus groups where members of Y population usually meet. Not only did they welcome the idea of extended drop in sessions, they suggested N, M and P. Appendices III and IV show the full Market Research analysis. Our Options Appraisal, summarised in Appendix V, demonstrated the need for this particular new service for this client group.”
2.4 Government Policy Landscape Objective
Issues:
GKG
G r ay -K i ng & G r ay L t d
This section shows whether your organisation or project delivers any services which are the duty of a local statutory body (Council, Health Trust etc) or are in any other way to be strategically placed within Government priorities. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
Page 8 of 26
This section is about whether your organisation helps deliver what the government intends to deliver from any public sector bodies. For instance if your organisation or project runs lunch clubs, it could well be helping a local Health Trust comply with National Service Frameworks to do with health improvement.
Activities and Resources
Appendices
If you do not already know how your organisation fits any government agenda, it is worth making inquiries of the partnerships officers of any of your local statutory bodies. They will know how they may work with local community organisations and will know how your organisation could fit with their activities. Any evidence, say a table, of your activities, the statutory obligation name and the way your organisation delivers to this duty.
*Sample text: “Y’s drop in sessions include a lunch club once a week. This is in partnership with the NPCT and contributes to their work on the NSF for coronary heart disease.”
2.5 Services, Market and Demand Matrix Objective
The objective of this section is to make very obvious what you intend to do, matched up to who you will do it for and why you will do it. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
This matrix is to show what you will provide or deliver and to set that out alongside the information in sections 2.1. 2.2, 2.3, and 2.4. This matrix is, in itself, a tool to help you see if what you have planned is clearly linked to demonstrable need and demand.
Issues:
The left hand column will have the details of all your organisations’ activities – the ‘services’ of the matrix. This is a new list, not in previous sections. It may be a headline of a whole service delivery category with bulleted details, or it may be the name of an individual service. When the Business Plan is complete, each line of this matrix, set alongside the matrix in Section 2.6, may become an independent funding proposal or small project plan. The middle column will indicate the details in section 2.1, locality and demographics and section 2.2 – the ‘market’ of the matrix The third column will show the user research and statutory requirements found in sections 2.3 and 2.4 – the ‘demand’ for your organisation or project
Activities and
GKG
G r ay -K i ng & G r ay L t d
Activities carried out for previous sections
Page 9 of 26
Resources Appendices
A list of the services with more detailed descriptions.
*Sample text: Services
Market
Demand Focus groups showed that mums from A area preferred some shopping time alone and that dads, when job hunting, did not feel ‘free’ to play with children in the week XYZ Department Family skills agenda, outlined in Anti-Social Behaviour White Paper1 Work with the school showed that creative activities would help with confidence and allow issues to be raised in a safe environment ABC Department Young Persons agenda, outlined in Guidance CDF
Dads n’kids Saturday 10-12
Thursday Late Thursday nights theatre workshop
XYZ Information Service Provision of information on welfare benefits and advocacy Details: XYZ welfare fact sheets in each surgery ‘Your rights week’ linked to benefit awareness campaigns in (location) and (location) home visits to provide information when necessary Training of Volunteers Provision of advocacy information Liaison with the local ABC Scheme
GKG
G r ay -K i ng & G r ay L t d
Young unemployed dads from XY area with children
!6-18 year olds from ABC school who have been at risk of exclusion
Community engagement work over two months raised recurring issues Evidence from NPCT demonstrated inappropriate use GP services because of lack of other generalist services NMO Department Older Peoples agenda, outlined in White Paper UVF Council Local Strategic Framework strand Y on Older people demonstrates commitment to raising standards for Older People
Older people in poor quality housing Older Farmers who are skill excluded Older people in rural isolation Disabled and frail older people Older people on low incomes Housebound older people Older people with ill health
Page 10 of 26
2.6 Outcomes and Outputs Objective
This section shows the intended changes which your project or organisation is intended to bring or to engender in your users, clients or customers and to detail how many people you expect will benefit. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
Issues:
Your market and demand research, detailed in Section 2.2 and 2.3, above, will give evidence for the outcomes you hope to achieve and the numbers aligned to them – the outputs. Outcomes and outputs can be confusing. Outcomes are changes, described in words which show change such as more, less, fewer, increased, etc.. Outputs are the numbers of things to achieve the change. Quite simply, you are hungry (baseline). You eat two sandwiches (output – one eating session). You are full (outcome). If you are using your business plan to apply for funding, these numbers will be important. Often a funder will divide the sum requested by the numbers expected to benefit to arrive at a ‘cost per output’ figure. In the table below, the first column is the same as in the table at Section 2.5, though in lengthy descriptions, a summary is used. (compare the bottom left block in this with that at 2.5)
Activities and Resources
Activities from Sections 2.2 and 2.3
Appendices
Any extended tables if there is not enough room in the body of the plan
Activities from any service planning for the services entered at 2.5
*Sample text:
Services Dads n’kids Saturday 10-12
Outcome
Thursday Late Thursday nights theatre workshop XYZ Information Service Provision of information on welfare benefits and advocacy
GKG
G r ay -K i ng & G r ay L t d
More confident fathers Stronger family relationships Less stressed mothers More confident young people Increased courage to seek specific support on a range of issues More healthy older people Reduced fear in accessing information Increased confidence in
Output
10 fathers and 15 children at each session from a range of 30 families each Saturday in term.
Maximum 25 young people at each session from a wider group of 50; 13 sessions each term
1000 leaflets distributed 2 Your Rights weeks in each year 30 home visits each quarter 40 volunteers trained
Page 11 of 26
self management Increased visibility of appropriate information
Advocacy information produced for 100 leaflets and 2 web sites
2.7 Monitoring and evaluation Objective
This section demonstrates that the project intends to monitor its progress, intends to use the monitoring constructively for evaluation and development. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and then tell about what we are doing.
This section is about performance. Is what was intended actually happening and are the anticipated changes being achieved? Often, this part of a project is lost until a deadline demands it. However, it is critical not only to be able to show effectiveness, but also to find evidence later used in marketing, Section 2.8 below. Those statements of commendation can be used during the life of a project much more effectively than at the end. Issues:
You will need to work with the outcomes and outputs created earlier and go to two more issues; what does a successful outcome look like and how will you gather the evidence for it. The description of a successful outcome is a success indicator and the how you gather evidence is a success measure. So, more confident people (outcome) is seen by more appropriate requests for information (indicator) and therefore we keep a record of information requests (measure – number of clear requests compared to unclear requests this month compared to last month. Often successful outcomes are called Soft Outcomes, as they are often things which are difficult to count or measure, seldom counted in numbers. As outcomes are more/less comparative words, then soft outcomes are also comparative.
Activities and Resources
Soft Outcome monitoring structures are widely available. You may want to conduct an electronic search using those words. The Charities Evaluation Service provides a range of Outcomes Champions which help organisations set up Outcome monitoring.
Appendices
Any monitoring methods details and monitoring timeplans
*Sample text: “Y’ monitors its activities by regular sign in logs (also used for fire safety), exit questionnaires and focus groups. A full list of monitoring activity is found at appendix VII. All monitoring information is fed into our quarterly review meetings which we use for evaluation and development.”
GKG
G r ay -K i ng & G r ay L t d
Page 12 of 26
2.8 Marketing Strategy (Publicity and Outreach) Objective
This section is to demonstrate that, once you know your potential users or clients and why they will need or want the services your organisation or project is planning, you have organised strategies to inform your potential users of your services. In this area, with these people, who have expressed a need or a need is known, we are going to do this which we hope will make this difference and we will find out that difference in this way and
then tell about what we are doing.
Issues:
In commerce, this is a detailed plan to sell a product or service. In the social sector, this is a plan to attract the people who will most benefit from your activities or services. Your strategy will need to demonstrate that you have reasonable expectations, know your target group/s well and have chosen appropriate methods of contact. Marketing is not just reaching the customer or client directly. It may also include negotiating with other organisations or advocates to be able to reach your beneficiaries. The information you collect from your Monitoring and Evaluation, Section 2.7, above, will give much content to any publicity and marketing exercise.
Activities and Resources
Marketing strategy tools, including those which include potential users in eventual marketing activities
Appendices
Any marketing plan, demonstrating the marketing activity, the potential target group and the potential outcome and costs.
*Sample Text: “Y’ plans its marketing approach at the same time as planning new activities, so that it is aware of potential users at all times. Outreach workers take leaflets to X at their schools and busses along the route from A area to the project have posters. We work with XYZ group to meet their users and likewise, we advertise their activities. See Appendix VII for a full list of marketing activities.”
GKG
G r ay -K i ng & G r ay L t d
Page 13 of 26
3 Capability
This entire section, expanded in the six tables following, is to demonstrate that your organisation or project is literally able to do what it intends to do. It will detail that nonfinancial resources are available, that clear management structures are in place, that adequate training has been identified, that communications are clear and planned and that there is enough physical equipment and space to appropriately run your activities or services. It will also show that there is a robust assessment of potential risks to any part of the organisation or project and the measures which will be used to measure and manage risks.
3.1 Staffing Objective
Issues:
This section details the people who will plan, manage and deliver whatever the organisation or the project is intending to deliver. In addition to employed staff, this section will detail all volunteer staffing levels and arrangements, including members of any management committee, board of trustees or board of directors. You will need to demonstrate adherence to employment law (working time regulations, health and safety, etc), to equal opportunities legislation and to good practice in volunteering. In the case of a sole proprietorship or a small team organisation or a new organisation, this section will require the equivalent of a CV from each person – the reason the people are capable to do what is intended in this plan. The Table following may be used to describe staffing. Management workshops Organisational development tools
Activities and Resources
Appendices
GKG
G r ay -K i ng & G r ay L t d
If you are not already aware of all regulations regarding employment, you could contact your local Job Centre Plus who will inform you. Your local Council for Voluntary Service could help with volunteering protocols. Depending on the purpose of your Business Plan, you may be asked to append job descriptions, terms of reference for both employees and volunteers as well as copies of your equal opportunities and other employee and volunteer policies.
Page 14 of 26
*Sample Text: “X employs 2 full time and 5 part time people and is helped by 17 volunteers. The table below shows their job titles, hours and tasks undertaken.”
Job Title
Existing New responsibiliti responsibilitie es s
Staff Type (E, V, A, S, C, K)*
Team
Supervisor
*Key: E = employee, V = volunteer, A = apprentice, S = secondment, C = contractor, K = in kind staff, paid by others and delivering to this 3.3 Management Structure with Management Diagram Objective
Issues:
This is to demonstrate that your organisation or project is well managed with clear lines of accountability. Your structure should indicate not only the relationship between all the people who manage and deliver your activities, but also their relationship to the decision making of the organisation. The structure will show employed and volunteer workers as well as any management committee members, trustees or directors. There will need to be clarity about the management and strategic fit of each type of staff including employees, volunteers, apprentices, secondments, contractors and in kind staff, paid by others and delivering to this (college tutors, say, teaching in off college locations).
Activities and Resources Appendices
Management workshops Organisational development tools Employee and Volunteer Audit tools None unless specified by potential funders
*Sample Text: “Y’s management committee meets monthly, taking reports from the Projects Coordinator about the activities from Y. Each member of the committee is a liaison person with many areas of the organisation or with individual activities of the centre. Our In Kind tutors work within our local project teams. The chart below indicates the lines of responsibility:”
3.4 Training Objective
GKG
G r ay -K i ng & G r ay L t d
The purpose of this section is to demonstrate that your organisation or project is aware of the need for on-going training for every aspect of the
Page 15 of 26
organisation and has built in appropriate arrangements.
Issues:
Every activity or service of an organisation or project is subject to some kind of legislation or aligned to good practice which will require knowledge from personnel. For this, training needs to be a regular part of the on-going work of the organisation. In addition, each individual is entitled to training for personal and corporate development.
Activities and Resources
If you are not sure what training is required for the individuals in your organisation or project, you could contact your local authority for advice
Appendices
Any training plans, blanks of individual training records and any other evidence
*Sample Text: “Y meets twice yearly with each employee to review training needs. X days are set aside for each worker and there is a regular link with the Health and Safety training department of the District Council.”
3.5 Internal and external communications Objective
Issues:
This section demonstrates that your project or organisation understands and implements clear communications both inside the organisation and to appropriate people outside it. You will need to demonstrate how both workers and users of your organisation or project are invited to communicate, both in writing and verbally; that there are systems and procedures for people to know that they can communicate with the organisation and that what they communicate will be handled appropriately. If there are confidentiality issues in the project or service you are operating, they would be included here, as well as any protocols for the use of the web, email or telephones. This section is also about your external information to the general public or to organisations to which you have to report. Different from the information in the Marketing section, this section would include information about your Annual Report and how it is presented as well as any regular external reporting.
Activities and Resources
Communications policies (use of emails, confidentiality agreements, etc) can be obtained from a range of sources.
Appendices
Any copies of reports or of internal communications protocols or guidelines
*Sample Text:
GKG
G r ay -K i ng & G r ay L t d
Page 16 of 26
“Y maintains an intranet and allows all staff to use email for reasonable personal use, and access to the web for work use only.”
3.6 Equipment and Accommodation Objective
Issues:
Activities and Resources Appendices
This section is to show that your organisation or project has the right sort and the right amount of space and equipment to conduct what is planned. This section will show that you are well equipped to run your project or organisation with a range of resources, from physical space to furniture and technical equipment. It should also show how you intend to maintain your equipment and accommodation – any service agreements, maintenance contracts or insurances. This section is also where you will demonstrate your adherence to any Disability legislation. You will want to show that if you have a number of projects running within an organisation, that you have the space. You may want to show if users have had any input into the design of what is available. If your project or organisation conducts outreach or travelling activities or services, this section will be where you demonstrate the suitability and safety of that equipment as well as arrangements for storage and transportation. If you are providing a new service or activity for a user group with whom you have not worked before, you could contact support organisations dealing with that group to understand what specialised equipment could be needed. If your organisation or project is large or complex, you might want to give floor plans, maintenance schedules or other documents demonstrating the good management of your resources.
*Sample Text: “Y is run from the first and second floors of a significantly redeveloped Victorian church building. A lift has been installed to allow access to our suite of 5 meeting rooms and 2 offices A travelling ICT suite is stored in password protected cupboards.”
3.7 Risk Analysis Matrix Objective
This section is to show that you are fully aware of what could go wrong in any part of your organisation or project, how likely that would be and what you would do to manage the difficulty.
Issues:
You need to work through not only what could hurt your services or activities, such as fewer people than anticipated or an unexpected departure of a partner service provider, but also consider your staffing
GKG
G r ay -K i ng & G r ay L t d
Page 17 of 26
or other resource implications. After ranking according to how likely a potential risk might be and how much of an impact it would make if it did happen, you need to consider the ways in which you will monitor and manage each risk. Your final matrix may be three columns – the risk, the rating and the resolution. Project and organisational risk is not just about health and safety, physical risk. It is also about risk to service delivery from any range of sources. It is important to bring risk analysis to the whole of an organisational life, not just to the physical equipment. Activities and Resources
If you have never compiled a risk register and ranked risks, you could contact your local authority for help.
Appendices
If your organisation is complex, then a full risk analysis should be appended. Otherwise, it may be included in the body of this plan.
*Sample Text: “Y regularly evaluates its activities and services (see section 2.6) and has analysed risk as below:
Risk Too few people attending
Rating M
X local authority reallocation of resources
3.8
H
Resolution Go back to marketing strategy to check decisions Monitor attendance figures weekly rather than monthly until attendance picks up Meet weekly with activity leaders to develop both improvement and exit plans Analyse amount of LA contribution Management meeting to develop both funding strategies and exit strategies
Legal Requirements
Objective
This section is where your organisation or project demonstrates that it complies with legislation relevant to a range of obligations for your work. There will be legal obligations on a range of issues similar for all projects such as Health and Safety, Disability access, Equal Opportunities, Data Protection and Insurance.
Issues:
Depending on what your organisation or project’s activities are or whether there are employed staff, there may be other legal obligations such as Employers Liability Insurances, Working Time Directive adherence and Acceptable Use policies. There many be legal requirements for the specific beneficiaries of your
GKG
G r ay -K i ng & G r ay L t d
Page 18 of 26
organisation or project
Activities and Resources
Appendices
If you need information on what legal requirements apply to your organisation or project, there are a number of overall support organisations which could help you from Business Links to Councils for Voluntary Organisations to your local authority. If you break down your projects to what they do, who they are done for and where they are located, then you could find more detailed information on requirements from other projects which do what you do, other projects who work with similar people and other projects which work in your area. If your Business Plan is for a wide range of readers, you will need to write into your plan that you hold the relevant policies or insurances. If your Business Plan is part of a funding application, you may need to append copies of policies or insurances notes
*Sample Text: “The Y centre holds and adheres to policies on Data Protection, Disability Access and Health and Safety. Its Equal Opportunities policy was written after a workshop with users.”
GKG
G r ay -K i ng & G r ay L t d
Page 19 of 26
4 Collaborations
This entire section, expanded in the four sections following, will detail any relationships which exist with your organisation or project and it will show your knowledge of other organisations or projects in the same field as yours. It will demonstrate any partners you have, the status of the partnerships and the agreements for those partnerships. You will be able to relate if your organisation or project is funded by agreement from a statutory body.
4.1 Partnership Roles Objective
This section is to identify If your organisation or project is comprised of a number of independent organisations or projects which will run or currently run the activities or services outlined in this business plan.
Issues:
Partnership is a well used word, often making the definition unclear. For the successful running of the organisation or project you intend, the definition needs to be detailed with each partner. Partners can contribute their interest, their time and their money, and not all partners will contribute each. This section will help you describe what the partner will contribute to the overall activity or service.
Activities and Resources
Partnership or stakeholder workshops or planning tools
Appendices
If your partnerships are numerous or complex, a table showing partner names and contributions would be helpful.
Partner audits
*Sample Text: “Y project is made up of four core partners and six consultant partners. A pays employee Z and contributes Human Resources support, B pays employee X and contributes human resource support, C provides office space and D provides service delivery expertise. All other partners give consultancy expertise for the whole of the project.”
GKG
G r ay -K i ng & G r ay L t d
Page 20 of 26
4.2 Partnership Arrangements Objective
Issues:
Activities and Resources Appendices
This section is to detail all the relationships outlined in section 4.1 All formal details of partnership are included here – definitions agreed for each partner, terms of reference, commitments to contributions and agreements about expectations. A table showing the partner name on the left, the partner type in the middle and the detail of the contribution on the right would be useful if the list is more than three to four partners. Sample partner agreements. Depending on the purpose of this business plan, you may need to include copies of partnership agreements for each individual partner.
*Sample Text: “Partners in the Y project sign up to three types of agreements – service provider partner, resource provider partner and training provider partner. Terms are from a series of single deliveries to a long term arrangement. The table below indicates the partnership arrangements:”
4.3 Service agreements Objective
This section is to demonstrate legal commitment from an outside body to purchase the services of your organisation or project.
Issues:
The reality of this relationship may feel like partnership, but service agreements are literally the buying of your organisation’s or project’s activity or service by a statutory or other body or organisation. This section is to show if you have such agreements and the terms of them.
Activities and Resources
If you have such agreements, the purchasing authority will have documentation you may, or must, use.
Appendices
Sample service agreements. Depending on the purpose of this business plan, you may need to include copies of individual service agreements for each statutory purchaser.
*Sample Text: “Y runs three lunch clubs per week; two for the elderly of A area one of which is funded by the NVK Council and the other by XYZ Charity. The third, for B area school children, is funded by the Education Authority. See agreements at Appendix X.”
GKG
G r ay -K i ng & G r ay L t d
Page 21 of 26
4.4 Competition Objective
Issues:
This section is to demonstrate that your organisation or project is completely aware of the similar types of organisation or projects to yours which are operating in the same locality and/or with the same client group. It will be unlikely indeed that your organisation or project is completely unique; more likely that what your organisation or project does is different enough to attract your users. This section is to show how much you have investigated other provision and if you are in dialogue with them. Your position will be stronger if you are able not only to show you know what is in your locality, but also to show if you are in networking relationship with them. This activity will also show why your project or organisation is necessary. It will show what is unique to you, no matter what similarities exist.
Activities and Resources
Market research style research tools (see Section 2.3)
Appendices
-
*Sample Text: “Y is one of five such projects in A area, yet specialises in drop in sessions.. Project coordinators and workers as possible meet together quarterly and regularly refer users to each other, ensuring each user has the best provision for their needs.”
GKG
G r ay -K i ng & G r ay L t d
Page 22 of 26
5 Funding
This entire section is where your organisation or project demonstrates that it understands the whole of financial commitments and understands all the detailed aspects of those commitments. It will show how your organisation or project intends to raise its money and monitor its expenditure, how it manages and plans its finances and what its fundraising strategies are for the future. This section of your business plan will need to demonstrate that all the other sections of your business plan are financially possible.
5.1 Income Generation and Monitoring Objective
This section is where your organisation or project shows it fully anticipates the range of income necessary and the duty to monitor that income. This is often the most fragile part of any organisation or project and deserves more time that most would prefer to give it. A working rule is to exaggerate expenditure and to underestimate income. When considering income, for a commercial or a social benefit organisation or project, consider trading income, income from grants and donations, income from sponsorship and in-kind income – resources given to your organisation or project from which you benefit, but for which you do not have to pay cash.
Issues:
With the information you gain in this Section 5.1 and below, 5.2, you will need to prepare a budget, the number of years determined by the reason for your business plan (i.e. 5 years for some funders, 3 years for others). This will show income and expenses in general headlines. You will also need to prepare a first year cash flow forecast, showing all the income and expenditure in fine detail. It is critical to consider income generation when a new project or building is planned. A service is never working at capacity when it opens and there may need to be income to cover the time as it grows from start to capacity. If any of your income is expected to come from funders to whom you have made applications, it will need to be specified that it is anticipated, but not guaranteed income. If you are showing in-kind income, you will need to show documentation committing those figures. Finally, you will also need to demonstrate that you have robust enough financial monitoring systems to properly handle and account for the money you raise.
GKG
G r ay -K i ng & G r ay L t d
Page 23 of 26
Activities and Resources Appendices
Sustainability workshops or planning tools If you have not prepared cash flow forecasts or budgets before, many templates are available from GKG. Three to five (or other) year Budget First Year Cash Flow Forecast
*Sample Text: “Y project intends to eventually generate all its income from the sales of services, but will establish itself with a grant from the X fund and one year in-kind support from County Council. See cash flow at Appendix XII” 5.2 Expenditure and Monitoring Objective
This section is where your organisation or project shows it understands the range of costs necessary to run the project or organisaion and the duty to monitor that expenditure. The information gained in this section will be merged Section 5.1 to create the cash flow forecast and long term budget. Frequently, organisations have more difficulty ‘second guessing’ costs as compared to income. Especially if a project is new, or is using a new resource, this truly is a guessing game, as until a project is running or the building is in use, the real costs will not be known. But it is critical to smart guess costs, as this is information used in pricing and in any funding appeal. Also, until a project is running at capacity, it may not earn the income to cover the initial costs. Therefore the costs need to inform what monies may cover the build up period.
Issues:
Costs can be guessed in a range of ways. If you break down your projects to what they do, who they are done for and where they are located and from what sort of facilities they are delivered, then you could find more detailed information on costs from other projects which do what you do, other projects who work with similar people, other projects which work in your area and other facilities such as yours. If your project or organisation has physical possessions such as buildings and equipment, there will be costs to maintain, repair and replace these. Such costs are frequently missing from cash flow forecasts. Other frequently missing costs are about managing volunteers. They are not paid, but incur expense in management time, training and other agreed support.
Activities and Resources Appendices
Sustainability workshops or planning tools If you have not prepared cash flow forecasts or budgets before, templates are available from GKG. Three to five (or other) year Budget First Year Cash Flow Forecast
GKG
G r ay -K i ng & G r ay L t d
Page 24 of 26
*Sample Text: “Y project expects limited costs at start, with many resources being given in kind as start up support. However, as it develops it will accept more of the core cost so that by year 3 it is completely independent. See cash flow at Appendix XII”
5.3 Financial Planning and Management Objective
This section is to demonstrate that your organisation or project is taking funding seriously enough to plan ahead for sustainability and that it has the right systems in place to manage finances.
Issues:
Your organisation or project will need to show that there are a number of people responsible for finances - not accounted for in the hands of one or a few. You will need to show the meetings of your organisation which make financial decisions, the delegation of those decisions, the accounting dates, whether there are charity or VAT implications and whether any external financial experts are contracted. You will need to show any regular financial management exercises.
Activities and Resources
Sustainability workshops or planning tools
Appendices
Any table of financial planning measures.
*Sample Text: “Y’s finances are discussed at every management meeting, comparing actual figures against budgeted figures compiled by a contracted in bookkeeper. Budgets are agreed at the meeting before financial year end and accounts are audited two months after year end. The management meeting agrees petty cash protocols.”
5.4 Fundraising Strategy Objective
Issues:
GKG
G r ay -K i ng & G r ay L t d
This section is for largely grant dependent organisations or projects to demonstrate that they are planning ahead, past the immediate grant awards. Your organisation or project will need to show awareness of all the issues from all previous sections of your business plan. Such awareness will allow your organisation or project to investigate funding opportunities which apply to your locality, to your client base, to your type of project, to your sort of partnerships and more. A fundraising strategy will show that you are aware of the types of funding available to you, the time necessary for making applications and for learning of awards, and the amounts you are likely to be able to receive. It will also show that you are aware of any funding distribution protocols or timing from your funders. Your strategy will Page 25 of 26
also show a range of funding types and sources, securing your organisation against single funder vulnerability. Activities and Resources
Sustainability workshops or planning tools
Appendices
Any timetable showing the funder or funding stream you have decided, the amount requested or expected and the anticipated award or income.
*Sample Text: “Y’s funding team meets quarterly to review its applications outstanding, to explore new funding streams and to delegate funding applications. See appendix XIV for details of the funding strategy.”
Gray-King & Gray Ltd 2009
GKG
G r ay -K i ng & G r ay L t d
Page 26 of 26
Related Documents
Gkg Bus Plan Devt Framework 5
May 2020 2
5year Devt Plan 07-08
May 2020 9
Medium Term Devt Plan Handout.docx
June 2020 8
11. Strat Bus Plan
May 2020 3
Bus Continuity Plan
April 2020 4