Anywhere Community Centre. Business Plan

Transcription

1 Community Centre Handbook Sample Business Plan Template This is a template only and Management Committees may wish to remove sections, or add sections, depending on their specific requirements. This template can be used for a wide variety of organisations and it is more likely that Management Committees will remove, rather than add, sections to this template. Other templates are available and there is no need to follow any particular template. Management Committees are free to develop their own business plan. Anywhere Community Centre Business Plan Appendix 1 1 V2: 13 August 2012

2 Contents Title Page 1 Contents 2 Executive Summary 3 Introduction 3 Mission Statement 3 Aims and Objectives 3 Legal structure 3 Summary 3 The Business 4 Background and History 4 The Product or Service 4 Competition 4 Advantages 4 Developments 4 The Market 5 Demand 5 Customer base 5 Market Competition 5 Market Advantage 5 Marketing Plan 6 Target Market 6 Market Share 6 Pricing 6 Advertising 6 Distribution 6 Future Developments 6 SWOT 6 Structure, Operational & Staffing Details 7 Legal Structure 7 Operational Structure 7 Personnel Structure 7 Personnel Development 7 Community Involvement 7 Premises 7 Suppliers 7 Facilities 7 Equipment 7 Financial Information 8 Appendix 1 2 V2: 13 August 2012

3 Budget 8 Equipment 8 Costing and Pricing 8 Cash Flow Forecast 8 Profit and Loss Forecast 8 Balance Sheet 8 Break Even Analysis 8 Other Financial Details 8 Assumptions 8 Financial Prospect 8 Return on Investment 8 Appendices 9 Appendix 1 3 V2: 13 August 2012

4 Executive Summary Introduction Introduction and reasons for the Business Plan Mission Statement A brief statement outlining your mission in no more than two paragraphs. Aims and Objectives Statement of Purpose and aims of the organisation Legal structure Legal structure of the organisation Summary A summary of the main points raised in the business plan Appendix 1 4 V2: 13 August 2012

5 The Business Background and History Detail the background to the organisation including any publicity and list any milestones and significant events or developments. The Product or Service Describe what the business is. Use layman s terms. Don t use technical words or other jargon. Competition Give details as to your competition. Remember to include other products and services that compete with you even if that product or service is not same as yours. Advantages Detail the main advantages of your product or service. Mention any unique selling point that your product or service has. Explain why it is unique from other similar products or services. Developments Explain how the product or service will be developed over time Appendix 1 5 V2: 13 August 2012

6 The Market Demand Estimate short and long term demand for the product or service, mentioning whether the market is growing, declining etc. Include the viewpoint of the customers. Customer base Detail who the target customers are. Market Competition Who are the competitors, present and future, in relation to the identified market. Remember to include other products and services that compete with you even if that product or service is not same as yours. Market Advantage What is unique about you within the market and what is the advantage of your business over the competition. Appendix 1 6 V2: 13 August 2012

7 Marketing Plan Target Market Give details of target markets stating what you are trying to achieve ensuring that objectives are SMART. (Specific, Measurable, Achievable, Relative and Timebased). Ensure that you demonstrate that the market, and customer base, exists. Market Share Estimate how much of the identified market, and customer base, will use your service or product. Pricing Explain any pricing policy. Advertising Explain how the product or service will be advertised. Future Developments Explain longer term plans for the business and give details of potential customer. SWOT Perform a SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis on your business within the market giving a true appraisal of your business, and your competitors. Appendix 1 7 V2: 13 August 2012

8 Structure, Operational & Staffing Details Legal Structure Detail the legal structure of the business. Operational Structure Detail the operational structure of the business. Personnel Structure Detail the staffing Structure including control and reporting relationships and how this fits into the operational and legal structure. Personnel Development Detail the roles of the individuals within the business and any training or development policies and plans. Community Involvement As a Community enterprise it is likely that you will have some form of community involvement at it may be wise to include detail within this section. Premises Detail the premises that the business will operate from. Suppliers Detail the main suppliers and possibly detail alternative suppliers. Facilities Detail the facilities that are requires and/or available for the business. Equipment Details equipment available and/or required. Appendix 1 8 V2: 13 August 2012

9 Financial Information Budget Detail start up costs and budget information. Equipment Detail capital equipment requirements. Costing and Pricing Detail the costing and pricing of the service or product. Cash Flow Forecast A cash flow forecast for an appropriate length of time. See enclosed Cash Flow Forecast Sheet. Profit and Loss Forecast A Profit and loss forecast or a projected profit and loss account. This could be for the same period of time as the cash flow forecast. See enclosed Profit and Loss Forecast Sheet and Projected Profit and Loss Account Sheet. Balance Sheet Detail the worth of the business at the beginning and end of the forecast period. See enclosed Balance Sheet. Break Even Analysis Detail the point where the business will no longer be operating at a loss but generating a profit. You may have to include initial start up costs. Other Financial Details Detail moneys invested both every form, i.e. grants and loans. Mention any details relating to securities on loans etc. If fund-raising is a main means of generating income you may wish to include a fund-raising strategy in this section. Assumptions Details of the assumptions made when calculating the financial details. Financial Prospect Detail the short and long term objectives of the business and what external finance is required to realise these objectives. Ensure you also explain why this finance is required. Return on investment Explain what the return on investment will be to the organisation providing finance will be. This may be a financial return, such as a share in the businesses or a social one such as being seen to support a community venture. Appendices Appendix 1 9 V2: 13 August 2012

10 This will include any documents mentioned in the body of the plan and other supporting documentation. It may include any of the following:- CVs Credit Reports References Leases Contracts Etc. Appendix 1 10 V2: 13 August 2012

11 Community Centre Handbook GUIDANCE NOTES TO ASSIST WITH THE COMPLETION OF THE MODEL BUSINESS PLAN TEMPLATE A business plan will set out the community centres goals and is a valuable tool in assisting Management Committees. Not only does it serve as a guide to your future, providing direction and focus, a business plan can also:- Help your community centre avoid problems; Act as a benchmark to measure your performance; Help you obtain loans from banks and other lenders; Help you obtain grants from grant making organisations; Help identify your financial needs; Encapsulate your longer term objectives on paper; Instil confidence in your ability to manage the centre; Help maximise income by identifying unrequired assets for investment Anything else you want it to be. The primary reason that Management Committees should produce a business plan is to use it as a tool to achieve your goals and to alert you when things are not going according to plan, so that you can take action and stop molehills becoming mountains. If Management Committees are applying for funding from various sources then a robust business plan will also instil confidence in the centres and demonstrate that a need exists. This will normally be achieved by giving a full description of the centre activities over the coming years, explaining what the centre currently does and plans to do; and detail the resources required to operate the centre. These notes should help Management Committees draft their business plans with the minimum of effort, however the model business plan template may not suite every centre or every eventuality. You may not require such an in-depth plan, or you may require much more specific information in certain areas. You may decide to split some of the major sections of the business plan into separates sections such as separating the fund-raising strategy from the financial section or you may wish to combine or remove some sections. Hopefully, looking at the model business plan template will help you decide on the sections required within your centre. However, no written guidance or template can replace individual advice from the various organisations providing business planning advice. There is no substitute for good quality individual advice. Appendix 1 11 V2: 13 August 2012

12 The Contents of the Business Plan Executive Summary Introduction In this section you should introduce the community centre "business" and the reason for the business plan. This will quickly allow anyone reading the plan to know whether they can assist you in obtaining your goals or whether some other person should be dealing with the plan. Mission Statement The aim of this section is to define what your Community Centre's primary purpose is, ideally in 30 words or less. Aims and Objectives This will expand upon the mission statement and will list the goals of the organisation. It is tempting to simply quote the similarly named clause from your Memorandum and Articles (for a company) or your Constitution (association) however these may not adequately reflect your objectives. Legal Structure You would detail the Legal structure of the organisation here such as a company limited by guarantee with charitable status or an unincorporated Association etc. You would also detail the registered office, or contact address, and any relevant details such as company number, charity number etc. Summary In this section you would highlight the important parts within the business plan that you feel will enable the business plan to serve the purpose that you want it for. Important information will probably include:- the main activities within the community centre; who the main users of the centre are; the potential for the centre; forecasted benefits (mostly non financial for community centres); how much money or other resource is required; prospects for any lender, funder or stakeholder. The Business Background and History Detail the background to the organisation explaining why it is in managing the community centre. If the organisation has been managing the centre for a number of years then provide details. List details of publicity that the organisation has had and list details of important occurrences relevant to the organisation and Community Centre. This could be internal or external milestones, significant events or developments. Appendix 1 12 V2: 13 August 2012

13 The Product or Service Describe what the "business" of the Community Centre is. Use layman s terms. Don t use technical words or other jargon as most people will not understand what they mean. Competition This may not be relevant for every Community Centre, however if centres are providing learning opportunities then they may wish to detail other local learning providers etc. Advantages This may not be relevant for every Community Centre, however if you are providing services such as learning or recreation that are available from others it is beneficial to detail what the advantages of your service are compared to others. Developments Explain how the Management Committee would wish to develop the centre and the centre activities over time and what new ideas are being considered. Also think about what developments are happening elsewhere that could impact upon the centre and the activities and how you may deal with these. The Market Most Community Centre s market will be the local community, however some centres may target specific activities to a wider audience. Management Committees should consider how relevant this section will be for their centre. Demand In this section you would detail your market, breaking it into sectors if relevant, its size and estimate the short and long term demand for the product or service within the market. You will mention the markets growth, or otherwise, experienced in the past and describe whether the market is growing, declining etc. Include the viewpoint of the customers. As this section is highlighting the market and the demand of your product or service within the market you should ensure that the viewpoint of your customers or stakeholders is reflected here. Customer base You should detail who the target customers are. Whether it is individuals or organisations, there size and financial standing and how they normally conduct their transactions within this market. For instance do your customers expect to pay cash, or be invoiced, to visit a shop, or buy mail order? Depending upon your business you may also wish to detail who your stakeholders are and how they could be viewed as a customer base. Appendix 1 13 V2: 13 August 2012

14 Market Competition and Advantage Who are the competitors, present and future, in relation to the identified market. This will contain more information than the previous information regarding competition in the business sections. This should detail of the competition with relation to the market, including their size, market share and how they are likely to respond to your business within the market. You should detail what advantage you will have over the other competitors within the market. Is it cost, quality or some other advantage you offer? Also, what is unique about you within the market, is there anything you can use as a unique selling point? Marketing Plan: Target Market You should detail you target markets and list what your objectives within these markets are. When detailing your objectives make sure that they are SMART. (This is an acronym for Specific, Measurable Achievable, Relevant and Time-based.) Therefore you should ensure that your objectives are:- Specific - don t be vague, vagueness only causes confusion; Measurable - if you can t measure your objectives you can t prove they have been reached; Achievable - don t make objectives that are unrealistic as this will only be demoralising when they aren t reached; Relevant - only make objectives that will achieve what you want; Time-based - Set a time limit on your objectives otherwise you may continue to pursue the unachievable. Ensure that you demonstrate that the target market, and customer base, exists and that your objectives will help you to provide your product or service to the target market. Market Share You should estimate how much of the identified market, and customer base, will use your Centre or services both now and in the future. The level of your market share will have a large impact upon the income generated by your centre, and the resources required. Pricing You should explain any pricing policy you have. You may set your prices by looking at other centres however this may mean you don t cover your costs. You may set your price based upon your direct costs and overheads and estimated numbers of sales. You may decide to run some activities at a loss. However you set your pricing you should be able to explain how the end price was reached. Advertising You should explain how you will advertise your Centre s activities. Spending a lot on advertising is not always what is required. Targeting your advertising to your customer base is much more important. Appendix 1 14 V2: 13 August 2012

15 Future Developments Explain the longer-term plans for the business and give details of potential customer, and new markets. Is your centre or services changing to open up new markets or will your customers needs change requiring that you change in order to meet your customers needs. SWOT Perform a SWOT. (SWOT is an acronym for Strengths, Weaknesses, Opportunities & Threats.) Analysis your Centre and activities within the market giving a true appraisal of your Centre, and your competitors. You can help develop your strengths and opportunities and reduce your weaknesses and threats once you know what they are. Structure, Operational & Staffing Details Legal Structure You would detail the Legal Structure of the organisation here such as a company limited by guarantee with charitable status. You would also details registered office, or contact address, and any relevant details such as company number, charity number etc. You may also include details as to who the initial Directors, or management committee, will be although you may chose to detail that within the Personnel Structure. Operational Structure Detail the operational structure of the Centre. It may be simpler to demonstrate in a graphical form as opposed to text. Personnel Structure Detail the staffing Structure including control and reporting relationships and how this fits into the operational and legal structure. Once again it maybe better to use a graphical representation of the relationships as opposed to trying to explain the structure with text. Personnel Development You should detail the roles of the individuals within the business and any training or development policies and plans that are to be in place. You may wish to include job descriptions of these posts, or pen pictures or CVs of the individuals as appendices to the business plan. The personnel within an organisation can be the businesses biggest asset therefore it is wise to show that the personnel are being developed along with the rest of the of the business. The personnel can include, Management Committee members, paid staff, and volunteers. Appendix 1 15 V2: 13 August 2012

16 Community Involvement As the community involvement may be one of the keys factors about the running of the centre and the fact that the business plan may be used to obtain funding it would be wise to include details of how the community is involved with the Centre. You may also wish to demonstrate how the community fits within the operational structure of the business. Premises You should provide details of the premises that the centre will operate from. Not just to provide a contact address but to demonstrate that the premises will allow you to operate in a manner that will allow you to reach your objectives. Suppliers By detailing your main suppliers alternative suppliers you can demonstrate your reliance, or otherwise, on other external forces. If you rely solely on one supplier and that supplier ceases to trade what would happen to your services? Facilities You should detail the facilities that are required and/or available for the centre. It may be that all the facilities are not currently required however, if additional facilities are required in the future you should make note of that fact and demonstrate how this will be accommodated. Equipment You should detail the equipment that is required and/or available for the centre. As with the facilities it may be that all the equipment are not currently required. However, if additional large equipment is required in the future you should make note of that fact and demonstrate how this will be accommodated. Financial Information Budget You should detail your start-up costs and any other budget details for the centre. Equipment You should detail any capital equipment requirements that you have along with the cost of this equipment. Costing and Pricing You should detail how the costing and pricing of the centre services was obtained. These figures could have been chosen based upon what competitors charge, upon covering your own costs and generating a small profit, or using some other method. You should detail the method used. Appendix 1 16 V2: 13 August 2012

17 Cash Flow Forecast A cash flow forecast is used to estimate how much money will be coming into the business and how much money will be leaving the business. It includes all income and all expenditure, including loans, grants etc. It should not be confused with a profit and loss forecast as having a positive cash flow over a period of time does not necessarily mean that a profit has been made. Income and expenditure should be included when the money is expected to be paid it or out, not when it is due. If you expect to issue an invoice in May but not receive payment until July then you should include the forecasted payment in July, not May. You should include a monthly cash flow forecast covering an appropriate length of time. Normally the length of time covered by the cash flow would be 3 to 5 years however this depends on the purpose of the business plan. The first years cash flow should be monthly, however it may be possible for subsequent years to be shown quarterly. A simple excel spreadsheet can be used. Profit and Loss Forecast A profit and loss forecast is used to estimate how much profit will be made by the business. It is includes the income generated by trading in your product or service and includes all the costs associated including direct costs (such as cost of stock) and indirect costs (such as depreciation in value of equipment.) It should not be confused with a cash flow forecast as having a positive profit over a period of time does not necessarily mean that a positive cash flow will exists as some customers may pay their invoices late. The length of time covered by the profit and loss account is likely to be the same period of time covered by the cash flow forecast. A simple excel spreadsheet can be used. It may be more appropriate to provide a projected profit and loss account. You would produce profit and loss account for the end of your trading period based upon the financial information at hand instead of breaking the profit and loss into a quarterly, or monthly, forecast. Balance Sheet A balance sheet is like a snap shot picture of your centre s finances. It shows the centre s worth at a particular time by detailing assets and liabilities and thus calculating a net worth for the centre.. A simple excel spreadsheet can be used. Break Even Analysis The break even analysis is the means to detail the point where the centre will no longer be operating at a loss but generating a profit. Depending on how you intend to use the break even analysis you may have to include initial start up costs. However, you could also use a break even analysis to detail how many extra services you would have to charge for in order to be able to employ an additional member of staff. Appendix 1 17 V2: 13 August 2012

18 Other Financial Details Include in this section any other financial details not already included. For instance you would detail:- grant received loans Received security provided for loans other investors If fund-raising is a main means of generating income you may wish to include a fundraising strategy in this section. Assumptions Within this section you would detail the assumptions that were made when calculating the financial details. For instance an after school club may make the assumption that they will only be operating at a 75% capacity. They would also detail why this assumption was made. It may be that other after school clubs operate at between 70 and 80% capacity. This would demonstrate that the assumption would produce reasonably accurate forecasts. Financial Prospect Within this section you should detail the short and long term objectives of the centre and what external finance is required to realise these objectives. Ensure you also explain why this finance is required. You may also wish to detail how risky the venture is. Is this a tried and tested idea or is it new and innovative idea that carries more risk. Return on investment You should explain what the return on investment will be to the organisation providing finance will be. This may be a financial return, such as a share in any businesses or a social one such as being seen to support a community venture. Appendices This will include any documents mentioned in the body of the business plan and other supporting documentation. It may include any of the following:- CVs Job Descriptions Pen Pictures Credit Reports References Leases Contracts Etc. Appendix 1 18 V2: 13 August 2012