A guide to third sector trading - WCVA

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It’s an idea, but is it business? A guide to third sector trading October 2011 Compiled by Mel Witherden ISBN 1 903416 84 1 Published by Wales Council for Voluntary Action WCVA is the national umbrella organisation for the third sector in Wales. For over 75 years we have been working with the sector to improve communities and change lives. WCVA, county voluntary councils (CVCs) and volunteer centres (VCs) form a network of support organisations across Wales that help people who are inspired to make a positive difference to their communities. We work with charities, voluntary and community groups, social enterprises, trustees and individual volunteers. WCVA works at a national level, while CVCs and VCs work at a local level. Head Office: Baltic House, Mount Stuart Square, Cardiff, CF10 5FH Helpdesk: 0800 2888 329 Fax: 029 2043 1701 Registered charity 218093 Company Limited by Guarantee 425299 Registered in Wales
It’s an idea, but is it business? A guide to third sector trading Contents Introduction 5 Who is this guide for? 6 1: Getting started – the absolute basics 10 2: First steps 17 2.1 Why start trading? 17 What trading organisations can’t do 17 The real benefits of third sector trading 19 Some examples of third sector trading 23 2.2 The very beginning 26 Before you start 26 Three basic questions 28 2.3 Involving the community 29 Why involve the community 29 Going public: holding community meetings 30 2.4 Forming the steering group 32 2.5 What is the trading for? 35 Points to bear in mind 35 Be clear about the needs 36 Putting your social objectives in writing 38 2.6 Should you be running a business, anyway? 40 Do you really want to run a business? 41 It’s an idea, but is it a business? 42 Do you want to make money? 43 2.7 A practical guide to selecting business ideas 45 Overview: 45 Step 1: If you want one good idea, think of several 46 Step 2: Apply some business judgements 48 Step 3: The back-of-an-envelope budget 49 Step 4: Time to take stock 52 3: Business planning 53 3.1 Do we really need a business plan? 53 What’s the point of planning? 55 Planning to be mediocre 57 3.2 Writing the business plan 61 A plan for every occasion? 61 Preparing the business plan – the general approach 63 Writing the plan 66 The cash flow forecast 67 Plans and studies by outside consultants 69 Pilot trading and small-scale startups 70 1
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A guide to third sector trading - WCVA

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