A guide to third sector trading - WCVA

It’s an idea, but is it business? A guide to third sector trading
1: Getting
started
2: First steps 3: Business
planning
4: Legal and
governance
5: Funding
and
resourcing
6: Financial
controls
7: Managing
growth
8: Management
and
governance
9: Social
enterprise
10: Sources
of support
Even if you definitely know what you want to do: If you think
there is only one possible idea you could conceivably pursue, you
might be inclined to jump past the brainstorming and refinement
process in Steps 1 and 2 below and go straight to exploring a
preliminary budget. But you should try to remain open-minded
and be careful not to jump the gun. For instance:
• Planning for associated activities: If a potential funder or client
is offering you a contract to run a day nursery there’s probably
no point in looking at the possibilities of a gymnasium or
providing tourist accommodation. But there might be a point
to considering ancillary or associated trading activities. Will
your nursery need catering or transport? Will it open up new
possibilities for providing training courses?
• Making good ideas better: If you really are fixed on a single
trading idea you can still use a brainstorming method to
make it better. Take the simple suggestion that you should
run a ‘craft shop’. Could different approaches significantly
boost its prospects?
− Should it be a ‘gift shop’ instead?
− Should it sell home-produced or ethnic goods?
− Is there a place for second hand goods and antiques, specialist
and collector’s items?
− Could it have an exclusive (green?) theme, or a bias towards
particular types of products?
Step 2: Apply some business judgements
Eliminate the non starters: The next step is to start making
preliminary assessments of each of your ideas, and ditch the ones
which don’t stand up against a few challenging questions:
• would anyone pay for it? would you pay for it?
• could there be enough people to pay for it to make the activity
worthwhile commercially?
• is there competition from other businesses?
• are there any serious obstacles/requirements which will put
a block on the idea – premises, equipment, legal constraints,
planning permissions, political opposition?
• will users, beneficiaries, clients or the public oppose you?
• if you need capital, is this the kind of venture which will attract
grants or loans?
• does your group have the skills and knowledge to run this type
of business? how easy will it be to employ people who do?
• is this idea too ambitious for you your first steps into business
(could you keep it in reserve for later)?
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