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
• If there are individuals or groups which are likely to pick holes in
your plan, you are probably not going to stop this by handing
them a doctored version which ignores your weaknesses. The
truth is easier to defend anyway.
• Circulate ‘drafts for consultation’, so a wide range of people
get a chance to respond. You can choose what changes to
make later.
• Those people who are unlikely ever to read your business plan
may still be interested in what it says. You can reach them most
easily with a Powerpoint presentation at an annual general
meeting or some other event. Circulate print outs of the
presentation to others.
Writing a plan for a single powerful audience: Government
organisations are the worst (but not the only) offenders for
demanding to see business plans which tell a particular story –
usually about sustainability. They may want to edit the text or even
change your priorities to get the wording exactly right for the
councillors or officers who will read it. The intention may be benign
(to help release financial support or reinforce a partnership) but it
raises questions about the independence of the business and the
planning document. It can also be a way for a body such as a local
authority to exercise control. You need to weigh up whether it is
really in your best interest to bow to every request.
Sometimes resistance on a few individual points is essential to
retain the credibility of the document and the self respect of the
charity or community group.
Preparing the business plan
– the general approach
When?
• In the real world most business plans are written at the point
when there is a need for them – when a fundraising effort is
about to start, or when someone else asks to see a plan. This can
give a clear focus and impetus to the work.
• But you need to start thinking about the job and discussing
the contents at a much earlier stage, when you are forming the
group or exploring the business idea.
• You may need or be able to secure funding to employ an
outside consultant to research and write the business plan.
You need to allow several months for this, and more if you
want to raise money for the consultancy. (See working with
consultants below).
• Leave plenty of time for the board or steering group to discuss
the plan as it evolves, particularly if this is a new trading
organisation.
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