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Business Planning Tool

for Social Business propositions in the UK


by
Co-operative Assistance Network Limited

Co-operative Assistance Network Limited www.can.coop


Navigation Guidance Templates
Context jump

How to use this interactive tool jump

Business Planning / Checklist jump jump

Synopsis jump jump

The Mission jump jump

Products and Services jump jump

Social Impact jump jump

The Market jump jump

Marketing Plan jump jump

Production and Process jump jump

Premises and Equipment jump jump

People jump jump

Organisational Structure jump jump

Financial Projections jump jump

Risk Analysis jump jump

Summary jump jump

Version 3: January 2016

Co-operative Assistance Network Limited www.can.coop


Copyright notice: you may copy and transmit this document only if this copyright notice is
retained and Co-operative Assistance Network Limited is attributed as the author.

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Context
'Social businesses' include social enterprises, co-operatives, community
businesses, mutuals and employee owned businesses.
You should not begin work on a business plan unless and until a feasibility
assessment has confirmed that the idea is viable. If feasibility has not been
established, there is no point in writing a business plan – your energies would
be better spent on establishing feasibility.
To be clear: a feasibility study tells you what can and cannot be done and a
business pan tells you how to do it.
It is not a duplication of effort to do both because much of the content of the
business plan will come from the feasibility study.
Once the business plan is ready, you can begin acquiring the resources you will
need to start up the enterprise, including the legal vehicle. The most
appropriate legal form will be identified in the business plan. That is the
theory, but in practice it may be necessary to acquire some resources before
the business plan is ready for publication. If that is the case, be careful, but in
any case do not begin to acquire resources before feasibility is established.
There are many ways in which that could turn out to be an expensive mistake.
The feasibility of your social business proposition can be demonstrated by a
convincing Feasibility Study or Feasibility Assessment. You can download an
interactive tool like this one to help you write a feasibility assessment here.
A business plan has two parts and is incomplete without both:
1. The narrative part. This is a tool to help you write the narrative part
of a business plan for a feasible new social business in the UK.
2. Financial projections. You can download a spreadsheet-based
financial projections template here.
A comprehensive guide to the process of starting a co-operative or community
enterprise can be found here.

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How to use this interactive tool
The term “business plan” is used here to mean just the narrative part of the
business plan, so remember that you will also need financial projections.
The Guidance section consists entirely of information that will help you compile
your business plan. The Templates section is a set of templates which, when
filled in, will make up your business plan. This can then be detached from the
Guidance section and published.
The basic idea is that you enter text in the boxes in the Templates section. The
existing text is not protected from editing, however, so you can customise each
template, for example to add space for free commentary, but be sure not to
delete anything important!
You may need to insert extra rows in some of the tables in the templates.
Internal hyperlinks look like this: jump.
Save your work frequently. Save it as a new version (include the version
number in the filename) before you make any major edits so that you can go
back to the previous version if anything goes wrong. Also, save it as a new
version every time you copy it to other people.
It is important to think of this as a work in progress. A business plan in
development is dynamic and responsive.
You can use this tool to identify areas where you need to find external help and
to specify exactly what support you require.
If you need to share your business plan before it is complete, you could
temporarily replace the missing part(s) with an explanatory statement.
When you have finished, you can print off all the completed templates and bind
or staple them together or you may be able to convert those pages to a .pdf
document – your Business Plan.

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Business Planning

1. What is a business plan?


At the risk of sounding obvious, it is the plan of how an enterprise is to be established and
developed. It describes how it will work and explains why it will work.
The business plan is a written, detailed description of what your enterprise is: who is in it, what
it does, why it exists, how it will run, how it generates an income, who buys its product or
service, why it is a social business, etc. Anyone reading it should be able to answer any
question they may have in relation to your business.
There is no right or wrong format: some people prefer to structure or order the information
differently. These templates are laid out to help you cover the key areas and you may wish to
edit them or their order of presentation, but be careful not to omit anything important.

2. What is in a business plan?


That which will make it a meaningful document. Business plans should be constructed to
describe an actual business rather than businesses developed to suit business plan templates,
though sometimes it is necessary to translate your business plan into the format of some
outside agency such as a bank.

3. Why have a business plan?


It is often assumed that the business plan writing is a tiresome necessity entered into only to
convince someone to put up a loan or an overdraft. Though this may be a part of the story it
should come a long way down the list.
The list:
3.1. To provide a structure within which to establish what needs to be looked into.
 To provide the questions which drives that research.
3.2. To establish in your own mind(s) whether the investment of your own time and
energy is appropriate.
 What do you think about it? It’s your life we are talking about here
 Construct the business plan
 Read the business plan
 Do you believe it?
3.3. To be a blueprint to follow in the setting up process. Very few businesses can
possibly be into full production and sales immediately. The more that can be worked out
up front, the faster things come up to speed. Many, many businesses fail before they
truly get going, often having done enough to prove that it would have done well if it had
got up to speed faster.
3.4. To be a benchmark. A business plan should not be written and then thrown into
the back of a filing cabinet. It is the yardstick by which actual performance can be
measured. Are sales up to projection? Are the costs on target? What is going right and
what is going wrong?
3.5. To establish common purpose. To make sure that everybody involved in the
enterprise knows what it is all about and what they are committing themselves to.
Those who are going to take the responsibility for it, workers, associates, key suppliers,
marketing people, possibly key customers, family, friends, auditor, accountant, solicitor,
landlord and the people who put up the money.

4. How do I go about it?


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4.1. Knock up a first version immediately. Getting past the blank piece of paper is
the most difficult part of the whole process and the sooner it is done the better. It really
does not matter how poor draft 1 is. It is not where you start it is where you finish.
4.2. Don't get fixated on using a template. There are pros and cons to using a
template. Pros include:
 Helps to ensure that nothing is left out
 Can help the process of gathering data
 Preformatted
 You get guidance tips.
Cons:
 Time spent searching for the ideal template may be better spend business
planning (stop lurking around here and get on with it!)
 Doesn't help you construct the plan as a story
 Can end up unbalanced with some massive sections and some tiny
 Does not encourage you to present information in different ways
 Can be poorly formatted. Could be tricky to convert it to a house style. It's
usually obvious that a template has been used.
If you decide not to use a template, use a good word processor and all your editing skills
to organise the information. Have it formatted consistently, spellchecked etc. and made
presentable. Published versions should be formatted for printing.
4.3. Get advice from everybody. You do not have to take it, but every question
raised in seriousness is either something you can answer or something you will have to
get an answer to.
4.4. Every time you find something worth putting in the business plan do so.
4.5. Ask the business plan questions. What ever it cannot answer is something you
need to know and put in it.

5. How much detail?


The actual plan should say only what it has to say. Seventy page business plans look
impressive but nobody actually reads them so they are of no use at all. Say what you know
and why you know it. For each part of the business plan have a resource folder which contains
the back up information on how you know it, e.g. the detail of desk research, market research,
quotes, work flow diagrams, etc. You can refer to these at will.

6. Where to start?
Try a mission statement. What is it all about? What is this enterprise setting out to achieve? The business plan
describes how. The mission statement says what. It is much easier to plan how to do something if you know what that
something is. This is especially true of enterprises where a group of people come together to achieve something.
Agreeing a common statement of what that is will save many tears before bed-time.

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Synopsis
(some would say Executive Summary)
The primary purpose of this first section is to help the reader decide whether or not this
document is relevant to them. If it is, they will read on.
It is an introduction to the business and a summary of the plan. It gives the reader key
information, such as:
 Nature of the business
 Location
 Scale
 Summary of the story so far (including reference to feasibility assessment)
 Social impact
 Ambition
What other information may be considered to be “key” will be contingent upon the particular
enterprise and the story that you want to tell but may include:
 Legal form
 Status (co-operative, charity etc.)
 Key people
 USP
 Challenges ahead
 Management structure

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The Mission
The objective of this section is to help you write a succinct mission statement
that describes your social business's purpose.
All social businesses begin with a vision – an idea of how the world could be a
better place if a project could be established based on a set of values and with
particular aims. At first, the vision may be poorly defined. A good place to
start is to describe those values and aims the best you can – that will help to
focus and clarify the vision.
The vision alone is insubstantial. To bring the project into reality is a creative
act. It is the crystallisation of the vision around a seed. That seed is the
mission statement. Formulating a mission statement will enable you to clearly
share the vision with others so that a coherent enterprise can be constructed.
If you find it difficult to write a short mission statement, it may be that you
have many apparently disparate aims. What is the common thread or unifying
principle? You may be able to express the mission in terms of the intended
social impact, or, for a co-operative, the member benefits.
Here are two examples that may help:
 Oxfam: To create lasting solutions to poverty, hunger and social injustice
 Creative Commons develops, supports and stewards legal and technical
infrastructure that maximises digital creativity, sharing and innovation.
Note that a mission statement is not the same thing as a marketing slogan or
strapline.
Write your mission statement with longevity in mind. It will guide the
development of the enterprise beyond the foreseeable future, so draft it very
carefully – consider every word – and make sure it is agreed by the whole team
and not a simple majority.
Once you have agreed a mission statement, pin it to the wall. It is important
that everybody involved knows the mission statement – this will help to keep
activity focused on the mission, resolve conflict and misunderstanding and
guide strategic planning.
Check any proposed new activity against the mission statement. If it is
considered to be off-mission, you should have an overwhelmingly good reason
– and consensus – before going ahead.

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Products and Services
What are your commercial products and services? Why are they so wonderful? How much can
be delivered when operating at full capacity?

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Social Impact
The community in which the social business operates
Describe or define that community.
Describe how the need being addressed impacts this community. Does it affect individuals,
families, schools, the local economy etc.?
Estimate the size of the community in terms of population, geographical area etc. Within that
community, what is the scale of the problem?
If you draw on research to do this, cite your sources.

The social output that the social business will deliver to that community and the
positive impact that that will have
What exactly are the outputs that will have the positive social impact that you intend? In order
to substantiate your claim that your business is a social business you will need to provide
evidence that it has achieved its social objectives. Therefore you will need to:
 Set targets for social outputs
 Measure and record activity against these targets
 Report the results (and possibly have those reports audited)
How will you do these things?
Some social outputs are easy to measure, such as qualifications delivered or number of meals-
on-wheels delivered. These are called hard outputs. If you are dealing in soft outputs, such as
increased self-confidence or work-readiness in individual clients, you will need to consider how
you will measure and record them. For a social business, these systems are part of the
business model.
In the world of social business, the following terms have particular meanings, which you will
need to understand not least so that you can deal with other agencies without ambiguity:
 Social output: This is your social product, as described above.
 Social outcome: This is the effect that your social output has on the community. For
example, the number of meals-on-wheels clients getting adequate nutrition over a given
period.
 Social impact: This is the difference that your social output makes. For example, if you
did not deliver meals-on-wheels it may be that some clients would be catered for by
carers, so it would seem that your service does not have such a great impact after all.
However, it now becomes clear that what you are really providing is respite to carers –
that may be your main social impact in this scenario.
Note that positive environmental impact (or reduced environmental
damage) does not count as a social outcome. Your business will need
additional systems if you want to monitor your environmental impact. Use the
same approach: set targets, measure progress, record, report and (optionally)
audit.

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The Market
The market is the group of consumers that may be interested to receive your commercial
products, services and social output. It may consist of a number of smaller groups, or
segments, that you need to address separately.
The success of your Social Business depends upon the ability of the market to support it, so it is
vital that you understand your market.
It is important for a social business to distinguish between customers and clients:
 Customers, or purchasers, are those who pay for goods and services;
 Clients, or beneficiaries, are those to whom goods, services – and social product – are
delivered.
Therefore your social business will have one or more of the following markets:
 Customers who are also clients and purchase services for themselves. They may use
their own money or funds provided to them by other organisations to buy from you;
 Funders who give you money to recruit and serve beneficiaries;
 Customers who pay you to deliver services to their own clients;
 Commercial customers paying full rate, possibly in part persuaded by the fact that some
of the profit made will be applied to pro bono work for beneficiaries that you select.
Describe all of the markets you intend to operate in and how you intend to
engage with those markets.

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Marketing Plan
Use this section to say how the benefits of the social and commercial products and services will
be explained and made irresistible to the market.
You will need to identify and characterise each part of the market that needs to be addressed
separately – your market segments.
Identify your competitors and explain how you will outcompete them.
Specify your USPs: unique selling points (or propositions).
Explain how your products and services meet the needs of your clients.
What channels of communication and promotional tools will you se to reach them?
How would you monitor how well your marketing plan works?

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Production and Process
Use this section to describe the processes by which the inputs become outputs. This is, if you
like, the machinery of the business and is at the very heart of the enterprise, so you need to
clearly describe these processes in some detail.
You should describe the cycle of a production run or service delivery cycle, the inputs required,
equipment needed etc. You should be able to say how it will be delivered, how you will monitor
quality and ensure reliability.

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Premises and Equipment
Tell your readers what it takes to house production and organisation as close as possible to the
market and contributing to the marketing effort and why the chosen article fits.
Identify what equipment you have, what you will need and where you will get it from.

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People
Use this section to profile the key people in your social business. Describe how they will be
organised as a team and what the management and communication structures will be. Identify
the Founder Members – the first Board of Directors or Trustees.
Identify skills gaps in the team and describe your training and recruitment plans.
If appropriate, you could include subcontractors in this section.

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Organisational Structure
This section details who owns, who controls, who employs, by what mechanism, and why.
Unless your social business is run by only one person, you will need some kind of organisational
structure.
There are certain functions that all businesses need to have, such as:
 Governance and strategic planning
 Financial management
 Marketing
 Human resource management
 Operations
These will need to be carried out by individuals, teams or departments. Can you describe how
these and other functions that are particular to your business model will be managed?
You will need to understand the difference between governance and management.
Management is about making sure that the business is run according to policy; governance is
about setting policy and strategy. You will need structures for both.
Draw up a detailed organisational chart for your social business. It may look something like
this:

You should be able to describe the relationships between the main groups that make up the
business, such as:
 Owners (proprietors who take all the risks and rewards)
 Members (where proprietorship is open to any who meet the membership criteria)
 Associate members (with fewer rights and responsibilities than full members),
probationary members (on a pathway to full membership) or other categories of
membership
 Board of directors or trustees
 Shareholders
 Managers

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 Workers
You may be considering something more complex, such as a consortium of member
organisations or a franchising system, or you may intend your organisation to have
partnerships or close relationships with other organisations or statutory bodies. This is often
the case with social businesses. You should be able to specify these relationships.
If you intend the business to be owned and democratically controlled by its members then you
may want to adopt a co-operative structure. There are many types of co-operative but they all
conform to a specific set of principles. You can find out more about what a co-operative is and
what the co-operative values and principles are here.
If you are considering a co-operative option you should be able to say what type of co-
operative you are considering and what advantages you expect the co-operative ethos to
confer.
If you are considering a model that involves employee ownership, you can find
out more about that here.
Define the legal form that is most appropriate for your social business and any additional
registrations required. Say what progress has been made towards acquiring the legal vehicle in
as much detail as you can. You can find out more about registration and incorporation here.

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Financial Projections
In addition to this narrative part of the business plan, you will also need to present some
quantified financial projections on spreadsheets. Projections for 3 years are usually sufficient
for a start up business plan but include longer projections if you make them.
Your projections should include:
 Annual budgets – income and expenditure itemised, possibly analysed by department
 Monthly cash flow forecasts
 Annual profit & loss projections
 Annual balance sheet forecasts.
You can download a financial projections template here.
In this narrative part, say:
 What assumptions these figures are based on
 What your start up capital requirements are
 Where investment is coming from and under what terms
 What further investment is required and plans to raise it
 When the break-even point will be reached
 How much sales income is required to reach break-even
 Other key financial indicators specific to the enterprise.
Summarise other scenarios that have been considered in financial terms, such as contingency
plans, to demonstrate to investors (and yourselves) that their investments will be safe
whatever happens.

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Risk Analysis
People who read your business plan will be looking for evidence that you have considered and
taken steps to mitigate against risks. There are various ways you could do this but a SWOT
analysis is usually appropriate for a business plan for a start up.
This exercise is best carried out by a team rather than an individual in order to get a more
comprehensive overview of the enterprise.
To do this exercise, list all the business's:
 Strengths
 Weaknesses
 Opportunities and
 Threats.
Once you are satisfied that your lists are complete, look at all the weaknesses and threats and
consider what you can do to eliminate, reduce or minimise them.
Finally, consider contingency plans and exit strategies. For each of the things
that could go wrong, what would you do if it did? How could you scale down or
close down without risking what you and others will have invested?

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Summary
A short closing section in the form of a summary or conclusion, perhaps mentioning anything
relevant to the person who will be reading it – do you want them to take action – get involved,
lend you money, give you a grant? Don't forget to include your contact details!
You should write the summary last to avoid the report being driven by foregone
conclusions.

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Checklist
Name
What will the enterprise be called?

The Mission
Mission statement drafted:
Yes / No

Synopsis
Synopsis drafted:
Yes / No

Products and Services


Mission statement drafted:
Yes / No

Social Impact
Community described:
Yes / No

Social Impact described:


Yes / No

The Market
The Market drafted:
Yes / No

Marketing Plan
Marketing Plan drafted:
Yes / No

Production and Process


Production and Process drafted:
Yes / No

People
People drafted:
Yes / No

Organisational Structure
Organisational Structure drafted:
Yes / No

Premises and Equipment


Premises and Equipment drafted:
Yes / No

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Financial Projections
Financial Projections prepared (spreadsheets):
Yes / No

Financial Projections narrative drafted:


Yes / No

Risk Analysis
Risk Analysed:
Yes / No

Summary
Summary drafted:
Yes / No

Authors
Who contributed to this document?

Contact Details
Who should people contact and how?

Date
Date of publication of this version of this document:

Confidentiality
Is this document confidential or publicly available?

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The Mission
Mission statement:

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Synopsis

Introduction to the social business and its aims:

The story so far:

Summary of the plan:

Other key information:

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Products and Services
Describe the full range of products and services:

Why are they so wonderful?

How much can be delivered when operating at full capacity?

How will you assure the continuing quality of your products and services, so that the business
stays profitable in the future?

How will you develop your products and services so that they don't become obsolete?

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Social Impact
The community in which the social business operates
Describe or define the community that your social business will serve and gain support from. It
may have several parameters, for example:
 Geographical
 Age
 Gender
 Ethnic origin
 Income bracket
 Educational level
 Employment status

Are there socio-economic dimensions that define this community, for example is it rural or
urban? Is social exclusion a factor? Be as specific as possible.

Estimate or state the size of the community in terms of population, geographical area etc.:

Describe how the unmet need(s) being addressed impact(s) this community. Does it affect
individuals, families, schools, the local economy etc.? What is the scale of the problem within
the community?

If you have drawn on research to do this exercise, cite your sources:

Social output
Describe the social output of your social business:

What targets will you set, or how will go about setting targets for social output?

How will you go about measuring and recording progress against these targets? You will need
to give special consideration to this if you are dealing in 'soft' outputs such as increased self-
confidence or work-readiness in individual clients.

Social outcome
What affect do you expect the social outputs described above to have on the individuals to
which the social output is delivered?

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Social impact
What affect will these social outcomes have on the community as a whole?

Environmental impact
Will your social business also measure and report on its environmental impact? If so, how?

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The Market
Identify and describe your prospective customers in the following categories. Note the
distinction between customers (purchasers) and clients (those to whom goods and services are
delivered).
Customers who are also clients and
purchase services for themselves. They
may use their own money or funds
provided to them by other organisations
to buy from you
Funders who give you money to recruit
and serve beneficiaries
Customers who pay you to deliver
services to their own clients
Commercial customers paying full rate,
possibly in part persuaded by the fact
that some of the profit made will be
applied to pro bono work for beneficiaries
that you select

Which of those categories and customers will you be relying on to support your social business?

How do you know that those markets are big and capable enough to support your social
business?

How will you go about engaging with those customers?

If you have carried out or are planning to carry out any market research, detail here:

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Marketing Plan
Target Segments
What demographic characteristics would you use to define possible market segments for your
organisation?

Competitor Analysis
Identify your competitors:

What product(s) do they offer that competes with one of your products? Name and give a one-
line description of each:

What competitive advantages over you do they have?

What competitive advantages do you have over them?

Unique Selling Points


List the things about your organisation, or its product / service mix, or delivery methodology or
style that no competitor can claim:

Needs and Benefits


Identify the critical needs of potential clients you are aware of:

How did you become aware of them?

Name the features of your existing products that meet these needs or empower the clients to
meet those needs for themselves:

Channels
What mix of communication channels will you use to market your goods?

Promotional Tools
What promotional tools will you use?

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Why?

Learning
How would you monitor how well your marketing plan works?

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Production and Process
What are the processes by which the inputs become outputs? Describe the cycle of a
production run or service delivery cycle, e.g. raw materials delivered, cut to size, put together,
packaged, labelled, put into van, delivered. This is, if you like, the machinery of the business
and is at the very heart of the enterprise, so you need to clearly describe these processes in
some detail. Make sure that all the equipment you need to make each process happen is
identified in the Premises and Equipment section.

What inputs are required, where they will come from, how will supply continuity and quality
will be assured?

How will the quality of work will be monitored and assured?

How will it be delivered?

How will you ensure reliability and minimum internal cost?

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Premises and Equipment
Describe the facilities that will house production and organisation and how they will contribute
to the marketing effort.

What equipment you will need? Include production kit, office equipment, software, essential
training, legislation you will have to comply with.

Identify what premises and kit you already have and from where you will source that which you
require.

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People
Complete the following table for each person with significant responsibilities. Copy and paste
the table as necessary.
Name
Roles (e.g. Director, operations
manager, marketing manager)
Short biographical profile
Areas of expertise
Why s/he is the perfect person for
those roles

Name
Roles (e.g. Director, operations
manager, marketing manager)
Short biographical profile
Areas of expertise
Why s/he is the perfect person for
those roles

Name
Roles (e.g. Director, operations
manager, marketing manager)
Short biographical profile
Areas of expertise
Why s/he is the perfect person for
those roles

Describe how they will be organised as a team, what the management and communication
structures will be.

Founder Members
Who are/will be the first Board of your social business? Specify if they will be
representing another corporate body or a community group.
Board member Representing

Skills gaps
What gaps exist in the team (e.g.
skills, community representation)?
What is the recruitment or training
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plan to address each of those
gaps?

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Organisational Structure
What you need to say about the organisational structure of your social business depends very much upon the business
model and how it is to be governed. Feel free to customise this template to suit.

Note that it is entirely possible that some people within the business will have several roles and will be named more
than once below.

Management functions
Edit the list of functions below as appropriate for your social business. Say who will carry out or manage these
functions, or how they will be recruited or subcontracted. If any of these functions have internal structure (e.g. regional
marketing), describe those structures:
Function Management, structure
Company/Society
secretary
Operations
Customer care
Bookkeeping
Financial control
Social accounts
Marketing
Human resources
Quality assurance
Product development

Those responsible for managing these functions will report to a Board of Directors, Management Committee or Board
of Trustees (as appropriate) – made up of people with director level legal responsibilities. What will yours be called?

Governance
The Board will report to the members or owner(s) of the business, who will be responsible for setting strategy and
policy. Do you refer to this group or individual as the Members or the Owner(s)? Specify as appropriate:

Use the space below to describe the governance and ownership of the business in more detail. For example:
 How democratic is it?
 Is it one member one vote?
 Is it one share one vote?
 How are community interests represented in governance?
 Are all the members also directors (a collective)?
 Are there higher and/or lower levels of ownership, as in a franchise system?

Membership
If your social business is membership based, what are the criteria for membership?

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Are there different categories of membership, for example:
 Probationary membership
 Associate membership
 Different categories of membership for different stakeholder groups?
If so, describe the categories:

Will all employees have a right to membership?

Co-operative
Will your social business be a co-operative?
Yes / No

If so, what type of co-operative will it be?

What advantages will the application of co-operative values and principles confer on your social business?

Do you need more information about co-operatives in order to answer the questions above?
Yes / No

Partnerships
Will your social business need to enter into (a) partnership(s) with (an)other organisation(s) in order to operate? If so,
give the detail here:

Shareholders
Will your social business raise capital by selling shares? If so, describe the share scheme here:

Employee buy-outs
Is your social business an employee buy-out of an existing business? If so, describe all the processes involved here. Be
sure to include:
 History and context
 Progress to date
 Financial modelling
 Any employee share scheme being considered
 Consultancy and specialist services obtained and required
 Projected timescales

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Legal form
Taking all the above into consideration, what is the most appropriate legal form
for your social business?

What model rules will/have you use(d)? Will/did you make any significant
amendments to the model rules?

When will/did registration (incorporation) take place?

If registration has not yet taken place, has the process been initiated? What
registration agent will you use?

Does the business also require any additional status registrations or


memberships, such as:
 Community Interest Company
 Charitable Status
 Mutual Trading Status
 Co-operative
 Social Enterprise
 Social Firm
 Trade sector specific registrations?

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Financial Projections
Referring to your financial projections, say:
What assumptions these figures are based on

What your start up capital requirements are

Where investment is coming from and under what terms

What further investment is required and plans to raise it

When the break-even point will be reached

How much sales income is required to reach break-even

Other key financial indicators specific to the enterprise.

Summarise other scenarios that have been considered in financial terms, such as contingency
plans, to demonstrate to investors (and yourselves) that their investments will be safe
whatever happens.

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Risk Analysis
SWOT analysis
List all the strengths, weaknesses, opportunities and threats relating to this project. Add more rows as necessary.
Strengths Weaknesses

Opportunities Threats

Risk analysis
What will you do to eliminate, reduce or minimise the weaknesses and threats identified above? Add more rows as
necessary.
Weaknesses and threats Action to take

Contingency plans and exit strategy


Consider all the things that could go wrong and what you would then do. How could you scale down or close down
without risking what you and others will have invested? Add more rows as necessary.
What could possibly go wrong? What would you do if it did?

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Summary
Write a few paragraphs to summarise the business plan.

If your readers want to get involved, what should they do next?

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