The business plan is the key document which sets out the strategy by which the development trust will achieve its objectives - whether they are social, economic or environmental - and also stay in business. During the setting up process an early draft of the business plan can act as a 'bid document' by which the steering group can seek core funding. The business plan makes the case for establishing the trust in the area, outlines the projects or programmes it will work on, and describes the team of Board and staff needed. At the heart of the plan should be a financial projection. This should show how the trust will balance three main elements:
Trust finances are even more difficult to manage than those of a small firm. They rely partly on grants which are uncertain; some of the projects are deliberately unprofitable; decisions rest with a Board representing a variety of interests. Consequently the trust staff and Board can end up scrambling to bridge a gap between expenditure on desirable projects and inadequate capital, while worrying about the security of their jobs. In these circumstances it is not enough to have an honorary treasurer and competent auditors - or even a good book-keeper. At best that's like trying to drive while looking through the rear window, with a few glances to the side. What is needed is a financial strategy - expressed through the business plan - which looks forward.
In developing a business plan it is important to grapple with a number of key issues which will determine the success or failure of the organisation:
The plan must be prepared by the trust itself, or by the steering group or development officer in advance of the trust's formation. It can't be done effectively by outsiders, although they can provide advice. The plan must have the backing of any initial sponsoring organisations. The maximum realistic timescale for a business is likely to be five years, with six-monthly reviews.
The following is a suggested outline for a business plan for a community development trust.
A one-side summary at the beginning of the business plan, with some conclusions and an assessment of the trust's likely position in five years time.
Profile of the area (including map) covering:
These issues could be covered in terms of a SWOT analysis of the area - strengths, weaknesses, opportunities and threats, plus trends. The community development trust
A brief encapsulation of why the trust is needed, what it aims to achieve, and how it will do this. This should also cover the values or principles on which the trust will operate. A longer description of outcomes, targets or objectives. This section could cover the main programme areas of the trust e.g.
(These will also be used in section 12 below)
The strengths and weaknesses of the organisation, and the opportunities and threats that it faces.
A summary of the projects which the trust is planning to carry out:
(full business plans for each of the projects should be included in appendices: see below) This detail may not be possible in an initial bid document, in which case refer to the programme areas under section 3.
How the trust plans to communicate and market its overall strategy and projects to a range of audiences:
(This section may include flow charts showing lines of responsibility and accountability)
The involvement and personal development of those associated with the trust:
Where the funds will come from to run the trust and develop projects, and how this will be managed:
An annual budget and projections over five years showing, in particular, how far project income will cover core costs, and how the deficit will be made up
The criteria for evaluation of the trust's performance, under each heading identified in the mission statement. They should include 'internal' criteria (e.g. membership and training). The outcomes should preferably be measurable, and might include, for example:
These should be set out under each of the criteria and dated
Who will do what and when to put the business plan into practice.
In a full business plan a mini business plan should be written for each project covering:
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