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Top ten tips to starting a social or community business
People who start businesses which aim to provide a benefit to society are driven by a passion to change things. Which is great - even essential. However, in your eagerness to get started, that passion can lead to hasty decision-making which will cause big problems for the organisation further down the line. If you follow these 10 tips your chances of success will be greatly increased.
1. Choose the right legal structure. There are several different formats you can choose and it is vital that you opt for the structure which is most appropriate for what you are trying to achieve. Take advice if necessary.
2. Write the governing documents with care. These set the rules by which you will operate. Think ahead - where would you like to be in five years time? Reflect this in what you write in the governing documents as once written, you will be stuck with them.
3.Choose your trustees or management board with care. A good trustee will ensure that you run the organisation according to the rules but will not interfere with everyday operational matters. You should select people who have skills that will be of use to the organisation. If possible, have a representative of your clients on the board. You need between four and 12 trustees and they should receive training. NCVO offers help with this.
4. Write a business plan. If you don't, you are much more likely to fail. A business plan will keep you on tack and help you to communicate what you want to do to your staff or volunteers.
5. Get the finances right. Where are you going to get the money from? Will the people you want to help be able to pay for your services? Will you need funding from government or charitable trusts? How much will you need? Whoever you approach for funding, they will want to see your business plan.
6. Select the right people to help you. Write down all the tasks that the organisation will have to undertake. Group these tasks into job roles. Then recruit staff or volunteers who can do this work - don't take on friends or relatives just because they are friends or relatives.
7. Plan ahead continually. Never think "Everything's all right for the next six months - I can relax." When things are "all right" is exactly the time you should be planning ahead. Otherwise you'll be handling crises. Organisations often fail when they receive a grant for two years and then sit back and spend it. What they should be doing is working out where the next grant will come from. Bids for funding can take up to 12 months from application to receipt (and you might not be successful).
8. Link up with local businesses. Most big businesses have a "Corporate Social Responsibility" policy published on their website. This states how they will contribute to society. Can your organisation help them to achieve their CSR targets? Small businesses will often offer sponsorship, in kind donations, volunteers. Identify possible partners and plan your approach.
9. Nurture your creativity. This may sound out of place on a top 10 tips list but it's so important. The very reason that most social or community organisations are started is because of a passion to make a difference. And that passion results in overcoming all obstacles one way or another. Successful organisations are those which hang on to that creative thinking and don't lose it in the daily grind. It sets you apart from the competition and wins you recognition and success.
10. Network, network, network. Get yourselves noticed. Plug in to the local scene. Join local groups such as the CVS (Council for Voluntary Services), contribute to local planning (see your local authority website), contact your local Councillor, tell the local press what you're doing. Go anywhere and everywhere to meet people who can help you. They can't help you if they don't know you're there.
Helen Marini
Director, Baxter Marini Ltd.
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