Business Plan

Development Framework

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The Old Music Hall, 106-108 Cowley Road, Oxford OX4 1JE

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 Introduction
This Framework has been written to provide clear guidance that will enable
you to write a comprehensive Business Plan. It is designed to be used by
community and voluntary organisations which are focussing on social benefit
results, even if the organisation will be a trading enterprise. If the resultant
plan is clear and effective, it becomes a working document, able to be
provided as a ‘snapshot’ at any time for any purpose – investment,
negotiation, visioning and more.

Often there is a question as to the difference between a Feasibility Study and a

Business Plan. A Feasibility Study is an exercise to understand whether an
organisation’s idea is at all possible. It will contain elements which may
eventually be used in a Business Plan, as it will have demonstrated a study of
financial implications, market demand and capacity to deliver. The Business
Plan is written after the possibility of an enterprise begins to look like a
probability. There will usually be one large Business Plan for a whole
organisation and a range of smaller ones for individual projects or strands of
work. The smaller ones can often be used for proposals or applications. They
key is that they always link to the overall plan and always are aligned to the
overall purpose of the whole organisation.

E Gray-King 2003
With thanks to FBO Regen Support and Direct Support
Adapted with thanks from Myplace Support 2009
Issue 5

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Filling in the Framework

The sections following have been broken up into the sections eventually to be included in
your final Business Plan. For each section, there is a table with up to four parts:
ƒ Objective
ƒ Issues
ƒ Activities and Resources
ƒ Appendices
The Objectives are the purpose of the Business Plan section indicated; how the section is
relevant to your overall activities and plan. The Issues mentioned are the thoughts to be
considered all around the section indicated; issues about preparing information for the
section and what readers might want to see and why. The Activities and Resources part
prompts you to activities or resources which could help compile information for the section
and may name specific planning tools. These could be available from a range of sources.
The Appendices part lists documents relevant to the section which could be added to your
final Business Plan. If they are essential attachments, the section will indicate this.

Each section can include not only what your organisation or project delivers in activities or
services at the time of writing this plan, but also what it intends to deliver.

After the table in each section is a sample piece of text, to help you understand the expected
content of the section. The sample is just that – a tiny flavour of what you could include.
Your actual text may run to paragraphs or pages. It is not unusual for a Business Plan to
come to 40 or more pages, particularly for a social benefit organisation.

All through this guidance document are references to ‘your organisation’ and to ‘your
project’. The term organisation in this document means the whole body of your people and
work, no matter its legal entity – social enterprise, voluntary and community group, public
sector centre and many more. The term project refers to one strand of activities or
programme you plan to run or to develop. Though it may seem obvious, it is important to
make this distinction clear in your Business Plan. It is not unusual for an organisation to
need a separate plan for a new project and for there to be a number of Business Plans held by
an organisation, all linked into the highest level plan.

A word about appearance and production. Your Business Plan cover should not be too
cluttered and needs to include the Title, Author (the organisation), Contact details and the
Draft or Issue number and Date. Think carefully about colours and style – a very colourful
document speaks about an organisation differently from a black and white document. Think
about reproduction costs, paper style and size. Also, as any effective Business Plan is a
living document which will change and develop as an organisation changes and develops, it
is suggested that you store a Business Plan electronically, rather than produce it in formal
print. Not only will this be more cost effective than printing hard copies in bulk, but also it
can be used easily as a resource for other kinds of documentation. Also, good organisations
keep developing! A Business Plan needs to be able to be changed when necessary.

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 1
Project Overview

This whole section, expanded in the three tables following, makes up an extended executive
summary. It tells the history of the organisation, the ethos of the organisation and the bare
bones summary of the plans for the future of the organisation. It is this section which shows
the organisation’s or project’s sense of purpose.

1.1 History and Vision

This section allows a concise overview of how the organisation or
project came to be and what are the future anticipations. In essence, it
Objective
is the executive summary of the organisation and of the development
described in the rest of the Business Plan.

This small section will most likely be the last to be written, after all the
other details have been made clear. Information needs to include brief
Issues:
milestone descriptions from past practice of the organisation and
expected milestones for the next three years (or period the plan covers).

Activities and There are none suggested here, as this section is a summary of those
Resources which follow.

Appendices There will be none, as this section is a summary of those which follow.

*Sample text:
“X became a registered charity in 2001 after successful community work since 1998.
Serving the Y population of B area, it provides N activities and hopes to expand to
include M activities for Z, recently moved into A area.”

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1.2 Mission Statement
The mission statement is usually a single sentence and summarises the
Objective
spirit and values of your organisation.

This is the deep underlying reason why your organisation does what it
does – because it believes in something. This is generally the only place
Issues: in a business plan for such a statement. The remainder of the plan is
how you will put into action a delivery based on the values from this
statement.

Activities and There are none suggested here, as this section is a summary of those
Resources which follow.

Appendices There will be none, as this section is a summary of those which follow.

*Sample text:
“X believes in the value of the Y population and their unique ability to contribute to B
area (geographical area or body of interest). X development project will raise the profile of
this previously excluded community.”

1.3 Project and Activities Outline

This section is to make clear exactly what the organisation or the
Objective
project/s of the organisation will do.

It is not the detail, but the core headline statements of what will be
done, by and for whom, and with what resources. This will be a very
Issues:
much edited headline from a great deal of detail which will have been
collated and will be expanded in Section 2.

Activities and There are none suggested here, as this section is a summary of those
Resources which follow.

Appendices There will be none, as this section is a summary of those which follow.

*Sample Text:
“X runs a series of drop-in sessions for people with Y. It will extend its inclusion
programme by:
expanding drop in for people with Y from one session to three per week
appointing a specialist worker in N, who will work with a newly recruited team of
volunteers for people with Y during the extended drop in sessions.
adding a bursary scheme to the M unit, so that people with Y on low incomes may receive
services.”

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 2
Services, Market and Demand

The whole of this section, expanded in the eight tables following, places the organisation in
its locality, demonstrates that the organisation has researched the potential, both in terms of
delivering such an idea alongside other delivery organisations in a locality and the realistic
demand for it from potential service users. It demonstrates what kind of beneficial changes
are anticipated. It is the key core of the Business Plan, setting out why it is believed that the
projects or organisation will succeed. Each following table is essentially the breakdown of
this sentence:
In this area, with these people, who have expressed a need or a need is known, we are going to do this
which we hope will make this difference and we will find out that difference in this way.

2.1 Locality and demographics (Project position)

This section demonstrates that the organisation is aware of its
Objective neighbourhood and has a good sense of being part of a wider
community.

In this area, with these people, who have expressed a need or a need is known, we are going
to do this which we hope will make this difference and we will find out that difference in this
way.

Information in this section is very important for an organisation

focussing on work for the wider social benefit. You need to include
Issues: information on:
Population, Age range (if pertinent), Industry and Transport, any
issues of social isolation, Crime, Education, etc;
Any important social changes or transitions in the area
Whether your locality is a government regeneration area or other
development area

Information about your area can be found at www.upmystreet.com

and at www.neighbourhoodstatistics.gov.uk which will also include
Activities and information from the 2001 Census
Resources Neighbourhood Renewal Areas and other useful information can be
found at www.neighbourhood.gov.uk and at www.renewal.net and
your local council may have data which you can access.

Appendices Any specific demographic detail which is important to demonstrate

*Sample text: Locality and demographics

“X covers the geographical area of A and B., with many sparsely populated hamlets.
Local transport has been cut back and there is no provision for the Y population to access
core services. ”The areas of A & B are part of the designated Health Action Zone.

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2.2 User Groups, Clients, Customers (the Market)
This section will show the sorts of people who will use the activities or
services from your organisation or project - the people who will or who
are likely to benefit. This part of this section is the description of the
Objective
market and will set out the results of market research. The numbers
and changes you hope to achieve for them will be set out following in
Section 2.6, Outcomes and Outputs.

In this area, with these people, who have expressed a need or a need is known, we are
going to do this which we hope will make this difference and we will find out that difference in
this way.

You need to describe the people who will be using the organisation or
project activities or services.
Issues: Different sorts of organisations use different language when giving a
term to the people who use or benefit from their activities. For trading
organisations, the words clients and customers describe one and the
same sort of beneficiary – the ones who buy the activity product or
service. For voluntary sector support organisations, users and clients
could be interchanged and mean the people who attend activities or
receive support. It is important to be clear how you will use these
terms and to use them consistently throughout your plan.

You may want to commission or to conduct a full market research

activity to investigate the populations you wish to reach. Some results
Activities and will be in this section; others at 2.3.
Resources Investigate monitoring and evaluation records from your
organisation’s present activity to show existing project usage as
evidence for your anticipation of growth

Appendices Any market research reports or evidence

*Sample text:
“Three main age groups come to the X drop in sessions: 35% 16 and under, 28% the 17-
59 age range and 37% 60 and over. Our research shows that when we extend these
sessions, we will be able to reach more under 16s, the numbers of which have grown
around our centre. Appendix III shows the result of our market research.”

2.3 User Based Research (the Demand)

This section is used to show the evidence of the need for your
organisation or project, and that the need has been established not only
by those who will deliver the activities, but predominantly by those
Objective
who will benefit by it. The information gained from this research will
be used in creating your outcomes (summarised in Section 1 and
detailed below, Section 2.6).

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 In this area, with these people, who have expressed a need or a need is known, we are
going to do this which we hope will make this difference and we will find out that difference in
this way.

Issues: This is often the weakest area of a Business Plan. You are looking to
prove that your project is needed and that you have proven results
from any user market research.
This is the section which proves that projects or organisations are
design led by those who will use them, not design led by those who
believe they already know the need.

You may want to commission or to conduct a full market research

activity to investigate the populations you wish to reach. It is suggested
that this activity engages with your intended beneficiaries to a
significant degree and uses a variety of participation methods. Some
results will be in this section; others at 2.2.
Activities and
Resources You may want to commission or to conduce an Options Appraisal to
investigate how what you are planning has been chosen to best suit
your intended Market and therefore demonstrates the demand for your
project or organisation.

Appendices Any evidence, say a table, of target groups contacted, research tools
used and responses.
Any evidence of an Options Appraisal, say a table of Options, criteria
for selection and ranking against that set of criteria to conclude your
choice of services.

*Sample Text: User Based Research

“Y conducted a number of focus groups where members of Y population usually meet.
Not only did they welcome the idea of extended drop in sessions, they suggested N, M
and P. Appendices III and IV show the full Market Research analysis. Our Options
Appraisal, summarised in Appendix V, demonstrated the need for this particular new
service for this client group.”

2.4 Government Policy Landscape

This section shows whether your organisation or project delivers any
services which are the duty of a local statutory body (Council, Health
Objective
Trust etc) or are in any other way to be strategically placed within
Government priorities.

In this area, with these people, who have expressed a need or a need is known, we are
Issues: going to do this which we hope will make this difference and we will find out that difference in
this way and then tell about what we are doing.

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 This section is about whether your organisation helps deliver what the
government intends to deliver from any public sector bodies. For
instance if your organisation or project runs lunch clubs, it could well
be helping a local Health Trust comply with National Service
Frameworks to do with health improvement.

If you do not already know how your organisation fits any government
agenda, it is worth making inquiries of the partnerships officers of any
Activities and
of your local statutory bodies. They will know how they may work
Resources
with local community organisations and will know how your
organisation could fit with their activities.

Appendices Any evidence, say a table, of your activities, the statutory obligation
name and the way your organisation delivers to this duty.

*Sample text:
“Y’s drop in sessions include a lunch club once a week. This is in partnership with the
NPCT and contributes to their work on the NSF for coronary heart disease.”

2.5 Services, Market and Demand Matrix

The objective of this section is to make very obvious what you intend to
Objective
do, matched up to who you will do it for and why you will do it.

In this area, with these people, who have expressed a need or a need is known, we are going
to do this which we hope will make this difference and we will find out that difference in this
way and then tell about what we are doing.

This matrix is to show what you will provide or deliver and to set that
out alongside the information in sections 2.1. 2.2, 2.3, and 2.4. This
matrix is, in itself, a tool to help you see if what you have planned is
clearly linked to demonstrable need and demand.
The left hand column will have the details of all your organisations’
activities – the ‘services’ of the matrix. This is a new list, not in
Issues: previous sections. It may be a headline of a whole service delivery
category with bulleted details, or it may be the name of an individual
service.
When the Business Plan is complete, each line of this matrix, set
alongside the matrix in Section 2.6, may become an independent
funding proposal or small project plan.
The middle column will indicate the details in section 2.1, locality and
demographics and section 2.2 – the ‘market’ of the matrix
The third column will show the user research and statutory
requirements found in sections 2.3 and 2.4 – the ‘demand’ for your
organisation or project

Activities and Activities carried out for previous sections

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 Resources
Appendices A list of the services with more detailed descriptions.

*Sample text:
Services Market Demand
ƒ Focus groups showed that
mums from A area preferred
some shopping time alone
and that dads, when job
Dads n’kids hunting, did not feel ‘free’ to
Young unemployed dads from
Saturday 10-12 play with children in the
XY area with children
week
ƒ XYZ Department Family
skills agenda, outlined in
Anti-Social Behaviour White
Paper1
ƒ Work with the school showed
that creative activities would
help with confidence and
Thursday Late !6-18 year olds from ABC
allow issues to be raised in a
Thursday nights theatre school who have been at risk
safe environment
workshop of exclusion
ƒ ABC Department Young
Persons agenda, outlined in
Guidance CDF
XYZ Information
Service
Provision of information
on welfare benefits and
advocacy ƒ Community engagement
Details: work over two months raised
ƒ Older people in poor
ƒ XYZ welfare fact recurring issues
quality housing
sheets in each ƒ Evidence from NPCT
ƒ Older Farmers who are skill
surgery demonstrated inappropriate
excluded
ƒ ‘Your rights week’ use GP services because of
ƒ Older people in rural
linked to benefit lack of other generalist
isolation
awareness campaigns services
ƒ Disabled and frail older
in (location) and ƒ NMO Department Older
people
(location) Peoples agenda, outlined in
ƒ Older people on low
ƒ home visits to White Paper
incomes
provide information ƒ UVF Council Local Strategic
ƒ Housebound older people
when necessary Framework strand Y on
ƒ Older people with ill health
ƒ Training of Older people demonstrates
Volunteers commitment to raising
ƒ Provision of standards for Older People
advocacy
information
ƒ Liaison with the local
ABC Scheme

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 2.6 Outcomes and Outputs
This section shows the intended changes which your project or
Objective organisation is intended to bring or to engender in your users, clients
or customers and to detail how many people you expect will benefit.

In this area, with these people, who have expressed a need or a need is known, we are going to do
this which we hope will make this difference and we will find out that difference in
this way and then tell about what we are doing.

Your market and demand research, detailed in Section 2.2 and 2.3,
above, will give evidence for the outcomes you hope to achieve and the
numbers aligned to them – the outputs. Outcomes and outputs can be
confusing. Outcomes are changes, described in words which show
change such as more, less, fewer, increased, etc.. Outputs are the
Issues: numbers of things to achieve the change. Quite simply, you are hungry
(baseline). You eat two sandwiches (output – one eating session). You
are full (outcome).
If you are using your business plan to apply for funding, these
numbers will be important. Often a funder will divide the sum
requested by the numbers expected to benefit to arrive at a ‘cost per
output’ figure.
In the table below, the first column is the same as in the table at Section
2.5, though in lengthy descriptions, a summary is used. (compare the
bottom left block in this with that at 2.5)

Activities and Activities from Sections 2.2 and 2.3

Resources Activities from any service planning for the services entered at 2.5

Appendices Any extended tables if there is not enough room in the body of the plan

*Sample text:
Services Outcome Output
ƒ More confident fathers ƒ 10 fathers and 15 children
Dads n’kids
ƒ Stronger family at each session from a
Saturday 10-12
relationships range of 30 families each
ƒ Less stressed mothers Saturday in term.
ƒ More confident young
ƒ Maximum 25 young
Thursday Late people
people at each session from
Thursday nights theatre ƒ Increased courage to
a wider group of 50; 13
workshop seek specific support on
sessions each term
a range of issues
XYZ Information ƒ More healthy older ƒ 1000 leaflets distributed
Service people ƒ 2 Your Rights weeks in
Provision of ƒ Reduced fear in each year
information on welfare accessing information ƒ 30 home visits each quarter
benefits and advocacy ƒ Increased confidence in ƒ 40 volunteers trained

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 self management ƒ Advocacy information
ƒ Increased visibility of produced for 100 leaflets
appropriate and 2 web sites
information

2.7 Monitoring and evaluation

This section demonstrates that the project intends to monitor its
Objective progress, intends to use the monitoring constructively for evaluation
and development.

In this area, with these people, who have expressed a need or a need is known, we are going to do
this which we hope will make this difference and we will find out that difference in
this way and then tell about what we are doing.

This section is about performance. Is what was intended actually

happening and are the anticipated changes being achieved? Often, this
part of a project is lost until a deadline demands it. However, it is
critical not only to be able to show effectiveness, but also to find
evidence later used in marketing, Section 2.8 below. Those statements
of commendation can be used during the life of a project much more
effectively than at the end.
Issues: You will need to work with the outcomes and outputs created earlier
and go to two more issues; what does a successful outcome look like
and how will you gather the evidence for it. The description of a
successful outcome is a success indicator and the how you gather
evidence is a success measure. So, more confident people (outcome) is
seen by more appropriate requests for information (indicator) and
therefore we keep a record of information requests (measure – number
of clear requests compared to unclear requests this month compared to
last month.
Often successful outcomes are called Soft Outcomes, as they are often
things which are difficult to count or measure, seldom counted in
numbers. As outcomes are more/less comparative words, then soft
outcomes are also comparative.

Soft Outcome monitoring structures are widely available. You may

Activities and want to conduct an electronic search using those words. The Charities
Resources Evaluation Service provides a range of Outcomes Champions which
help organisations set up Outcome monitoring.

Appendices Any monitoring methods details and monitoring timeplans

*Sample text:
“Y’ monitors its activities by regular sign in logs (also used for fire safety), exit
questionnaires and focus groups. A full list of monitoring activity is found at appendix
VII. All monitoring information is fed into our quarterly review meetings which we use
for evaluation and development.”

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2.8 Marketing Strategy (Publicity and Outreach)
This section is to demonstrate that, once you know your potential users
or clients and why they will need or want the services your
Objective
organisation or project is planning, you have organised strategies to
inform your potential users of your services.

In this area, with these people, who have expressed a need or a need is known, we are going to do
this which we hope will make this difference and we will find out that difference in this way and
then tell about what we are doing.

In commerce, this is a detailed plan to sell a product or service. In the

social sector, this is a plan to attract the people who will most benefit
from your activities or services. Your strategy will need to demonstrate
Issues: that you have reasonable expectations, know your target group/s well
and have chosen appropriate methods of contact. Marketing is not just
reaching the customer or client directly. It may also include
negotiating with other organisations or advocates to be able to reach
your beneficiaries.
The information you collect from your Monitoring and Evaluation,
Section 2.7, above, will give much content to any publicity and
marketing exercise.

Activities and Marketing strategy tools, including those which include potential users
Resources in eventual marketing activities

Appendices Any marketing plan, demonstrating the marketing activity, the

potential target group and the potential outcome and costs.

*Sample Text:
“Y’ plans its marketing approach at the same time as planning new activities, so that it is
aware of potential users at all times. Outreach workers take leaflets to X at their schools
and busses along the route from A area to the project have posters. We work with XYZ
group to meet their users and likewise, we advertise their activities. See Appendix VII for
a full list of marketing activities.”

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 3
Capability

This entire section, expanded in the six tables following, is to demonstrate that your
organisation or project is literally able to do what it intends to do. It will detail that non-
financial resources are available, that clear management structures are in place, that
adequate training has been identified, that communications are clear and planned and that
there is enough physical equipment and space to appropriately run your activities or
services. It will also show that there is a robust assessment of potential risks to any part of
the organisation or project and the measures which will be used to measure and manage
risks.

3.1 Staffing
This section details the people who will plan, manage and deliver
Objective
whatever the organisation or the project is intending to deliver.

In addition to employed staff, this section will detail all volunteer

staffing levels and arrangements, including members of any
management committee, board of trustees or board of directors. You
will need to demonstrate adherence to employment law (working time
regulations, health and safety, etc), to equal opportunities legislation
and to good practice in volunteering.
Issues:
In the case of a sole proprietorship or a small team organisation or a
new organisation, this section will require the equivalent of a CV from
each person – the reason the people are capable to do what is intended
in this plan.
The Table following may be used to describe staffing.

Management workshops
Organisational development tools
Activities and
If you are not already aware of all regulations regarding employment,
Resources
you could contact your local Job Centre Plus who will inform you.
Your local Council for Voluntary Service could help with volunteering
protocols.

Appendices Depending on the purpose of your Business Plan, you may be asked to
append job descriptions, terms of reference for both employees and
volunteers as well as copies of your equal opportunities and other
employee and volunteer policies.

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 *Sample Text:
“X employs 2 full time and 5 part time people and is helped by 17 volunteers. The table
below shows their job titles, hours and tasks undertaken.”

Job Title Existing New Staff Team Supervisor

responsibiliti responsibilitie Type
es s (E, V,
A, S, C,
K)*
ƒ ƒ ƒ ƒ

*Key: E = employee, V = volunteer, A = apprentice, S = secondment, C =

contractor, K = in kind staff, paid by others and delivering to this

3.3 Management Structure with Management Diagram

This is to demonstrate that your organisation or project is well
Objective
managed with clear lines of accountability.

Your structure should indicate not only the relationship between all the
people who manage and deliver your activities, but also their
relationship to the decision making of the organisation. The structure
will show employed and volunteer workers as well as any
Issues: management committee members, trustees or directors.
There will need to be clarity about the management and strategic fit of
each type of staff including employees, volunteers, apprentices,
secondments, contractors and in kind staff, paid by others and
delivering to this (college tutors, say, teaching in off college locations).

Management workshops
Activities and
Organisational development tools
Resources
Employee and Volunteer Audit tools

Appendices None unless specified by potential funders

*Sample Text:
“Y’s management committee meets monthly, taking reports from the Projects Co-
ordinator about the activities from Y. Each member of the committee is a liaison person
with many areas of the organisation or with individual activities of the centre. Our In
Kind tutors work within our local project teams. The chart below indicates the lines of
responsibility:”

3.4 Training

Objective The purpose of this section is to demonstrate that your organisation or

project is aware of the need for on-going training for every aspect of the

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 organisation and has built in appropriate arrangements.

Every activity or service of an organisation or project is subject to some

kind of legislation or aligned to good practice which will require
Issues: knowledge from personnel. For this, training needs to be a regular part
of the on-going work of the organisation. In addition, each individual
is entitled to training for personal and corporate development.

If you are not sure what training is required for the individuals in your
Activities and
organisation or project, you could contact your local authority for
Resources
advice

Appendices Any training plans, blanks of individual training records and any other
evidence

*Sample Text:
“Y meets twice yearly with each employee to review training needs. X days are set aside
for each worker and there is a regular link with the Health and Safety training
department of the District Council.”

3.5 Internal and external communications

This section demonstrates that your project or organisation
Objective understands and implements clear communications both inside the
organisation and to appropriate people outside it.

You will need to demonstrate how both workers and users of your
organisation or project are invited to communicate, both in writing and
verbally; that there are systems and procedures for people to know that
they can communicate with the organisation and that what they
communicate will be handled appropriately. If there are confidentiality
issues in the project or service you are operating, they would be
Issues: included here, as well as any protocols for the use of the web, email or
telephones.
This section is also about your external information to the general
public or to organisations to which you have to report. Different from
the information in the Marketing section, this section would include
information about your Annual Report and how it is presented as well
as any regular external reporting.

Activities and Communications policies (use of emails, confidentiality agreements,

Resources etc) can be obtained from a range of sources.

Appendices Any copies of reports or of internal communications protocols or

guidelines

*Sample Text:

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 “Y maintains an intranet and allows all staff to use email for reasonable personal use, and
access to the web for work use only.”

3.6 Equipment and Accommodation

This section is to show that your organisation or project has the right
Objective sort and the right amount of space and equipment to conduct what is
planned.

This section will show that you are well equipped to run your project
or organisation with a range of resources, from physical space to
furniture and technical equipment. It should also show how you
intend to maintain your equipment and accommodation – any service
agreements, maintenance contracts or insurances. This section is also
where you will demonstrate your adherence to any Disability
legislation.
Issues:
You will want to show that if you have a number of projects running
within an organisation, that you have the space. You may want to
show if users have had any input into the design of what is available.
If your project or organisation conducts outreach or travelling activities
or services, this section will be where you demonstrate the suitability
and safety of that equipment as well as arrangements for storage and
transportation.

If you are providing a new service or activity for a user group with
Activities and whom you have not worked before, you could contact support
Resources organisations dealing with that group to understand what specialised
equipment could be needed.

Appendices If your organisation or project is large or complex, you might want to

give floor plans, maintenance schedules or other documents
demonstrating the good management of your resources.

*Sample Text:
“Y is run from the first and second floors of a significantly redeveloped Victorian church
building. A lift has been installed to allow access to our suite of 5 meeting rooms and 2
offices A travelling ICT suite is stored in password protected cupboards.”

3.7 Risk Analysis Matrix

This section is to show that you are fully aware of what could go wrong
Objective in any part of your organisation or project, how likely that would be
and what you would do to manage the difficulty.

You need to work through not only what could hurt your services or
Issues: activities, such as fewer people than anticipated or an unexpected
departure of a partner service provider, but also consider your staffing

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 or other resource implications. After ranking according to how likely a
potential risk might be and how much of an impact it would make if it
did happen, you need to consider the ways in which you will monitor
and manage each risk. Your final matrix may be three columns – the
risk, the rating and the resolution.
Project and organisational risk is not just about health and safety,
physical risk. It is also about risk to service delivery from any range of
sources. It is important to bring risk analysis to the whole of an
organisational life, not just to the physical equipment.

Activities and If you have never compiled a risk register and ranked risks, you could
Resources contact your local authority for help.

Appendices If your organisation is complex, then a full risk analysis should be

appended. Otherwise, it may be included in the body of this plan.

*Sample Text:
“Y regularly evaluates its activities and services (see section 2.6) and has analysed risk as
below:
Risk Rating Resolution
Too few people M ƒ Go back to marketing strategy to
attending check decisions
ƒ Monitor attendance figures weekly
rather than monthly until attendance
picks up
ƒ Meet weekly with activity leaders to
develop both improvement and exit
plans
X local authority H ƒ Analyse amount of LA contribution
reallocation of ƒ Management meeting to develop both
resources funding strategies and exit strategies

3.8 Legal Requirements

This section is where your organisation or project demonstrates that it
Objective complies with legislation relevant to a range of obligations for your
work.

There will be legal obligations on a range of issues similar for all

projects such as Health and Safety, Disability access, Equal
Opportunities, Data Protection and Insurance.

Issues: Depending on what your organisation or project’s activities are or

whether there are employed staff, there may be other legal obligations
such as Employers Liability Insurances, Working Time Directive
adherence and Acceptable Use policies.
There many be legal requirements for the specific beneficiaries of your

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 organisation or project

If you need information on what legal requirements apply to your

organisation or project, there are a number of overall support
organisations which could help you from Business Links to Councils
for Voluntary Organisations to your local authority. If you break down
Activities and
your projects to what they do, who they are done for and where they
Resources
are located, then you could find more detailed information on
requirements from other projects which do what you do, other projects
who work with similar people and other projects which work in your
area.

Appendices If your Business Plan is for a wide range of readers, you will need to
write into your plan that you hold the relevant policies or insurances.
If your Business Plan is part of a funding application, you may need to
append copies of policies or insurances notes

*Sample Text:
“The Y centre holds and adheres to policies on Data Protection, Disability Access and
Health and Safety. Its Equal Opportunities policy was written after a workshop with
users.”

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 4
Collaborations

This entire section, expanded in the four sections following, will detail any relationships
which exist with your organisation or project and it will show your knowledge of other
organisations or projects in the same field as yours. It will demonstrate any partners you
have, the status of the partnerships and the agreements for those partnerships. You will be
able to relate if your organisation or project is funded by agreement from a statutory body.

4.1 Partnership Roles

This section is to identify If your organisation or project is comprised of
Objective a number of independent organisations or projects which will run or
currently run the activities or services outlined in this business plan.

Partnership is a well used word, often making the definition unclear.

For the successful running of the organisation or project you intend, the
definition needs to be detailed with each partner. Partners can
Issues:
contribute their interest, their time and their money, and not all
partners will contribute each. This section will help you describe what
the partner will contribute to the overall activity or service.

Activities and Partnership or stakeholder workshops or planning tools

Resources Partner audits

Appendices If your partnerships are numerous or complex, a table showing partner

names and contributions would be helpful.

*Sample Text:
“Y project is made up of four core partners and six consultant partners. A pays employee
Z and contributes Human Resources support, B pays employee X and contributes human
resource support, C provides office space and D provides service delivery expertise. All
other partners give consultancy expertise for the whole of the project.”

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4.2 Partnership Arrangements
Objective This section is to detail all the relationships outlined in section 4.1

All formal details of partnership are included here – definitions agreed

for each partner, terms of reference, commitments to contributions and
agreements about expectations.
Issues:
A table showing the partner name on the left, the partner type in the
middle and the detail of the contribution on the right would be useful if
the list is more than three to four partners.

Activities and
-
Resources
Appendices Sample partner agreements. Depending on the purpose of this
business plan, you may need to include copies of partnership
agreements for each individual partner.

*Sample Text:
“Partners in the Y project sign up to three types of agreements – service provider partner,
resource provider partner and training provider partner. Terms are from a series of
single deliveries to a long term arrangement. The table below indicates the partnership
arrangements:”

4.3 Service agreements

This section is to demonstrate legal commitment from an outside body
Objective
to purchase the services of your organisation or project.

The reality of this relationship may feel like partnership, but service
agreements are literally the buying of your organisation’s or project’s
Issues:
activity or service by a statutory or other body or organisation. This
section is to show if you have such agreements and the terms of them.

Activities and If you have such agreements, the purchasing authority will have
Resources documentation you may, or must, use.

Appendices Sample service agreements. Depending on the purpose of this business

plan, you may need to include copies of individual service agreements
for each statutory purchaser.

*Sample Text:
“Y runs three lunch clubs per week; two for the elderly of A area one of which is funded
by the NVK Council and the other by XYZ Charity. The third, for B area school
children, is funded by the Education Authority. See agreements at Appendix X.”

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4.4 Competition
This section is to demonstrate that your organisation or project is
completely aware of the similar types of organisation or projects to
Objective
yours which are operating in the same locality and/or with the same
client group.

It will be unlikely indeed that your organisation or project is

completely unique; more likely that what your organisation or project
does is different enough to attract your users. This section is to show
how much you have investigated other provision and if you are in
dialogue with them. Your position will be stronger if you are able not
Issues: only to show you know what is in your locality, but also to show if you
are in networking relationship with them.
This activity will also show why your project or organisation is
necessary. It will show what is unique to you, no matter what
similarities exist.

Activities and
Market research style research tools (see Section 2.3)
Resources
Appendices -

*Sample Text:
“Y is one of five such projects in A area, yet specialises in drop in sessions.. Project co-
ordinators and workers as possible meet together quarterly and regularly refer users to
each other, ensuring each user has the best provision for their needs.”

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 5
Funding

This entire section is where your organisation or project demonstrates that it understands the
whole of financial commitments and understands all the detailed aspects of those
commitments. It will show how your organisation or project intends to raise its money and
monitor its expenditure, how it manages and plans its finances and what its fundraising
strategies are for the future. This section of your business plan will need to demonstrate that
all the other sections of your business plan are financially possible.

5.1 Income Generation and Monitoring

This section is where your organisation or project shows it fully
Objective anticipates the range of income necessary and the duty to monitor that
income.

This is often the most fragile part of any organisation or project and
deserves more time that most would prefer to give it. A working rule
is to exaggerate expenditure and to underestimate income. When
considering income, for a commercial or a social benefit organisation or
project, consider trading income, income from grants and donations,
income from sponsorship and in-kind income – resources given to your
organisation or project from which you benefit, but for which you do
not have to pay cash.
With the information you gain in this Section 5.1 and below, 5.2, you
will need to prepare a budget, the number of years determined by the
reason for your business plan (i.e. 5 years for some funders, 3 years for
others). This will show income and expenses in general headlines. You
will also need to prepare a first year cash flow forecast, showing all the
Issues: income and expenditure in fine detail.
It is critical to consider income generation when a new project or
building is planned. A service is never working at capacity when it
opens and there may need to be income to cover the time as it grows
from start to capacity.
If any of your income is expected to come from funders to whom you
have made applications, it will need to be specified that it is
anticipated, but not guaranteed income. If you are showing in-kind
income, you will need to show documentation committing those
figures.
Finally, you will also need to demonstrate that you have robust enough
financial monitoring systems to properly handle and account for the
money you raise.

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 Sustainability workshops or planning tools
Activities and
Resources If you have not prepared cash flow forecasts or budgets before, many
templates are available from GKG.

Appendices Three to five (or other) year Budget

First Year Cash Flow Forecast

*Sample Text:
“Y project intends to eventually generate all its income from the sales of services, but will
establish itself with a grant from the X fund and one year in-kind support from County
Council. See cash flow at Appendix XII”

5.2 Expenditure and Monitoring

This section is where your organisation or project shows it understands
Objective the range of costs necessary to run the project or organisaion and the
duty to monitor that expenditure.

The information gained in this section will be merged Section 5.1 to

create the cash flow forecast and long term budget.
Frequently, organisations have more difficulty ‘second guessing’ costs
as compared to income. Especially if a project is new, or is using a new
resource, this truly is a guessing game, as until a project is running or
the building is in use, the real costs will not be known. But it is critical
to smart guess costs, as this is information used in pricing and in any
funding appeal. Also, until a project is running at capacity, it may not
earn the income to cover the initial costs. Therefore the costs need to
inform what monies may cover the build up period.
Costs can be guessed in a range of ways. If you break down your
Issues: projects to what they do, who they are done for and where they are
located and from what sort of facilities they are delivered, then you
could find more detailed information on costs from other projects
which do what you do, other projects who work with similar people,
other projects which work in your area and other facilities such as
yours.
If your project or organisation has physical possessions such as
buildings and equipment, there will be costs to maintain, repair and
replace these. Such costs are frequently missing from cash flow
forecasts. Other frequently missing costs are about managing
volunteers. They are not paid, but incur expense in management time,
training and other agreed support.

Sustainability workshops or planning tools

Activities and
Resources If you have not prepared cash flow forecasts or budgets before,
templates are available from GKG.

Appendices Three to five (or other) year Budget

First Year Cash Flow Forecast

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 *Sample Text:
“Y project expects limited costs at start, with many resources being given in kind as start
up support. However, as it develops it will accept more of the core cost so that by year 3
it is completely independent. See cash flow at Appendix XII”

5.3 Financial Planning and Management

This section is to demonstrate that your organisation or project is
Objective taking funding seriously enough to plan ahead for sustainability and
that it has the right systems in place to manage finances.

Your organisation or project will need to show that there are a number
of people responsible for finances - not accounted for in the hands of
one or a few. You will need to show the meetings of your organisation
Issues: which make financial decisions, the delegation of those decisions, the
accounting dates, whether there are charity or VAT implications and
whether any external financial experts are contracted. You will need to
show any regular financial management exercises.

Activities and Sustainability workshops or planning tools

Resources

Appendices Any table of financial planning measures.

*Sample Text:
“Y’s finances are discussed at every management meeting, comparing actual figures
against budgeted figures compiled by a contracted in bookkeeper. Budgets are agreed at
the meeting before financial year end and accounts are audited two months after year end.
The management meeting agrees petty cash protocols.”

5.4 Fundraising Strategy

This section is for largely grant dependent organisations or projects to
Objective demonstrate that they are planning ahead, past the immediate grant
awards.

Your organisation or project will need to show awareness of all the

issues from all previous sections of your business plan. Such
awareness will allow your organisation or project to investigate
funding opportunities which apply to your locality, to your client base,
to your type of project, to your sort of partnerships and more.
Issues:
A fundraising strategy will show that you are aware of the types of
funding available to you, the time necessary for making applications
and for learning of awards, and the amounts you are likely to be able to
receive. It will also show that you are aware of any funding
distribution protocols or timing from your funders. Your strategy will

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 also show a range of funding types and sources, securing your
organisation against single funder vulnerability.

Activities and Sustainability workshops or planning tools

Resources

Appendices Any timetable showing the funder or funding stream you have
decided, the amount requested or expected and the anticipated award
or income.

*Sample Text:
“Y’s funding team meets quarterly to review its applications outstanding, to explore new
funding streams and to delegate funding applications. See appendix XIV for details of
the funding strategy.”

Gray-King & Gray Ltd 2009

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