Business Planning and Funding Strategy Ros Kerslake, Chief Executive 18 March 2015

Making the business case for your project Overview of presentation Why write a Business Plan? What points to consider Financial appraisal Break out session

It is a summary of a given project’s aims and objectives, and how these can be achieved. What is a Business Plan:

Why write a Business Plan To prove how your project is worthwhile and viable, how it will develop and be managed, and how it will be sustainable in the long term. To show potential funders why they should give you money and prove that their money won’t be wasted.

Who should write the Plan Try to write the majority of the Business Plan yourself There may be some areas related to which you may need external, professional help, but remember that you are in charge of the Plan and that you will have to implement it when the consultants are gone.

Before you start Options Appraisal Background Research Market Research Competitor Analysis Consultations Conservation Reports Architect Design Drawings Audience Development Plan / Activity Plan Building Management Plan

The Business Plan – what to cover 1.Executive summary 2.Introduction 3.Options summary 4.Market research 5.Governance and Management 6.Financial appraisal 7.Impact assessment 8.Risk register 9.Project Plan 10.Monitoring and evaluation 11.Conclusions and recommendations 12.Appendices

The Business Plan – what to cover 1.Executive summary i.is the Business Plan in miniature ii.highlight the key points of the Plan in a page 2.Introduction i.summarise the project ii.explain why the project is needed iii.describe what are the expected benefits iv.set out information about the group

The Business Plan – what to cover 3.Options summary i.include brief description for each option ii.set out strengths and weaknesses of each iii.explain the rationale for your decision 4.Market research i.summarise the findings of the market research ii.include an update with additional research undertaken iii.explain how you tested your proposals with the local community and target audiences

The Business Plan – what to cover 5.Governance and management i.describe the make up of the group (unpaid trustees, paid staff, volunteers) ii.show that the team has the right skills and experience iii.describe the management arrangements iv.include current and future organisation chart

The Business Plan – what to cover 6.Financial appraisal The aim is to show how your project is financially viable through: i.capital income & expenditure analysis ii.revenue income & expenditure analysis iii.value added tax iv.inflation v.sinking fund vi.statement of cash flow vii.sensitivity analysis

The Business Plan – what to cover 7.Impact assessment Clarify the benefits the project will bring to the local and wider area and identify areas where negative impacts might be reduced. This should include: i.analysis of economic impact (input-output- outcome) ii.analysis of social impact (input-output- outcome) – or ‘social return on investment analysis’ iii.analysis of environmental impact (input- output-outcome)

The Business Plan – what to cover 8.Risk register i.list each risk and establish the likelihood ii.determine how serious the risk is iii.describe how the risk could be mitigated iv.include contingency (actions to be take if mitigation measures are unsuccessful and the risk becomes an issue) The risk register usually takes the form of a table and is a live document that should be reviewed on a regular basis.

The Business Plan – what to cover 9.Project plan i.describe how you are going to achieve your objectives and deliver the project (list of tasks and timing of each, in logical sequence) ii.state what are the project’s milestones and deciding dates (e.g. planning permission, grant decisions) iii.identify the critical path (longest chain of dependent activities where a single delay will impact the whole project) to prevent delays

The Business Plan – what to cover 10.Monitoring and evaluation i.state how you will monitor progress on the project and how you will report on this, ensuring that you meet the requirements of any funders ii.Evaluation Plan: identify the intended outcomes and benefits establish the criteria you intend to use to assess the success of the project explain how and when each evaluation phase will take place

The Business Plan – what to cover 11.Conclusions and recommendations i.summarise the Plan’s findings ii.draw out key points iii.recommend the project goes on iv.suggest immediate next steps 12.Appendices Use to provide additional details and information to support the Plan

The working document The plan is there to be altered and added to as the project progresses Some sections are more likely to change than others (e.g. budget sections) Important to maintain version control Alter the Plan when it is used for different purposes (e.g. to supplement applications for funding for different sources)

Useful guidance How to: Make the business case for your project. Online at regeneration.org/publicati ons

Total £ M English Heritage1.2 Regional Growth Fund1.7 HLF1.4 ERDF1.2 Private donors & trusts2.4 PRT & Denby

Funding Requirements EH – Acquisition, development fees, urgent works and main repair costs to the historic fabric. HLF – Development fees, repair and cataloguing of moulds, heritage interpretation, staff time, fit out costs to visitor centre and activity plan. RGF – Repair and upgrade the factory areas leased back to Burgess and Leigh. ERDF – Development fees and capital costs to repair and refurbish new workshop spaces. Private – Flexible funding Denby – To cover the cost of factory upgrades.

Exercise – Middleport Pottery Anchor tenant on 25 year lease Turnover rent on shop Workshops to rent with void periods Visitor centre with projected visitor numbers over five years Activities and events Café enterprise Staffing model using volunteers Sinking fund

Thank you!