1. Developing a Community Shop CREATON 17 MAY 2016

2. Agenda  Intro  Community Shops in UK  Why  Community engagement  Governance  Financials  Property Considerations  Grant and funding options  Next steps

3. Your speaker  Peter James  Day job – regulator for accountants and lawyers  Other job – treasurer – Titchmarsh Village Shop  Trustee with the Plunkett Co-operative Community Network  Co-founder Titchmarsh Village Shop 2007

4. Village Community Shops  Around 400 in the UK  Typically 153 members, 7 directors, 30 volunteers, 3.3 staff  Typically £155k turnover  64% host post offices, 56% have cafes, 19% co-located  Save 4 million mile car journeys per annum  Have a 95% success rate (average small business 46%)

5. Why  You need to be clear on what the drivers are;  Retail therapy?  Community?  Less resourced in the community?  Important in setting out the business case and seeking grant  Role of village surveys  2012 Neighbourhood plan a good template – 80/90% v important  Majority use post office and shop “regularly”

6. Community Engagement Shop Customers Shareholders Volunteers Fundraising Youngsters Street

7. Governance  Management Committee  Skills  Project v Day-job  Manager delegations  Interaction with Parish Council  Manager configuration  Corporate structure – limited liability  Community Benefit Society (most shops use this)  Company Limited by Guarantee  Community Interest Company

8. Financials – Operating Model  Rule of thumb - £10 per household per week  Creaton – 500 inhabitants – c220 Households? - £115k?  Feedback from Shop was £175k year to March 2015 – perhaps additional custom from surrounding villages  Gross margins are typically 22% (Titchmarsh 25%, Shop 21%)  Margins affected by sales mix - eg cigarettes (v low) and cards (v high)  Veg, dairy products and waste can have adverse impact – need careful management  Overheads  Principal ones are wages and power  Amount of gross margin may determine what can be spent  £175k x 21% suggests £35k to cover  Triple bottom line – Profit – environment –sustainability

9. Financials – Issues  Till and supporting software  Chip & Pin  Reverse credit arrangements  Understandability for volunteers  Purchase accounting and payments cycle  VAT - Capital benefit – exempt supplies – marginal applications  PAYE and Pension – but NI relief  Statutory accounts – accountants report – Annual Return to FCA  Bank account – Co-operative Bank supportive

10. Property – Issues  Where and what (ideal 500 sq feet);  Existing shop, portacabin, church, pub, village hall  Build costs and supervision and timescales  Beware VAT on multi-purpose and timing for refund  What is being offered – shop, post office, café or combo?  Highways and access and customer parking  Loos & Disability access  Security especially for Post Office  Power configuration and air-conditioning

11. Grant & Funding Options  Raising money by subscription to shares  Allows varying investment but one vote per individual  Encourages joint ownership by the wider community  National Lottery  Northamptonshire County Council  Plunkett, Acre and other rural support organisations  Co-op  Co-operative & Community Finance - low interest loans

12. Next steps (Plunkett) 1.Contact Plunkett (Frontline manager) or SME 2.Form a working group 3.Consult with the community 4.Hold a public meeting 5.Elect a committee – at the public meeting? 6.Select legal structure 7.Identify suitable premises 8.Work up a business plan 9.Raise required finance 10.Plan layout, stock and pricing 11.Join Plunkett 12.Ensure correct alcohol licensing 13.Ensure compliance with regulations 14.Publicise launch date

13. Key links  http://www.plunkett.co.uk/ http://www.plunkett.co.uk/  http://www.postofficecommunityfund.co.uk/ http://www.postofficecommunityfund.co.uk/  https://coopfinance.coop/ https://coopfinance.coop/

14. Questions