Business planning

Topic Summary
Relevant Content

A business plan is used to serve a number of purposes:

• To secure support for the project or organisation that the plan relates to.
• To enable regular checking of progress and re-planning as necessary.
• To communicate to stakeholders.

The featured template outlines what should be covered and the supporting information that will be required. It may be that not all of this information will be included in the business plan but will be appended.

Refer to the developing services section of this guide for some idea's of the kinds of services you may wish to consider in developing your business plan. Refer also to the section on demonstrating community need to ensure there is a demand for any proposed services.

Considerations for Community Groups

At this stage you will have located your future asset and you will have ensured that you have, or can achieve, the capacity you need to take it on and manage it. You also have a feasibility report which suggests that your project has a good chance of success.

Look at the transfer from the perspective of the public sector owner, the local community and the future users of the facility. The business plan will need to convince the owners, future funders and other partner organisations that your plans are the best plans. Particular care needs to be taken when there is an objective that certain activities will cross subsidise others.

Carrying out a thorough risk assessment will not only help you to develop your own plans but will help to convince others that you have thought through all the possible eventualities and acted to minimise any negative impacts. Do not hide any risks from partners; it is almost certain that they will spot hidden issues of concern given their experience with similar projects, which may lead them to conclude that your feasibility and business plans are not robust. This could ultimately see them rejecting your plans.

A key consideration in preparing a business plan for an asset transfer project is its scope. Should it focus simply on the community library project or the overall community organisation that is promoting it? Obviously, with a new community organisation that does not run existing activities or which has been established specifically to pursue the project, this is straightforward. Where projects are being promoted by existing community organisations, it is a decision that needs to be made at the outset. This decision will make a difference to how the business plan presents the financial planning for the project and its impacts, (both financial and in terms of benefits).