The Business Plan

Final Business Plan

Executive Summary

Ercildoune Development Trust is a small community led and run organization dedicated to improving the life and opportunities available to the people of the Ercildoune area (TD4 Earlston and the surrounding area).
The main aims of EDT are to create a Community Centre to meet the present and future needs of the community, publish regular What’s on Guides for the local community, fundraise for local charitable activities and to undertake any activities identified by local people as beneficial to the community where those activities are not being met by another organization.
EDT is open to all local residents on payment of a small membership fee and is potentially open to non-local residents who are prepared to commit themselves to abide by EDT aims and pay membership charge.
Whilst currently having no legal status or identity EDT is looking to set itself up as a Company Limited by Guarantee, gain registration under SEERAD and obtain Charitable Status (Scotland). Regardless of status EDT will be run as a not for private profit organisation where any profit or income will be reinvested in its aims and objectives.

I. General Company Description

Ercildoune Development Trust is a not for private profit company set up to respond to the needs and desires of local people (where these needs and desires are of a charitable nature).

Mission Statement:
“To meet the social, cultural, environmental, educational and other needs of the communities of the Ercildoune Area (Earlston and surrounding communities) by providing facilities, services and carrying out other relevant activities. The Trust will be run by the people of Ercildoune area for the people of Ercildoune area”

Company Goals and Objectives:

Our goals are to provide services and facilities for recreation and other leisure time facilities for the Ercildoune area following principles of sustainable development and in the interests of social welfare so that local people’s conditions of life may be improved; and to provide an example of best practice for similar organizations both regionally and nationally.

Business Philosophy:

To carry out all our activities without distinction on grounds of race, political, religious, or other opinions. To work towards being a sustainable, self financing organisation that can respond effectively and efficiently to the changing needs and desires of local people where those needs and desires are of a charitable nature. To actively work to tackle social exclusion in the Ercildoune area.

Company Strengths and Core Competencies:

Our most important strengths are:
·        the organization has been set up and is run by local people;
·        the organization exists only to meet the needs of the local community and has no other focus
·        level of voluntary commitment and skills from local volunteers
·        Needs led development

Legal form of ownership:

 
Company Limited by Guarantee Operating as a Social Enterprise under the
Development Trust Banner.
All profits to be retained within the organization.
No profits to be distributed to private individuals and companies.

II. Products and Services

Planned products and services

What’s on Guide.
A guide to local community and voluntary groups and organizations in the Ercildoune area, their activities, how to be involved and contact information. This guide will be updated every two years (minimum) and will be partially funded through business sponsorship and advertising. The guide will be free and either distributed or be freely available in the Ercildoune area.
 
Rooms for rent.
Once the Community Centre is built it is planned to offer rooms to rent for community groups and other interested organizations. Rooms will be rented on a sessional basis (community groups or other organizations) or for longer term programmes of activity (community groups only). When renting out space preference will be given to local community groups.

Community Appraisal.
There will be an ongoing process of community consultation to ensure that any community needs and desires are known to ECDT and where appropriate action will be taken to improve the lives and welfare of local people. This process will ensure that ECDT and its Board/membership continues to meet the needs and desires of the local community and will serve to inform.

Community Fun Days.

These days will seek to fulfil a dual purpose. Strengthening community spirit and togetherness whilst raising funds to allow ECDT to continue and expand its activities.

III. Marketing Plan

Market research

ECDT and other local community organizations (including the Community Council) has carried out a number of pieces of research over the last few years into the needs and desires of the various local communities in the Ercildoune area. The major themes/issues coming out of this research has been the lack of built community space and the lack of readily available information on community activities/groups.
ECDT and other local groups have used a range of primary market research techniques to assess the situation including questionnaires, semi-structured interviews and public outdoor events. ECDT has also carried out secondary market research with providers of enclosed community spaces in similar communities.
ECDT will carry out ongoing primary research to ensure that ECDT continues to meet the needs and desires of local people (where appropriate).
 

Economics

.        Total size of potential market
Ercildoune area Population   approx. 3000
10 mile radius Population    approx. 20,000
25 mile radius Population    approx 55,000
50 mile radius Population    approx. 750,000
Distance from nearest City (Edinburgh) 37 miles
·        Current demand in target market. There is a very high level of demand in our catchment area for the services we intend to offer, particularly room/storage rental for community groups
·        Trends in target market —whilst nationally there is a trend for less people in urban areas to use community centres as alternatives develop, in rural areas the converse is true. Due to the low population density and distances between settlements people wish to see more local services provided
·        Growth potential and opportunity for business. It is always likely that ECDT will remain a small locally centred social enterprise rather than seeking to trade regionally, locally or nationally. This focus on being run by and serving the local community is likely to generate loyalty and thus more business, enabling ECDT to work towards being self - sustainable.
·        Barriers to business development:
1.      High cost of building purpose designed community facility
2.      Obtaining land locally
3.      No staff/exclusively volunteer led at current stage (also benefit)
4.      Consumer acceptance and brand recognition
5.      Training and skills

Product

Features and Benefits

What’s on Guide
 Features:        2 year life span, easy to use
Benefits:          Social inclusion, enhanced community/social interaction possibilities, free to the local community.

Community Centre
Features:        safe secure environment for local groups and activities, facilities designed to meet needs of community groups
Benefits:          locally based, local accountable management,

Customers
Primary Customer Base
Community Centre -Residents of the Ercildoune Area. Market research indicates the Community Centre is most likely to be used by the young (under 18) and the elderly (retired) with the other significant groups being parents and sports enthusiasts.
What’s on Guide —Residents of the Ercildoune Area. Market research indicates highest useage amongst the most socially included and community orientated. Good level of support from local business
Secondary Customer Base
Community Centre —Residents of surrounding Borders areas and groups from Edinburgh unable to afford/access facilities. Special events (weddings, wakes etc) where domestic residents are too small.

Competition
List of potential major competitors for enclosed community facility
Enclosed Community Facilities
Small church hall in Earlston (currently completely booked and impossible for local groups to book hall regularly. Long waiting list)
Eariston High School (very expensive and difficult to access due to school/legal requirements)
Other community centres out with Ercildoune area. (usually filled to capacity and with preference given to residents of the community the facility is located in.
List of potential major competitors for What’s on Guide  - None

 

IV. Operational Plan

Areas needing to be considered:

Location

It is vitally important for the Community Centre to be in an easily accessible venue

Legal Environment

The following is required to be fully investigated before commencement of the Community Centre project:
·        Licensing and bonding requirements
·        Permits
·        Health, workplace, or environmental regulations
·        Special regulations covering your industry or profession
·        Zoning or building code requirements
·        Insurance coverage

V  Management and Organization

Board of Directors

Wilma Brennan —Owner/Manager of local childcare facility. Business, employer company/facility management, health and safety and legal expertise.

Jane Kyle– Financial administration worker, skills in book keeping, accountancy and administration

Jackie Kinmond —Local Authority Worker. Human Resources/Payroll and administrative expertise.

John McLaren —NHS Health Visitor. Experience in employment legislation, health and safety

George MacKenzie —Civil Engineer and business owner. Experience in building trade, business, company management,

Simon Lynch —Local authority worker. Experience in community development, area regeneration, funding and community group management and development.

It is planned that the group will seek in the second operating year to obtain funding for a development worker to assist moving the project forward.
Staff may be employed once the Community Centre is complete subject to budget and demand.

VI. Startup Expenses and Capitalization

Set up of ECDT requires little in way on initial start up costs other than stationary and necessary legal costs. Estimate £100 maximum
Funds are already available for the production of a local What’s On Guide and the Guide through business sponsorship is expected to recoup costs if not provide a small profit to be reinvested.
Set up costs of the Community Centre are estimated at around £750,000, though it is anticipated that work on the Community Centre will be unlikely to commence before 2009.

Community Centre
Creation, management and development of a Community Centre.
Earlston, the main settlement in the Ercildoune area, is the largest settlement in the Scottish Borders Local Authority region not to have any type of publically owned community space.
This has been shown to have a negative impact on the social welfare and lives of local people.
With the continuous growth in the number of local domestic properties and thus local population
Fundraising 2007-2009
Creation 2009-2010
Opening 2010
Operation 2010 onwards

Fundraising Events
It is planned to hold a series of regular fundraising events with all proceeds going towards funding the above activities.