1. Art and Diseño

Fairlight Village Shop Business Plan
Summary
2015 -2018
Contents 1. Executive Summary .................................................................................. 2
2. The Business Proposition ........................................................................... 4
3. Customer Profile ...................................................................................... 6
4. The Market Place ...................................................................................... 7
5. Sales and Marketing ............................................................................... 10
6. Implementation Plan............................................................................... 12
7. Operational Plan .................................................................................... 14
8. SEE Impact ........................................................................................... 16
9. The Team .............................................................................................. 16
10. Financials ............................................................................................ 20
Presented by: Fairlight Village Shop Management Committee
Please note this is a summary of the business plan for public viewing on the website.
The full version is 40 pages in total which is being used for external investors who
require further information about the local area and local conditions. We felt that
local residents would already be aware of this information so have reduced it for the
readers benefit.
Fairlight Village Shop Business Plan
Summary
2015 -2018
1. Executive Summary
Fairlight Village Shop Ltd has been established a Community Benefit Society with the
intention of putting forward a bid to take over Fairlight Post Office and Shop and to
run it as a sustainable venture for the foreseeable future to provide services to local
residents.
Fairlight Post Office and Shop has been established for 90 years and for sale for two
years as the current owners want to retire. Succession strategies for local
convenience stores and Post Office’s are however proving to be a challenge, as we
have seen the recent closure of Pett Post Office and ongoing sale of Ore Post Office.
This is a common challenge for small shops, and we have been working with The
Plunkett Foundation, the leading National Support Body for Community Shop
initiatives, to help shape and develop a sustainable business model.
The Vision - Fairlight Village Shop will be a business that is run and owned by the
community for the community. It will develop the range of products and services on
offer to meet the needs of local residents as well as offer a community hub for social
interaction and support. Any profit generated will be reinvested to support the needs
of the community whether that’s within further developing the business proposition
or sponsoring local activities.
The Team - The Founding Management Committee of Fairlight Village Shop Ltd is a
group of eight village residents who are unpaid volunteers and have been working on
the concept since October 2014. They have a broad range of relevant experience in
all areas including social enterprise development, construction, business
management, HR, legal, retail, Post Office management, marketing and sales,
committee management, financial management, project management, retailing,
property management, bakery produce and café management.
Sam Slaughter is the current Post Office manager and she plans to take on the paid
role of Post Office Mistress and Shop Manager supported by the current employees.
Through our local consultation, we have also identified 40 volunteers who are willing
to support the shop, café and proposed services.
Community Backing - The management committee and volunteers have actively
been consulting with the local community since October 2014 through distributing
surveys via the residents association, local households, the village hall and post
office. We have also run an open meeting and consultation event with 100
attendees. We had 200 survey responses in total.
99% of survey respondents want to sustain Fairlight Post Office and Shop.
The top four priorities for the future of Fairlight Village Shop were identified as:
•
73% want a community outlet for local products and services
•
60% want a community hub with shop and café
•
53% want to reinvest profit into community activities
•
51% want to join a bulk-Buying to access local products at a good price.
Fairlight Village Shop Business Plan
Summary
2015 -2018
Business Model – We have built a business model based on the community
consultation to respond to local needs and interests. We have built the financial
projections based on existing performance and a diversified range of income streams
including the shop, post office, a bulk-buying scheme, community hub and rental of
a 2bed flat.
We have set ourselves conservative targets to breakeven with the intention to
achieve a turnover of £246,000 in year one increasing to £264,000 in year 3. We
anticipate an overall profit margin of £10,000 by year 3. We anticipate however that
these figures will be exceeded based on our sales and marketing strategy.
As a non-profit, the profit generated will be mainly used for two purposes reinvesting into the business for further development/reserves or used to sponsor
local community activities.
Investment Needed – To make this happen we are looking to raise £550,000 to
help secure the property and existing business, and to develop the range of new
services proposed. We intend to raise the investment through quasi-finance from
local and national funding sources.
Fairlight Village Shop Business Plan
Summary
2015 -2018
2. The Business Proposition
The business proposition has been developed in consultation with the local
community. We distributed a survey to local households, online networks, visitors to
the village shop and village hall and gathered 200 responses from residents.
Residents have identified the top four priorities for Fairlight Village Shop:
• A community outlet for local products and services (73%)
• A community hub with shop and café (60%)
• Reinvesting profit into community activities (53%)
• Bulk-Buying Scheme to achieve cheaper products. (51%)
The Unique Selling Proposition of Fairlight Village Shop - The Post Office and
Newspapers are the unique products that are distinct from local competitors. These
help to attract customers and drive sales of the additional products and services. We
intend to increase our unique selling proposition, by adding other distinct products
e.g. Parcel Force Drop Off Point, Local Fresh Produce Weekly Packages, Pharmacy
Pick Up Point, Fresh Bakery Products, Community Hub/Café and Dry Cleaning Pick Up
Point.
Existing Services - 99% of survey respondents really value and want to sustain the
current services of Fairlight Post Office and Shop. The popularity of the current
service proposition used by local residents is highlighted below:
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94%
80%
75%
61%
Post Office Services
Newspapers
Fresh Produce e.g. milk, pies
Stationary and Cards
•
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45% Other Grocery/Household Goods
43% Cashpoint
30% Other e.g. local ticket sales,
National Lottery, Alcohol, Books
We intend to raise greater awareness of existing services that have been identified
as of interest to survey respondents. These include:
• Photocopier, Scanner, Fax machine (16.5%)
• Parcel Force Delivery Point (commencing Jan 15) (16.5%)
• Second Hand Book Library (1%)
New Services - In addition to these services we will also introduce a range of new
services which have been requested by survey respondents, in order of popularity:
• Community Hub offering a seating area where people can eat light
refreshments and ready-made bakery items available to buy in the shop e.g.
toast, pastries, quiches, sausage rolls, pies, sandwiches, soup, soft drinks, coffee
and tea alongside free wifi. People will also have the opportunity to access
community support services and enjoy social interaction (Requested by 61% of
200 residents)
• Bulk-Buying Scheme to achieve cheaper products. - We would intend to
achieve this through encouraging residents to sign up to buy a:
o Weekly locally sourced fresh produce package - meat, fish, bakery and
diary produce
o Monthly dry produce package e.g. pulses, grains, pasta etc.
Fairlight Village Shop Business Plan
Summary
2015 -2018
•
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Residents can choose what their box contains, sign up to weekly/monthly direct
debit and pick it up from the shop or benefit from delivery if they belong to a
vulnerable group. This regular order will enable us to negotiate a good price with
suppliers as well as give the shop a retained order sheet and income. (Requested
by 51% of 200 residents)
Wider range of local food produce e.g. meat, bakery, preserves, dry goods
(Requested by 25% of 200 respondents)
Pharmacy Pick Up Point (Requested by 15% of 200 respondents who want it
more accessible than currently available at the Village Hall. The Doctors surgery
have welcomed this opportunity as they feel it is of benefit)
Delivery of products to local residents too vulnerable to reach the shop/PO
(13% of 200 residents have requested this support.)
Community Information Point/Permanent Business Advertisement Boards
(11% of 200 residents have asked for this)
Sale of Local Business/Craft/Art products (sold on a commission basis) (7%
of 200 residents felt this would add value)
Additional services that are still to be considered and explored: Dry Cleaning / Shoe
Repairs pick up point, Quality Frozen Food/Ready Meals, Recycling Batteries/Print
Cartridges and Photocopier/Printing Paper.
Flat Rental - In addition to the shop income, we also intend to re-configure the
layout of the property slightly, so the residential area can be let as a two bedroom
flat above the shop. The remainder of the property at the rear will be converted into
the community hub area. There are currently temporary walls in the property that
divide the commercial and residential area so the specific allocation of the space
between the two components is not easily defined.
Fairlight Village Shop Business Plan
Summary
2015 -2018
3. Customer Profile
We have identified a range of target customer groups ranging from local residents
and visitors to the village who will use the services more regularly to those that will
use it as a top-up convenience store. In addition, individuals from other local villages
and tourists will also access the services less frequently, but will provide another
volume of traffic.
Fairlight Parish Residents and Visitors
Fairlight Parish has approximately 815 households and 1680 residents (2011
census). Fairlight is a retirement village, with a significant proportion of older aged
community (43% aged over 65) and 30% living in one person households. This
target group tend to use the Post Office as their local bank and also do their weekly
shopping, as the other large super markets are over 5 miles away. Bus services are
infrequent and are currently suffering from privatisation with planned cuts and a
reduced service for local residents.
On a daily basis, tradesmen use the village to provide services to local residents, and
individuals from outside the village visit the village hall to attend the 20 local groups
that happen during the week e.g. Nursery, MOPPS, Keepfit, Teddie Bears. etc.
Local Village Parishes
With the recent closure of the Post Office at Pett, Fairlight Post Office will also
become the nearest PO and Parcel Pick up point for Pett Parish Residents, consisting
of 846 Residents and 387 Households (2011 Census).
The Post Office and Shop also attracts some residents from local villages of
Winchelsea Beach, Winchelsea, Guestling, and Icklesham.
Tourist Traffic
Fairlight Village Shop is the on a main through road between popular tourists spots Hastings, Hastings Country Park, The Firehills and Pett Level Beach. It benefits from
passing car traffic as well as ramblers walking along the route.
Rother District Tourism - In 2012 an estimated 484,000 staying trips and
approximately 5,672,000 tourism day trips were made. (Source: Rother District Council
Tourism Page)
Hastings District Tourism - In 2013, an estimated 427,000 staying trips and almost
3.2 million tourism day trips were made to the Borough (Source:
http://www.hastings.gov.uk/content/environment_planning/planning/PDFs/ldf/tourismsoutheaststudy)
Fairlight Village Shop Business Plan
Summary
2015 -2018
4. The Market Place
PEST Influences
Political
• Department of Communities and Local Government are particularly
focussed on giving local communities power and influence to manage community
assets. DCLG invested £21m into the Community Assets and Services Fund to
invest in community groups looking to take on a local service or building since
July 2012. 700 groups have been supported to build sustainable community
enterprises across England.
•
The Localism Act gives parish councils a range of powers to help address the
problems they want to address. Already many are taking control and having a
greater say over what goes where in the neighbourhood. There have been
significant increases on last year in the numbers doing neighbourhood planning,
taking action on assets and taking on services from local authorities. More than
1500 assets have now been listed using the Community Right to Bid, 500 of
which are pubs. Shops, sports facilities, community centres, football stadiums
(including Old Trafford and Anfield) and green spaces have also been listed.
There is huge potential for more parishes to make use of community rights.
•
The Parish Council has the power to list a building, as an asset of
community value, when utilised for social value and nominated by the
community under the Localism Act.
http://www.legislation.gov.uk/ukpga/2011/20/contents/enacted.
Parish Councils and Public Works Loan – On the launch of the Localism Bill,
Local Government Minister Grant Shapps in 2011 issued a rallying cry to parish
councils, to safeguard struggling village shops and pubs for the benefit of local
people. If a community shop, pub or village post office is threatened with closure,
parish councils can use their powers to keep it running, including through the
provision of financial support. Parish councils can also start new community
shops or services; by giving small grants or, where appropriate, borrowing to
make an investment, such as purchasing a freehold on a property.
www.communities.gov.uk/news/communities/2022979
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Economic
• The economic climate has meant that many communities are experiencing
challenges. In response, many communities are coming together using creative
approaches that involve local people and resources to improve their local
neighbourhoods, villages and town centres. These have taken many different
forms from small-scale enterprise to large-scale asset management and
ownership. (Big Lottery Power for Change Grant 2014)
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Local Shopping Trends - British shoppers’ spend in local stores is almost on a
par with the high street supermarkets, according to new research released by
PayPoint. The study of 22,000 shoppers, conducted by him!, revealed local stores
are now seeing 18p in every pound, compared to 20p for the supermarket
Fairlight Village Shop Business Plan
Summary
2015 -2018
chains; and the average spend in local stores has risen by 15% over the last
three years. Researchers found the personal touch from convenience retailers is
paying off with consumers as one in five now goes to their local shop every day,
while a quarter go at least once a week. This increase in financial prudence has
also meant consumers are now more aware about getting value for money when
grocery shopping. Twelve per cent are now planning to buy in bulk more than
they were a year ago and 17% will be more likely to make use of coupons when
shopping to help save money. (http://www.retailtimes.co.uk/convenience-storescapture-similar-spend-to-supermarkets-new-research-reveals/)
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Community village shops continue to be one of the leading success stories of
the UK co-operative and community enterprise movement. The number of
community enterprises increasing has risen to 309 shops in 2013 trading in the
UK. Trading performance of established community shops has continued to grow
with like-for-like sales growth at 1.9% outstripping that of the major
supermarkets for a third year running. However net profitability is slightly down.
The 5 year survival rate of community shops is 99%. This compares to an
estimated 45% for UK businesses generally. (Plunkett Foundation ‘Community Shops a
Better Form of Business 2014’)
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Convenience Stores - The Association of Convenience Store’s 2014 Local Shop
Report has revealed the vital contribution that local shops make to the UK
economy and the investment in services that continues to drive growth in the
sector. There are now 50,747 convenience stores in mainland UK, making up a
sector that is now worth £37.4bn, a growth of 5.2% on 2013.
(http://www.retailtimes.co.uk/acs-2014-local-shop-report-diverse-rangeservices-driving-sector-growth/)
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Local Supplier Networks – Establishing local food co-operatives with bulkbuying schemes can support local residents to shop locally at affordable prices as
well as support local suppliers to market and sustain their businesses. We will
take on board the best practice and learning for the Making Local Food Work
Initiative promoted by the Plunkett Foundation and funded the Big Lottery over a
5 year period.
•
The Post Office network has faced significant challenges in recent years,
including the decline of the high street and the advent of the internet. Yet the
network’s future could be transformed by supporting branches to become more
entrepreneurial. In the context of a new trend in the UK towards the ‘local’,
characterised by a growing microbusiness community and the development of
community-based approaches to public service reform, the RSA argue that Post
Offices are ideally placed to become ‘Community Enterprise Hubs’. The Post
Office has already taken several steps towards supporting Sub-postmasters to
engage in entrepreneurial activities – including through a Community Enterprise
Fund as well as a £2 billion investment in modernising local branches.
Making the Connection: Local Post Offices as Community Enterprise Hubs (RSA
2014) recommends that Post Office branches build on their trusted brand and
provide a range of new activities, including:
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Selling local firms’ products and supporting fledgling entrepreneurs
Providing access to the internet and digital training courses
Fairlight Village Shop Business Plan
Summary
2015 -2018
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Advice on affordable finance or changes to welfare, including the introduction
of Universal Credit and personal budgets in social care
Providing employment and training opportunities to local people
Co-hosting public services such as running prescription collections services
Social
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Reducing physical isolation - Many of the local elderly and less mobile
residents prefer to shop locally rather than travel a significant distance, and it
would provides a much needed resource.
Reducing social isolation in rural areas – Providing a meeting place for local
residents to meet for a coffee and cake, and providing an opportunity for local
people to volunteer to connect and support other local residents in the shop, café
or via deliveries.
Community Involvement - Convenience store owners are going the extra mile
in their communities to support local projects and raise money for charities,
according to figures released today by the Association of Convenience Stores
(ACS). Its Voice of Local Shops Survey, which polled over 1,100 independent
retailers across the country, revealed 80% of store owners are involved in their
community in some way, with 71% collecting for a local or national charity and
25% providing sponsorship for local schools and sports teams.
(http://www.retailtimes.co.uk/shoppers-rank-local-store-second-schoolimportance-community-study-finds/)
Technology
• Technology Advancements - The ACS’s 2014 Local Shop Report reveals that
innovative services like click and collect, food to go counters, contactless
payment and digital advertising screens are being featured in thousands of stores
across the UK, alongside more traditional services.
(http://www.retailtimes.co.uk/acs-2014-local-shop-report-diverse-rangeservices-driving-sector-growth/ )
Environmental
•
Reduction in Carbon – With an emphasis on local shopping, car journeys can
be reduced to have a positive environmental impact. The local shop is currently
accessible to village residents on foot and we will also introduce bicycle racks out
the front to support access to cyclists.
Fairlight Village Shop Business Plan
Summary
2015 -2018
5. Sales and Marketing
Previous Sales History
Income -­‐ Shop/PO 2012 2013 2014 £186,363 £179,826 £171,721 Sales Targets
Profit & Loss Shop Sales Post Office Rental 2bed flat Community Hub Grant for Working Capital Total 2015-­‐2016 2016-­‐2017 2017-­‐2018 £174,000 £186,000 £197,000 £33,000 £39,500 £42,500 £7,150 £7,800 £7,800 £12,000 £14,500 £17,500 £20,000 £246,150 £247,800 £264,800 We have outlined our assumptions for an increase in sales revenues below:•
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The community enterprise model will encourage buy-in from the local community
through the community membership scheme to attract loyalty and commitment
to purchasing from and supporting the shop.
50% of residents said they were currently deterred from using the shop although
they would like it to be sustained and to use it, if these issues were addressed.
This business strategy will help to solve the majority of these issues.
We will implement a marketing strategy to raise awareness of the new
community ownership model and services on offer to attract new and existing
customers to the shop and Post Office.
We will reach out and attract previous users of Pett Post Office that recently
closed and only a limited service is available.
The Post Office will be open 9hrs longer than previously and the shop/community
hub will also be open all day Sunday.
The new Parcel Force Pick Up point will increase sales income to the Post Office.
We will introduce bulk-buying scheme where local residents commit to a
purchasing products regularly though a weekly fresh produce box, and/or dry
goods box on a monthly basis. This service helps to provide a more secure and
regular income stream for the shop with committed customers and to negotiate
discounts with suppliers. 100 people have already expressed interest in the bulkbuying scheme. Despite this initial commitment, we have however proposed
conservative targets of:
Weekly Local Fresh Produce Package
Year 1 - 30 residents for 45 weeks pa - Average price £15 =£20,250 pa
Year 2 – 50 residents for 45 weeks pa – Average price £15 = £33,750 pa
Year 3 – 70 residents for 45 weeks pa – Average price £15 = £47,250 pa
Monthly Dry Goods Package
Fairlight Village Shop Business Plan
Summary
2015 -2018
Year 1 – 30 residents for 12 months - Average price £10 = £3600 per year.
Year 2 – 50 residents for 12 months – Average price £10 = £6000 per year
Year 3 – 70 residents for 12 months – Average price £10 = £8400 per year
•
Volunteers will help to support services and in turn generate new sales via home
deliveries for vulnerable residents, extended opening times and help to deliver
loss leading services e.g. pharmacy pick up point that generates footfall.
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Increase footfall from new loss-leading services
o Pharmacy pick up point (increase traffic)
•
New services and income streams
o Improve range of products on offer to increase sales £ per customer, per
visit.
o Rental from 2bed flat (commences month 2)
o Food and drink sales for community hub (commences month 3)
Marketing and Communications Strategy
On takeover, we will kick-off an intensive marketing campaign to raise awareness of
the new ownership model and plans for new products and services on offer amongst
all local households and neighbouring villages.
Our aim is to get people signed up as a member or on the newsletter list both postal
and email at the most basic so we keep them informed about new products that
come in.
We will run a direct marketing campaign with a leaflet drop in all local households,
with posters in key venues and advertising boards throughout the village, within the
local magazine and RA email group, as well as local press.
Our second priority is to improve the range of products, so existing and new
customers buy more on each individual trip. We will also launch a competition for
local artists to design a logo for the shop and have local residents vote on their
preferred logo at the local fete, via the facebook page and website.
We have created a detailed marketing and communication strategy that embraces on
and off-line mediums.
We have also created a website www.FairlightVillageShop.co.uk to provide up to date
information.
Fairlight Village Shop Business Plan
Summary
2015 -2018
6. Implementation Plan
Date
Oct 14
Oct-Dec 14
Nov 14
Oct –Dec 14
Nov -Dec 14
Dec 14
Dec 14
Dec 14
Dec 14
Dec 14
5th Jan 15
5th – 20th Jan
15
12th Jan
16th Jan
20th Jan
22nd- 28th Jan
22nd-30th Jan
19th Jan
27th/30th
January
30th Jan
31st Jan 15
Feb – Mar 15
Jan to March
April – June
April –Dec 15
Milestone
Local Resident Consultation Commences
Meetings with local PO/Shop Owner
Local Community Open Meeting
Research and review of other local community shops and market
research into suppliers and services.
Liaison with volunteers about time and skills offered.
Specialist legal and business support secured from the Plunkett
Foundation and application for feasibility grant submitted
Local Resident Survey Consultation Completed and Analysed
Founding members of the Management Committee are established and
legal documentation sent off to the Plunkett Foundation.
Draft Business Plan completed and circulated to management committee.
Save the date email sent out to local residents about the upcoming
community event on the 31st Jan 15.
Draft Business Plan reviewed by Management Committee and tasks
delegated to plug gaps.
Secure £2k feasibility grant from the Plunkett Foundation to pay for Post
Office Consultant, Valuation of Property and legal set up costs
Met with Parish Council Clerk, Chair and Member to discuss Public Works
Loan and process to pitch to the Council.
Met Ward Councillors with an they confirmed support for the initiative
ready for application to Rother DC Community Grants Scheme.
Business Plan finalised with final costings, and circulated to the Parish
Council meeting.
Prospectus and Application Form prepared and shared with the
community and launching the Community Share Issue Campaign.
Fairlight Village Shop Ltd Community Benefit Society Formation
Confirmed and Opening of Bank Account
Power for Change first diagnostic meeting took place with Mark
McTaggart representing Plunkett Foundation. Big Potential Diagnostic
submitted.
Business Plan pitched to Parish Council for consideration for Public Works
Loan
Community Grant application submitted to Rother District Council
Community Briefing for Local Residents and Community Investment
Share Campaign Offer Launched
8 week Community Share Investment Campaign
Submission of Grant Applications to other fundraising sources locally and
nationally, including Power for Change, which is our main target for
funding. If required a social investor
Secure financed to purchase and develop current business and property
with transfer of ownership to Fairlight Village Shop Ltd.
Business as usual but with the development of flat, café and additional
services. Induction and introduction of volunteers.
Status
Achieved
Completed
Completed
Ongoing
Ongoing
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Fairlight Village Shop Business Plan
Summary
2015 -2018
Risk Analysis
A summary of the major risks that could prevent these milestones from not being
achieved on time.
Risk
Not securing sufficient
funding raised
Potential
Impact
High
Difficulty in retaining
volunteers
Medium
Inability to meet the
required profit margin
Key loss of regular staff
who go on sick, leave.
Loss of funds or stock.
Medium
Threat of competitors
Not meeting sales targets
High
Medium
Medium
Low
Mitigation
Grant funding is a competitive process, but we are
adopting a quasi-finance approach and have
identified a range of funding sources.
We have already undertaken a pre-assessment
with the 40 volunteers to anticipate their
commitment and involvement. We will continue to
recruit volunteers.
To ensure there is a minimum gross margins on all
goods.
Ensure at least two people understand each key
activity
Proper segregation of duties and regular
monitoring controls.
Build a strong USP and sense of community.
Reviewing marketing and sales strategies and
reducing costs as needed.
Fairlight Village Shop Business Plan
Summary
2015 -2018
7. Operational Plan
The current property and business is on the market for £450,000. The basis of this
evaluation is founded on a valuation methodology used by the business specialist
agents. We have also had a second opinion based on another valuation methodology
that backs up this proposed priced.
We have however commissioned an independent valuation on the overall business
for Tuesday 3rd February for our own purposes, to aid the negotiation process.
The Premises: 5 Battery Hill, Fairlight, TN35 4AP –Shop and 3 Bedroom Residence.
Retail Space - The retail area consists of the Shop Floor, Post Office area and Lean
To which is to be used for storage and office area. We will also utilise the walls in the
community hub area to promote local craft/art produce for sale.
Community Hub - We propose to knock through the temporary walls where the
Store and Study are currently located, and convert the kitchen and add a new 6x 4m
conservatory to the rear to create the community hub. The small hallway on the
right and some of the bathroom will be converted into a kitchen area and the
existing bathroom will be reduced in sized to create a disabled toilet.
The community hub will be accessible via the shop or the rear of the property.
Two Bedroom Flat – The existing residence will be accessed as currently from the
right hand side doorway and stairwell, leading up to a spacious good decor and
condition two bedroom flat. The kitchen from downstairs will be moved upstairs.
Current Layout
Fairlight Village Shop Business Plan
Summary
2015 -2018
Proposed Plans
Proposed Operational Strategy
Company Legal Status: Fairlight Village Shop Ltd has been established as a
Community Benefit Society – Registration No 7065. Based on The Plunkett
Foundation’s Model Rules
We have identified all of the necessary insurance, policies, systems that we need to
manage the business effectively. We will join relevant memberships to access
support. These are listed within our full business plan.
Furnishing and Equip. - We would need to acquire new fridges for the bulk-buying
scheme and furniture for the community hub area, and refit the shop is out dated.
Suppliers - We are currently identifying and forming a list of local suppliers, and
looking to work with those that deliver to the shop directly and offer bulk-pricing
deals.
Fairlight Village Shop Business Plan
Summary
2015 -2018
8. SEE Impact
Community Benefit
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Profit Distribution to support community activities
Community Ownership of Building through Asset Lock
Community Ownership of Business via Community Shares
Community members have the opportunity to:
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The opportunity to stand for election to join the management committee
One member one vote system regardless of the level of investment.
Influence and input into products and services
Opportunity to gain interest on investment* *Interest can be paid at a rate of up to 2% above base at the discretion of the management committee’ (Rule 8.5). Interest is payable before corporation tax
The opportunity to nominate a Community Activity for Sponsorship
Invites to attend member’s only events throughout the year.
Provide a space for social interaction and support in the hub area.
Provide deliveries and DDA complaint access to support vulnerable groups.
Economic
• Provide Skills and Experience to volunteers
Environmental
• Reduction in Waste by reducing and re-using products.
• Having recycling options for print cartridges, batteries etc within the shop.
• Carbon Emissions by reducing travel to supermarkets.
We will look to monitor the following outcomes:
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No of volunteers – total volunteer hours - £ in-kind value of volunteer hours
No of local suppliers - £ Value of local produce sold
No of customers purchasing local produce via bulk-buying scheme
No of community members
No of community events in hub
No of community events £ sponsored & % and £ of profit used to support
local activities.
9. The Team
Fairlight Shop currently has two business owners and four part time employees, one
of which Sam Slaughter, who will become the shop manager of the new Fairlight
Village shop. The other employees are all committed to the new approach, but we
Fairlight Village Shop Business Plan
Summary
2015 -2018
intend to move the hours on one particular staff member to cover the early mornings
currently managed by the current owner.
Sam Slaughter, Shop and Post Office Manager.
Currently involved in the day to day running and administrative side of the PO, and
worked in Fairlight Post Office as a manager for 4 ½ years.
Sam has actively contributed towards the development of this business plan and is
confident in the financial projections due her in-side knowledge and understanding of
the current business and its customer base, as well as her experience of previously
running her own retail businesses on the high street and on the web.
•
Southernhandicrafts: (selling craft wears) joint partner with my husband, we had
the said shop based in Brighton Lanes until we closed the premises back in 2001
after trading there for some 20yrs , the business is still trading on Ebay to this
day.
•
Its a Puppet PLC. (selling educational, enjoyment puppets & toys) joint partner
with my husband. 2001/04. We imported puppets from USA, so have had hands
on experience in importing goods, along with Market Trading, Public Shows,
Advertising,Web sales,Book keeping and general day to day dealing with the
public.
•
Goldsmiths Jewellers: 1988/92. Started employment as sales assistant and was
promoted to Manager in 9mths, I gained a diploma with the company in jewellery
understanding, making and product knowledge. I over saw the daily running with
five staff members, wages, ordering stock from outside suppliers as well as head
office based stock, hiring & firing, stock audits, promotions etc.
•
Starbuys: 1986/88(clothes store) Started employment as sales assistant and
became Manager in 6mths, managing day to day running of the said business.
Sam will be supported by 5 paid staff:
3 x Existing Part Time Staff (TUPED over) assisting with customer service, stock
management, supplier liaison.
2 x New Part Time Post Office Workers – 1 day a week and holiday cover.
It is likely that 2 of the existing Part time Staff working during the daytime would be
replaced by volunteers if they left their post.
The current owners have also said they will assist with holiday or sickness cover as
needed as they will be based locally.
Through our resident consultation, 40 x Volunteers have volunteered and currently
20 have offered over 100 hrs a week of their time. We will look to volunteers to
assist with tasks ranging from the Volunteer Co-ordination, Marketing, Community
Events, Community Members, Shop Front, Café, Customer Support Services,
Fairlight Village Shop Business Plan
Summary
2015 -2018
Gardening, Cleaning, Stock Control, Order Preparation, Administration, Grant
Monitoring and Reporting etc.
The Management Committee are all local residents in Fairlight and will take
on various strategic roles in researching and overseeing the management
and performance of the business.
Sam Slaughter, Shop Manager and Postmaster (experience as above)
Heather Black, Chair – Currently Managing Director of Economic Change CIC,
providing management solutions to socially driven organisations. As part of this role,
she helps organisations to develop their business strategy, implement Salesforce
CRM management systems and impact measurement frameworks to monitor and
report on their impact.
Previously she ran a national social enterprise with 40 staff supporting 10,000 young
people through the delivery of public sector training and employment related
contracts. She is qualified business coach and consultant with the Institute of
Consulting, and has experience of bid-writing and sales..
She also is involved in residential property development and rental management.
Previous work experience working in hospitality and retail environments aged 14-21.
Collette Slack, Secretary - Experience as an Executive PA Office Management
supporting Senior Officials of Charitable Organisations including Royal Society for the
Protection of Birds, Heritage Lottery Fund Eastern England and BAA plc. Experience
in Health & Safety Compliance, DDA, Office Management, £m Budget Management,
and Fundraising. Currently Retired.
Drew Slaughter – Significant experience in sales, customer management, retail,
bakery, management.
Currently works as a Key Account Manager Würth UK Ltd since 2008 and is currently
Proprietor of Retail Business Southern Handicrafts since 1991.
Previously worked for Forfar’s Bakers between for periods between 1983 – 1999,
with qualfications in baking amongst other roles.
Anne Bird – Anne has lived in Fairlight since 1974
She started work in banking & Insurance, then ran a local construction &
development company with her husband for 25 years. As Company Secretary she
undertook all administrative tasks.
She spent 8 years as an elected ward councillor in Ore, Hastings and prior to that
was an elected Fairlight Parish Councillor for 12 years and Village Hall Trustee &
booking clerk for 4years. She has been treasurer of the Fairlight Pantomime Group
since 1986.
Pat Tulley – Currently retired but previously worked as a secretary, secretary/pa,
legal secretary within the property department and personnel manager, establishing
the personnel department at Eversheds Legal Firm in London. In post, she held
membership to the MIPD and completed a Post Grad Diploma in Personnel
Management. During her employment years she was a member of the ‘Solicitors
Staff Pension Fund and Committee member of the Solicitors Personnel Managers IPD
Fairlight Village Shop Business Plan
Summary
2015 -2018
Forum. Prior to this she worked as a secretary at South Eastern Gas Board,
Burroughs Machines Ltd and Harold Williams & Partners.
Pat has been a member of Fairlight Bowls Club for seven years and served on the
committee for six years. She was the ladies' captain for three years (2011, 2012,
and 2013). She is also secretary of Fairlight Floral Club. She has lived in Fairlight for
eight years
Peter Strange, Treasurer - Peter lives in Fairlight and qualified as a Chartered
Taxaxtion Adviser with Deloite in 1972. In 1976, Peter and his wife Janice set up the
forerunner of the current business and in 1989 completed a corporate reorganisation
to form HaesCooper. Peter specialises in taxation and VAT advice and has
considerable experience in dealing with HMRC in particular the handling of HMRC
formal and informal Enquiries. In 2013 Peter was nominated as Accountant of the
Year by the Association of International Accountants to recognise his years of
dedicated service to clients. Peter currently acts as the accountant to the current
owners of Fairlight Shop.
Between Oct and Dec 14 - The Management Committee has been supported by a
number of additional volunteers, who have been part of the initial planning group,
who have helped on tasks during the community consultation process and feasibility
assessment. The planning meetings have also been attended by Jennifer Annetts, as
the appointed Parish Council Rep to oversee developments, provide input and liaise
with PC representatives.
Additional Professionals who will be utilised as required:
Property Rental Management and Maintenance – Neil Black (pro-bono)
Book-keeping on a monthly basis and Accountant – HaesCooper for Annual Accounts
Health and Safety and HR – Roots HR / Plunkett / Federation of Newspapers
Hastings and Rother Disability Forum
Post Office Consultant – Claire Fryer
Allocated Roles of Management Committee
The management committee members actively review information, discuss and make
informed group decisions on all areas of the business to support its development. To
help shape these discussions, the various members take responsibility for leading the
planning and preparation work required for managing specific elements of the
business.
Fairlight Village Shop Business Plan
Summary
2015 -2018
10. Financials
Fairlight Post Office and Shop is a going concern which has been established over the
last 90 years with a clear unique business proposition and established client base. As
described in the business plan so far we intend to build on this legacy with a range of
services and products that will benefit the community as well as build on the success
and sustainability of the business for the future. We have summarised the
performance of the business below using the last three years of accounts.
Using the Plunkett Foundations ‘Community Shops 2014 ‘A better form of business’
we can benchmark the current performance of the privately owned shop against
other community shops in the UK.
The report is based on new information provided by 258 out of the 309 community
shops trading in the UK based on 2013 data, supplemented with existing data
supplied by the remaining 51 shops in the previous year. The range of community
shops included in these figures, consist of new and existing businesses, as well as
offering a different set of services (70% host Post Offices, 46% have cafes and 95%
sell local produce). There is therefore not a clear comparison but it provides a flavour
of the marketplace and what can be achieved.
•
•
•
•
•
Turnover of community shops ranges from £6500 to £1m pa, with an average of
£154,687.
Average net profits were recorded to be £3220 per shop.
Community shops were operating at an average gross margins of 23%.
Volunteering saves shops an average of £18,388 per year in staff time.
Community shops operate with a 95% success rate, compared with a national UK
business survival rate of 45%, due to the level of community ownership and buyin.
Previous Financials
Profit & Loss Income -­‐ Shop/PO 2012 2013 2014 £186,363 £179,826 £171,721 We have identified the reasons for a decline in sales from the resident in survey, and
are actively looking to address these within the new business model. As a privately
owned business, their ability to secure investment or in-kind resources to develop
the business proposition has been limited. The new community owned non-profit
structure will allow for investment to be accessed to develop the service proposition
further.
Proposed Financials
Using our primary and secondary research, knowledge and experience of the
management committee we have made assumptions which gives us confidence that
the Fairlight Village Shop can prosper as viable community enterprise.
We listed the reasons for our sales assumptions earlier in the document and we have
listed some additional assumptions below to demonstrate the rational for our
projections.
Fairlight Village Shop Business Plan
Summary
2015 -2018
Profit & Loss Shop Sales Post Office Rental 2bed flat Community Hub Grant for Working Capital Total Salaries Expenses Sub total Profit before Tax Tax Profit after Tax 2015-­‐2016 2016-­‐2017 2017-­‐2018 £174,000 £186,000 £197,000 £33,000 £39,500 £42,500 £7,150 £7,800 £7,800 £12,000 £14,500 £17,500 £20,000 £246,150 £247,800 £264,800 £75,897 £162,140 £238,037 £8,113 £1,623 £6,490 £68,088 £173,050 £241,138 £6,662 £1,332 £5,329 £68,088 £183,300 £251,388 £13,412 £2,682 £10,729 Please find some further assumptions below in addition to those listed in the sales
forecast section:
•
During the first year we would be focussing on:
o Month 1 - Preparing and marketing the residential flat ready for rent and
trailing new product lines
o Month 1+2 – Reconfiguring the downstairs to provide the community hub
seating area.
o Month 3+4 – Refit of the shop and introduction of bulk-buying scheme
and new product lines with local suppliers.
o Month 5+6 – Introduction of pharmacy pick up point.
o During the second year we would introduce additional services such
•
The monthly cashflow is allowing for peaks and troughs of services during
seasons, with peaks responding to tourism in holiday times, novelty products at
Easter and Christmas and increased use of the Post Office at Christmas.
Utilisation of volunteers will reduce some current costs e.g. for shop cover,
cleaning and stock-takes and allow for new services to be offered that will
generate a greater financial return.
•
Fairlight Village Shop Business Plan
Summary
2015 -2018
Start Up Investment
To take over the venture and develop the additional income streams, we have
identified there is a need for a £550,000 upfront investment. We need to secure local
funding and community investment initially to show commitment and help to secure
the larger national funding pots.
The breakdown of these costs are below:Costs
Property Valuation
Structural Survey
Post Office Consultant
Legal Formation Fees
Meeting Room/Printing, Refreshment Costs
Laptop
Property/Business Purchase Price
Professional Fees for Property/Business Purchase
Whitegoods for BulkBuying/Shop
TUPE Legal Fees
Conservatory
Renovation Fees (Kitchen moved
upstairs/renovation café/hub area)
Building Materials - Tiles/Paint/Stud Walls
Flat - New Boiler and New Circuits
Disability Equipment for Bathroom /Other
Table and Chairs for Café/Outside Area
Refit of Shop
Café Kitchen Fittings & Equipment
Staff Handover Period
Cashflow Requirement for Staff
Handover/Purchase of Products
Company Car/Van
£ Value
£600
1000
£834
£310
£250
500
£450,000
5000
10,000
1000
22,000
Total
£549,994
5,000
2,500
2000
1000
4000
5000
£10,000
5000
£20,000
£4,000
We have so far secured £2000 towards this overall total, which has paid for the
Property Valuation, Post Office Consultant, Legal Formation Fees, and Meeting Room,
Refreshment and Printing Costs.
Fairlight Village Shop Business Plan
Summary
2015 -2018
Target Sources of Funding
We have identified a range of funding sources, and it is important to adopt a quasifunding approach, as large grant makers such as Power for Change like to see local
commitment and financial contributions. We therefore plan to pursue the full range
of funding sources available to us.
Name
Source
Target Value
Target
Date
Purchase
Social Investment
Business
£30,000
Jan
Plunkett
Foundation
£2000
April
Cover Legal
Costs/Service
Development
Set Up Costs
Service
Development
£30-100,000
Jan
Asset/Business
£30,000
Jan
£350,000
Feb/March
Asset/Service
Development
Asset/Business
30,000 (if
needed)
70,000 (if
needed)
March
Asset/Business
Big Issue
Invest/Unity Trust
Bank
Loan
Renovation and Service Development
Post Office
Post Office
£5000
Community Grant
Community
Rother District
£10,000
Grants
Council
Community
Local Community
£30,000
Shares
Flexible
Asset/Business
Anytime
Refurbishment
April
Leader
Programme
WARR Partnership
£50,000
Feb
Grant
Princes Trust
Countryside Fund
Sussex Community
Foundation
£50,000
Feb
£10,000
April
Service
Development
Renovation
and
Equipment
Service and
Product
Development
Service
Development
Community
Services
Preparation
Big Potential
Local Produce
Scheme
Purchase of Asset/Business
Public Works
Fairlight Parish
Loan
Council
Community
Rother District
Grants
Council
Power for Change Big Lottery
Grant
Loan 0% Interest SE Assist/CAF
Loan with
Interest
Various
Jan March
Other funding sources to be researched and added in due course.