1. How to do socialenterpriseSarah BrownDirector of Marketing andCommunicationsThe Social Investment Business28 November 2011

2. The Social Investment Business Who we are Social enterprise owned by a charity Large scale UK social investor 10 year track record What we do 1100 + investments 5000 > almost 7 million Range of financial products and business support Why we do it Support civil society organisations to do more of what they do best Driving civil society sector public service delivery by helping to create powerful, well capitalised and thriving organisations Supporting social enterprises

3. What we believe Social investment is crucial the market is still young We exist to help the third sector do more of what it does best supporting people and communities most in need Civil society organisations are often best placed to deliver public services local, knowledgeable, innovative and flexible Our mission is to strengthen the sector at both the organisational and strategic level, to be more sustainable, resilient and valued

4. Increasing the sustainability of civil society Engaged investor approach Loans as a tool for sustainability Substantial demand which outstrips supply All stages of lifecycle Range of purposes Tailored Purposes Patient capital Role of Security Business support and capacity building are paramount

5. Investing in civil societyFUND FUNDINGAdventure Capital Fund funding community enterprises to transform neighbourhoodsSocial Enterprise Investment Fund invests in civil society orgs delivering health andDepartment of Health social care outcomes, especially those innovatingCommunitybuilders supports neighbourhood-based, community-ledDepartment for Communities orgs to be more sustainable through mix of loans,and Local Government grants and business supportFuturebuilders enables civil society orgs deliver public servicesOffice for Civil SocietyCabinet OfficeSocial Action Fund supports volunteeringOffice for Civil SocietyCabinet Office

6. Big Society in practice - Alt Valley Community TrustKEY ISSUES ALT VALLEY COMMUNITY TRUSTLOCALISM Large Liverpool community anchor in deprived area.SERVICE PROVISION Delivers wide variety of public service provision including health, childcare, education and training.ECONOMIC GROWTH Partnership employs +80 staff, provides 45 paid training opportunities, combined turnover +3m.SOCIAL INVESTMENT 2.1m Futurebuilders investment to purchase and refurb church for new skills and dedicated training centres for NEETs.SUSTAINABILITY Received Communitybuilders funding to build recording studio, conference centre, caf and crche, purchase vehicles and shops, create catering training facility, and take over sports centre.

7. Challenges and opportunities for civil societyCHALLENGES OPPORTUNITIESLack of mainstream finance Growth of social investmentPublic spending cuts Public Service ReformSpeed and breadth of change LocalismLack of collaboration in sector Big Society

8. MAKING MONEYGenerating Creative Ideas for Income Earning

9. Who are you? Your corporate personality Your values Your vision Your goals What sort of money do you want

10. What have you got to sell? People Skills Experience Willingness Time Services/products what you do Physical resources Buildings Things What/who you know Training Database

11. Creative Ideas Generator Resources Meeting Toys DonatedSkills room itemsFlower Classes/ Arrangements Arrangementsarranging workshops in broken toys in donated itemsLooking Parties Parties Refurbishedafter kids toys/clothes for kidsDIY Classes/ Making Combining/ workshops toys mending

12. Getting new perspectivessolving problems, Better methods

13. Lots of ideas Return How much could they generate? Has the potential market got money? What is the profit not the turnover? Risk How much money will it need? - Set up and cash flow How secure is the income? - Will you be vulnerable to competition? Culture Does it feel right for your organisation?

14. Minimising your riskNew services C) high riskand products Existing servicesand products Minimising Existing your risk New market market

15. Focus FinderMax. future income EUROPEAN FUNDING BUILDINGMin. Future income WEBSITE LOCAL AUTHORITY CONTRACTS Limits fulfilment of mission Helps fulfil mission

16. Secrets of success Test the market Do a feasibility study Develop a business plan Risk analysis critical Implement the plan and revise based on experience Avoid thieves!!

17. Funding your social enterpriseFINANCE STREAMS EXAMPLESGovernment-backed Funds: 60m Regional Growth Fund via CDFIs 20m NE Northern Rock 80m Communities First Fund Social Action FundSocial Investors: Community Builders Social Venture Intermediaries Trusts and Foundations Private/Commercial Investors Big Society Bank* (created by government to operate independently)New income streams and Public Service Deliveryfinancial models: - Payment by Results CC14

18. How can you secure new finance?DEVELOP...... BY.....Capabilities: looking for new opportunities for contractual work talking to service designers and commissioners early on improving governance, accountability, scrutiny and transparencyCapacity: scaling-up: preparing for increased competition increasing understanding of - how to raise it, how to use it identifying partners and being ready to collaborateCompetencies: improving evidence collection for outcomes based contracts developing skill-sets to adapt to changing demands developing and demonstrating skills in management of policy, workload, finance & resources, people etc.

19. Contact The Social Investment Business General Enquiries 0191 261 5200 Website www.thesocialinvestmentbusiness.org