Business Model Innovation- Risky Business - CVATplusCORE - York

Naomi Sampson

Development Manager

18 September 2013

Presentation overview

About Tameside

and CVAT

Our history of

income generation

Key questions we

asked ourselves

Planned vs.

organic growth

Culture change

Where are we

now?

Next steps

Important

principles / lessons

learnt

About Tameside and CVAT

Part of greater Manchester city region

Population 220,000

• 51st most deprived area in England

‘Established’ VCS relatively small

CVAT – new organisation (formerly Tameside Third

Sector Coalition and Volunteer Centre Tameside)

• Income £850,000, 27 staff

• Good relationships with sector and partners

• Traditionally done some ‘low key’ income generation

Our Income Generation Journey

2008 (?) increasingly asked:

• “do you know a consultant who can.....”

• “could you do....”

Board aware of ‘impending financial doom’

• Lots of eggs in same basket

• Target to diversify income

Formed income generation sub group

• Board and staff involvement

Some key questions for us

What are we good at?

What assets have we got?

What do people want to buy?

What could we do that could be profitable?

How would it fit with our mission, aims and

values?

How much financial risk do we want?

Marketing: why T3SCplus?

Strong awareness of our ‘brand’ across

greater Manchester

Plus = “in addition to”Helps demonstrate that activity is on top of

‘core’ offering

• Helps us to differentiate what is ‘free’

‘CORE’ SERVICE

Generic infrastructure services

‘Free’ to frontline groups in Tameside

‘ADDED VALUE’

SERVICES

DEVELOPING ORGANISATIONS

Governance reviewsStrategic and Business planning‘Fit for Purpose’ reviewsPerformance Coaching

CIVIC PARTICPATION

Participatory eventsImproving 3rdSector ‘Voice’

GRANT SCHEME DEVELOPMENT &

MANAGEMENTScheme evaluationsParticipatory Budgeting

EQUALITY AND DIVERSITY

Obligations and ‘in practice’

Organic or planned growth?

Planned growth• Positive:

• Clear strategy / goal

• Easier to see what

success looks like

• Negative:• Higher start up cost

• Higher financial risk

Organic growth• Positive:

• Can try different ideas

out / flex

• Lower financial risk

• Negative:• No focal point

Organic or planned growth?

• CVATplus grown organically

• No clear brand or strategy until this year

• Low levels of investment

• No start up cost

• No dedicated staffing

• Marketing cost = £500

Culture change - internally

Expectations within staff team

• “everyone can do something”

We’re charging: can we meet the quality

expectation?

We’re asked our view / expertise – it’s okay

to ask about payment!

Financial systems and processes

Growing skills

Culture change - externally

Honesty with frontline organisations

Ensuring we still meet our mission

One size doesn’t fit all – flexibility

Alternatives ways to ‘pay’ for services

Money, money money (a-ha)

Income generation target factored into

budget

• But its not real money ‘til we’ve secured it

• Risk if not achieved – deficit position / reserves

What is the real cost?

Cashflow is king

• Agree payment profiles with clients

• Invoice promptly

Where are we now?

• 2012/13 generated £64,227

• Variety of products delivered • Business planning / ‘Fit for Purpose’ reviews

• ‘Building third sector engagement’ for 2 LAs

• Grant programme development / grant management

• Bespoke training delivery

• equality and diversity; sustainable funding, volunteering

• Clearer about pricing model

• Separate trading arm

• Exploring a membership ‘offer’

Development Service

A

‘Self Serve’ – via website (with online assessment tool which then produces report and signposts you to relevant resources online and e-learning courses.Optional 1 hour mentoring session with DW (can be done online/telephone) to help steer in right direction to relevant resources.

Free (except e-learning charge)

B

3-5 hours IAG / mentoring – likely to be used for:• Start up support (legal form; governing doc; committee dev; planning)• Funding advice – development of bids / critical friend service• Problem solving – financial management•Volunteering support re best practice•Accessing courses within L&S programme (online or f2f)• Supported/underpinned by provision of toolkits / resources

Free

C

Performance Improvement Service (intensive support 5 hrs +); may use Specialist Support Fund to cover)• Strategic / business planning • Bespoke training• Quality Assurance work• Funding strategy development work • Marketing strategies

£ (based on charging model)

Important principles for us / lessons learnt

Fit with mission, aims and values

Core offering remains free at point of access

‘Pay what you can afford’

• CVATplus for Tameside VCS orgs

Not always about ‘money’ – other ways of

doing business e.g. sharing

Important principles for us / lessons learnt

Bringing people with us

• Staff and stakeholders

Happy clients best form of advertising

Work with associates you trust

Understand your costs

Be aware of your competition and your USP

Contact details

Naomi Sampson

Community and Voluntary Action Tameside – CVAT

Website: www.cvat.org.uk

Tel: 0161 339 4985

E-mail: naomi.sampson@cvat.org.uk