Business Opportunities for Social Firms

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Business Opportunities for Social Firms

• Gerard Higgins
• Social Firms UK

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Rationale for new programme

• Lots of outputs, far fewer outcomes
• Poor investment return from feasibility and
  business planning
• Shortage of delivery partners, (those who can,
  those who might, those who wont)
• Top-down change programme to introduce
  franchising and replication and broaden base of
  organisations creating social firms

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Why Franchising and Replication?

• Dealing with many organisations that are first
  timers to business
• Very positive Shetland Experience
• Building on the tried and tested social firm and
  social enterprise experiences

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Our Emphasis

• Must be replicable
• wowfactor desirable
• Outcomes within timescale
• High margins to cover high labour cost

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Considerations

• Ethics
• Relationship
• Employment
• Finance
• Market

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Support from Social Firms UK

• Direct involvement as franchisor
• Also a Facilitator and supporter
• Modest ring-fenced grant fund
• Access to loan funding

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Business Ventures

• Daily Bread Wholefood Co-operative Social Firms
• Looking at replication under license, (1-2 firms)

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Aquamacs

• Aquarium rental and maintenance opportunity
• Award winning social firm in Cornwall
• Business sector with potential growth
• 3 Franchises being selected to commence in
  January 2005
• Plan to have at least one franchise in each
  region in 3 years

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Recycle ITFirst Franchise in Kettering
established in AugustNew ventures planned for
Manchester and North EastWeEE directive will
have major impact on this sector
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CASA - Homecare

• Build on the successful SHCA Model
• Develop Replicable Systems, and roll out across
  UK
• Support Of SSD - Hole In Current Provision
• Training for Real Targeted At Disabled Other
  Excluded Communities
• Innovative Response To Increased Cost Base/Down
  Pressure On Price - Care Share Associates
• Balance Community Accountability, Democratic
  Control, Commercial Efficiency
• Currently Developing CASA Initiatives Across
  North East Elsewhere

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Six Marys Place Guest House

• Highest Occupancy in Edinburgh
• Only new entrant to Which Hotels 2003
• Replication in Poland
• Capital Asset supporting new developments
• Expressions of interest from Durham, Leatherhead
  and Sheffield

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Wood Plastic Composite Fencing and Decking

• Working with Prosperity Recycling
• Examining market and costs for wood, plastic,
  composite, (wpc) fencing and decking
• Product is resistant to decay, warp, insect
  attack, splintering
• gt20 wpc manufacturers in USA, 60 annual growth
  since 1990s
• Plans to have social firms assembling and
  installing products and possibly making the
  product from recycled wood and plastic

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Pack-It

• Social Enterprise of the year 2003
• Suitable for replication under License to create
  a national group
• Core business of packing, fulfillment,
  distribution and warehousing
• First Ventures in Wakefield and Edinburgh

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Progress and Opportunities

• Edinburgh shop opens Oct 18th
• Northumberland licence agreed, search for
  premises underway
• Expressions of interest from Whitby, Lancashire,
  Devon, Hastings, Glasgow and Nottingham
• Plans to develop 6 social firm franchises each
  year
• Franchisees benefit from 170k investment by
  Social Firms UK
• Ongoing support including, sales, technical and
  marketing

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The Soap Co - Edinburgh

• Neal MacKay, Forth Sector
• Why Forth Sector was attracted to the Soap Co
  opportunity 
• How Forth Sector assessed if this opportunity was
  right for the organisation
• The process used to identify and secure the
  retail unit 
• Plans to begin trading on the Royal Mile

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Café Nova Interchange

• New replication opportunity identified by Social
  Firms London
• Café Nova began in 2001, opens 6 days a week from
  7am to 7pm, healthy food menu, 40 sit-down, 4
  f/t employees, 2 p/t, turnover 3500 pw, 50 of
  staff are disabled, average gross margin 62
• Plan to replicate at Landmark venues in London,
  and shopping centres, to capitalise on its know
  how and create more employment in social firms

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Other Ventures

• Employment agency in partnership with Yes to Work
• Toots a cash free, drive thru laundry
• Inclusive Pub based on traditional pub values
  but good design and enlightened employment (Mark
  Powell from IMBY to outline plans)

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Process

• (1) Dissemination from SFUK and Networks
• (2) Expressions of Interest from members and
  potential partners
• (3) Acknowledge 35 Expressions and copy to
  Network Coordinators
• (4) General Feedback and Prioritisation by
  Networks and SFUK
• (5) Green light, amber light, red light
• (6) Selection and Support by Social Firms UK and
  Networks