Book pages - Community - DTAS Community Ownership Support Service

Breakeven and sensitivity

Breakeven analysis is an examination of costs and income of a business showing what needs to be achieved to ensure that revenue costs are equal to revenue income – Breakeven Point (i.e. so no loss is incurred) – and what additionally may need to happen to achieve a profit/surplus of revenue income over revenue costs.

Similarly, a sensitivity analysis allows the different elements of the costs and income of a business to be manipulated to see what the financial impact might be.

As part of the work of compiling revenue projections it is possible to use breakeven and sensitivity analysis to consider both the impact of financial risks and to provide an input into decision making about the price that should be set for the services or products of the business or the level of performance required (levels of occupancy, numbers of bookings etc) to ensure that the venture does not start making a loss.

Breakeven Point – an example A development trust called “Offices ‘r’ Us” is planning to bring to market 10 new single office units in an old converted school. The following shows fixed and variable costs that are associated with the project.
Cost item	£
Fixed costs (annual):
Mortgage interest payments on loan to convert the school	30,000
Business rates	2,000
Caretaker salary	14,800
Building insurance	4,000
Lift maintenance	1,200
Variable Costs:
Heat and Light Standing charge per unit quarterly	20
Heat and light usage charge per unit quarterly	130
Telephone and internet costs per unit	370
Cleaning costs per unit (weekly)	10
Each office is being marketed at an all inclusive cost of £200 per week What is the breakeven point? (i.e. how many units must be occupied to make the venture break even?)
Answer
Fixed costs per annum	£52,000
Variable costs per unit per annum (£20×4 + £130×4 + 370×4 + 10×52) The x 4 multiplier is for quarterly variable costs and the 52 multiplier for weekly costs	£2,600
Total Contribution per unit per annum (£200 per week x 52 weeks = £10,400 per annum – £2,600 = £7,800)	£7,800
Total Number of Units = 10
Breakeven point = Fixed Costs (£52,000) divided by Contribution per unit (7,800) = 6.6 units
So 7 units need to be occupied (a 70% occupancy rate given that there are 10 units) for breakeven point to be reached.

Risk assessment

The purpose of this section of the Business plan is to show that:

All the risks involved in the delivery of the business plan have been identified.
There is a plan to address them – should they arise – that is based on an assessment of their impact on the plan.

What is Risk?

Risk is defined as uncertainty of outcome – whether positive opportunity or negative threat, of actions and events. Risk has to be assessed in respect of the combination of the likelihood of something happening, and the impact which arises if it does actually happen.

Risk management includes identifying and assessing risks (the ‘inherent risks’) and then responding to them.

Good risk management allows an organisation to:

Have increased confidence in achieving its desired outcome
Effectively constrain threats to acceptable levels
Take informed decisions about exploiting opportunities

Step 1 : Develop a risk management policy

This section of the business plan should outline the result of the risk assessment which can be developed in four steps: If you are already an established group it is likely that you will have a risk managmenet policy in place. However, it could be a document that is not reviewed or implemented! Given the inherent risks (and opportunities) of taking on the ownership or management of an asset, it will be important to review this, or set one up, at the outset. The risk management policy details the approach to risk management in an organisation. It lays out the principles an organisation will follow for managing risk. The policy also outlines the process for managing risk and informs which key personnel are responsible for each element of risk management within the organisation.

Step 2: Identifying risks

All the risks associated with the project should be identified, ideally using a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) or a PESTLE Analysis (Political, economic, social, technological, legal and environmental) with project stakeholders. The risks identified may include the following:

Step 3: Risk assessment

Potential risks and impacts
Area of risk	Potential impact
Management/Governance Lack of planning, poor decision making	Potential for financial losses Reputation Staff turnover/effectiveness
Operational Poor flow of information Risk Control, health and safety, contract risks, competition, relationships with suppliers Poor marketing	Financial losses Impact on service/sales Legal action Reputation Staff turnover/effectiveness Delays to plans
Environmental / External Government policy/regulation Commitments of landowners / funders / other partners Performance of contractors Lack of planning, systems for disaster planning Market changes in demand during project implementation Technological change	Financial losses Staff skills
Financial Financial assumptions in budgets and estimates are inaccurate Timing of income assumptions is inaccurate. Lack of financial management and control procedures	Financial losses Cash Flow difficulties Legal action
Legal compliance Data protection Copyright Equality Race Relations Health and Safety VAT Employment Law Employee pension provision	Legal action Fines and penalties Reputation Action by regulator(s)

Download this table at the end of the page

Once identified the risks to the proposals in the business plan can be assessed against two questions:

How likely is the risk?
What will happen if it does occur?

A simple scoring system can be used to decide which risks are the most important to address and agree plans for mitigation. Once this has been done, those which score highest should be addressed first and then all others addressed in turn. Finally you are left with those which are both unlikely and will have limited impact and you can develop a plan to address them should they arise.

Step 4: Risk control – take action

The risk assessment can be developed into a risk control strategy by considering whether each risk to your plans can be addressed by sharing it, avoiding it, managing it or accepting it. Ideally it should be possible to manage all of them.

For example a risk to a project may be reduced rental income due to a high turnover of small business workspace tenants.

This risk can be avoided by either hoping it will not happen or trying to pass it on to the tenants by increasing notice periods for tenancies in letting and leasing arrangements.

This risk can be managed by having excellent credit control and tenant liaison processes so that problems with payments are quickly identified and by developing active waiting lists for tenancies from good publicity and marketing.

This risk can be accepted – on the basis that small businesses have high levels of failure and that the risk is a feature of the business of providing small business workspace.

Staff recruitment

You may wish to include staff recruitment as part of your business plan and you should be aware of the process involved in hiring people to complete roles in your organisation. There are standard elements of recruitment, whatever position is being appointed.

The following guidance applies if you are starting a new business and creating new staff positions.

Job Analysis

Prior to recruiting to a position, it is important to gather information about the nature of the job. This should include:

The purpose of the job
The tasks associated with the job
The outputs required

If the position is a result of a vacancy within the company, it is advisable to check if changes within the existing role are required. Exit interviews can also inform whether changes may be useful.

Job Description

The job description provides information to potential candidates and can aid performance assessment when the person is in post. The description should include:

The job title
The salary range
Outline of the overall purpose of the role
List outlining the principal duties and responsibilities of the post

Person Specification

The person specification sets out the essential and desirable competencies required to carry out the job. These requirements are generally used to inform the criteria used to shortlist applicants. Such competencies include:

The required skills
Knowledge
Experience
Education
Training
Criteria relating to personal qualities that are essential to the delivery of the role

This information also informs prospective candidates as to their suitability for the job.

Inviting Applications

Marketing the post correctly ensures the best response. Any advertisement should be clear and reasonably concise. It should include:

The relevant information, such as details of the organisation’s activities.
Outline of the job including essential criteria.
Reward package
Location and
Details of how to apply

There must be no discriminatory references and a statement of commitment to equal opportunities should be included in the advertisement.

It is good practice to acknowledge receipt of application forms.

Generating interest and advertising

There are a number of methods that can be adopted in order to generate interest, including:

If you are a larger organisation you might want to engage an executive search recruitment agency. These companies often specialise in a particular area of recruitment and therefore have the knowledge to attract an appropriate pool of candidates. This method is often suitable to specialist fields, e.g. in the construction industry.
Engaging a commercial recruitment agency. Commercial agencies have a register of available candidates in particular types of work, e.g. secretarial and administrative.

However, most asset transfer groups will be smaller and you will be perfectly able to prepare an advert and advertise yourselves.

Advertising on-line via your Facebook page. This has become a very popular platform for recruitment and is inexpensive by comparison to some other methods of advertising.
Advertising in the local newspaper or community newsletter.
Keep the text in job adverts short and specific. Longer pieces are more expensive and can be less eye-catching.
Avoid using generalisations such as ‘appropriate qualifications’, instead specify which ones are needed. This will make it less likely that unqualified people apply for the job. This will save time in the screening process.

Selecting Candidates

The initial part of this exercise is called short-listing. This is carried out by measuring the details in an application form against the criteria set out in the person specification.

The Interview

The next stage of this process is the interview. An invitation letter or email should be sent to invite candidates to the interview. This should state when and where the interview will take place and who will be conducting the interview. It should also state whether the organisation will pay travel expenses for the interview.

The interview should be carried out by more than one person, e.g. line manager / supervisor and HR manager / representative, and it is essential to be well prepared. The interview panel should read the application form and familiarise themselves with the job specification. Questions, relevant to the business and the job in question (see person specification), should be prepared beforehand.

This is a two-way process where the candidate is also given an opportunity to find out more about the business. An assessment, based on the essential and desirable criteria, can then be made regarding the applicants suitability to the role.

References

It is important to follow up references prior to making a job offer. It is usual for applicants to give details of former employers, college tutors, etc. who will be able to check factual information. Express permission should be sought from the candidate before approaching a current employer.

Appropriate checks

Employers have a responsibility for checking that applicants have the right to work in the UK. A list of appropriate documents is available from the Home Office.

It is also reasonable to ask candidates for proof of qualification or licences.

Making an Appointment

A decision should be made as soon as possible following the interview. It is helpful to use a scoring system based against the criteria set for the post. This method enables comparisons to be made between candidates.

You would usually phone the successful condidate and follow up with an offer letter to the successful candidate, which forms part of their contract of employment. This should state the title and salary for the position, together with how the salary will be paid, the hours of work and holiday entitlement.

It should also include other relevant information, for example, if the offer is subject to satisfactory completion of a probationary period and, if so, for how long; if a company pension scheme operates within the business together with the details. It is also good practice to include a copy of the job description and person specification. You should request that acceptance of the position (and the terms stated in your offer letter) is agreed in writing.

It is also good practice to inform all unsuccessful applicants of the outcome as soon as possible, but wait until you have had a firm acceptance from your chosen candidate!

Induction Process for New Employees

An induction process enables new employees to become fully briefed about the organisation and other members of staff and enables smooth integration.

It is also advisable to familiarise yourself with Employment Law when involved in recruitment/HR topics.

What to avoid

Do not use discriminatory language, whether intentional or unintentional. This means not using gender or culture specific language.
Do not be over personal or ask questions based on conjecture.
Be friendly but try not to be over-inquisitive. If the candidate is not appointed this could be construed as discriminatory. Avoid opening yourself to risks by being prepared for each stage of the process.

In job adverts keep the text short and specific. Longer pieces are more expensive and can be less eye-catching. Avoid using generalisations such as ‘appropriate qualifications’, instead specify which ones are needed. This will make it less likely that unqualified people apply for the job. This will save time in the screening process.

Taking over existing staff

If you are taking on a building that is already being run by a relevant authority you may be taking over management of existing staff which is then subject to regulations.

If this is the case then you must be aware of the requirements in TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006), including, in particular, the pension liabilities that may arise on the transfer of staff from the public sector.

In most cases the community organisation will require to become an “admitted body” for the purposes of the local government pension scheme. A briefing note on this can be found at the bottom of this page under Relevant Resources.

Policy development

Policy development is the process of developing procedures that set out how staff and volunteers should behave and what responsibility the organisation has towards the people they employ. It is useful to include in your business plan what policies you will need to implement, to show you understand what is required.

Policy development needs to happen for when staff and volunteers start to work for your organisation. Policies are needed primarily for two reasons:

For legal reasons. Organisations have many statutory obligations to fulfil. Failure to do so opens up the possibility of legal action, eg employment tribunals.
To ensure clarity. Staff should have guidelines to refer to that direct their behaviour in certain situations. This means the same procedure is followed in each case.

There is a wide range of policies needed by an organisation. This list is a good place to start but is not exhaustive:

Sickness and Absence
Maternity
Paternity
Annual Leave
Dependents Leave
Special Leave
Homeworking
Equal Opportunity
Recruitment and Selection
Grievance
Disciplinary
Bullying and Harassment
E-mail and Internet
Data Protection – GDPR
Social Media

Some of these policies will also be included in employee contracts (annual leave, maternity, paternity, sickness etc.)

Several policies follow a standard format. The quickest and cheapest way to get policies of this nature is via the internet. ACAS have guidance on all of these policies.

An alternative is to talk to other organisations that are more developed. Use their policies as a template and tweak to meet your needs.

In addition to this it is advisable that you seek advice either from your legal team or a specialised Human Resources (HR) consultancy.

Ask other organisations for recommendations. A HR consultancy may seem like an unnecessary cost at an early stage. However, their services can prove vital.

If you are a small organisation you are unlikely to have the resources to have a dedicated HR person, a consultancy which specialises in employment law is one alternative. They can be very helpful at resolving any staffing issues that occur at a time that is stressful for the organisation and management team. Be careful to choose a company you feel comfortable with. A good working relationship is crucial, as they will be taking on a position of trust.

The best time to put policies in place is when you first start employing staff or using volunteers. With every extra person employed the risks of conflict and / or issues grows.

Several policies have statutory minimums (maternity, sickness, annual leave). While putting policies together make decisions about whether to stick to these minimums or set a higher level. For example many organisations have a more generous maternity policy than the statutory obligations, giving mothers more than six weeks on full-pay. Be careful and always consider affordability. Take account of all potential consequences of the policy you set. Small organisations should be wary of offering generous benefits, as they are vulnerable if several employees take leave at once.

Policies are not just an exercise in protecting your company. They will help employees understand what is expected of them and what they should expect from the organisation. Make sure all policies are included in an induction pack that is given to all employees when they first start. If policies are added or changed then make sure staff are informed. This can be done via notice boards or by email / intranet. Doing this ensures that staff are aware of all the policies.

What to avoid

Avoid vague or general language that may cause confusion and ambiguity. Policies have to be clear and precise and leave no room for misinterpretation. Be concise and only use as many words as is needed to convey your message.

Initial considerations

A business plan is used to serve a number of purposes:

To secure support for the project or organisation to which the plan relates.
To enable regular checking of progress and re-planning of activities if necessary.
To communicate with project stakeholders.

Particular care needs to be taken with asset projects that involve objectives which allow cross subsidy of some activities by others. For example, it is assumed that surpluses from some elements of the project (rental income from housing and workspace) will cover the costs of others (community centre facilities or community development activity). For these objectives to be fulfilled there must be a focus in the project business plan on management and maintenance of the assets. If they do not perform well then it is not possible to cross subsidise other activities.

Business planning: initial considerations
Audience	Who will read the plan and why? Investors/ funders? Staff only? This will affect the levels of detail and content.
Time period	What period of time is the plan to cover? One, three, five years? The time period chosen is particularly important to establish a credible view of the business potential, particularly if it involves loan finance.
Range of activities	Is it intended only to include the asset and how it will be used, or will it be linked to the delivery of other programmes that are to be located in the asset?
Stand alone or linked?	It may be that to be viable an asset project needs to provide subsidy to or receive subsidy from other activities.
Research and evidence base	The initial assessment for the project may have collected some evidence but this may need to be more detailed dependent on the range of activities to be included.
Related strategies and plans	Larger organisations may already have business plan which an asset project may be linked to or stand alone.

Demonstrating impact

Demonstrating impact is about showing other people what your organisation and your development have achieved. The focus here is outward looking, emphasising what you should do to shout about your successes.

Case studies are an excellent way of highlighting success. Just as a picture tells a thousand words a vivid story is more powerful than a page of dry statistics. Talk to people who have benefitted from the work of your organisation and find out what differences it has made for them.

Collecting a few of these stories is a powerful way of communicating impact to partners and funders. It brings the focus back to people, the heart of any development or organisation.

When demonstrating impact, presentation is crucial. Think about innovative and creative ways to show your success. Written reports and booklets have their place but new media opens up a range of eye-catching and cost effective alternatives.

Websites are now the first port of call for people who want to learn about your organisation and development. Make sure it is easy to use and clear to follow. Include multimedia like videos on the site to bring your organisation to life.

Make full use of your resources and networks. High-quality videos can now be made relatively cheaply. You are very likely to be in contact with someone who can help. User-led content is more powerful and it enables people to build up their experience.

Highlighting success should be integral to your work, not just an add-on. When planning a project think about how you can leverage publicity opportunities, always ensuring service delivery is not compromised.

Try not to overcomplicate. Only adopt a strategy if it is useful given your circumstances and resources. Avoid going through the motions and do not be afraid to do something different to stand out from the crowd.

Detailed feasibility

If an initial assessment results in the decision to move to a more detailed feasibility, agreement will be needed on the further work that will be required and how to secure the resources necessary to make it happen.

The information gathered for the initial assessment will have to be researched in more detail and verified with the benefit of professional advice. This will provide important information to be included in the project business plan.

A Feasibility Study report can help your group to seek support, but it is also possible to simply include results of the detailed feasibility process for the project into the business plan.

Either way the feasibility study or business plan should draw on research or other evidence which supports assumptions made about the projected capital and revenue income proposals to manage the project when it is complete.

Initial assessment

This involves gathering information and advice which can support the project proposals and show how the objectives for the project can be accomplished from a technical, legal, financial and operational point of view.

To do this at such a level of detail that funding could be secured may require significant resources and it is worth considering project feasibility as a two stage process – an initial assessment and a detailed feasibility study which will require resources to pay for more advice.

There is a tendency at this stage to assume that a lot of professional help is required to make an initial assessment of the project. This will depend on what support and skills are available to you, but an initial assessment is intended to be broad brush based on some professional advice, local research and budget estimates rather than professionally verified market information or construction cost estimates which would be part of a detailed feasibility process.

An initial assessment of a project usually takes place when:

A site or building has been identified for the project
Project objectives have been agreed
A group of people or organisations are identified who can manage the process and report back to all stakeholders.

The main purpose of the initial assessment is to:

A) Test whether the project objectives can be put into practice and to refine them in the light of the information and advice that is gathered.

The initial assessment will address the refinement of the project’s objectives to improve its feasibility (whether it can be done) and viability (whether it can survive by generating income to cover its costs).

For example, it may be the objective of a project to provide a community centre or workspace that is affordable to local organisations and businesses. This objective may be at odds with the need to repay a loan needed to build them because the capital costs of their acquisition and development could not be entirely funded from grants. Alternatively it may not be a problem if it is considered that a subsidy to those organisations and businesses can be met by other grant fundraising efforts or from other income generating elements of the project.

In addition, the project objectives may have implications for the operational requirements of managing the assets into the future. For example if the project involves providing housing for people on low incomes to rent or to buy it may be necessary to support them through the process of buying or renting the property by providing information and one to one advice and help.

The important thing is to be as clear and specific as possible about what the project is to achieve and how the social and community objectives (for affordability for example) are balanced with the financial requirements to cover costs and liabilities with income. This will enable the feasibility study process to identify alternatives that can accommodate all project objectives.

B) Test whether the project is viable and sustainable and shows enough potential for success to conduct a detailed feasibility study.

The initial assessment is a process of gathering information and predicting likely costs and income for both capital expenditure on the land and buildings involved and the revenue costs of running and maintaining them into the future.

It will be necessary to undertake research into all these questions and then bring the results together to consider a final view on whether the project has enough potential to be developed in more detail and to secure the resources that might be needed to investigate feasibility fully.

The initial assessment for the project should at a minimum research and answer the Project Make or Break Questions below. The answers that are possible initially will become more detailed as more research is conducted. Considering all of them at the initial stage and filling in the feasibility checklists will demonstrate very quickly how much research needs to be done. This will enable answers that are supported with reliable evidence to make the initial assessment of whether the project is feasible, viable and sustainable and to make a decision about proceeding to a detailed feasibility process and business plan.

Project make or break questions

Is the potential land/building available?

If so, on what terms and conditions eg lease or ownership; are there title conditions restricting use or development?

Is this certain?

Has a legal search been done?

Can the asset be developed to meet project objectives from a technical point of view?

For example, is it possible to fit what is wanted on the site/building; will it meet planning standards and policy and therefore get planning permission?

Is this certain?

Has an architect looked at it? Has a surveyor looked at site / building conditions?

Is there sufficient demand for what is proposed to make the project viable?

For example is there a demand for workspace, shops or housing at the right price to enable the project to cover costs.

Is this certain?

Have property agents been asked about the market and prices locally?

Are permissions necessary and are they likely to be given?

For example, planning permission or listed building consent.

Is this certain?

Have discussions been held with local planners or local planning policy documents been examined? Has Historic Scotland been consulted?

Is there sufficient stakeholder support?

Is this certain?

What consultation has taken place about the project?

Is the local council on board? Are there funders that can be approached?

Is there an organisation or individual people who can make it happen?

Is this certain?

Does an organisation need to be set up? How much time and resources do people have to pursue the project?

Does the organisation (if applicable) promoting the project have the legal powers to do what is proposed and is it prepared to champion the project through the process?

Is this certain?

Have the governing documents of the organisation been checked? What discussions have there been about the process of pursuing the project and what it may involve?

Is there likely to be financial support available to implement the project?

Is it available on the right terms and conditions?

Is this certain?

Has anyone done any research or spoken to funders or other local organisations who have successfully raised funds for a similar project?

Is there enough time to plan and implement the project?

For example, is it possible to plan and fund raise for the project before it is proposed to be demolished / sold / falls down?

Is this certain?

Have the key external dates for the future of the building or land been identified? How firm/flexible are they?

Any there any other barriers?

How can they be overcome?

Is this certain?

Is there a way around or a way to address the barriers that have been identified?

The initial assessment should also include a ‘timeline’ or Gantt chart for the project. These chart a specific timescale for the project against the tasks that have to be completed to enable planning to meet deadlines (for example funding deadlines or construction contract periods) and monitor progress. Particular care should be taken when estimating the time needed for design and construction processes as they are dependent on other bodies (for example securing planning permission) and may be subject to delay and agreement on design details and contract arrangements can be protracted.

Viability and sustainability

Assessing the viability of the project

Projects that are not viable are simply those that cannot meet all their costs over a specified period. In a land and building project that means that the finance cannot be raised to acquire and develop the asset or enable the asset to be used by the project target market at a price that will cover the costs to provide the service.

It is perfectly possible to have a project which will take some time to become viable. In that case there may be a need for some grant subsidy or other sources of funding to cover this gap until income levels grow. This must be shown clearly in the assessment and outline how the risks of the funding are necessary to bridge the gap and cover the repayments of any loans etc that have been addressed.

If income is greater than costs then the project is potentially viable (given that this is an initial assessment).

Use the information that has been gathered from the initial assessment Feasibility Checklists below to consider whether there is evidence that:

The capital funds can be raised to acquire and develop the land and buildings that form part of the project objectives. A key element of this is any subsidy available to the project from paying less than market value for the land and buildings or from grants to meet the costs of development or improvement.
There is sufficient demand for use of the project that it will generate revenue from sales or lettings to cover all the costs of running and maintaining the project when it is complete. This is particularly important if all the capital costs cannot be met from grants and subsidies and there is a need to borrow and commit to loan repayments.

Feasibility Checklist – Capital What is needed to implement the capital development process for the project (the land or building acquisition and its development or improvement)?
	Costs £	Income source
Land/Site acquisition
New or revised legal body and/or policies
People (project manager)
Construction
Insurance
Fixtures / fittings / equipment
Advisors (Professional fees)
VAT
Any other needs? (specify)

Feasibility Checklist – Revenue What is needed to run and maintain the project when it is complete?
	Annual Costs	Income Source
People/skills (staff salaries)
Running costs
Insurance (employers, public, professional indemnity)
Contractors (service agreements)
New or revised legal body (administration)
Finance Costs (loan repayments)
VAT
Any other needs (specify)

Checking the sustainability of the project

The initial assessment of the project may show that it is viable in financial terms. For example a project involves the building of 10 houses which are to be owned by a Trust and let to tenants at intermediate rents. All the capital costs of acquiring and building the housing can be met with a loan and grant. The revenue costs of managing the houses and the loan repayments will be met by the rents.

How sustainable this arrangement will be depends on whether all the operational implications of maintaining and managing the housing and administering the Trust that owns and manages it have been considered in sufficient detail. If the financial assessment of viability does not include all these implications both viability and sustainability is undermined.

The initial assessment will need to convince all stakeholders that any obstacles to the project can be overcome and that in the end a viable and sustainable asset will emerge from the process. The assumptions in the assessment about costs and income will be tested by potential funders and if the project requires revenue subsidy initially to work towards viability, it will be necessary to be clear about the particular community benefits and impacts that the project will offer in the long term.

If your group is satisfied that the project is viable on the basis of the initial assessment, it may be necessary to undertake a detailed feasibility study of the project. Alternatively, you may proceed with developing your business plan, which will incorporate elements of your initial assessment and further investigate the viability of your proposal. How you decide will be dependent on the scale of the project and the risks involved.

Finance and funding

Asset development and transfer projects can carry significant financial risks. Before undertaking your project you need to know the key building blocks that are necessary to enable a project to be implemented and successfully managed from a financial point of view

This is true for both existing organisations looking to develop a project and new organisations that are established specifically to take on ownership and management of a land or building project.

Before we move on, let’s be clear what we mean when using the words funding and finance. Generally finance and funding are interchangeably used but they really are a bit different, and here is why.

Funding: in the context of the third sector, funding usually means money provided by grant allocating bodies for a specific purpose or project, which you do not need to pay back (although there may be certain conditions attached).
Financing is a process of receiving capital or money for a business purpose, and it is usually provided by financial institutions e.g. banks or other lending organisations e.g. Social Investment Scotland with the expectation that it will be repaid.

Financial Planning for an asset transfer or any project is the process of identifying financial goals and budgets. There are three components in this process:

– estimating costs
– identifying income
– preparing financial projections

For small asset ownership projects will often just use grant funding. But if the project is a major one it is likely that the money needed will come from a mix of grant funding and other finance eg borrowing.

Business planning

COSS has developed a training module for writing a Business Plan which is available in conjunction with a training webinar that we run on the topic. Check with your COSS advisor when the next training webinar is due to be held.

A business plan is probably the single most important document in relation to your community organisation. It explains:

What the project proposal consists of.
What value it brings to the organisation and to the community.
The role of the asset in your plans.
Why the project was selected.
How the project will be managed, delivered and monitored.
How the project will be funded.

A business plan helps you to think through all aspects of your project

The sector.
Your customers.
The competition.
The opportunities and threats you face.

It takes a close look at your organisation so you can objectively and honestly report on your resources, skills, strengths and weaknesses and decide what needs to be done to rectify any shortcomings.

A business plan will enable you to determine the financial aspects of your business model. It will allow you to prepare a financial report, cash flow forecast and a budget that will show you where you currently are and what your finances might realistically look like in the future.

As well as informing your committee, members or others close to the organisation, a business plan allows you to show funders and other interested parties that your business is:

Financially viable.
Provides value for money.
Capable of being effectively implemented.
Able to keep going into the future (be sustainable).

There are no golden rules to writing a business plan. Every project is different and this will be reflected in the business plan you create. We have developed a basic template for a business plan which lists the areas you should cover and what they should contain. The main areas are:

The summary (always written last) about your organisation.
The project/business model with key milestones.
A work plan and monitoring plan.
The market you are working in and a related marketing plan.
Resources and financial information including a fundraising plan.
A risk assessment.

Who should write your plan?

You know your own organisation best and can determine what additional information should be added to any section. For example, a project heavily reliant on a building would have to include a maintenance schedule and should account for finance required for ongoing, and likely increasing, maintenance costs as the building ages. In addition, a ring-fenced financial reserve should be built up over time, to renew and invest in the building to reduce future repair costs.

It may be possible and practical for different people to work on different sections of your plan independently or in teams. Once each section has been put together you can then collate the information and create a cohesive plan.

Throughout the process continually ask yourself, ‘what evidence is there to back up my assertions?’

Sometimes it can be useful to involve business planning or sectoral consultants with expertise in the business field you intend to operate in to help you write the plan. This can be valuable because it offers:

specialist expertise e.g. business plan writing
specific sectoral knowledge e.g. running a cafe
an outside perspective.

There are organisations that can help you identify relevant external expertise. DTAS/COSS can identify consultants. Some of your stakeholders – enterprise agencies, funders etc may also be able to make suggestions. Other sources of support might include Just Enterprise where you may be able to access a small number of consultancy support days.

A good first step is to review the Business Plans produced by other organisations. Public bodies publish these documents on their websites as part of the asset transfer process, so you can access other community groups documents to get a sense of what is required and the areas you need to cover.

Follow the links through on the left of the page for more details on the different stages of developing your plan.

Feasibility & business planning

Feasibility and Business Planning are important ways to research, plan and develop your CAT. The amount of work completed by an organisation on these two areas should be proportionate to the scale of the CAT and the risks involved.

Your group can complete these processes if you have access to the required skills, or you can work with external consultants if you can find the required funding.

There are significant overlaps between the two areas, but they can be roughly defined as:

Feasibility is about establishing that the asset transfer provides the best way for the organisation to meet its intended objectives and whether taking on the asset is a viable proposition.
Business Planning helps you to think through all aspects of your enterprise project: the sector, your customers, the competition and the opportunities and threats you face. It takes a close look at your organisation so you can objectively and honestly report on your resources, skills, strengths and weaknesses.

Assessing the feasibility of the asset is one of the fundamental steps you will take in relation to an asset transfer opportunity. It is critical that due diligence takes place to ensure that the asset presents your organisation with an opportunity to sustain its operation rather than being a liability.

Key research will be required into the market to ensure there is clear demand for the proposed use of the asset. There is also a need to analyse the organisation’s capacity in relation to taking on the management or ownership of an asset and ensure there is a strategic fit.

Setting up an organisation

A key issue in asset development and transfer projects is the establishment of new organisations. If a new organisation is required, advice will be needed on its legal structure.

There are many reasons why a new organisation may be required to take ownership of an asset project either before or after it is improved or developed, for example:

There is no existing organisation that can acquire a suitable interest or stake in the ownership of the land and buildings involved.

There is no other organisation that can enable the degree of community control of the project – through formal membership or share ownership of the organisation – that is required by the Community Empowerment Act.

There is no other organisation that is willing or able to take on the implementation of the project due to their legal structure and powers, their lack of track record or financial strength.

There are a number of legal structures that can be looked at depending on the specific circumstances of an asset project. The most important thing before the options can be evaluated is to be clear about what the asset is to be used for and what your organisation will be doing with it, both in the present and into the foreseeable future.

Starting up

Don’t rush – if you are exploring taking on an asset, whether it be management, lease or ownership, it is very important that you don’t rush into setting up a new organisation until you have worked out what it is you want to do and whether it is actually feasible.

First steps – if you are a new group that has come together to explore asset transfer then you will probably be hoping to apply for some funding to some initial feasibility work. The easiest way to do this is to see if you can use an existing group, that is already established with a bank account, to do this for you. This is a role that a Community Council or a Development Trust could do for a group.

Constituted group – if this is not an option, you could consider adopting a basic constitution which will allow you to set up a bank account. These means you can apply for funding to do your feasibility work, and explore the first steps. This constitution can be quite basic – just enough to get the job done.

Moving to a legal entity – once you have made up your mind to definitely submit an asset transfer application or take ownership of an asset through other means you will need and want to set up a legal entity.

To become eligible for any form of asset transfer under the Community Empowerment (Scotland) Act 2015 a group needs to be considered to be a “community transfer body”. Full details on eligibility can be found in Section 5 of the Guidance for Community Transfer Bodies. In summary, this can either be a “community-controlled body” or a body designated by Scottish Ministers – further details on eligibility can be found in the Community Group Structure section of this site.

If you are setting up a new organisation for your asset transfer, you can download Model Documents suitable for Asset Transfer from the Scottish Government website.

If you are unsure what type of organisation is best for you, SCVO has information on the various legal structures, but always check with your COSS advisor that these are eligible for asset transfer.

Most existing organisations have to make some changes to their governning document to be eligible for asset transfer. You can discuss this with your COSS advisor who will be able to assist you.

Considering your Legal Structure

Beyond eligibility for Asset Transfer, there are other key issues to consider when choosing a legal structure for a new organisation:

Are you a community of geography or community of interest?
Might you want to raise funds through running a community shares issue?
Will membership be open to organisations as well as individuals?
Will the organisation employ staff who will also be members?
Will the services provided by the organisation only be available to members?
Conflicts of Interest
Trading
Payments of dividends
Use of profits and surpluses
Limiting liability
Fundraising for grants
Powers to borrow money
Involvement of volunteers
Ability to sell interests in land and building assets and on what terms
Whether to take advantage (given other project objectives) of the tax and fundraising benefits of being a charity?

Useful Links:

The Scottish Council for Voluntary Organisations (SCVO)

Office of the Scottish Charity Regulator (OSCR)

Involving your community

Involving your community in developing and managing your community asset project should be a key part of your plans. It can seem daunting if you haven’t done it before, but there are plenty of ideas that can help you get started.

It is vital to have the support of your community in order to ensure long-term success, and to demonstrate to relevant authorities that there is a need and demand for your project.

The publication “Involving Your Community” (download below) helps you to design appropriate plans for engaging with your community. The section Community Place Plans also help you to think through how you might approach this.

Effective community involvement is vital to ensure your project is a success. Involvement can range from informing and consultation to active engagement in taking decisions and implementing the project. The degree of involvement and the way of involving people has to be matched to your community, the needs of your project and the stage it is at.

Community involvement should be planned from the start of the project and should be a continuing part of the work. You may wish to undertake a Community Place Plan which can help to determine a wide range of needs and solutions to community issues that demonstrate your project as a good fit.

There are a range of approaches you can use and it is normally best to use a combination of them during the lifetime of a project. There are many sources of advice and support. A good place to start is to identify another project which has been successful in involving their local community and talk to them about their experience. Your COSS advisor can help with this. You may also wish to refer to the National Standards for Community Engagement.

Involving your community in your project from the outset and at every stage will bring benefits for your project, your organisation and your community. These can be summarised as:

For your project

Ensuring that the project reflects local needs, has local support and does not have any adverse unintended consequences.
Providing new ideas and different perspectives.
Identifying new partners and collaborators.
Finding people who can bring new skills, knowledge and experience to the project.

For your organisation

Demonstrating your accountability to the community.
Creating links with the community and ambassadors for the project and your organisation.
Identifying and building new support, skills and experience that your organisation can potentially use for other projects and work in the future.

For your local community

Strengthening local pride, sense of community and quality of life.
Linking people together so that the social capital** of the community is increased and people feel empowered to take action on your project and other issues which are important to them.
Encouraging volunteering.

For individuals

Seeing their views and ideas listened to and acted on and so developing a personal interest in your project.
Providing an opportunity for volunteers to use their existing skills and experience and develop new ones.
Feeling part of their community and meeting people.
Gaining confidence.

For your stakeholders

Giving your community, local authorities, funders and other organisations confidence that your project is rooted in community needs and has community support.
Demonstrating the capacity of your organisation to involve and enthuse your community.

Gathering Additional Information

To enhance the information collected directly it is useful to refer to other evidence gathered by others. For example; your local authority may have relevant data on employability or areas of disadvantage, there may be reports from the National Health Service that would be useful to refer to. The resource below “Evidence from Elsewhere” helps you to research and use appropriate reference material when building your case.

Building networks

Start by defining the users you are seeking and make your space is as flexible and interesting as possible to meet their needs. Have you any particular target market – creative industries, the voluntary sector, start-ups, local community, the events industry etc.?

What is special about what you are offering? What puts you ahead of the crowd?

It’s never too early in the process to build networks, but you have to have a clear idea of what the asset will offer and whom you are selling to. You also have to have checked out the competition.

Your Network

If you haven’t already – build your own network and use the energy and contacts of the people within it. Recruit members from residents and local businesses. Hold events and meetings, contact the press, and involve politicians. Use a variety of ways of bringing members / contacts together, keeping things moving and fresh.

Newsletters
A presence on social media (Facebook etc)
Creative workshops
Lectures
Social events
Visits
Seminars and conferences
Task-related groups
If it fits your project, a share issue is a great way of mobilising people and their ideas as well as raising cash. Link up with Community Shares Scotland for more information.

Business Networks

In any city there is a plethora of business networks. Using an internet search engine should uncover local networks. The network density will be thinner in rural areas, but the need to be out there with opinion formers and potential users remains.

Whatever the uses, your building has to become the place to be, so go to those meetings where potential users gather. Never pressure, always be prepared to give as well as take, but never be afraid to ask people you meet whether they know of anyone or any way of making your venture a success.

Businesses can find it difficult to support social projects, but the individuals within them are free to do what they want. Look for successful backers – it will give the project credibility and an aura of success.

Political Networks

Doors will open if you have political support. All political parties are committed to community enterprise. If you have the backing of local councillors, it will make dealings with council officers much easier.

Try to win support at Director and Cabinet level within the local authority as well as the backing of the local elected members, MP or MSP.

Networks of Interest

Many community buildings or land projects could have events spaces or are targeted at the creative sector, so there may be a need to move in those circles. Most local authorities will have Heads of Culture (posing under various titles) that will put you in touch with networks of:

Artists
Musicians
Digital / Creative industries

Corresponding university departments will have their own networks and sometimes these may be brought together in one website so do a bit of research for your area.

And so it goes on. The voluntary sector, events and wedding organisers, the Health Service. All have their gathering points and if they should be using your building or your land, you need to be there.

Avoid going to too many networking meetings. Stay targeted.

Be clear. Why are you there, who do you want to talk to and what do you want to ask them?

Campaigning

Campaigning and Lobbying

To give your Asset Transfer Request the best chance of being successful you may need to generate additional support for your project though campaigning and lobbying.

– Campaigning is the ‘outside’ game, putting public pressure on decision-makers.
– Lobbying is the ‘inside’ game, negotiating and persuading through private meetings.
You need to make sure that the inside and outside games work to form a coherent strategy.

Campaigning – a typical outside campaigning activity is to get supporters of the development to email / write to a key decision-maker encouraging them to back the scheme. This should be timed and phrased to aid the inside lobbying game. Negotiations may have highlighted a key stumbling block. The letters should focus in this instance on alleviating these concerns. They must be timed for maximum impact, such as before a key meeting. Campaigning and lobbying work best when they are coordinated.

Lobbying – in the initial stages focus on fact-finding the inside while building up your grassroots network. Successful lobbying is about building up relationships.
– Be persistent and assertive but avoid aggression or arrogance.
– Make sure your passion is channeled positively.
– Make sure you have a network of supporters in place able to implement your strategy. This will enable quicker and more unified action when needed. One example of a way to do this is through a community share issue. This demonstrates a level of seriousness to decision-makers and encourages a sense of ownership among supporters of the project.

What you will need

A convincing business case – this is the foundation of any campaigning and lobbying activity (see Business Planning section). This aims to show that with public investment your organisation will be producing surpluses, and social benefit, within three years. Without this basis, campaigning and lobbying is unlikely to succeed.

Core messages – in putting together a campaigning and lobbying strategy, you should agree the core messages that you want to convey. Clarity is essential to make sure that everyone sings from the same hymn sheet. Mixed messages will confuse decision-makers and undermine confidence in your organisation.

Prioritise your messages – be ruthless, you should be able to get them down on one side of A4. Think about the people you are trying to convince to support the development, usually councillors and council officers. Which messages will be most persuasive to these people?

What decision-makers will be looking for – three essential features in each development:

Level of support across the community
Economic and financial viability of the project
Potential social benefits for the area

Balancing capital receipt with community benefit – where the development is an asset transfer the relevant authority has a cost-benefit analysis to consider. If the asset is transferred at less-than-market value then the benefits must outweigh the lost capital revenue (which could potentially be re-invested in other council services). This is a political as well as an economic decision given the non-financial nature of some benefits.

Dealing with differences – be aware that political representatives and officers are likely to have different interests and views on a given development. Councillors are generally likely to back a project that has high levels of public support, but council officers will raise concerns if they feel the asset is being undervalued. Even developments with support from elected officials will struggle if council officers are opposed. These people present the options from which the final decision is made, making some choices appear more appealing than others.

Get a handle on the political dynamics – this will be different in each case. Things to look for are party political and geographic divides. Do not allow the project to become a political football but do not be naïve about the political implications. Try to identify champions among both officers and elected officials. This will give you an inside track on the political situation and the best ways to influence it.

Dealing with stumbling blocks – as the lobbying develops it will become clearer what the stumbling blocks are and which people need convincing. Be flexible in your approach and adjust your plans to suit the circumstances. If you want to put pressure on the council think creatively about how to attract media interest in the issue. Traditional methods like petitions, letter writing and demonstrating are good places to start. Recruiting journalists, prominent business people and celebrities to your cause could also help.

Avoid self-indulgence. Campaigning is not about venting anger or feeling self-satisfied. The aim is to persuade others to support the project. Focus on what they are interested in not what you are interested in. Be aware of their agenda and see where that collides with yours. Home in on areas of common interest.

It may be necessary to compromise on certain parts of the project. Protect the essential elements of your vision but do not be dogmatic.

Sustaining involvement

How to involve stakeholders – most asset development projects start with their community of stake holders – its ideas, needs and aspirations. As part of the development of a project it will be necessary to consider ways in which they can be involved in the management of the assets once they are acquired and developed.

This can be achieved through
– membership of the organisation that takes ownership of the asset
– becoming shareholders through a Community Shares issue
– being involved as volunteers
– becoming members of project working groups
– via local forums where it is possible to report the activities of the project, celebrate success and gather further support for other projects and initiatives.

What support from stakeholders brings – as well as all the benefits listed above, support from stake holders and evidence that the project will provide benefits to them are an important element to securing support for the development of your organisation and enabling its growth.

Impact and performance measurement – There are a variety of tools that are now available to help measure and continuously improve the impact of a project to maintain support from the community of stakeholders that helped to make it happen. These tools should also be considered at the initial assessment stage of your project’s development to enable you to collect all of the relevant information for monitoring purposes. This will help you to measure the social, economic and environmental impacts of the organisation that will be managing the assets for the benefits of the community.

Some of these methods are linked to quality standards which involve an external assessment and accreditation, others are meant to be planning tools to be used by organisations as part of their internal planning to improve their impacts in the community and collect evidence to prove that they do. Some of these tools are:

Social Accounting and Audit – enables organisations to measure their impacts in terms of their performance against social, environmental, and economic objectives with all their stakeholders. There is a particular focus on involving all stakeholders in the auditing process.
Social Return on Investment – This helps organisations understand and quantify the social value they create. This tool expresses this as a monetary value and can be used to compare this value with the investment required to achieve it.
Tell Your Story – Community Impact Mapping – A simple approach to basic impact mapping proposed as a five question conversation held with stakeholders:
- Vision – what did you want to achieve for your community?
- What did you use – Staff? Volunteers? Money?
- Activities – what did you do with the resources?
- What happened because of what you did?
- What difference did your actions make to your community?
Change Check – A Practical Guide to Assessing Impact – A systematic approach to looking at impact based on a review that considers survey information collected for the purpose. Addresses four questions:
- What do we want to achieve?
  (the core mission of the organisation)
- What levels of impact are we having in our work now?
  (social, economic, environmental, cultural)
- Where do we want to strengthen our impact – and are there any areas of impact we are making that we do not want? (identifying potential improvements)
- What changes are necessary to strengthen these impacts? (prioritising and planning action)

Useful Links:

Social Audit Network

The Social Return on Investment (SROI) Network

Planning for involvement

The major pitfall of consultation and involvement processes are that they can be inconclusive, consume a lot of time and can be challenging.

The more planning that goes into the process the more likely that this can be avoided. There is now a lot of guidance available to assist with planning these processes and most start with the need to ensure that the involvement process is tailor made to the needs and interests of stakeholders and is relevant to the project which is the subject of their involvement.

COSS has compiled a useful guide Involving Your Community in the Resources below, taking you through the steps to consider when planning your consultation.

The purpose of involvement

Creating a stakeholder involvement plan is useful so you can be clear about the purpose of involvement. Are you just giving information that has already been decided or are you seeking opinions and going to be willing to put them in to action. It is important to know the difference. The Continuum of Engagement is a helpful tool for this since it will help to determine the kinds of information that is produced, the format and numbers of people involved in discussions and the time and resources the process requires.

The Continuum of Engagement.
↓ Information Giving	To provide people with information to assist their understanding.
↓ Information Collecting	To collect information about attitudes, opinions and preferences that will assist your understanding and decision making.
↓ Consultation	To obtain feedback on specific policies and proposals.
↓ Participation	To involve people actively at all stages to ensure that their concerns are understood and considered and to give them some influence on and ownership of decisions.
↓ Collaboration	To bring people into active partnership and agree sharing of resources and decision making.
↓ Delegated Authority	To transfer resources and decision making.

Key public sector stakeholders in asset development and transfer projects
Scottish or UK Government	As funders and regulators, particularly in relation to disposal of public assets, application of EU procurement and State Aid rules, both members and officers have a key influence on projects.
Local Government	As funders and regulators, particularly in relation to land use planning policy and approvals, both members and officers have a key influence on projects.
Other public service providers	Health, housing, education and police service providers from the public and social enterprise sectors. Organisations like Registered Social Landlords, local government service departments and local regeneration agencies and partnerships. The local voluntary and community sector is also likely to be a key provider of support to asset development and transfer projects.

Stakeholders and project development

The involvement plan will need to consider how development of the project – from the initial setting of project objectives through to its final completion will take place and how stakeholders may be involved at each stage. Getting Ready for Asset Transfer outlines the process of setting objectives and ensuring that they are clear. To involve stakeholders in these discussions is important and will differ from project to project but is likely to include discussions on:

Needs that the project will meet – for housing, community facilities, workspace, surplus revenue to support or carry out other activities etc.
The design and construction of the project – preparation of a brief and the appointment of professional advisors.
Developing, if necessary, a new organisation – making it happen and agreeing its legal structure and governance (who its members are, how it makes decisions).
Securing support for the project – identifying other stakeholders who might support the project with the resources or skills needed to make the project happen.
How the project will meet the project objectives – what kind of asset will be developed, who will benefit, who will own it, who will occupy it and how it will be run and maintained.
Stakeholders’ role in the project when it is complete.

How this work with stakeholders takes place will depend on the specific circumstances of the project and the resources and skills available. A detailed process usually involves a combination of methods that address the following:

People – stakeholders that have been have identified (the wider public or smaller groupings).
Product – what is to be produced as an outcome of the process? (An agreed design, an agreed process or procedure etc).
Pace – the time available and when things will need to happen..
Price – how much will it cost – time and money.
Process – the method that will suit stakeholders and get the desired outcome.

The list below describes some specific techniques which have been used in other projects and there are a large number of guides, toolkits and publications which can help to plan a process and implement it for any project. See the ‘Resources’ section for information on these.

Techniques to involve communities

Planning for Real ® – a tool for considering all the needs in a neighbourhood. It is particularly appropriate for considering land and buildings since it is based around a scale model. The model of a neighbourhood / village / building is created by the community and often toured in the area to promote a Planning for Real ® event or series of events where the model is used to draw out views and ideas that can then be prioritised and acted upon. The packs include model making instructions, templates for publicity and agendas for events.
Village / Community Appraisals – A series of community surveys are undertaken to consider all aspects of community life and encourage action by local volunteers and statutory agencies. A report of the process is then produced and launched to guide future local action and review progress.
Community planning weekends or Charette – a widely publicised weekend of design exercises, presentations and meeting site visits and discussion with professional advisors. The purpose is often to come up with a draft plan for a building or area within a weekend and present it back to the public who have participated in the events to agree how to make it happen.
Action Planning Workshops – an action plan on an agreed issue or concern is developed in structured workshops which are devised to include as many people as possible and result in positive proposals for action.
Visioning – A conference or event which aims to develop and agree a shared vision of the future by people who attend. It may be focused on the future of a neighbourhood, village or site; or on a policy issue such as affordable housing or workspace in a locality.

Useful Links:

Community Planning

Planning for Real ®

How to find people

Thought needs to be given to identifying all stakeholders, in order to secure the benefits of involving anyone who can make a project happen. It is also important to plan ways in which they can be involved in the development of the project.

It is not possible to be prescriptive about how stakeholders should be defined or identified in order to involve them in developing a project; it really does depend on where the project started and what it involves.

From a practical point of view stakeholders cannot be involved in developing a project if you don’t know who they are and why they should be involved. So initially you will have to define your stakeholders. This can be done in a in a number of ways:

By Type – decision makers, the public, a defined geographic area, age, gender, ethnicity, etc.

By Issue – groups and individuals already involved in the issues the project is concerned with (Saving heritage assets, generating sustainable energy, creating green space, etc).

By ‘Stake’ – groups and individuals who may be affected positively or negatively, directly or indirectly.

Once stakeholders have been identified in this way it is worth analysing where they are in relation to your project – are they actively for or against the project or uncommitted one way or another? Some key stakeholders will be more important to secure support from than others dependent on the nature of the project. This can provide a useful campaigning base for the involvement of other stakeholders.

Once you have an idea of your stakeholders, it is then possible to think about how stakeholders can be moved from a position of being against to being supportive. This may simply be a question of information about the project or may be a question of consultation on the details of the project.

Who you need

Every project needs people to help it succeed. A project needs leaders, volunteers, supporters, partners, funders, etc to ensure its success. This section takes you through the reasons why you need people, how to find them and how to keep them involved throughout what is likely to be a very long process. Use the links in the sub menu to navigate through the sections.

The collective term for everyone involved with a project is a stakeholder. A stakeholder is anyone who has an interest in the project either as a final user, employee, volunteer, funder, council, etc and is the term used throughout this section of the site.

People come on board to support projects for different reasons. Different projects will start in different places and how projects are triggered will ultimately affect the stakeholders involved and the extent of their involvement. Some may react to a threat or an opportunity, others may actively seek out possibilities to develop an asset project but whatever the actual trigger it is likely to start with a lack of provision of land or buildings to meet community needs in a neighbourhood.

Stakeholder involvement is also essential for building consensus about proposals and addressing objections or concerns in advance. From this point of view any local politicians, local community groups and organisations that are likely to support the idea of community owned land and buildings are essential to the process, particularly as asset projects often take a long time to implement.

Whatever the initial trigger and whether a project is being promoted by an interested group of individuals or an existing organisation(s), to be successful the project will need stakeholders to support it because involving stakeholders helps to:

Create value and wealth – value is not just about money, it is also about building relationships and reputations that can create fruitful collaborations about money.

Reduce risk – many asset projects will need political support and many public bodies require projects to be promoted by people or organisations that are seen to have a mandate from other stakeholders if they are to be credible.

Tap opportunities for innovation – the more stakeholders involved the more resources, skills, ideas are available to contribute to the project.

Improve sustainability/resilience – there is nothing like involvement to create agreement on aims and objectives, commitment to making a project happen and understanding of what needs to be done. Both the project and the organisation promoting it can benefit from this.