Top 10 tips for trading in tough times

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    30-Oct-2014

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Geoff Jones of WCVA on recession-proofing your group and trading effectively.

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1. Top ten tips for trading in tough times Geoff Jones Enterprising Communities Programme Officer www.wcva.org.uk 0800 2888 329 help@wcva.org.uk 2. Top ten tips for trading in toughtimes Introductions and what we are looking to achieve 3. Top ten tips for trading in toughtimes What is the impact of the economic downturn on the Third Sector? 36% of organisations predict that their financial situation will worsen over the next three months Increasing redundancies in sector Changes to funding Lack of finance to support wages Services going out to tender Local authority cuts (Source-WCVA state of the sector survey) 4. Top ten tips for trading in toughtimes Tip No 1-Planning Planning is key to sustainability Focus of efforts Best use of resources Understanding of costs Mission and goals Risk management vs. Innovation 5. Top ten tips for trading in toughtimes Tip no 2: Income diversification Trading-mission related and unrelated Cost recovery Contracting Tendering and procurement Asset based development Counter cyclical business activities 6. Top ten tips for trading in toughtimes Tip no 3- Assessment of financial health Liquidity-cashflow forescasts Profitability-profit and loss account Solvency-balance sheet 7. Top ten tips for trading in toughtimes Tip no 3- Assessment of financial health What may happen to forecast income Can we increase or preserve our current income levels What cuts can we identify to make money go further Are we solvent What activities do we wish to sustain under all circumstances What are our longer term prospects 8. Top ten tips for trading in toughtimes Tip no 4-Governance Only when the tide goes out do you discover whos been swimming naked-Warren Buffett 9. Top ten tips for trading in toughtimes Tip no 4- Governance Has the board undertaken a performance review? Does the board have the appropriate guidance and advice? Is the appropriate level of monitoring in place? Is the board prepared to take unpopular decisions? 10. Top ten tips for trading in toughtimes Tip no 4- Governance Are their appropriate controls and procedures in place to prevent fraud? Fraud is currently estimated to cost the charity sector 1.1 billion (or 1.7% of annual turnover), according to the National Fraud Authoritys 2012 Annual Fraud Indicator. Payment fraud Employee/volunteer fraud Cyber-enabled fraud 11. Top ten tips for trading in toughtimes Tip no 5-Joint working Sharing of resources Collaboration and consortia Formal merger-Age concern and Help the Aged Identification of issues with joint working 1. Organisational culture 2. Branding 3. Competing for roles 12. Top ten tips for trading in toughtimes Tip no 6-Asset Development Community ownership Benefits to local economy Builds credibility & viability Base for new community enterprises and services Access to finance Sustainability 13. Top ten tips for trading in toughtimes Tip no 6-Asset Development Assess market demand Mission drift Sweat the asset Balancing assets Good practice 14. Top ten tips for trading in toughtimes Tip no 7-Know your customer What is your USP Who are your customers What/why/how do they buy and what do they expect Customer segmentation 15. Top ten tips for trading in toughtimes Tip no 8- Make the best use of staff and volunteers Employers obligations-policy and procedures Skills audit of staff and volunteers Introduction of flexible working patterns Use competitive job market to get highly skilled individuals in job and volunteer roles 16. Top ten tips for trading in toughtimes Tip no 9- Is your marketing fit for purpose? What does your brand say about you Utilise free and low cost marketing opportunities Social media 17. Top ten tips for trading in toughtimes Tip no 10-Keep calm and carry on 18. Top ten tips for trading in toughtimes Any Questions? Questions are never indiscreet. Answers sometimes are. Oscar Wilde 19. Social Enterprises and you Geoff Jones Enterprising Communities Officer Wales Council for Voluntary Action www.wcva.org.uk geoffjones@wcva.org.uk 029 2043 1758