Download pptx - Top 10 tips for trading in tough times

Geoff JonesEnterprising Communities Programme Officer

www.wcva.org.uk 0800 2888 329 [email protected]

Top ten tips for trading in tough times


Introductions and what we are looking to achieve


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)


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


Tip no 2: Income diversification

• Trading-mission related and unrelated• Cost recovery• Contracting• Tendering and procurement• Asset based development• Counter cyclical business activities


Tip no 3- Assessment of financial health

• Liquidity-cashflow forescasts• Profitability-profit and loss account• Solvency-balance sheet


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


Tip no 4-Governance

“Only when the tide goes out do you discover who’s been swimming naked”-Warren Buffett


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?


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 Authority’s 2012 Annual Fraud Indicator.

• Payment fraud• Employee/volunteer fraud• Cyber-enabled fraud


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


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


Tip no 6-Asset Development

• Assess market demand• Mission drift• Sweat the asset• Balancing assets• Good practice


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


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


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


Tip no 10-“Keep calm and carry on”


• Any Questions?

“Questions are never indiscreet. Answers sometimes are”. Oscar Wilde

Social Enterprises and you

Geoff Jones Enterprising Communities Officer

Wales Council for Voluntary Action

www.wcva.org.uk

[email protected]

029 2043 1758