STEP 6 - Business Planning, Funding & Insurance

This next step deals with the financial side of things and is the same for voluntary and private providers.

6.1 Business Plan

A business plan is a comprehensive plan detailing the operational activities, aims, targets, and financial projections of the organisation for both the short and long terms. A business plan is fundamentally “the Vision” of the OSC (what it wants to achieve and how this will be done) and committee members alongside staff members are the “Guardians of the Vision”, in other words, they must ensure that the plan is being followed, and if not, investigate why this is the case.

N.B. Private providers should have business plans, but of course, the owner(s) of the business are the “Guardians of the vision”.

A business plan is not a static document: it should be reviewed and renewed as appropriate every six months to check that the organisation is still on target to achieve its aims.

A business plan is vital for all OSC services, both voluntary and private, as it is the document showing the theoretical growth and development of the business. Ultimately it shows potential funding bodies and investors that you are serious about creating and maintaining the business.

The business plan should include such details as:

• Contact details
• Organisation structure
• Aims and objectives
• Marketing strategy
• Costings
• Financial planning

A good business plan takes time and energy and is not something that should be rushed; after all, it will provide the blueprint for the organisation for subsequent years. All the committee should be involved in the process of creating the plan. If the committee do not feel that collectively they have the appropriate skills or knowledge to do so advice and support should be taken from experts.

The Scottish Out of School Care Network is able to provide training and one-to-one support in business planning. Please contact the office for further details.

A business plan will help you to:

• Clarify and detail all your ideas and to check that you have gathered enough information to carry them out.
• Establish the practical arrangements for setting up the club and its financial base.
• Check and demonstrate the financial viability of the project.
• Monitor progress against the plan once the club is set up and identify and solve problems as they arise.
• Satisfy potential funders by demonstrating the organisation is well managed and that financial planning and controls are in place.

6.2 Funding

Start-up funding may be available from various sources:

• Local authority
• Trusts and charities
• Local employers
• Awards for all
• Big Lottery
• And of course, banks although this is only really applicable to those setting up as a private concern

The main income source for the organisation however will be through fees; it is therefore imperative that fee levels are set at realistic levels which cover outgoings.

6.3 Insurance

Before opening or even employing staff you need to purchase insurance cover. Legally you must have Public Liability and Employer's Liability. You should have Contents Insurance and it is also advisable to have legal expenses cover: litigation against clubs whilst not common is more frequent than in the past and any legal expenses occurred could be crippling to the club if uninsured. Make sure your chosen insurance provider covers you for activities such as taking children to the park, riding bikes and climbing trees.