Slides from my session with BWMcFarlane and DWF 22 Sseptember 2014.

1. Thoughts on trading in the not
for profit sector….
Tony Okotie
22 September 2014

2. Or….
The legal and financial structure
is the easy bit

3. There is no pot of gold
at the end of a
magic rainbow

4. Where will the future income come from?
• Reduction in public sector budgets
– but someone still needs to pay for services!
• Increasing move to payment by
results
• social impact bonds etc

5. Where will the future income come from?
• Personalisation /self payers
• Trading / selling ‘something
else’
• Which generates a surplus to
contribute to core activity

6. What have you got to sell / trade?
• What assets does the
organisation have?
– People / track record / buildings etc
• Is there a ‘market’? – will
someone pay?

7. Developing the product / proposition
• Business development ‘phase’ vs organic
development?
• What can we charge?
• Who is our competition?
– and from which sectors?

8. Developing the product / proposition
• Marketing it – how?
• At what point does it generate a surplus?
– after R & D and FCR taken into account?

9. Personalisation
• Demographics / economic base of residents
in city
– Challenge around ability / willingness to pay?
• Increase in number of customers
= lots of transactions
– Cashflow issues?
– Cost / effort to recover small transactions

10. Cultural change
• How does charging sit with the culture and values
of your organisation?
– Loss of focus on ‘core business’
– Staff as ‘sales people’?
– “its only real money when its in our bank account”
• Does the organization have the skills to be ‘more
commercial’?
– Or bring in new ‘commercially minded’ staff?
• Not right for everyone
– and not as easy as some would think

11. Tony Okotie
Chief Executive
LCVS
e: tony.okotie@lcvs.org.uk
t: 0151 227 5177
Twitter: @tonyokotie