TOC o "1-3" h z u Introduction PAGEREF _Toc125031808 h 5About Headway Sussex PAGEREF _Toc125031809 h 6Background PAGEREF _Toc125031810 h 6Populatio

TOC o "1-3" h z u Introduction PAGEREF _Toc125031808 h 5About Headway Sussex PAGEREF _Toc125031809 h 6Background PAGEREF _Toc125031810 h 6Population Served by Headway Sussex PAGEREF _Toc125031811 h 6Governance and Finance PAGEREF _Toc125031812 h 6Sectoral Placement PAGEREF _Toc125031813 h 7Services Provided by Headway Sussex PAGEREF _Toc125031814 h 7Challenges and Opportunities Facing Headway Sussex PAGEREF _Toc125031815 h 8The Case for Social Impact Evaluation PAGEREF _Toc125031816 h 10Methodologies PAGEREF _Toc125031817 h 13The Principles of Social Value PAGEREF _Toc125031818 h 13Social Accounting and Audit PAGEREF _Toc125031819 h 13Social Return on Investment & Economic Valuation (SROI) PAGEREF _Toc125031820 h 13Stakeholders PAGEREF _Toc125031821 h 14Social Impact Evaluation in Health and Social Care, Voluntary/Community Sector PAGEREF _Toc125031822 h 15Proposal for Social Impact Evaluation at Headway Sussex PAGEREF _Toc125031823 h 18Designing the Social Impact Measurement Plan PAGEREF _Toc125031824 h 21Establishing Scope and Identifying Stakeholders PAGEREF _Toc125031825 h 21Mapping Outcomes PAGEREF _Toc125031826 h 22Evidencing Outcomes PAGEREF _Toc125031827 h 24Establishing Impact PAGEREF _Toc125031828 h 25Communication, Review and Learn PAGEREF _Toc125031829 h 26Conclusion PAGEREF _Toc125031830 h 27Reference List PAGEREF _Toc125031831 h 28Appendices PAGEREF _Toc125031832 h 31Appendix One PAGEREF _Toc125031833 h 31Appendix Two PAGEREF _Toc125031834 h 32Appendix Three PAGEREF _Toc125031835 h 34Appendix Four PAGEREF _Toc125031836 h 35Appendix Five PAGEREF _Toc125031837 h 38Appendix Six PAGEREF _Toc125031838 h 39Appendix Seven PAGEREF _Toc125031839 h 40Appendix Eight PAGEREF _Toc125031840 h 41Appendix Nine PAGEREF _Toc125031841 h 42Appendix Ten PAGEREF _Toc125031842 h 43

IntroductionThe purpose of this report is to review and propose a Social Impact Evaluation (SIE) for Headway Sussex. SIE is a methodology which can create significant benefits for charities. These are summarised as helping [charities] prove their worth, communicating with supporters, and clarifying their strategy to be as effective as they can be (NPC 2013).

For Headway Sussex, SIE represents a new, formal method of assessing and measuring impact which has not been undertaken before. This report is therefore designed to provide information and background about SIE and create a deeper level of understanding. There is content included about SIE in the health and social care sector, and emerging practices within other Headway organisations which will demonstrate that evaluating the impact of activities is becoming more commonplace and can bring advantages when undertaken in a co-ordinated and proportionate manner.

My understanding of Headway Sussex is a mix of personal knowledge gained whilst I was a Board Trustee between 2019 and 2021 and in my continuing role as a volunteer HR Consultant. Additionally, primary sources of reference have been very useful, particularly the Headway Sussex website, Charities Commission website and the Headway UK website.

Throughout the report, I refer to Social Impact Evaluation (SIE). However, occasionally I use the expressions impact measurement, outcomes measurement, and impact evaluation. These terms are used interchangeably, reflecting the variety of descriptions that are used in the wider community.

About Headway SussexBackgroundHeadway Sussex is a registered charity providing services for people with a brain injury and their family carers across Sussex. It began as a support group for families all supporting someone affected by brain injury, it was initially based at Hurstwood Park, a specialist neurological hospital in Haywards Heath. In 1992, the support group moved to a nearby property owned by the Leonard Cheshire Foundation and started providing rehabilitation services through a day centre service. In 1998, the registered charity, Headway Hurstwood Park, was formed and when the property, Headway House, was gifted to them by the Foundation in 2002, the charity incorporated as a company limited by guarantee. In 2020, the charity merged with Headway West Sussex to form the current organisation. Headway Sussex is an affiliate of Headway UK and has strong links with Headway organisations across the Southeast of England (Headway Sussex 2023a).

Population Served by Headway SussexThe combined population of East and West Sussex is just under 1.5m. According to Headway UK, approximately 350,00 people (0.53% of the UK population) were admitted to hospital with a brain injury in 2020 (Headway UK 2023a). This represents a client base of just under 8k directly impacted individuals across Sussex.

Headway Sussex has contracts in place with East Sussex and Brighton and Hove Councils to provide services to state-funded clients. Direct payment clients are funded by West Sussex County Council. Self-funded clients are primarily individuals who have been awarded personal injury payments following successful insurance claims (Charity Commission 2023a).

Governance and FinanceThere is a Board of Trustees providing oversight and a small management team headed by an interim CEO. The charity employs approximately 17 staff and has around 16 regular volunteers. The number of paid staff has reduced by over a half since 2019 due to cost pressures (Charity Commission 2023a).

The last financial statement submitted to the Charities Commission for the year ending 31st March 2021 shows a total income of 516,127 and a total expenditure of 516,361. The charity has a loan arrangement with the Charity Bank which provided financial assurance during the Covid 19 pandemic alongside a 50K Bounce Back Loan, the Job Retention (furlough) scheme and regular resilience grant payments which were received from East Sussex County Council and Brighton and Hove Council (Charity Commission 2023a).

Sector

Headway Sussex is registered with the Charities Commission as providing the advancement of health or saving of lives for people with disabilities, providing services including advocacy, advice, and information (Charity Commission 2023a). The activities carried on do not include personal care, are not residential and fall outside the scope of the Health and Social Care Act 2008. Therefore, Headway Sussex are not required to be registered with the Care Quality Commission. In addition, the services are provided for adults only and Headway Sussex are not required to register with Ofsted.

As a charity providing state-funded and direct payment health services through integrated care systems it would be reasonable to consider Headway Sussex as being between the spheres of the Voluntary/Community sector and the Public Sector as described in an adaptation of Westhalls 2001 model (Ridley-Duff & Bull 2019, p94). However, Headway Sussex also provide self-funded services which sit outside of the Public Sector. Whilst they do engage with public service organisations and compete with public service spin-outs, and the state-funding they receive is impacted by government decision making, Headway Sussex consider themselves to sit firmly within the charity sector. This is reinforced through the Boards continuing focus on fundraising and volunteering activities (Charity Commission 2023a).

Services Provided by Headway SussexServices for clients affected by a brain injury fall into the following categories:

Reassurance and Understanding

Rehabilitation

Reablement

Return to work, volunteering, or training

These services include initial assessment, advice and information, telephone or online support, access to open support groups, wellbeing activity groups and counselling. SMART objectives are used to support personal care plans. Rehabilitation programmes are person-centred, and Headway Sussex collaborates with partner organisations and therapists to provide this service directly to clients. The Headway Sussex Futures Group is facilitated by a Headway employee who has lived experience of brain injury. They meet online and face to face. The Group aim to support each other in finding ways to create a meaningful life after brain injury, whether that is in seeking employment, volunteering, training, or re-learning life skills and discussing personal wellbeing (Headway Sussex 2023b).

The second beneficiary of services are the individuals who have a role as a family (non-paid) carer for the person with the brain injury. Services offered include:

Advice and Support

Hospital Liaison Service

Support Groups

The Headway Emergency Fund (provided by Headway UK)

Services are provided at Headway House despite significant deterioration of the estate and there are ongoing efforts to move services and activities out into the community (Charity Commission 2023a).

Challenges and Opportunities Facing Headway SussexTo identify the challenges facing Headway Sussex, I completed a draft SWOT analysis (Appendix 1) based on personal knowledge and using the latest Financial Statement posted on the Charities Commission website (Charity Commission 2023a). SWOT analyses are normally used for strategic planning purposes and can help an organisation to define the challenges and opportunities they face internally and externally (NCVO 2021).

The key themes from the analysis are:

Strong current financial position but an increasing reliance on debt

Opportunity to provide services to a wider population and a desire to provide services within communities and closer to home

Risk that over-diversification i.e., trying to provide too many services to too many people, may be impacted by current minimal staffing levels and lack of key skills

Digital transformation is seeing a greater use of IT when staff interact with clients, and this could enable better data collection to inform activities, understand social impact, and help with funding proposals

The value from Headway House can now be optimised since the restrictive covenant expired in June 2022

The biggest risk to the organisation is failing to establish a viable business model during the remaining 12 months of National Lottery Funding

To verify these challenges which will inform the practice of SIE, the board, the management team, and client representatives are encouraged to conduct their own SWOT analysis.

The Case for Social Impact EvaluationThe increased demand for measuring social impact is driven by charitable foundations wanting to direct funds to effective programmes, public sector organisations and officials needing to account for spending programmes, investors wanting hard data to evidence profit, and non-profit organisations needing to demonstrate their impact to stakeholders (Mulgan 2010).

In private corporations, social responsibility and the reporting of non-financial impacts are becoming more commonplace spurred on by the UNs Sustainable Development Goals. Sir Ronald Cohen, described as both the Father of British venture capital and the Father of social investment (Ronald Mourad Cohen 2023) is an advocator of Impact Weighted Accounting, an initiative used to uncover the costs of business activity on the environment, and which is said to enable the measurement and valuation of corporate impact where impact transparency, impact and profit set the new rules of the game (Cohen & Serafeim 2020). Triple bottom line accounting, with roots in Social Accounting and Auditing, is already a tool regularly used in the private sector to evidence corporate social responsibility (Ridley-Duff & Bull 2019, p156). In Europe, the Corporate Sustainability Reporting Directive (CSRD) came into force in January 2023 to strengthen the rules about the social and environmental information that companies have to report (European Commission 2023).

The case for SIE in the voluntary and community sector is developing in the UK, particularly in the provision of health and social care. For example, the Social Value Act 2012 requires people commissioning public services to consider wider social, economic, and environmental benefits (UK Government 2023).

Because standard financial reporting favours income over non-financial aspects, value creation is normally said to be a business function (Gray 2006; Prahalad & Ramaswamy 2004 cited in Ridley-Duff & Bull 2019 p155). However, there are differences between economic accounting and social accounting in that one is rooted in markets and efficiency and the other in intimacy and sentiment (Ridley-Duff & Bull 2019 p155). Organisations who create social value need to find ways to measure the social change they create so they can put impact at the heart of [their] work (NPC 2012a). Reducing inequality and environmental degradation are key reasons for organisations to maximise social value whilst countering societys preference for maximising financial value without consideration of social and environmental outcomes (Social Value UK 2022).

A review of the uptake of impact measurement by charities with incomes over 10,000 in the UK found that 75% measure their work, with over half stating they increased their efforts to meet funder requirements. Funders however may have differing reporting requirements not in line with the needs of the charity. Whilst government funders were found to have stringent requirements, trusts and foundations were less strict, being supportive and encouraging in their approach (NPC 2012a).

The case for valuing social impact is clearly distinct from economic valuation. Yet there is no single definition of social value and many diverse ways of attempting to measure it (Demos 2010 p14:19). The assessment of value, itself a contested concept (Ridley-Duff & Bull 2019, p155), could be said to be constituted through practice itself, i.e., using rankings, rating, awards, reviews, any other valuation mechanisms that bestow value (Kornberger 2017 cited in Ridley-Duff & Bull 2019, p156). The Gates Foundation defined 8 methods for calculating social value and concluded that the USA approach to SIE, like the UK, is fragmented, bottom up and somewhat ad-hoc (Demos 2010 p21). There needs to be a holistic approach that blends and reports social and economic value to stakeholders and funders (Nicholls 2009 cited in Ridley-Duff & Bull 2019, p173). In the end, social enterprises may be inclined to use their own evaluation tools to account for differences in social value (Ridley-Duff & Bull 2019 p156).

New Philanthropy Capital identify benefits of SIE as: being able to demonstrate results, improved targeting, getting increased funding, improving allocation of spending and resources, improving strategy, and improving practices and policies. These were experienced by at least 10% of the 755 charities surveyed. However, there is little correlation with figures derived for why organisations increase their impact measurement efforts; changes in funder requirements being stated by over half of the organisations surveyed (NPC 2012a).

Reviewing the SIE practices of 6 charities in the UK (NPC 2013) was said to result in the following benefits:

Motivate and inspire frontline staff

Save staff time

Improve services for beneficiaries

Influence the debate on what works

Raise their profile

Secure funding

SIEs may also be used as part of a marketing strategy. Social marketing was coined as a phrase by Kolter & Zaltman in the 1970s and is an accepted technique for organisations with social goals (Macfayden et al 1999 cited in Ridley-Duff & Bull, p154). Through using discretion about what is measured, how it is measured and what is reported, organisations can proactively take control over their environment (Arvidson & Lyon 2013).

MethodologiesThe Principles of Social ValueSocial Value UK define a set of principles for measuring social impact (Appendix 2) drawn from principles underlying a range of evaluation practices including social accounting and audit, sustainability reporting, cost-benefit analysis, and financial accounting (SVUK 2023). There are two commonly quoted methodologies.

Social Accounting and AuditSAA was developed to incorporate financial, social, and ecological performance (Spreckley 2021, p121) now known as the triple bottom line, People, Planet, Profit. Principles that underpin SAA are summarised below:

Multi-perspective including all stakeholders

Cover all activities of the social enterprise

Learning from comparing performance (over time and with other organisations)

Undertaken regularly and embedded in the organisation

Social accounts are audited by an external verifier

Findings are communicated

Philosophy of continuous improvement

(Ridley-Duff & Bull 2019, p157)

The advantage of SAA is that it enables an organisation to explore its own values and these are recorded at the outset in a governance statement. SAA was designed to be a simple, focused, and pragmatic methodology and to be something which is built up over time and customised to the organisations needs (Spreckley 2021, p121-127).

Social Return on Investment & Economic Valuation (SROI)

SROI is a methodology with roots in traditional accounting tools such as cost benefit analysis (Nicholls 2009 cited in Ridley-Duff & Bull 2019, p161). It can either forecast the SROI and be used as a predictive tool, or it can be evaluative and measure existing outcomes (Sopact 2022a). The Cabinet Office defined six stages to SROI in their 2009 guide (NPC 2012b) and these are summarised in Appendix 3). New Economics Foundation describes SROI as incorporating social, environmental, and economic costs and benefits into decision making, providing a fuller picture of how value is created or destroyed. (Demos 2010, p19).

There may be some similarities between SROIs ambition to incorporate social, environmental, and economic costs and SAAs intention to create a triple bottom line. The key distinguishing feature between the two approaches is that SROI delivers a quantifiable value ascribed to outcomes (Demos 2010, p20).

Economic evaluation can require specific skills and considerable resources. The SROI ratio is calculated by adding up the value of all outcomes and is expressed in terms of for every pound spent, organisation X creates Y pounds of social value. Value is expressed through use of estimates including financial proxies derived from external sources. (NPC 2012b). With a quantifiable value, additional economically derived tools can be used to assess factors which may affect impact such as Attribution, Deadweight (or Counterfactuals) and Drop-off. (Sopact 2022a).

Deciding whether to base a SIE on the principles of SAA or SROI will depend on the reasons for conducting an evaluation in the first place, the context of your organisation, and the resources available. The design of the methodology and resources required to carry it out should be proportionate to the needs of the organisation.

StakeholdersAligned with the first principle of the Principles of Social Value, both SAA and SROI seek to engage stakeholders. This cannot be overstated although their involvement in each methodology will have different perspectives. In SAA, stakeholders are integral to the process; they are consulted on how they view the organisations performance, and their input emphasises the internal perspective of the methodology. In SROI stakeholder objectives are identified as they relate to their engagement with the organisation which then produces a result for external actors (Ridley-Duff & Bull 2019, p166).

Social Impact Evaluation in the Health and Social Care, Voluntary/Community SectorThere are more than 125 Headway organisations affiliated to Headway UK who describe their objectives as to promote understanding of all aspects of brain injury and provide information, support and services to survivors, their families and carers (Headway UK 2023c). As an organisation that predominantly seeks to campaign and educate, Headway UK may have difficulties in quantifying intangibles such as raising awareness. This is contrasted where organisations providing services for vulnerable people may find it easier to evaluate the impact because of their concrete deliverables (Demos 2010). The lack of formal approach to SIE at Headway UK is therefore unsurprising. In the latest annual report, numbers of people accessing services are given and a statement that the Board review qualitative feedback on a quarterly basis, however no formal impact measurement is cited.

To examine how this approach extends to other Headway organisations where services are more likely to be provided to people affected by brain injury, I conducted a desk-based review of a sample of Headway Groups in the Southeast and London. I found that, despite most of them delivering some level of direct services, they tend to report in a similar manner to Headway UK (Appendix 4). The websites and annual reports for the Groups I reviewed contained narrative relating to achievements and successes and where measurement was detailed, it tended to focus on quantitative measures of activities. Where social outcomes were included, these tended to be self-reported by the author. There were two organisations who indicated they were starting to engage with formal outcome measurement frameworks: Headway East London and Headway Kent. However, no published information was available on their websites.

I extended my review of impact measurement to two different organisations within the health and social care sector:

The Brain Charity (The Brain Charity 2023), a Liverpool based organisation, offer similar services as Headway organisations. Their website provides information about brain injury and the services they provide. There was no evidence of formal impact measurement being carried out. Their latest annual report to March 2021 states that a community consultation was carried out in February 2020 which highlights difficulties faced by service users including loneliness and social isolation. This is used as a rationale for the services provided.

Brain Injuries Rehabilitation Trust (BIRT 2023a). BIRT are part of the Disabilities Trust and as a larger organisation than most Headway organisations, have access to more resources. Their website provides information about services which include specialist residential, hospital and community-based services delivering high quality rehabilitation and support for people with complex need The website hosts a Brain Injury Outcomes Report 2020-2021 (BIRT 2023b), and this demonstrates support provided for people with brain injuries. The report includes outcomes demonstrating how services have positively changed the lives of people with brain injuries including figures to show, for example, discharge rates based on admittance rates, reduced supervision on discharge, and the improvements in carrying out everyday activities. The report details three programmes and then provides a mix of case studies and data to give in-depth information about the impact of services. BIRT uses formal measurement techniques such as the Brain Injury Needs Indicator (BINI), Mayo-Portland Adaptability Inventory (MPAI-4), Australian Therapy Outcome Measures (AusTOMs) and UK Therapy Outcome Measures (UKTOMs) to monitor improvements in progress. All service users have SMART objectives to inform goals and provide opportunity for monitoring. The report ends by outlining future ambitions.

What the above examples demonstrate is that most Headway organisations and the smaller charity, The Brain Injury, do not embrace formal SIE. They do provide quantitative measures in their reporting and, in some cases, provide rationales for undertaking activities. However, without formal evaluation, they are relying on the fact that what they do, will do good. Where there are more resources available, as in the example of BIRT, and a greater emphasis on tangible service delivery rather than campaigning and educating, there are opportunities to monitor and measure social impact. It is interesting to note that although formal outcome measures were extensively measured and reported by BIRT, no ascribed values or SROI ratio were published. It may be that their outcome reporting did not include an economic valuation, or if it did, that the authors chose not to disclose it.

A review of literature relating to SIE in health and social care suggests that the approach adopted by BIRT may be aligned to the approach of Health Impact Assessment (HIA). This approach is a combination of procedures, methods, and tools by which a policy, intervention or service may be judged as to its potential effects on the health of a population, and the distribution of those effects within a population (Ashton et al 2020) and involves the following steps:

Screening deciding whether to undertake a HIA

Scoping determining the focus, methods for stakeholder engagement and work plan

Appraisal of Evidence identifying the health impacts

Reporting and Recommendations

Monitoring and Evaluation

In research undertaken by Ashton et al, it is suggested there may be opportunities to combine the approach of SROI with the approach of HIA. Within the third step Appraisal of Evidence, steps 3-5 of SROI would be inserted (Ashton et al 2020).

The government encourages the use of SROI in Health and Social Care settings. In a paper published by the Department of Health in 2010, it is said that SROI gives health and social care social enterprises the opportunity to understand the social value they are creating which will help commissioners and social enterprises work together to understand the value of the service. It also infers SROI will help give the social enterprise a competitive advantage [to] exploit (DoH 2010).

Information from the Social Care Institute in Excellence (SCIE) examines the social value created through integrated care. The SCIE advocate an approach which suggests articulating the outcomes, identifying the right measures, developing a monitoring and evaluation framework, and using results to continuously improve. Throughout the process, engagement with stakeholders is encouraged. Economic valuation is suggested as a way of determining counterfactuals and readers are directed to a model of cost benefit analysis (SCIE 2019).

Proposal for Social Impact Evaluation at Headway SussexThe approach recommended for SIE at Headway Sussex draws upon theories, benefits, current practice in similar organisations and existing frameworks. These have been considered alongside challenges faced by the organisation. I believe that undertaking SIE at Headway Sussex has the potential to achieve the following:

Attract Funding

Providing social outcomes of programmes will support future funding applications, provide evidence for commissioners and support tendering processes. It may provide a competitive edge. There may not be a desire to seek further investment at the present time, however, with a formal impact measurement framework in place, this will facilitate future funder strategies.

Social Marketing

Information about outcomes will support marketing activities in three ways; to attract clients who self-fund through the hospital liaison service or in partnerships with insurers and legal firms; to support fundraising efforts within the local community; and to attract funding from local businesses keen to develop their approaches to corporate social responsibility. It may also support crowdfunding for an appropriate activity.

Service Delivery

Impact evaluation will enable greater visibility on the social change being created through the delivery of services. Stakeholders can be engaged to discover what works and what improvements can be made to enable greater change. A clear focus on impactful services will help avoid over-diversification and dilution of impact.

Strategic Focus

Evaluating social impact may support strategic decision making and long term aims of the charity. Through identifying and evidencing outcomes and attempting to estimate a value for these, impact evaluation can establish whether a programme achieves anticipated outcomes. Along with traditional business modelling techniques, this could support the development of a viable business model and the scale up of impactful services across a wider population.

Upskill the Workforce and the Board

Engaging staff and volunteers in SIE will result in new skills being learnt e.g., IT skills (in line with the current digital transformation efforts) and data collection (through surveys and interviews). They will gain a greater understanding of the social change they are helping to create. Engaging the Board in SIE will aid their understanding of the social value of the charity and will help direct strategies around social change. This is particularly important as the focus for Trustees over the last couple of years has been dominated by financial viability. Upskilling aligns well with creating a learning culture and cycle of continuous improvement.

Engagement with Clients and Carers

Involving stakeholders in finding out what gets measured, asking for their input into methods used to determine social value, and demonstrating genuine inclusivity will ensure the evaluation has strong credibility built through bottom-up participation. Anyone affected by, or who affects, programme activities should be included and so stakeholder engagement may reach beyond the direct beneficiaries of the service.

Share Learning

Providing information about SIE undertaken by Headway Sussex with other Headway organisations will build knowledge and understanding. It could lead to a more co-ordinated approach to SIE and, if comparisons can be made through similar methodologies, benchmarking can take place. Sharing formal and credible practices of SIE will increase the reach of the benefits described.

The outline plan (Appendix 5) is an adaptation of the SROI methodology using aspects from the HIA and SAA and based on the needs of stakeholders at Headway Sussex.

The evaluation should be pragmatic and focus on services that provide the greatest social value to clients and carers. Alongside other business strategy planning techniques, this will ensure the optimum business model is determined so that services can be scaled up across a wider population in a way that doesnt threaten the viability of the organisation.

I do not believe it necessary or advantageous to prioritise economic evaluation in the initial launch of this project. The extensive resources and learning required for full SROI would be disproportionate to the organisations current needs. However, there may be an opportunity to investigate informal ways of estimating value e.g., direct resource costs and self-reported estimates from clients and carers.

Sharing the plan with all stakeholders at the outset, taking their feedback into consideration and encouraging involvement throughout, will be key to their engagement and project success. Stakeholder participation will enable a learning approach and will help embed the practice of SIE into the organisation.

It is recommended that a project team be set up to co-ordinate the activities relating to the design and implementation of the SIE. The project team should report to a nominated Trustee who has responsibility to report activities to the Board who will act as project sponsors. The project team will include stakeholders at all levels of the organisation i.e., at least one member of the management team, senior staff and at least one client representative (who may be a client or family carer).

Designing the Social Impact Measurement PlanEstablishing Scope and Identifying StakeholdersSIE can be piloted at Headway Sussex by reviewing one programme initially. This will enable all stakeholders to learn about and engage with impact measurement; the learning achieved from this can then be used to scope further SIEs.

The Living Well Programme (the Programme) is a 3-year programme funded by a National Lottery Reaching Communities Grant. The aim of the Programme is to provide a locally based approach, promote and offer greater choice and control, personal wellbeing, rehabilitation and reablement, independence, improved quality of life, social interaction, and inclusion (Charity Commission 2023a). Conducting an SIE for the Programme will help determine what impact it is having on the clients and carers who participate in activities.

All stakeholders likely to experience change as a result of the Programme should be defined. Questions to ask to identify stakeholders include:

Who do you need to deliver the Programme?

Who do you expect will be affected by your activity?

Who might be affected by indirectly affected by your activity?

Who might experience a negative outcome as a result of your activity?

The answers to these can be captured on a Stakeholder Map and may be a mix of individuals, groups, or organisations (Appendix 6). This can be used to show where a stakeholder falls between two axes of Influence (the level of influence the stakeholder has), and Motivation (how motivated will the stakeholder be to engage in the evaluation). Once the map is completed, key stakeholders can be determined, i.e., those who will be able to create the most impact and value.

There needs to be clarity about the beneficiaries of the Programme e.g., clients and their family carers. The questionnaire in Appendix 7 can help determine who should be included. It is recommended that the project team complete the Stakeholder Map and the Target Audience Questionnaire together in a workshop forum.

The approach to engaging stakeholders must be inclusive and consider beneficiaries needs addressing what factors will support or hinder engagement and what might be affecting the lives of the people the programme hopes to engage (NPC 2019). Due to the complex nature and differing severity of brain injury, the effects on individuals can be diverse and will be experienced differently (Headway UK 2023b). Additionally, people who are caring for those affected by brain injury are likely to have different challenges which may affect their ability to fully participate in consultations (Carers Wales 2021).

Practical considerations are necessary to enable full participation of stakeholders. At every stage of the SIE, the project team should consider when and how stakeholders could be engaged. Where organisations or groups are included, individuals should be asked to act as representatives.

Mapping OutcomesA Theory of Change (ToC) demonstrates how impact is going to be achieved (SVUK 2017). ToC models include the following elements:

Activities: undertaken with the intention of achieving outcomes

Outputs: the measures used to describe the product of an activity

Outcomes: the results of an activity and may be short, medium, or long term

Impact Goals: the changes the programme wants to achieve

The inputs and activities are shown leading to outputs, which in turn lead to outcomes, and finally to impact (NPC 2012a). Some organisations use other planning models such as logic maps or planning triangles but the causal link from activities to impact can be clearly shown in a ToC and has been found to be the most used model by charities surveyed in the UK (NPC 2012a). Once designed, the ToC will demonstrate how the Programme can achieve the desired impact and will communicate expected impacts to stakeholders and track progress (Sopact 2022b).

To create an effective ToC, the impact goals should be defined in collaboration with key stakeholders, then, working backwards, the outcomes, the outputs and finally, the activities. Impact goals may be direct impacts, such as improving personal wellbeing, or knock-on impacts, such as reducing reliance on medication, or at a community level, such as being able to undertake volunteering (NPC 2019). The impact goals should be captured as brief statements in one or two sentences.

To ensure effective involvement of stakeholders and with the aim of getting a consensus view, it is recommended that the project team hold a consultation in a workshop format with stakeholder representatives (the representatives) who are not dominated by one type of stakeholder or another. Ensuring the workshop is held at an optimum time and in an easily accessible location will help maximise the numbers of stakeholders able to attend.

Once the impact goals are agreed, the representatives can work on identifying the outcomes, outputs, and activities. These may include holding a series of workshops over several weeks to allow time for debate and reflection. This will be particularly important for representatives who need additional time to consider options or who may tire easily, for example. The project team should also be aware of anyone who may need help understanding the task.

Questions to define outcomes from the Programme (NPC 2019) include:

How will beneficiaries be different within a few days, or weeks and how might that help them to achieve sustained change in the long term?

What would you like beneficiaries to be able to do differently?

What knowledge, skills or behaviours could change as a result of the Programme?

What adjustments need to be made to operational practices to accommodate new activities and the achievement of outcomes?

An example ToC is included in Appendix Eight. It may be helpful to show this to the representatives. However, it is paramount this is only considered an example; it is not designed to reflect the depth and breadth of the Programme and the ToC must be originally created by the project team and the representatives during the workshops.

Once all factors are considered, the project team can create a diagrammatic model of the ToC to be shared amongst key stakeholders to review. A reasonable deadline should be given for this review. Once the ToC is agreed, it should be passed to the management team to assess and plan for any changes to operational delivery. The project team should ensure the Trustee responsible is kept updated throughout.

Evidencing OutcomesCollecting data relating to activities and outcomes experienced by beneficiaries is key to understanding the social value created. To measure the amount of change that has occurred, data needs to be assessed using indicators (SVUK 2017).

There are two main types of data to consider:

Quantitative: uses objective indicators in the form of numerical data e.g., to measure frequency of activities and differences over time.

Qualitative: uses subjective indicators which tells a story and expresses stakeholder perspectives.

If output data is already being captured about the Programme, this will be a good starting point. But it is essential that qualitative data is also gathered. This will rely on beneficiaries reporting their own experiences. Where clients have personal care plans with SMART objectives, these could feed into outcomes data and it may be particularly useful to baseline a clients experience so you can determine the distance travelled at intervals throughout the programme (SVUK 2017). All existing data indicators which may relate to the Programme should be reviewed and aligned to the ToC.

In addition to existing data within Headway Sussex, it may be useful to consider external assessment tools aligned to the outcomes identified in the ToC. A summary of the tools can be found in Appendix 10 and include ASCOT, WEBMWS, and Triangles Outcomes Stars. More advanced tools such as the BINIs used by BIRT may not be appropriate for Headway Sussex, however, it would be worth investigating this further with a clinical or therapeutic advisor.

To identify what data the SIE should include, I recommend the project team completes the Data Collection Questionnaire in Appendix 9. Consultation with representatives should then take place to discuss what data is intended to be collected and how. When personal data is processed, compliance with internal policies relating to General Data Protection Regulations (GDPR) must be followed particularly regarding sensitive and confidential data.

Qualitative data can be collected using surveys, questionnaires, interviews, focus groups, case studies and other creative methods. There are risks associated with the collection of data, particularly where there is a reliance on self-reporting and an interviewers interpretation. Anyone involved in data collection should be fully briefed in the activity and understand the effect they could have on the results. Interview questions and surveys should be designed to be unambiguous and reduce bias e.g., by increasing the sample size to reach out to more people and ensuring you get responses from people across a range of demographics (SVUK 2017). Approaches to data collection are likely to evolve and develop over time and should be proportionate to the nature and scale of the programme (NPC 2016).

Establishing ImpactAssessing how much the Programme has contributed to the change experienced by beneficiaries will help establish impact (known as Attribution). Additionally, it would be useful to understand whether any of the change that happened, would have happened anyway, regardless of the beneficiaries participating in the Programme (known as Counterfactuals). Finally, it would be helpful to understand how long outcomes continue to benefit participants (known as Drop-Off). All of these can be assessed by asking beneficiaries directly. Useful questions to ask during data collection may be:

Did any other organisations or people help you achieve these changes and if so, who are they?

Can you estimate how much of the change was caused by these other organisations e.g., 20%, 40%, 60% etc?

On a scale of 1-10, how likely is it that the change you have experienced would have happened anyway?

How long do you think this change will last?

(SVUK 2017)

It may be beneficial to report on direct costs associated with the programme; these would include staffing and venue costs. To understand the value of the programme, beneficiaries could be asked whether they have experienced cost savings through their participation, e.g., reduced need for additional sources of rehabilitation. It would be worth discussing this with representatives for their suggestions.

By recording and analysing this data, an estimate of attribution, counterfactuals and drop-off can be calculated. This information along with value estimations can be analysed against the individual characteristics of groups of beneficiaries such as location, gender, and age. This will provide richer evidence of the impact of the Programme.

Communication, Review and LearnOnce the SIE has been completed, the project team should consider how the report will be published. It could be included in Headway Sussexs Annual Report, but this is often not reported to the Charities Commission until the following year.

Another option would be to produce a graphically appealing document could be drafted and added to the website. This would enable interested individuals and organisations to review the work undertaken by Headway Sussex creating both learning opportunities for a wider audience and a marketing opportunity.

Communicating the social value to potential stakeholders, commissioners, and other funders, should be considered as important as the measurement itself (Demos 2010). Before the project team make any decisions about the communication of the impact evaluation, the results of the SIE should be shared with representatives and their views sought.

Once the SIE has been completed and the report drafted, the project team should meet with the representatives to conduct a review to establish what went well and what could be improved upon. Project evaluation is a great way to create a learning culture and will be invaluable for Headway Sussex as it embarks upon its SIE journey.

ConclusionThis report has sought to demonstrate how a SIE could be undertaken at Headway Sussex. The approach recommended throughout is based on theories and practices that are relevant to health and social care, and in particular, organisations operating as charities in the voluntary and community sector.

The recommendation to pilot SIE for the Living Well Programme serves two purposes. Firstly, it provides a learning opportunity for the organisation and all who will be involved, and secondly, it enables the social value to be measured for a significant initiative which may prove to be the blueprint for the future organisation.

Reference ListArvidson, M. & Lyon, F. (2013) Social impact measurement and non-profit organisations: compliance, resistance, and promotion. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 25 (4). pp. 869-886. Available at: https://eprints.mdx.ac.uk/11087/ (Accessed: 18th January 2023)

Ashton K, Parry-Williams L, Dyakova M and Green L (2020) Health Impact and Social Value of Interventions, Services, and Policies: A Methodological Discussion of Health Impact Assessment and Social Return on Investment Methodologies. Front. Public Health 8:49. Available at: https://www.frontiersin.org/articles/10.3389/fpubh.2020.00049/full (Accessed: 18th January 2023)

BIRT (2023) Brain Injury. Available at: https://www.thedtgroup.org/brain-injury (Accessed: 18th January 2023)

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Cohen R. & Serafeim G. (2020) How to Measure a Company's Real Impact. Available at: https://hbr.org/2020/09/how-to-measure-a-companys-real-impact (Accessed: 18th January 2023)

Demos (2010) Measuring Social Value. Available at: https://demosuk.wpengine.com/files/Measuring_social_value_-_web.pdf?1278410043 (Accessed: 18th January 2023)

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Headway East London (2023) Headway East London. Available at: https://headwayeastlondon.org/ (Accessed: 18th January 2023)

Headway Kent (2023) Headway Kent. Available at: https://www.headway.org.uk/supporting-you/in-your-area/groups-and-branches/south-east/headway-kent/ (Accessed: 18th January 2023)

Headway Portsmouth (2023) Headway Portsmouth. Available at: http://headwayportsmouth.co.uk/ (Accessed: 18th January 2023)

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Headway Sussex (2023a) About Us. Available at: https://headwaysussex.org.uk/about-us/ (Accessed: 18th January 2023)

Headway Sussex (2023b) Our Services. Available at: https://headwaysussex.org.uk/our-services/ (Accessed: 18th January 2023)

Headway UK (2023a) About Headway. Available at: https://www.headway.org.uk/about-headway/ (Accessed: 18th January 2023)

Headway UK (2023b) Effects of Brain Injury. Available at: https://www.headway.org.uk/about-brain-injury/individuals/effects-of-brain-injury/ (Accessed: 18th January 2023)

Headway UK (2023c) The history of Headway. Available at: https://www.headway.org.uk/about-headway/the-history-of-headway/ (Accessed: 18th January 2023)

Mulgan (2010) Measuring Social Value. Available at: https://ssir.org/articles/entry/measuring_social_value (Accessed: 18th January 2023)

NCVO (2021) SWOT. Available at: https://www.ncvo.org.uk/help-and-guidance/tools/swot/#/ (Accessed: 18th January 2023)

NPC (2012a) Making an Impact. Available at: https://npproduction.wpenginepowered.com/wp-content/uploads/2018/07/Making-an-impact.pdf (Accessed: 18th January 2023)

NPC (2012b) SROI Position Paper. Available at: https://www.thinknpc.org/resource-hub/sroi-position-paper/ (Accessed: 18th January 2023)

NPC (2013) A Journey to Greater Impact. Available at: https://www.thinknpc.org/resource-hub/a-journey-to-greater-impact/ (Accessed: 18th January 2023)

NPC (2016) Stories and numbers: Collecting the right impact data. Available at: https://www.thinknpc.org/resource-hub/stories-and-numbers-collecting-the-right-impact-data/ (Accessed: 18th January 2023)

NPC (2019) Ten Steps. Available at: https://www.thinknpc.org/resource-hub/ten-steps/ (Accessed: 18th January 2023)

NPC (2023a) Define your issue and target audience. Available at: https://www.thinknpc.org/resource-hub/the-cycle-of-good-impact-practice-define-your-issue-and-target-audience/ (Accessed: 18th January 2023)

NPC (2023b) The cycle of good impact practice: Decide what data to collect. Available at: https://www.thinknpc.org/resource-hub/the-cycle-of-good-impact-practice-decide-what-data-to-collect/ (Accessed: 18th January 2023)

PSSRU (2018) Ascot. Available at: https://www.pssru.ac.uk/ascot/ (Accessed: 18th January 2023)

Ridley-Duff, R. & Bull, M. (2019) Understanding Social Enterprise. 3rd Edition. London, California, New Delhi & Singapore: Sage Publications

Ronald Mourad Cohen (2023) Wikipedia. Available at https://en.wikipedia.org/wiki/Ronald_Mourad_Cohen (Accessed: 18th January 2023)

SCIE (2019) Introduction. Available at: https://www.scie.org.uk/integrated-care/better-care/guides/measure-impact/introduction (Accessed: 18th January 2023)

Social Value UK (2022) Social Value Principles and Accountability. Available at: https://socialvalueuk.org/wp-content/uploads/2022/08/Social-Value-Principles-and-Accountability-2022.pdf (Accessed: 18th January 2023)

Sopact (2022a) SROI. Available at: https://www.sopact.com/social-return-on-investments-sroi (Accessed: 18th January 2023)

Sopact (2022b) Theory of Change. Available at: https://www.sopact.com/theory-of-change (Accessed: 18th January 2023)

Spreckley, F. (2021) Essential Social Enterprise. Tolworth, Surrey: Grosvenor House Publishing

SVUK (2017) Maximise your Impact. Available at: https://socialvalueuk.org/wp-content/uploads/2017/10/MaximiseYourImpact.24.10.17.pdf (Accessed: 18th January 2023)

SVUK (2023) The Principles of Social Value. Available at: https://socialvalueuk.org/what-is-social-value/the-principles-of-social-value/ (Accessed: 18th January 2023)

The Brain Charity (2023) About the Brain Charity. Available at: https://www.thebraincharity.org.uk/about-the-brain-charity/ (Accessed: 18th January 2023)

The Disabilities Trust (2023) BINI. Available at: https://www.thedtgroup.org/brain-injury/the-brain-injury-needs-indicator-bini (Accessed: 18th January 2023)

Triangle (2023) Home. Available at: https://www.outcomesstar.org.uk/ (Accessed: 18th January 2023)

UK Government (2023) Social Value Act: information and resources. Available at: https://www.gov.uk/government/publications/social-value-act-information-and-resources/social-value-act-information-and-resources (Accessed: 18th January 2023)

Warwick (2021) WEMWBS. Available at: https://warwick.ac.uk/fac/sci/med/research/platform/wemwbs/ (Accessed: 18th January 2023)

AppendicesAppendix OneSWOT Analysis for Headway Sussex, January 2023

2809875333375002981325247650WEAKNESSES

CEO employed on an interim basis

Lack of in-house clinical/therapeutic lead and reliance on external providers

Reliance on debt to cover core costs and overheads

Minimal staffing providing core services means limited opportunity for career development

The Cost of Living crises affects staff who are paid the national living wage and may cause an increase in staff turnover

Limited representation from beneficiaries on the Board of Trustees Wide geography of the Sussex area requires flexible and adaptable staffing arrangements and may incur significant travel costs whilst headcount remains minimal

00WEAKNESSES

CEO employed on an interim basis

Lack of in-house clinical/therapeutic lead and reliance on external providers

Reliance on debt to cover core costs and overheads

Minimal staffing providing core services means limited opportunity for career development

The Cost of Living crises affects staff who are paid the national living wage and may cause an increase in staff turnover

Limited representation from beneficiaries on the Board of Trustees Wide geography of the Sussex area requires flexible and adaptable staffing arrangements and may incur significant travel costs whilst headcount remains minimal

144780230505STRENGTHS

Finances improved on recent years with a strong cash position

Increased level of enquiries due to wider population reach

Flexible and adaptable long-serving staff team and volunteers who are loyal to the organisation

Experienced Board of Trustees with strong financial management skills

Continued implementation of a new client database as part of a digital transformation

Ongoing digital marketing improvements provided by new Digital and Marketing Lead

Strengthened hospital liaison service

00STRENGTHS

Finances improved on recent years with a strong cash position

Increased level of enquiries due to wider population reach

Flexible and adaptable long-serving staff team and volunteers who are loyal to the organisation

Experienced Board of Trustees with strong financial management skills

Continued implementation of a new client database as part of a digital transformation

Ongoing digital marketing improvements provided by new Digital and Marketing Lead

Strengthened hospital liaison service

29222704314825THREATS

Cost of scaling up services is threatened by a lack of current viable business model

Too much diversification may cause a weakness in the quality of services offered

Lack of ability to generate data and information about services may weaken the chance of getting external investment

00THREATS

Cost of scaling up services is threatened by a lack of current viable business model

Too much diversification may cause a weakness in the quality of services offered

Lack of ability to generate data and information about services may weaken the chance of getting external investment

38100109220OPPORTUNITIES

Strong financial position increases the opportunity to seek investment

Merger with Headway West Sussex creates opportunities to extend services for a larger population

National Lottery Funding for the Living Well Programme enables the extension of services into the community to help establish a sustainable business model

Funding to be achieved from the property sale or creation of leasehold arrangements concerning the Headway House estate

Strong relationships with partners and supporters across the public, private and voluntary sector including links with other Headway organisations

00OPPORTUNITIES

Strong financial position increases the opportunity to seek investment

Merger with Headway West Sussex creates opportunities to extend services for a larger population

National Lottery Funding for the Living Well Programme enables the extension of services into the community to help establish a sustainable business model

Funding to be achieved from the property sale or creation of leasehold arrangements concerning the Headway House estate

Strong relationships with partners and supporters across the public, private and voluntary sector including links with other Headway organisations

762001587500

Appendix TwoThe Principles of Social Value

(SVUK 2023)

Appendix ThreeThe Six Stages of SROI

(NPC 2012b)

Appendix FourNotes: Review of Headway UK & sample of Headways in the Southeast

Headway UK

Campaigning and education are the main priorities for Headway UK

Headway Houses day centres to assist in long term rehabilitation started in Gloucester and replicated elsewhere not managed directly by Headway UK

Approved Care Providers run by separate organisations

Annual Report to December 2021 states the objective is to promote understanding of all aspects of brain injury and provide information, support and services to survivors, their families, and carers

They measure success by accurately monitoring the number of people accessing their services. Qualitative feedback is also considered with the Board reviewing positive and negative feedback and complaints on a quarterly basis

Achievements and performance are financial with cost cuttings due to Covid, risk to long term financial security and use of the furlough scheme being noted

Support to groups and branches were prioritised during Covid as they recognised disruption faced in the provision of services to brain injury survivors and carers

Helpline stats given with one thank you note, unable to verify as anonymously given

Emergency Fund stats given with another thank you note, again unverifiable

Justice Project stats given for the number of Brain Injury ID cards handed out with a rating given by cardholders i.e., 97% reporting this was Excellent or Good no indication of how and when this measure was gathered

Publications and Resources stats given

Digital + Social Media engagement stats given

Details provided of campaigns and public affairs

(Headway UK 2023a: Charity Commission 2023b)

Headway Sussex

Website provides information about services, governance/people information in About Us, information about fundraising and volunteering and a News section. No links to annual reports or strategy documents.

Chairmans report overview of what the charity has done includes stats for numbers of hours of outreach, number of online support group and number of participants reached

CEOs report describes what has been done and what the intentions were e.g., rather than spending money on renovations, interim use of the annex building will ensure a shift in focus to other venues would start to be achieved

Qualitative data is self-reported e.g., staff observed clients with groups gaining confidence and that support could help reduce worry, anxiety and social isolation

List of outcomes on page 6 of the report under the heading Digital Transformation are all self-reported by the CEO and not evidenced

Support and wellbeing activity data is all quantitative e.g., 23 Living Well groups for 324 participants in West Sussex

(Headway Sussex 2023a: Charity Commission 2023a)

Headway Portsmouth & Southeast Hampshire

Website provides information about services, information for medical professionals, information about fundraising and volunteering. There are no links to annual reports.

Annual Report to March 2022 on the Charity Commission website

Objectives and aims are stated under the section Public Benefit

Achievement and Performance measures are quantitative e.g., 62 service users attended session in the first month of re-opening April 2021 and by March 2022 there were 429 service users

There are statements from 5 service users, but these are not able to be verified as they are anonymous

Information given in the annual report about what they do for 1-1 support

Hospitals project number of referrals given

Training courses aim of training is outlined and the number of courses run including 2 statements from users (unverifiable)

The family members/carers support programme details what they did and a statement about what was enjoyed self-reported by the author

(Headway Portsmouth 2023: Charity Commission 2023c)

Headway Kent

Website contains information about the charity and includes mission and objectives, has a news feature, information about day centres, information about volunteering, lotter and membership and contact details. There are no links to annual reports or other strategy documentation

Annual report to December 2021 provides information about aims and objectives and activities and public benefit statements

Achievement list actions take re: Covid and the challenges felt with the shortfall in Kent County Council budgets and how this is impacting them

There is a whole section about adult social care being under extreme pressure as details in the Local Government Finance Survey 2020 contract rates available fall short of what is needed to meet full cost

Considers the effects of the introduction of an asset-based commission tool - care packages building around individuals using assets in the community justifies move from day centre approach to community-based services

Introduces that they have introduced an outcome measurement tool to map progress and provide much needed evidence for funders and that they have completed a Theory of Change and trained staff on how to do this. No evidence on their website of this and details of outcomes have not been included in the annual report

(Headway Kent 2023: Charity Commission 2023d)

Headway Surrey

Website contains information about the charity and a statement that they use SMART individual goals as part of their service provision. Also mention of the use of 10 Key to Happiness and the Wheel or Wellbeing to help decided what is important for each person

Case studies included on website helpful to understand benefits of service to clients

Annual Report to March 2022 details objectives/activities and mission statement

There is a CEO report on services based on what we do and some rationale for doing it

Report by the Chair on Achievements and Performance which is very client focused (not led) at the start and a description of the difficulties faced during Covid

Information about the clients includes the following statement from the chair: I know that clients are benefiting hugely from the opportunity for the interaction but no evidence as to how they have gained this knowledge and whether any formal measurement has taken place

Key strategic priorities listed as activities

(Headway Surrey 2023: Charity Commission 2023e)

Headway East London

Website is very accessible and centred around the needs of the members (described as anyone using any service)

Website contains information about services and includes an annual review 2021-2022 and a link to a strategy document 2022-2027

Strategy document includes mission, vision, principles (coproduction, equity diversity and inclusion, sustainability)

Aims in the strategy document state that they will use new methodologies to measure the impact of our services. Using recognised outcome measurement tools will help us more reliably prove the differences we make through our unique approach. This will provide further evidence that our work results in positive outcomes for brain injury survivors and that it offers real value for money for commissioners and the local authorities.

Comment further on that they will start to make better use of data to help guide the services they offer and use of external frameworks to ensure they provide the best possible support and help identify new potential services and projects

Annual Review document includes quantitative stats, e.g., attendance, funds raised

There is a Case study from a member

Details of projects including statements from members about the services theyve received

A section of Equity, Diversity and Inclusion and fundraising highlights.

(Headway East London 2023: Charity Commission 2023f)

Appendix FiveOutline Proposal for Social Impact Measurement Plan

Establish Scope and Identify Stakeholders

Define the issue

Identify all stakeholders

Define the target audience (the beneficiaries)

Assess level of participation and engagement of stakeholders

Map Outcomes

Create a Theory of Change

Create the Impact Goals

Engage stakeholders to identify outcomes, outputs, and activities

Consider the impact of theory of change on the existing operational model

Evidence Outcomes

Select data to evidence outputs and outcomes

Create a data collection plan and ask stakeholders for their feedback

Establish Impact

Consider pragmatic approaches to estimating value

Consider informal approaches to assessing attribution, counterfactuals and drop off

Consider using internal benchmarking to assess impact

Communicate, Review and Learn

Communicate outcomes to stakeholders

Review SIE project and establish learning with all stakeholders

Appendix SixSample Stakeholder Map*center42122High Influence

00High Influence

473794710138800

397361830480Trustees

00Trustees

559625553128Management Team

00Management Team

7181850123613Clients

00Clients

8982710172085High Motivation

00High Motivation

330200188595Low Motivation

00Low Motivation

left465600

719963021802Staff

00Staff

55336025080Carers

00Carers

135424319473NHS Commissioners

00NHS Commissioners

2085763110490Councils

00Councils

563372013547Volunteers

00Volunteers

center322369Low Influence

00Low Influence

636143088900*Adapted from Gizajob Stakeholder Map (SVUK 2017)

00*Adapted from Gizajob Stakeholder Map (SVUK 2017)

Appendix SevenQuestionnaire to Define the Target Audience *

Key Questions Your Response Guidance

Who is affected by the aims of the Living Well Programme? These people will become your target audience How many people are affected? Who are they? Are some more affected than others? Who is particularly vulnerable? Ensure all participants have a copy of the programme aims

What is the scale and scope of the issues that people face?

What type of issues do people face and how big are their problems? Take each of the Living Well Programme aims and discuss in turn some may attract similar responses

What are the consequences of the issues?

What are the knock-on effects? For example, how does a lack of personal wellbeing affect people.

What are the causes of the issues?

What are the root causes of the issues that your target audience face?

What are the barriers to change? What gets in the way of improving the issue? What prevents people from coping with or changing their situation?

What are the characteristics, needs and strengths of your target audience? Be clear and specific. Think about their characteristics, their needs, and their strengths?

What are the inclusion and exclusion criteria for those you are going to work with? Should all participants of the Living Well programme be included? What about carers?

*Adapted from Define your issue and target audience (NPC 2023a)

Appendix EightSample Theory of Change

Activities OutputsOutcomesAims/Goals

2138680254635# Clients attending counselling sessions

00# Clients attending counselling sessions

4744932135890Client is satisfied with their quality of life

00Client is satisfied with their quality of life

7820660139065Client experiences improvement in Wellbeing

00Client experiences improvement in Wellbeing

4745355252730Client develops a better support network

00Client develops a better support network

2146935217805# Clients taking part in group activities

00# Clients taking part in group activities

6980767143510

78740001974215Carer experiences improvement in Wellbeing

00Carer experiences improvement in Wellbeing

7058025233489547650402164715Carer is satisfied with their quality of life

00Carer is satisfied with their quality of life

-5080015703554740275676275Carer experiences improvement in clients independence

00Carer experiences improvement in clients independence

21837651797050# Carers calling Response & Call Back

00# Carers calling Response & Call Back

22138222637155# Carers using the hospital liaison service

00# Carers using the hospital liaison service

2172335559435# Support Groups held each month

00# Support Groups held each month

left2198158Monthly Support Groups for Carers

00Monthly Support Groups for Carers

left61595Weekly Support Groups for Clients

00Weekly Support Groups for Clients

4052782234950040153172794000174413423467491664547212090

Appendix NineQuestionnaire to Create the Data Collection Plan*

Type of Data What Data will you collect?

Relate the information to Outputs and Outcomes in your Theory of Change How will you collect Data?

Timing of collection, who will be responsible, which digital tools to use? What will this tell you?

What questions will this answer? Where in your Theory of Change does this relate to?

User Data

Information about the characteristics of the intended beneficiaries

Engagement Data

The frequency of clients and carers attending activities, and the extent to which they use it

Feedback Data

What beneficiaries think of the services provided in the Living Well Programme

Outcomes Data

The changes that beneficiaries are experiencing as a result of the Living Well Programme

Impact Data

The long-term difference that has resulted from the programme

*Adapted from The cycle of good impact practice: Decide what data to collect (NPC 2023b)

Institute for Creative and Cultural Entrepreneurship

Student Number: XXXXXXXX

Programme Title: MA Social Entrepreneurship

Module Code and Title: IC71139B Entrepreneurial Modelling

Module Tutor: Sian Phillips and Adrian de la Court

Business Plan: Lokalee Ltd

Lokalee Ltd

Business Plan: Lokalee Ltd

Table of Contents

TOC o "1-1" h z u EXECUTIVE SUMMARY1BUSINESS DESCRIPTION AND VISION2DEFINITION OF THE MARKET4MARKETING AND SALES STRATEGY6ORGANISATION AND MANAGEMENT8FINANCIAL MANAGEMENT9APPENDIX 1 SOCIAL BUSINESS MODEL CANVAS11APPENDIX 2 CASE STUDY: CONVERSATIONS WITH LOCAL BUSINESS REPRESENTATIVES AND OWNERS IN WOKING12APPENDIX 3 CUSTOMER JOURNEY PROBLEM TREE, OBJECTIVE TREE AND THEORY OF CHANGE14APPENDIX 4 ORGANISATIONAL WORKFLOW AND TIMELINE16APPENDIX 5 BUSINESS CASH FLOW MODELLING COST PROFILE ASSUMPTIONS AND RISKS18LIST OF FIGURES22BIBLIOGRAPHY AND REFERENCES22

Student Number: XXXXXXXXII

Executive Summary

Lokalee Ltd is a company limited by guarantee providing a loyalty programme (LP) to build community wealth by encouraging consumer spend towards independent local businesses in Woking, Surrey. As a social business, profits will be reinvested back into the local community, agreed by a cooperative panel of local independent business owners, with the intention to fund a social enterprise carbon-neutral delivery service, providing jobs for local people from marginalised or disadvantaged parts of the community.

The Problem

Whilst conscious consumerism (Godwin, 2009) entails making an informed choice on shopping habits, the information about what is available locally is scattered across the internet (Leach, 2022). Consumers post-pandemic wish to continue supporting local independent business (Mintel, 2022 [1]), as 52% of adults consider smaller business to be more ethical (Mintel, 2022 [3]), have added financial pressures thanks to the current inflation and rises in energy prices, yet they still require convenience (Leach, 2022). The Lokalee Ltd platform provides the consumer the convenience of whats available in the local area in one easy to use app; offers and promotions to allay criticisms that shopping local costs more, (Moraes et al, 2012), enables closer ties to sellers and fosters the feel-good factor, representing a close embodiment of, the five values of conscious consumerism: health and safety, honesty, convenience, relationships and doing good. (Godwin, 2009).

The Market

Lokalee intends to target 500 (16%) local independent businesses and 5000 (9%) consumers of the Woking demographic through a combination of offers and promotions through the LP portal, social media activity, events, community publications, schools, community groups and other social networks.

HIGH LEVEL CASHFLOW STATEMENT YEAR 1 YEAR 2 YEAR 3

1 Balance Carried Forward 57,126 2,716

Savings / Grants / Loans 75,000 20,000 Income from sales 40,841 58,223 226,078

2 Total Income 115,841 78,223 226,078

3 Total Costs (58,715) (132,634) (185,643)

1+2+3 BALANCE 57,126 2,716 43,151

Finances

Fig. 1 High Level CashFlow Statement

Lokalee Ltd will require 95k of investment over the first 2 years, via a combination of personal savings, start-up grant and a small business loan. Year 3 will see the business fully profitable from income via sales: a combination of commission fees on sales through the LP and annual subscription fees from each business (refunded annually once commission fees exceed the annual fee).

People

Lokalee Ltd will be run by the Company Director (Carey Leach) who has an extensive background in IT Project Management and a passion for Community Wealth Building, to build relationships with the local community.

Partnering with LoyaltyPro to provide the platform app/website, customer services and marketing expertise during launch and initial business start-up. After 6 months, first roles / internships will be offered to local Marketing or Business School graduates, to develop marketing strategies for business growth.

Business Objectives:

Break Even in Y2 by September 2024 (25 months after launch)

Sufficient profits to fund setting up a social enterprise delivery service after Y3

Expansion into neighbouring boroughs in Surrey, becoming the go-to community LP supporting independent business to promote growth in the local economy and reinvest into the local community.

Business Description and Vision

Business Operation

The online platform will be created by LoyaltyPro, a software developer who has expertise in community LPs. Evidenced by their case study in Hoole, Chester, LoyaltyPro saw throughput of 819k in 2 years of operation (LoyaltyPro, 2022). Lokalee Ltd will develop relationships with traders, the local council and the local community to grow affiliation and achieve consumer sign-up. Operating as a two-sided digital marketplace (Alumnawar & Anshari, 2021), Lokalee Ltd will upload the business offers and promotions to the portal, which consumers access via an app to entice them to purchase from local independent resellers. The inbuilt platform metrics will provide purchasing meta data for the business owners helping them determine which offers prove most successful. Lokalee Ltd will manage the LP accounts and determine the amount of profits available to be reinvested. A panel of business owners will cooperatively decide how the remaining profits should be redistributed for community benefit.

Why?

Conscious consumption and sustainability go hand in hand. To quote Jones (2021, cited in Leach 2022), Sustainability is the outcome of conscious thinking. Sustainable shopping choices are now readily available, a market reaction to growing consumer awareness of the damage caused by single-use plastic and throwaway culture. (Mintel 2022 [1]). But sustainable consumption should be more than just environmentally friendly. To truly embrace Circular Economy principles that are good for business, people and the environment, (Ellen Macarthur Foundation, 2022) money should be treated as a precious raw material, to be reused and recycled within the local economy. To do this requires a reorientation of existing consumer behaviour, and promotions have a powerful influence on this.

Research finds 74% of adults would recycle more if there was incentive to do so (Mintel, 2022 [2]). Lokalee Ltd intends to provide a LP to encourage consumers to shop locally, thereby harnessing wealth for the local economy (profit), generating growth and creating local job opportunities (people).

Mission: Life Lived Consciously (Leach, 2022) the creation of a network of conscious consumers who shop sustainably by supporting local independent businesses, harnessing the wealth to grow the local economy through profit redistribution to benefit the community.

Purpose: To encourage consumers to shop sustainably via a dedicated LP promoting local independent businesses. To increase the visibility and variety of local independent businesses to make conscious shopping choices easier. To use the profits to benefit the community and create a social enterprise carbon-neutral delivery service, providing jobs for marginalised members of the community. To promote community wealth building (CLES 2022) to demonstrate the power of conscious consumption in creating a sustainable local economy.

Vision: To build a franchise of community LPs across Surrey, building local economic, promoting sustainable consumption, supporting independent business, whose profits are redistributed for community benefit.

How it works (see Fig. 2, below):

The LP platform for community groups is to be provided by software developer, Loyalty Pro. Using an app, website and card which consumers use to redeem offers, search for affiliated independent businesses, available promotions, and products and services within their local area.

Businesses pay upfront annual fee (250) and 5% commission on transaction amount of spend via consumers through the programme. Annual fee is refunded on anniversary for businesses whose commission payments throughout the year exceed 250 to avoid double-whammy cost of participation. Website / app becomes additional marketing portal, for promotions, offers and special events, attracting new customers via the programmes consumer reach.

Consumers benefit as they shop, building points and redeeming offers, with increased visibility of the local services available to encourage sustainable shopping decisions.

Wealth from consumer spend is retained within the local economy. Profits to be redistributed towards collaboratively agreed community benefits, including a social enterprise carbon neutral delivery service, employing drivers from disadvantaged backgrounds, supporting local livelihoods and the environment.

Consumers join the loyalty programme to accumulate points every time they shop, which translate into discounts, together with additional promotions via offers, thus reorienting behaviour to shop with affiliated local businesses either online or in store / in person

Local businesses generate additional revenue as programme grows, benefitting from additional marketing via website / app for available promotions. Commissions made from purchases via the programme support the running of the platform. Annual subscription fees keep cash flowing, to be refunded on anniversary for businesses whose commission payments exceed the annual charge

Consumers feel good about supporting the local economy, and continue to make conscious choices with their purchases, leading to continued

sustainability of the

local economy

All affiliated local businesses decide collaboratively how to reinvest the profits from the platform so that all members have equal representation and opportunity to benefit

App, website and wallet-card with subscription based loyalty points and/or offers programme, promoting local businesses in your area (via map) - advertised via social media, local publications, farmers markets, business forums etc

Profits from commission sales to support creation of social enterprise delivery business, employing local drivers from disadvantaged groups, using planet-friendly vehicles. Social enterprise to offer reduced delivery charges for local businesses, and free delivery for consumers (subject to minimum spend)

Money stays within the local economy to be re- distributed again and again

Consumers promote the loyalty programme to friends and family, as they feel good about supporting their local community

thereby directing new consumers to the website/app and loyalty programme

Fig. 2 'How It Works' Process Flow (adapted from Leach, 2022)

Key Performance Indicators (KPIs):

It is important to measure increase in subscribers and sales as well as decrease, to confirm which areas are most engaged but also those that need further promotion effort or where efforts should be reoriented towards more successful campaigns and promotions (Youjae & Hoseong, 2003), in order to achieve the overall business objectives. The associated KPI metrics to be measured are as follows:

Targets for affiliation of businesses and consumers: Y1 = 150 businesses; 240 consumers; Y2 = 270 businesses; 1500 consumers; Y3 = 500 businesses; 5000 consumers

Total revenue made through the LP (total sales transactions with a LP incentive) (MoM and YoY)

Total number of customers and businesses subscribed (MoM and YoY)

Total new consumer and business subscribers (MoM and YoY)

Total consumer and businesses unsubscribed (MoM and YoY)

Trend in average consumer spend per month (to match projections in order to maintain commission fee targets, i.e. Y1 >= 50, Y2 >= 75, Y3 >= 100 per consumer per month)

Redemption Rate (Total Points Spent / Total Points Issued) or for businesses using offers (Total Offers Spent

/ Total Offers Issued) offers insights into success of the programme and which types of offers/points are most popular, how loyal the consumers are, how easy the points/offers are to earn/spend and interest in the variety of offers available (Cheetah Digital, 2022)

Customer Retention Rate to determine how successful the programme is at attracting new consumers as well as keeping existing consumers. A high CRR proves customer loyalty, a low CRR proves work is required

to achieve customer retention. Calculated as follows, determined over a measured period: CRR = (Ending Customers New Customers) / Initial Customers x 100 (Cheetah Digital, 2022)

Repeat Purchase Rate insights into how many customers repeatedly use the LP, the commission sales from which fund the business. RPR = repeat consumers / total buying consumers (Cheetah Digital, 2022)

Consumer Value used to help determine the value each customer brings to the business. Usually used for single brand LPs, but this could be split per product type or service sector, to determine which areas are most profitable and gain most customer spend via the programme, to determine areas to focus on to gain higher revenue as well as those to put more effort into. Calculated as follows:

Consumer Value (CV) = Average Purchase Value x Average Purchase Frequency Rate

Average Purchase Value = Total Revenue / Number (No.) of Orders

Average Purchase Frequency Rate = No. Purchases / No. Consumers (Fontanella, 2022)

Definition of the Market

What is a conscious consumer?

Emerging from the rise of artisan food producers, farmers markets and the desire for sustainability in food production, such as reduction of food air-miles, or provenance in the supply chain, consumers are becoming much more conscious of the products they buy, favouring local producers of quality goods over mass-produced, highly- processed, globally farmed products. Thus a conscious consumer is, a decision maker whose decisions may be dictated by individual preferences (e.g. voluntary simplification or anti-consumption), situational influences (e.g. convenience or information availability), and/or social factors. (McEachern et al, 2010, pp. 397-398). Slightly less fervent than ethical consumers, whose shopping habits reflect their political and moral values (Moraes et al, 2012), conscious consumers are prepared to make an alternative choice, as can be seen in the growing resurgence of new generation farmers markets (Coster & Kennon, 2005, cited in McEachern et al, 2010) that include local products from small retailers alongside the artisan food products. This choice is not just over food provisions, but is expanding to other products and services, preferring to support local business over the larger chains.

Why a Loyalty Programme?

LPs are usually associated with brand loyalty that reward consumers for repeated business. They work to, accelerate the loyalty life cycle, encouraging a 1st or 2nd year customer to behave like a companys most profitable 10th year customer. These customers become business builders by buying more, paying premium prices, and bringing in new customers by referrals. (Youjae & Hoseong, 2003). As the Lokalee Ltd LP enables each business to promote their own offers redeemable within their own stores, the businesses will achieve both the short-term benefits of targeted promotions with the benefits of being part of a long-term LP, without the associated management. Consumer value perception of LPs is determined from a combination of cash value of the reward, the choice of rewards on offer, their aspirational quality, attainment and how easy the scheme is to use (Youjae & Hoseong, 2003). The Lokalee Ltd LP will offer a large selection of rewards across multiple vendors, providing the flexibility to target consumers across a variety of purchasing demographics and support the local economy. LPs can be hugely effective for building community wealth, as, the proposed positive impacts of buy local programs largely arise from the economic and social effects of keeping local income within the local economy through local purchases, while reducing the leakages of income represented by the purchases of imported goods. (Winfree & Watson, 2017, p. 973).

Woking's Population Demographic (2011 Census)

17%

6%

12%

19%

11%

Under 5

5-14

15-24

25-49

50-64

65+

35%

Target Clients Profile of Woking, Surrey

Fig. 3 Woking Population Demographic (2011 Census)

Using 2011 census figures, Woking has 99,198 residents, distributed across 39,467 households. Of those, 75% are in work (either full or part-time), and of the remaining 25%, 48% are retired and 22% are looking after the house and/or family. 70% of households are owned (outright or with a mortgage). The average monthly wage equates to 2,530, which places Woking households within 100 of the average monthly spend profile (see Fig. 4, below). (Woking Borough Council, 2022).

The target of 5000 consumers represents 12.6% of the total households and 5% of the

population in Woking. Based on the demographic profile, 54% would appear most likely to make the household purchasing decisions (ages 25-64), which equates to a 9% share of the key consumer market for the LP. Adding in the additional 11% who would appear most likely to be influenced by social media (ages 15-24) there is a potential target audience of 65,000 consumers, offering plenty of potential for growth of the LP in future years. The target of 500 businesses represents 16% of the total independent local business units in Woking (totalling 6,180 in 2021, assuming only half (3,090) are independently owned). (Surrey-i.gov.uk, 2022).

Market Share

Fig. 4 represents the average monthly UK household spending, which have been used to calculate the target market share as they are a close match to the average Woking household income demographic (see Definition of the Market).

Fig. 4 Average Monthly Household Spending UK (NimbleFins, 2022)

Fig. 5 Market Share Breakdown

Based on the applicable categories for spend targeted by the LP (see Fig. 5), the average monthly market share of household expenditure relevant to businesses within the LP is 896. Assuming only a small portion of that spend will be successfully targeted, yet will increase YoY as consumer confidence grows, the average monthly spend per consumer via the LP is 45 in Y1 (5%), 134 in Y2 (15%) and 224 in Y3 (25%). Whilst initially looking significant, this represents only of the average monthly household spend market share after three years on the programme. Assuming the consumer spend profile increases over time, the predicted market share for Y3 represents 380k, or 8% of the total target average monthly spend of the 5,000 consumers on the LP.

CATEGORIES APPLICABLE TO SPEND VIA LOYALTY PROGRAMME

Vices Personal

Clothing & footwear

Household Restaurants & Hotels

Food and non-alcoholic drinks

56

76

101

158

229

276

TOTAL AVERAGE SPEND

896

PROPORTION OF SPEND TARGETED

YEAR 1 (5%)

YEAR 2 (15%)

YEAR 3 (25%)

45

134

224

MARKET SHARE

Total Average Monthly Spend by Y3

(5000 consumers x total average spend)

LP market share Y1 (240 consumers)

Y1 spend profile = (240 x 5%)

LP market share Y2 (1500 consumers)

(Y2 = (240 x 15%)+(1260 x 5%)

LP market share Y3 (5000 consumers)

(Y3 = (240 x 25%)+(1260 x 15%)+(3500 x 5%)

4,480,000

10,800

88,860

380,100

Y3 MARKET SHARE

8%

Stakeholder Benefits

Consumers: Reorienting behaviour towards local providers offers consumers the potential for higher quality goods (McEachern et al, 2010); getting to know the seller (Winfree & Watson, 2017); reduced carbon footprint through minimising transportation (Winfree

and Watson, 2017); and consumer sovereignty in their purchasing habits. (McEachern et al, 2010, p. 401). All in an easy-to-use app that notifies the consumer of offers and promotions across a wide range of producers and service providers in the local area.

Independent Businesses: Increased trade through additional marketing via the platform, a widening of the circle of potential consumers and the network of fellow local independent business owners. Additional information on the business owners requirements and therefore benefits from the LP can be found in Appendix 2 Case Study: Conversations with Local Business Representatives and Owners in Woking.

Local Council: Increased revenue into the local economy due to increased footfall and online sales locally, visibility of which promotions attract the most consumers to give insight into the, positive, localised and context-specific consumer responses, (Moraes et al, 2010, p. 106) to the social and environmental needs and wants of the local community through data on their associated consumption habits. The increased footfall will promote the programme, as non-participating consumers witness subscribers benefitting from LP promotions at the cash desk as part of the bystander effect (Steinhoff & Palmatier, 2016) encouraging sign-up for fear of missing out on available offers.

Marketing and Sales Strategy

Having identified the target market of conscious consumers looking to shop more sustainably by supporting local independent businesses (see Definition of the Market, above), the question turns to demand. With 69% of adults cutting back on non-essential spending as a result of the COVID-19 pandemic (Mintel, 2022 [4]) and 28% intending to shop more from smaller independent retailers (Mintel, 2022 [5]), the time is right for a LP that supports local independent businesses by promoting discounts and offers to make shopping locally more economical.

Competition

The unique selling proposition (USP) of the LP is its exclusivity in promoting local independent business which reinvests its profits back into the local community. Existing LPs are usually confined to single brand exclusivity, whereas Lokalee Ltds LP offers come from a wide range of products and services within the local independent business community. Those LPs that are coalition based (Belli et al, 2022) such as Tescos Clubcard, only offer incentives through participating chain stores, thus not supporting local independent business or profit redistribution.

There is direct competition from MyTownShops (https://www.mytownshops.com/hubs/woking) which is an online shopping platform promoting local independent business. The platform operates across the UK, building a network of local community businesses and is currently supported by Woking Borough Council. However the company is based in London and does not reinvest its profits back into the local community, plus their platform requires hardware to be installed in each shop which is proving costly and puts off retailers who do not wish to have a secondary or duplicated purchasing process (see Appendix 2 - Case Study: Conversations with Local Business Representatives and Owners in Woking). Without knowing their cost structures, a locally based company whose profits are reinvested back into the community, supporting its own social enterprise delivery service would still be seen as a viable alternative proposition.

Ongoing Analysis

The key to the long-term success of Lokalee Ltd is not just to grow the customer base (that of businesses and consumers) but of keeping them using the platform. Analysis of the redemption behaviour for the consumers will reveal their preferences, highlighting those promotions that reorient consumer behaviour (towards the offer) or that consumers share (as a good deal) (Bruneau et al 2018). These should be used to generate additional similar businesses and promotions in which they will be interested. This is a common engagement method used by streaming companies (e.g. Netflix because you watched X series you may like Y) thus creating relevant content that promotes consumer engagement. The meta data provided within the LoyaltyPro platform will enable the businesses to orient their promotions towards successful campaigns.

Type of Rewards

The success of the LP directly depends on the value placed on the offers and rewards available (Youjae & Hoseong, 2003). Rewards that offer savings or exclusivity (i.e. are not available to non-members), are directly related to their core business offering, are convenient to use, accessible (e.g. target benefit points total can be easily attained) and promote feelings of being special (e.g. invitations to members-only events) (Belli et al, 2022) are all key to foster the continued success of the LP.

Sales Strategy

As an enabler marketplace to connect consumers with local independent businesses, sales will come via commission on consumer transactions from offers within the LP and annual fees from business retailers for cash flow (for further information on price see the section on Financial Management). The platform and promotions are the products, via offers uploaded to the app or website (place). Channels for distribution will be the app/website (product), social media, face to face interaction, the businesses themselves, word of mouth via business networks and consumer promotion through word of mouth and their own networks. These are detailed in Appendix 1 Social Business Model Canvas. There will be no need for a physical environment as the platform is online and staff will all be working remotely. The details of the customer journey are shown in Appendix 3 Customer Journey Problem Tree, Objective Tree and Theory of Change. The operational process is shown in Appendix 4 Organisational Workflow and Timeline.

By working diligently to refresh offers regularly, promote local events and maintain a strong presence on social media, the LP can influence conscious consumption choices to be reoriented to support the local economy. Research shows that, the key to influencing individual consumer choice is to have a greater understanding of the shared learning that occurs through peer groups and social networks, whereby behaviours spread through conversations, social learning, and the personal contacts of everyday life. (Malpass et al, 2007, cited in Moraes et al, 2012, p. 117).

Organisation and Management

Legal Structure

The company will be structured as a Company Limited by Guarantee (CLG). This is a well-recognised legal structure for social businesses, as it enables the business to have an appointed Director to run the business but no shareholders. Instead, the business has members who each guarantee the debts of the business (usually limited to

1.00) (Ashton, 2011). Profits can therefore be reinvested back into the business rather than distributed to shareholders. In addition, after Year 3, the profits can be gifted to fund the social enterprise delivery service, to be run as a separate business, thus the trading activities of the LP and those of the social enterprise remain distinct from each other. There are risks that banks may not loan to CLGs, as they cant easily see how profits are to be redistributed, but this format is attractive to social investors and grant funders since there are no shareholders who benefit as profits are reinvested back into the business. (Ashton, 2011).

Organisational Structure

As the majority of the LP will be built, developed and run by LoyaltyPro, the organisational structure of Lokalee Ltd will be relatively simple. Run initially by the Company Director, additional staff will be brought in to supplement the ongoing marketing needs and admin support. The intention is to seek either recent Business or Marketing graduates or under-graduates (seeking a project or internship during their studies) who either live or were brought up in the local area (so their families are members of the local community). An internship during their studies will benefit the students themselves in building their own career identity within an actual, practical setting, as, work experience in real organizations obtained through internships provides graduates with an increase in their human capital because this practise allows university students to improve their professional skills and knowledge. (Gonzalez-Roma et al, 2016, p.144). Providing insight into recent trends in marketing, they would immediately add value and directly contribute towards the developing business. As a social business, ethics and sustainability are key operating principles, as is the ability to demonstrate effectiveness against the triple bottom line of people, planet, profit, (Elkington, 2004).

Graduates are being taught to demonstrate their understanding in this regard (Nicholls et al, 2013), which in turn will be reflected in the sustainability credentials of the programme. Alternatively the part time role could support a Mum (or Dad) returning to work from a family career break, again whose career background is in marketing, as their experience would prove invaluable to the continued growth of the business.

Organisational Workflow and Timeline

As the programme itself will not be performing the function of direct sales, the workflow is very straightforward. Effort predominantly surrounds marketing to find new subscribers from the local independent business community (to add an increased variety of products and services on offer to the consumer), uploading and refreshing new offers to the portal, plus marketing of the app/website to gain new consumers. This, together with office admin to invoice annual subscription fees and monthly commission charges and regular reporting of KPIs to investors and collaborators is the main workflow for the business. This is depicted diagrammatically in Appendix 4 Organisational Workflow and Timeline.

Financial Management

Fig. 6 shows a low-level breakdown of the Cashflow Statement for Lokalee Ltd. Further details can be found in Appendix 5 Business Cash Flow Modelling Cost Profile Assumptions and Risks.

LOW LEVEL CASHFLOW STATEMENT

1 BALANCE CARRIED FORWARD

INCOME YEAR 1 YEAR 2

57,126 YEAR 3

2,716

Commission on sales 3,341 24,473 128,078

Annual business subscription fees 37,500 33,750 98,000

Savings (not repaid) 5,000 20,000 WBC Start Up Grant (not repaid) 20,000 Small Business Loan (repaid) 50,000 2 TOTAL INCOME 115,841 78,223 226,078

COSTS Platform fees (23,700) (41,100) (72,600)

People (13,035) (45,624) (64,666)

Marketing (1,000) (3,000) (4,260)

Travel (700) (882) (926)

Stationery (200) (252) (265)

Accommodation & Subsistence (9,000) (18,900) (19,845)

Legal & Accounting (3,260) (4,108) (4,313)

Loan repayments (7,820) (18,768) (18,768)

3 TOTAL COSTS (58,715) (132,634) (185,643)

1+2+3 BALANCE 57,126 2,716 43,151

Fig. 6 Low Level Cashflow Statement Overview

Costs incurred from Sep-22 will be covered by a 20k start up grant and 5k from personal savings. Activities during this period primarily relate to setting up the platform and intensive marketing to recruit the first 50 businesses ready for launch to consumers in Nov-22, to take advantage of the Christmas shopping period and January sales. In Mar-23, a 50k start up loan cash injection will then be required to cover the costs whilst revenues grow with new consumers and business subscriptions. This, together with an additional 20k personal savings on the anniversary of business launch (Nov-23), will ensure there is sufficient cash to end Y2 in credit. Y3 sees the fastest growth in consumers and businesses as the LP gains momentum, thus will be funded almost entirely from revenues generated from the business.

Start Up Costs Year 1

Costs are kept low for the first 6 months as the business is not supporting salaries during this period, taking full advantage of the professional marketing support from LoyaltyPro, using in-person networking and social media to gain consumer sign-up. From 6 months, salaries for the Company Director and 1 x PTE (marketing graduate/internship) are included as are the repayments for the 50k small business loan (see Fig. 7 below).

Aggregate Business Cash Flows

Year 1

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23

Cash Inflows Total Sales Revenue 6,250 6,250 2,613 2,669 2,725 2,770 2,815 2,860 2,905 2,950 2,995 3,040

Total External Finance / Savings 5,000 20,000 0 0 0 0 50,000 0 0 0 0 0

Total cash inflow 11,250 26,250 2,613 2,669 2,725 2,770 52,815 2,860 2,905 2,950 2,995 3,040

Cash Outflows

Total Direct Costs 0 0 0 0 0 0 0 0 0 0 0 0

Total Overheads 2,500 3,450 1,616 1,766 1,916 2,066 5,889 6,039 6,189 6,339 6,489 6,639

Total Capital Expenditure 0 0 0 0 0 0 0 0 0 0 0 0

Total Finance Costs 0 0 0 0 0 0 0 1,564 1,564 1,564 1,564 1,564

Total Cash Outflow 2,500 3,450 1,616 1,766 1,916 2,066 5,889 7,603 7,753 7,903 8,053 8,203

Net Cash Flow 8,750 22,800 997 903 809 704 46,927 (4,743) (4,848) (4,953) (5,058) (5,163)

Opening Bank Balance 0 8,750 31,550 32,547 33,449 34,258 34,962 81,889 77,146 72,299 67,346 62,289

Closing Bank Balance 8,750 31,550 32,547 33,449 34,258 34,962 81,889 77,146 72,299 67,346 62,289 57,126

Fig. 7 Aggregate Business Cash Flows (Year 1)

Costs Years 2 and 3

Costs increase in Year 2 with the commencement of anniversary repayments of subscription fees for those

Annual Total Total Years 1-3

Year1 Year 2 Year 3 Cash Inflows Total Sales Revenue 40,841 58,223 226,078 325,143

Total External Finance / Savings 75,000 20,000 0 95,000

Total cash inflow 115,841 78,223 226,078 420,143

Cash Outflows

Total Direct Costs 0 0 0 0

Total Overheads 50,895 113,866 166,875 331,636

Total Capital Expenditure 0 0 0 0

Total Finance Costs 7,820 18,768 18,768 45,356

Total Cash Outflow 58,715 132,634 185,643 376,992

Net Cash Flow 57,126 (54,410) 40,435 43,151

Opening Bank Balance 0 57,126 2,716 0

Closing Bank Balance 57,126 2,716 43,151 43,151

Aggregate Business Cash Flows

Fig. 8 Aggregate Business Cash Flows (Years 2 and 3)

businesses that have exceeded 250 worth of commission payments over the course of the previous year, as well as increasing salaries as additional members join the team. Year 2s costs are covered by Year 1s cashflow balance carry over. Year 3 sees the biggest increase in income as business and consumer take up grows exponentially, ending the Year with a healthy balance and the ability to build the business case to finance the social enterprise carbon-neutral delivery service.

For more information on the breakdown of costs, together with graphs representing cost, revenue and profit growth and a table of key business risks, please see Appendix 5 - Business Cash Flow Modelling Cost Profile Assumptions and Risks and the attached excel spreadsheet named XXXXXXXX IC71139B BCFMW.

In Summary

It has been the purpose of this business plan to provide sufficient information to validate the business model for Lokalee Ltd. By providing the value proposition in Business Description and Vision, the market segment and value chain in Definition of the Market, the cost structure in Financial Management and the value network and competitive strategy in Marketing and Sales Strategy, the core elements of Chesboroughs function of a business model have been outlined (Chesborough, 2006, pp. 64-65). Whilst the business needs to generate profits to be successful, its value lies in its ability to harness the local economic wealth and recycle it again and again, powering a sustainable local economy, that benefits the local community for years to come. As Kate Raworth, the pioneering founder of Doughnut Economics, states, economic value lies not in the throughflow of products and services but in the wealth that is their recurring source. (Raworth, 2017, p. 223).

APPENDIX 1 Social Business Model Canvas

The diagram below represents the Social Business Model Canvas for Lokalee Ltd.

Lokalee Ltd

Student Number: XXXXXXXX

Fig. 9 Social Business Model Canvas

481846-585010511

APPENDIX 2 Case Study: Conversations with Local Business Representatives and Owners in Woking

To gain preliminary feedback from the local independent business community on the idea of the LP for Woking, several informal conversations were undertaken over the course of a few weeks, prior to more formal interviews to be undertaken during the subsequent feasibility study led dissertation. These included the owner of a hairdresser, a local plastic-free refill shop, a website design consultancy and some members of the Woking Chamber of Commerce, including a member of the Business Liaison team from Woking Borough Council. (WBC). As these were informal conversations, the participants themselves remain anonymous, however the insight they provided proved valuable regarding their general support of the idea, their experience of loyalty programmes in the past and any concerns over how the programme would work.

Generally there were all in support of the programme however I made the following key observations:

Sharing Points there was a general reluctance to sharing points earned in one business to be redeemed in another, especially as different businesses operate on very different margins. The WBC Business Liaison representative pointed out that this could be seen as a potential political issue for independent business owners in different Woking boroughs. Thus, the ability for the LoyaltyPro portal to have per business related offers would seem optimal.

Minimum Spend there was a desire to operate on a minimum spend basis to avoid several consumers redeeming their vouchers all at the same time, with no recompense to the business (e.g. 10 discount on a spend of 40 rather than just spending the 10 voucher with no further sale). Hence the ability to determine their own offers again seems the most practical approach for the LP.

Commission Payments everyone agreed that some form of payments would be required to fund the business, and commission payments on sales transactions through the LP were deemed acceptable provided they were reasonable, especially as different businesses run on different margins. This informed the decision to keep commission rates low, but add in an annual subscription fee for cashflow, redeemable once commission rates exceeded the fee amount.

Independents Only previous experience of LPs involved sharing points with high street chain stores, which was seen as highly detrimental. Thus promoting only local independent business was seen as a major plus point.

Independent Business Categorisation questions were raised about selection criteria for business applicability, and it was generally agreed that independent ownership by someone in the local area would be the main requirement, together with the employment of local staff where possible and the provision of goods from local supply chains, preferably. However it was conceded that as the LP grows, the more businesses that subscribe would benefit from B2B opportunities and development of their own local supply chains, to further benefit the local economy.

No Additional Burden it was a common theme that no additional work should result from the LP, such as double-entry onto separate systems (as is the case with MyTownShops), self-upload of offers via the portal on top of their own marketing activities (Lokalee Ltd will do this), or hosting a second set of hardware just for the LP. All of these will be taken into consideration in the design of the LP with LoyaltyPro.

Value In Metrics in return for the annual fees and commission charges the owners would expect detailed metrics from the shopping habits of the consumers so that they can orient their ongoing offers accordingly both towards highly redeemed offers and away from those with less take-up from consumers.

Non-Retail Offers businesses that operate B2B requested the ability to offer promotions outside of retail sales,

e.g. discounted price for workshop attendees to registration of LP members, together with the ability to determine what those offers should entail.

Minimal Hardware Cost previous experience with other LPs that needed hardware in every business setting dedicated to the programme, which eventually became cost prohibitive and thus abandoned. Thus the ability of the Lokalee LP to operate via a browser portal was seen as a much-needed design improvement.

Cooperative whilst not against the idea of cooperatives in principle, none of the business owners wished to have any additional work to put towards running Lokalee Ltd. This influenced a change in proposed legal form for the business away from cooperative ownership (and therefore responsibility) to a cooperative membership of affiliated business owners, who could provide consensus agreement as to which community schemes would be supported by the redistribution of relevant profits.

Start-Up Grant an informal discussion with the member of the Business Liaison team at WBC did proffer that business start-up grants were available from time to time, however they were not at liberty to discuss amounts until a full business proposal had been submitted. As such, an educated guess was made of 20k for the grant for the financial costings in the hope that, should a larger sum be offered, then this would count towards a reduction in the amount of personal savings requiring to be invested to keep the business afloat.

APPENDIX 3 Customer Journey Problem Tree, Objective Tree and Theory of Change

55129491521981The Customer Journey for both consumers and local independent businesses starts with understanding the problem to be solved and the objective for the proposed solution. Using the information gathered, the customer journey can be mapped through a Theory of Change. The diagrams below depict these graphically.

474860145707Fig. 11 By turning all the Unconscious Consumption problems into solutions, the Conscious Consumption Objective Tree is created, with positive outcomes leading to positive objectives

Fig. 10 Unconscious Consumption Problem Tree

Fig. 10 Detailing the negative causes of thoughtless consumerism results in the negative effects, creating an Unconscious Consumption Problem Tree.

Fig. 11 Conscious Consumption Objective Tree

474860686295

Lokalee Ltd Theory of Change

Fig. 12 The Customer Journey can be mapped into a Theory of Change, to build a shared understanding of the business outcomes, help develop measurement priorities towards the ultimate impact goal or business objective, understand the affects for the different stakeholder groups and is a great visual communication tool to demonstrate the social value impact of the business (Kempton, 2021).

Fig. 12 Theory of Change - Customer Journey

APPENDIX 4 Organisational Workflow and Timeline

474860306664The following diagram depicts the organisational workflow for the key stakeholders Lokalee Ltd, LoyaltyPro, the Businesses and the Consumers.

Fig. 13 Organisational Workflow

The following diagram depicts the detailed Timeline for Year 1 and consolidated Timeline for Years 2 and 3.

425964112708

Fig. 14 Timeline Year 1 and Years 2 & 3

APPENDIX 5 Business Cash Flow Modelling Cost Profile Assumptions and Risks

Please refer to the attached excel spreadsheet named XXXXXXXX IC71139B BCFMW.

The following assumptions have been made regarding the cost profile of the business:

Staff wages assumes starting salary for recent graduate of 26,848 in Marketing (GraduateJobs.com, 2022), part-time for first 6 months (to keep costs low) intended to support a recent graduate from the local area in their first role or as a project / placement during their studies. Year 2 sees increase to FTE and Year 3 to add in another PTE, with 2% payrise. Assumption is that the Company Director would be full-time throughout and would not draw a salary until 6 months into the business (provided revenue projections are on target), with accommodation and subsistence costs being covered by the business from Launch (calculated into cost projections).

Employers NI calculated using HMRC National Insurance Contributions calculator (HMRC, 2022)

Conferences / Events budget assumes attendance at up to 4 events during the first year increasing to 8 in the second and 12 in the third year to include farmers markets, business exhibitions, trade fairs, Chamber of Commerce events etc. Aggregated budget based on Woking Means Business 2022 exhibition pricing of c. 400 for local exhibition events and trade fairs (Woking Means Business, 2022) to c. 60 for a one-day farmers market pitch (price based on neighbouring Hampshire Farmers Market pitch pricing) plus 60 annual fees (Hampshire Farmers Markets, 2022). This is intended as supplemental marketing to that undertaken with LoyaltyPro (see Website server below) for which budget costs of 2,500 have been included for first year, to cover attendance at additional trade events, farmers markets etc, together with online social media marketing which is the core marketing strategy.

Website server costs taken from indicative quote from LP software developer, LoyaltyPro (2022) - see XXXXXXXX IC71139B LoyaltyPro Email attached. Quoted elements included:

2,500 initial platform setup fees

2,500 launch marketing budget

Monthly costs:

200 general platform costs

15 maintenance costs per business

Assumption is that their existing platform can be customised and operated on existing retail infrastructure, as building new and supplying every business with tablet & scanner to operate would be cost prohibitive to starting the business (see Appendix 2 Case Study: Conversations with Local Business Representatives and Owners in Woking).

Platform Related Requirements:

Multiple separate business sharing the same platform

Multiple reward options (e,g, points, discounts, minimum spend etc)

Ability for each business to choose their reward preference

Excellent user experience, easy to use interface

Ability to be used online as well as in-person

Supports non-transactional offers (e.g. discounted workshop rates for B2B members)

Platform accessible 24/7/365

Enabled for push notifications for business promotions

Ability to use existing sales scanners / tablets in retail premises (i.e. no additional equipment required)

Auto calculation of monthly sales commission fees

Business User Related Requirements:

Ability for business users to review detailed consumer shopping metrics for their own business as well as reduced metrics for spend across the platform (e.g. business owners would have access to detailed metrics on their direct consumer shopping habits, whereas they would get blended metrics across other businesses

e.g. average sale, average point spend, most popular reward (points or discount), most popular spend category, online vs in-person sales, etc)

Consumer Related Requirements:

Ability for consumers to see points allocation / spend history.

Legal fees contingency fund of 3,600 fees based on 300 per month (cost of 1 hour) for ad-hoc legal advice. Although The Telegraph reports the average start-up has costs for company formation fees of 5,518 (Burn- Callander, 2016), this is a very small start-up with minimal contractual obligations aside from Ts & Cs for subscribing to the app, which are covered by Loyalty Pro, thus limited requirement for legal support. Budget will cover costs of self-registration at Companies House of 12 (see www.gov.uk).

Accountancy fees based on subscription to a SME online accounting tool such as Xero (see https://www.xero.com/uk/pricing-plans/ 26 per month), managed in-house. Small start-up requiring limited accounting needs purely for annual subscription fees for businesses. All sales transactions will continue to be managed by the businesses themselves.

External Finance Source 1: WBC Start Up Grant - 20k small business grant from WBC to support new sustainable businesses in Woking and to promote footfall and spending across independent businesses (based on informal chat with Business Liaison Officer during Woking Chamber of Commerce meeting see Case Study in Appendix 2).

External Finance Source 2: Funding Circle - 50k small business loan payable over 36 months at a cost of

1,564 per month (Funding Circle, 2022). Introduced after 6 months to sustain business after WBC grant monies have expired and before business and consumer take-up increases.

Background to Subscription Fee Charges

As it will take time to grow income from commission on consumer spend, cashflow will be managed via annual subscription fees for each joining business of 250 per year. These will subsequently be refunded annually should commission charges for that business into the LP for the previous year exceed 250. At 5% commission fees on the net transaction amount (i.e. amount paid after discounts or offers are applied), this would mean each business would gain income via the LP of 5,000 to equal the 250 annual fee. The costings assume that 9/10 businesses will achieve that threshold and will therefore have their 250 fees refunded on each anniversary. The more commission charges paid, the more income the LP will have generated for the business, thus alleviating the concerns of any businesses who feel they are paying more towards the business than others. For example, 500 in commission fees paid would equate to some 10,000 in income generated through the LP.

Supporting Charts for Cost, Revenue and Profit

The charts on the following pages represent graphical displays of the Lokalee Ltd Cost and Revenue profiles over the first three years.

Monthly Costs & Revenue with Growth of Business & Consumer Participation

BUSINESSESCONSUMERSCOSTSREVENUE

30,000

500 businesses and 5000 consumers

(36 months)

6000

380 businesses and 3000 consumers

(30 months)

2 x FTE &

1 x PTE

25,000

270 businesses and 1500 consumers

(24 months)

5000

20,000

210 businesses and 500 consumers

(18 months)

4000

15,0001 x FTE

150 businesses and 240 consumers

(12 months)

2 x FTE

3000

10,000

1 x PTE & 1 x PTE

2000

5,000

1000

0

0

Fig. 15 below represents the cost and revenue profile over the three-year timeline together with the anticipated growth in business subscription and consumer sign-up. Costs for Years 2 and 3 have been averaged across each year. By Year 3 once the business makes consistent profit, average revenue equates to 35%.

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25

Aug-25

Fig. 15 Cost & Revenue with Business Growth

Cumulative Costs, Revenue and Profit

COSTSREVENUEPROFIT

400,000

350,000

CUMULATIVE BREAK EVEN (next

month) point at which cumulative

revenue exceed cumulative costs (projected to be Sep-25)

300,000

250,000MONTh TO MONTh BREAK EVEN -

first month where

200,000sales revenue exceeds costs

150,000

100,000

50,000

0

(50,000)

(100,000)

Fig. 16 below represents the Costs, Revenue and Profit profile cumulatively across three years. Break Even is Sep- 24, 25 months after business start and 23 months after launch to consumers in Nov-22. Profits will clear all cumulative costs by Sep-25 (three years after launch).

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25

Aug-25

Fig. 16 Cumulative Costs, Revenue and Profit

5000

(36 months)

4000

380 businesses and 3000 consumers

(30 months)

3000

2000

1000

0

2 x FTE, 1 X PTE

2 x FTE

(18 months)

1 x FTE, 1 x PTE

LAUNCH

(60 businesses

and 50 consumers)

210 businesses and 500 consumers

90 businesses and 120 consumers

(6 months)

(24 months)

270 businesses and 1500 consumers

150 businesses and 240 consumers

(12 months)

YEAR 3

500 businesses and 5000 consumers

YEAR 2

YEAR 1

6000

Start Up Timeline

BUSINESSESCONSUMERS

Fig. 17 below shows the projected growth timeline for consumers sign-up and business subscription over three years. Additional staff to help support the growing business will be employed at 6, 18 and 30 months.

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24

Mar-24

Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25

Aug-25

Fig. 17 Business Growth Timeline

Risks

Fig. 18 below details the Key Risks and Mitigation activities, each given a Risk Rating calculated using a 5-point likelihood and impact scale as shown in Fig. 19.

RISKS AND MITIGATION - LOKALEE LTD

ITEMRISK DETAIL

1 Platform not fit for purpose

LIKELIHOOD

LOW

IMPACT

HIGH

RISK RATING

MEDIUM

2 Investors won't invest

MEDIUM

HIGH

HIGH

3 Businesses don't subscribe

MEDIUM

HIGH

HIGH

4 Consumers don't join

LOW

HIGH

MEDIUM

MITIGATION

Define requirements well, work with LoyaltyPro to ensure platform meets needs Build robust business plan, work with mentor to refine cost profile and business strategy, apply to multiple investors to secure funds

Extensive promotion during feasibility study, stay closely aligned with business owners to be supportive, ensure metrics are relevant to prove value

Take full advantage of marketing experience from LoyaltyPro, bring forward recruitment of marketing support from month 6 (will add to cost)

Target businesses / consumers

5 not reached as per planMEDIUM

MEDIUM

MEDIUM

6 Costs higher than expected

MEDIUM

HIGH

HIGH

7 Competitor LP hits market

MEDIUM

MEDIUM

MEDIUM

Increase marketing support, potential increase in loan to cover costs during low period (will move out break even point)

Work with business mentor to evaluate business plan for validity, build in threshold to 'pull the plug' if required

Promote USP of local independent business value, increase marketing support and social media networks

IMPACT

LIKELIHOOD

Fig. 18 Key Risks and Mitigation Activities

HIGH 5 10 15 20 25

MED-HIGH 4 8 12 16 20

MEDIUM 3 6 9 12 15

MED-LOW 2 4 6 8 10

LOW 1 2 3 4 5

Fig. 19 Risk Likelihood and Impact Scale

LIST OF FIGURES

Page 1 Fig. 1 High Level Cashflow Statement

Page 3 Fig. 2 How It Works Process Flow (adapted from Leach, 2022) Page 5 Fig. 3 Population Demographic of Woking (2011)

Page 5 Fig. 4 Average Monthly Household Spending UK (NimbleFins, 2022) Page 6 Fig. 5 Market Share Breakdown

Page 9 Fig. 6 Low Level Cashflow Statement

Page 9 Fig. 7 Aggregate Business Cash Flows (Year 1)

Page 10 Fig. 8 Aggregate Business Cash Flows (Years 2 and 3) Page 11 Fig. 9 Social Business Model Canvas

Page 14 Fig. 10 Unconscious Consumption Problem Tree Page 14 Fig. 11 Conscious Consumption Objective Tree Page 15 Fig. 12 Theory of Change Customer Journey Page 16 Fig. 13 Organisational Workflow

Page 17 Fig. 14 Timeline Year 1 and Years 2 & 3

Page 20 Fig. 15 Cost & Revenue with Business Growth Page 20 Fig. 16 Cumulative Costs, Revenue and Profit Page 21 Fig. 17 Business Growth Timeline

Page 21 Fig. 18 Key Risks and Mitigation Activities Page 21 Fig. 19 Risk Likelihood and Impact Scale

BIBLIOGRAPHY AND REFERENCES

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Belli, A., ORourke, A-M., Carrillat, F., Pupovac, L., Melnyk, V., and Napolova, E. 2022. 40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis. Journal of the Academy of Marketing Science, Vol. 50, pp. 147-173.

Bruneau, V., Swaen, V., and Zidda, P. 2018. Are loyalty program members really engaged? Measuring customer engagement with loyalty programs. Journal of Business Research, Vol. 91 pp. 144-158.

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Business Plan

Pro forma

Your business plan is an opportunity to tell a compelling story about your business, it should be focused, clear and logical.

The main body must be no longer than 10 pages.

The appendices are an opportunity to expand on the statements made in the 10 pages and provide further supporting information. The information in the appendices must be mentioned in the main body of the plan (the 10 pages).

Throughout the plan you should include research and referencing, primary research and secondary which should include academic, scholarly and existing data.

Executive Summary

This section should:

Be written last, it should be nearly or one side of A4.

Make the reader want to learn more, tell the reader what your idea is and why it is needed and who the customer or audience is.

Include a summary of the financials.

Remember to keep including referencing to convince us why this business idea will work

Business Description and Vision

This section can include:

Mission statement/Vision/Purpose

Brief history of the business if this is not a start-up but an evolution of an existing businessList of key company personnel only needed if this includes more than 1 personEnsure readers understand what your business is, its values and purposeMake it clear what you actually do, eg, include an image of a product, or if a service, describe the benefit of your service, if an education service give an example of the programme and so on.

Ensure readers know the specific goals and objectives of the business eg, what will you achieve in each year of operation - sales, social change, make this clear and measurable (the key performance indicators - KPIs)

Remember to keep including referencing to convince us why this business idea will work

Definition of the Market

This section should include:

The needs of your perceived or existing market (s)

A description of your business industry or industries

Your target market(s)

A profile of your target clients/segment

Describe what share of the market you currently have or anticipate gaining and how you have calculated this.

Remember to keep including referencing to convince us why this business idea will work

Marketing and Sales Strategy

You could use this section to:

Identify and describe your market, who are your customers/clients and what is the demand for your product/service.

Describe your channels of distribution - for your marketing message.

How will you communicate to them, why have you chosen this approach? What is the customer journey?

Explain your sales strategy which of the 7Ps will be used in what way? pricing, promotion, products, place, people, ,process, physical environment.

Remember to keep including referencing to convince us why this business idea will work

Organisation and Management

You should include:

A description of the legal structure of the business and why you have chosen it.

If you intend to grow the organisation, the future roles and organisational structureHow the work flows in the organisation, including how you deliver your idea ie how is the product made, how is a service delivered?

Remember to keep including referencing to convince us why this business idea will work

Financial Management

Include:

the start-up costswhen you will break even

Projected cashflow for year 1 (ie months 1 - 12 detailing the income and expenditure)

Projected income/expenditure for years 2 and 3 (ie summaries of each income and expenditure heading for at least years 2 and 3)

Remember to keep including referencing so we understand why we should be confident about your financial projections.

Remember appendices are where you can go in to further detail, show, perhaps, your blueprint, and more examples of and insights in to the research you have done.

Also include a Bibliography that should include a range of sources, peer reviewed journal articles, existing books (academic, and scholarly), market data and perhaps scholarly or journalists articles (the final two will be the minority). We should be able to see how you have used the readings in your submission. We expect you to have accessed and used effectively, a minimum of 30 sources.