2nd Generation Furnishings
Business Plan
June 2011
Authors
C.Burgess A.Daly T. Daly
Contents
Executive Summary
Organisation Profile and Mission Statement
Aims
Market Analysis
Resources and Assets
Financial Strategy
Risk Analysis
Signatures
Appendix
Pg 2
Pg 3
Pg 4
Pg 5-9
Pg 10
Pg 11
Pg 12
Pg 13
Pg 14
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2nd Generation Furnishings
Business Plan
Executive Summary
History
This organisation was born out of a group of neighbours commenting on the waste they
were witnessing on a daily basis. We observed truck loads of decent furniture and
appliances going to landfill. This was particularly disturbing as it is well known that there
are high levels of deprivation in the Tameside area. These people should be given the
opportunity to access these goods and use them to turn a bleak tenancy into a comfortable
home.
A chance conversation with a Director of our local housing association brought the offer of
premises and assistance to set up a community enterprise. We want to recycle and
redistribute goods to those who need them, reducing financial hardship and decreasing the
amount of waste going to landfill.
The first Board members are those who made the original observations, between them they
provide combined skills in social work, counselling, estate management, banking,
construction, project –management, social policy and administration and a wealth of life
experience.
Local market research highlights the fact that the usual retailers of second hand furniture
and white goods are pricing their stock out of the reach of the neediest in our borough. We
can see a need for an outlet that can cater to those with little or no disposable income and
no hope of grant aid.
We intend to operate a tiered pricing structure providing free items to those who have
nothing, goods at market value to those who can afford to pay (Buy to Let Landlords etc.)
and a substantial discount for people on low income or benefits.
2nd Generation Furnishings (2nd Generation) have been exploring furniture re-use since July
2009. We plan to open our first shop in August 2011. (Please see Gantt Chart for more info).
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Organisation profile
2nd Generation
Furnishings
Christine
Burgess
Ann Daly
Board of Non
Exec Directors
Tom Daly
Volunteers x 5
2nd Generation have applied to Company House for ‘company limited by guarantee with
charitable status’. Confirmation of this will be received in June 2011. (Please see Mem and
Arts for more info).
All three Directors will be responsible for recruiting volunteers and organising training in
year one. The following sets out further responsibilities;
Christine Burgess – Day to Day general management team member. Fundraiser.
Ann Daly – Day to Day general management team member. Fundraiser.
Tom Daly – Day to Day general management team member. Logistic and Warehouse
Management.
It is the role of the Board to evaluate;
1.
2.
3.
4.
the nature and the extent of risks
the ability of the Company to manage risks
the costs and benefits of controlling risks
the effectiveness of the Company’s Risk Strategy
Mission statement:
“We are a community organisation based in Tameside, driven by helping others rather than
profit margins. We provide recycled goods and offer practical help and opportunities to
support people struggling to turn a house into a home.”
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Aims/Objectives:
1. The relief of financial hardship and promotion of social inclusion by:
a) the recycling and provision of furniture, clothes and other household items
b) the development of the capacity and skills of socially and economically
disadvantaged people in Tameside in such a way that they are better able to identify
and help meet their needs and to participate more fully in society.
2. To protect the environment by the promotion, repairing, recycling and re-using of
household items that may otherwise go to landfill.
Strategic Aims
Year One:
 Establish the company; make 2nd Generation’s presence known throughout the
Tameside and district area.
 To apply for grant aid whenever and wherever, available funds are identified.
 To attract a healthy level of volunteers and train them.
 To sell £20,000 worth of furnishings and white goods.
 To provide 50 starter packs minimum.
 Open business premises.
 To train a part time pat tester after 6 months.
 Hold an annual general meeting (AGM).
Year two: Continue to advertise
 Apply for all identified grant aid.
 Contact Tameside College and New Charter Academy for students on work experience
placements and art students for design projects.
 To increase furniture sales by 70%.
 Increase provision of starter packs.
 Start a reserve account.
 To employ at least three staff (1 driver, 1driver’s mate and 1 manager).
 Hold an AGM.
Year three;
As for previous two years plus
 Aim to acquire a second van plus driver and mate.
 Explore possibility of offering man and van light removal service.
 Explore possibility of offering handyman service for decorating and small jobs.
 Increase sales by 40%.
 Add to reserve account.
 Consider adding a community garden project.
 Hold an AGM.
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Market analysis
2nd Generation have analysed the local and national markets to gather information
regarding the need for such a service. The following information outlines our findings.
STRENGTHS
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Rent free building.
Advisory service.
Consistent supply of used furniture and
white goods.
New Charter Support/partnership
Good location.
Committed Directors and staff.
Local need for product and service.
WEAKNESSES
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OPPORTUNITIES
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Can also do man and van service when
not busy. Can offer handyman service
for small jobs. Can recycle rags in
collaboration with other local charities.
Will contact TMBC for referrals when
they receive requests for the removal of
bulky furniture.
Can advertise by leafleting nursing
homes and sheltered housing providers.
People moving into such homes are
often downsizing and have furniture to
dispose of.
We will be offering work experience to
students and volunteering opportunities
leading to people becoming confident
enough to rejoin the employment
market.
Gaining charitable status will improve
chances of attracting grant funding and
reduce the costs of council tax and
reduce/remove other tax burdens.
Need a Treasurer/financial expert.
Need a Company Secretary.
Need to recruit volunteers.
Need a Pat tester/electrical engineer.
Need van and driver/mate/insurances.
Building requires extensive and
expensive renovations.
Need a good security system.
THREATS
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New Charter could require the use of the
building for other purposes at a later
date.
It may not be possible to attract
sufficient start up funding.
Other projects are competing for
funding. Shortage of director skills base
(finance). Could be a very high demand
for free starter packs, especially
following benefit cuts?
Local competition from 1st and 2nd hand
businesses.
Supply could not meet demand.
5
Statistical research (Office of National Statistics) shows that 37 % of people in the Tameside
area are currently in receipt of benefits and with substantial cuts due under the present
Government’s plans, the need for low cost household goods will increase. Young families on
low income, pensioners, people setting up a first home , those leaving hostels or hospitals,
ex offenders and victims of domestic violence or relationship breakdown are all potential
customers.
For the year 2009-2010 there are recorded areas of working age benefit take up being as
high as 75% and in the same area of Tameside 76% of people are living in poverty.
Benefit Claimants in Tameside
Housing Benefit and
Council Tax, 17770
Child Benefit, 28730
Income Support,
8970
Job Seekers
Allowance, 6800
Pension Credit,
11950
Tax Credits, 26650
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Tameside Population
employed
unemployed
students
retired
inactive
4%
16%
2%
5%
73%
Four million children in the UK live in households that cannot afford to replace worn out or
broken furniture and three million children live in households that cannot afford to replace
broken electrical items (source DWP March 2007).
In Tameside during 2007/08 we disposed of 122,150 tonnes of waste equivalent to 1.25
tonnes per household. The majority of households are still not practicing waste prevention
nor are they aware of what it entails. In 2007/08 we only recycled 27.09% of our waste in
Tameside (below the national average). The Council acknowledge the need to work with
community groups and businesses in order to manage our waste and maximise recycling
(taken from A Strategy for the Management of Waste in Tameside 2005-2010 (TMBC).
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New Charter Housing Trust had 1600 voids (homes which became empty) in 2010-11. If we
base ‘furniture voids’ (voids with re useable furniture) at 25% this means over a year, 400
voids will provide stock. Local business partnerships and donations are other supply
streams.
There is seasonal demand, most home moving happens in the summer, around 60-70%. But
this will be mirrored by the general population (i.e. they will be moving/not moving at the
same times).
The national picture
According to Furniture Re- use Network (FRN) 10 million items of furniture are thrown away
in the UK every year. 3 million of these items could easily be re used; more could be
repaired. The win-win, a report produced by FRN (2007) shows how partnership working
delivers the goods for residents; housing associations and furniture re-use organisations:
“Re-use provides environmental, social and economic benefits – the cornerstones of a
better sustainable neighbourhood strategy. Tenants, particularly more vulnerable new
tenants living in the community, are better able to sustain their tenancies; neighbourhoods
are made greener by provision of convenient doorstep collection services that reduce bulky
waste going to landfill; and re-use creates a hub within the community where people
participate in a highly visible, worthwhile activity. Through volunteering, training and
donations, projects also provide local jobs for local people.”
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PESTLE Analysis
POLITICAL:
ECONOMIC:
SOCIAL:
New Government encourages Green Initiatives and Big Society. High
levels of unemployment, shortage of money to buy new goods will
create more demand for free starter packs and second hand furnishings.
We can meet these needs.
No real competition locally, no provision for needy people starting out
and not qualifying for grant aid. Too much furniture going to landfill
should attract funding.
Will provide volunteering opportunities, jobs and educational training
facilities to assist people back into society and employment.
TECHNOLOGICAL: Need IT system, web site, accounting systems and stock control
spreadsheets. Also need more staff training in IT.
LEGAL:
Need to meet legislative requirements for Companies, Charities, Trading
Standards, Dept of Environment, Health and Safety, Shops and Offices
and employment law. We need insurance to cover public and
employer’s liability, building, business, vehicles and Directors. Benefit
changes and job losses could increase demand and lower availability.
ENVIRONMENTAL Could save at least 100 tonnes of furniture per year from landfill.
Recycling scrap metal, rags and bric a brac will raise money for
charitable needs and also help the environment. This initiative could
also reduce fly tipping in the area.
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Resources and Assets
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Names of Board Members – Tony Powell (New Charter), Thomas Daly (New Charter
Tenant) and Amanda Uttley (Stalybridge Resident).
We will aim for 5 volunteers in year one (including driver).
The Board/Directors and volunteers will not be paid.
Volunteers will receive reasonable expenses (travel/training/lunches(on full day
£3.75)/meeting expenses (food and drink))
New Charter and 2nd Generation are in contract negotiation about securing Astral House
as a business premises. The Heads of Terms have been agreed and the rent will be
‘peppercorn’.
(http://maps.google.co.uk/maps?hl=en&q=astral%20house%20stalybridge&um=1&ie=U
TF-8&sa=N&tab=wl)
Due to funding criteria, 2nd Generation will lease a van for year one. The cost has been
absorbed in August 2011 (see cash projection). 2nd Generation consider this type of
contract will lower risk/cost to the business by minimising maintenance costs.
2nd Generation aim to acquire as many items as possible, free of charge. However,
should the need arise, IT and office equipment may need to bought. Grants have been
applied for such items. 2nd Generation are keen to keep assets to a minimum.
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Financial Strategy
2nd Generation Furnishings want to create a financially healthy business. Having researched
local furniture re-use businesses, 2nd Generation aim to become financially self sufficient in
Year 6. Below are the income projections for Year One to Five.
Year 2
Year 1
Sales
20%
Sales ,
35%
Grants ,
65%
Grants
80%
Year 3
Grants ,
50%
Year 4
Grants ,
35%
Sales ,
50%
Sales ,
65%
Year 5
Grants,
20%
Sales , 80%
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Cash projections are based on raising funds of £61000 and £7000 of sales in Year One. This
will leave £29000 in the bank at the year end for future growth in 2012-13. The Directors
understand that tight financial controls will be needed to proactively manage incoming and
outgoing cash. 2nd Generation have analysed the risk that their financial plans pose and have
agreed appropriate and proactive action to reduce them. This information is held in the Risk
Register in the appendix.
2nd Generation will vigorously apply for funding before commencing trading. This will build
up cash in the bank, allowing for annual and monthly expenditure to be met.
We have included the cash projections for Year One as an appendix to this plan.
Risk analysis
2nd Generation Furnishings have a proactive risk management strategy. In planning, the
Directors have followed a systematic approach to risks and have created a Risk Register.
2nd Generation identify risk as;
“Any action or situation that threatens our ability to meet our aims and objectives.”
This can include but is not exclusive to;
Aims/Objects:
1. The relief of financial hardship and promotion of social inclusion by:
A) the recycling and provision of furniture, clothes and other household items
B) the development of the capacity and skills of socially and economically
disadvantaged people in Tameside in such a way that they are better able to identify
and help meet their needs and to participate more fully in society.
2. To protect the environment by the promotion, repairing, recycling and re-using of
household items that may otherwise go to landfill.
The following, details 2nd Generations Risk Strategy. The Risk Register can be found as an
appendix to this business plan.
Risk Strategy at 2nd Generation Furnishings;
1. Identification of risk
2. Planning the remainder of the process
3. Mapping out the following:
o the social scope of risk management
o the identity and objectives of stakeholders
o the basis upon which risks will be evaluated, constraints
4. Defining a framework for the activity and an agenda for identification
5. Developing an analysis of risks involved in the process
6. Mitigation or Solution of risks using available technological, human and
organizational resources
7. Continuous Improvement review the Risk Register every Board/Trustee meeting
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This business plan is a true statement as of ...........................We the Directors confirm the
above information
.......................................
Christine Burgess
.....................................
Ann Daly
......................................
Tom Daly
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Appendices
 Gantt chart
 Mem and Arts
 Financial accounts
 Risk register
 Stalybridge North Statistics
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