Marketing Manager, Locality
The community business approached Locality for help through the Lifeboat programme to develop a sustainable business model that is less reliant on grant funding. The organisation has a variety of income streams from trading with the public and commissions form other organisations. Around 30% to 40% of income secured historically has been from a number of charitable grants, but over the last five years, grant income has reduced and the organisation’s expenditure has exceeded income, mainly due to a staffing structure that has not flexed to match secured income. By November 2016, this resulted in reserves depleting to zero and no plan of action in place to solve the critical situation the organisation was faced with.
Applying for support from the Lifeboat service has helped the Board to understand the financial situation and commit to agreeing a staffing restructure that will align to income. Locality is helping the organisation to look at the cost savings that need to be made and is helping to model different staffing options. Support has been received to understand the process of voluntary and compulsory redundancies and to write a business case to justify a staffing restructure. Advice was given to split the budget into cost codes and apportion running costs, to help understand which areas of the business were generating a surplus and which were making losses. 1:1 support has also been provided to ensure that VAT procedures are correct and this is now being incorporated into Quickbooks.