Business Plan Get Cycling A Charitable Community Benefit Society - Visit our website for more details supportgetcycling.org.uk - Ethex
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Get Cycling
February 2020
A Charitable Community
Benefit Society
Business Plan
Visit our website for more details
supportgetcycling.org.uk
Contents
3 Executive Summary
6 Our Vision
7 Background
9 Community Share Offer
9 Offer Summary
10 Activities and Services
14 Business Context
14 Performance 2018 to 2020
15 Organisations and Partners
16 Demand for Proposed Services
18 Fundraising and Donations
19 Financials
19 Profit and Loss 10 year forecast
22 10 Year Cashflow
24 First Year Cashflow
25 Organisational Structure
25 Status as a charitable CBS
25 Trustees and Staff
28 Reasons to Invest
29 Delivery Plan
30 Appendices
30 Marketing Plan
32 Risk Analysis
36 S.W.O.T Analysis
37 Social Impact
37 Environmental Impacts
38 Social Investment Tax Relief
Get Cycling Charitable Community Benefit Society
www.supportgetcycling.org.uk ℓ www.getcyclingevents.org.uk
Email: jim.mcgurn@getcycling.org.uk
Phone: 01904 636812 Option 4 • 0772 0846611
Authors: Jim McGurn and Imelda Havers
All images are of Get Cycling activities.
This is not an offer document. Our offer document
can be found on our launch website.
supportgetcycling.org.uk Get Cycling CBS Business Plan
Executive
Summary
Get Cycling Community Benefit Society seek investment to
expand all their services and launch new initiatives.
Get Cycling Community Interest The founders, staff and directors
Company (CiC), founded in 2008, of Get Cycling CiC have decided
has developed innovative ways of that the events and programmes
promoting cycling. These divide into department would be more effective,
two activity areas. One encompasses efficiently run and capable of
events and programmes, such sustained expansion if transferred
as public bike try-out roadshows, into a separate and well financed
disability events, school activity days, charitable community benefit
cycling support for universities, loan society, owned by community
programmes for cycle commuting, investors, rather than operating
and large events such as the York within the current Get Cycling CiC.
Festival of Cycling.
To this end Get Cycling CiC have
The other activity area encompasses set up the charitable Get Cycling
retailing activities, based on a Community Benefit Society, which
community bike shop and the is registered with the FCA, number
specialist retailing of cycles for 8016. This is a trading charity and
people with disabilities. Both parts of will take over all Get Cycling’s
Get Cycling CiC have, each in their events and programmes work.
own way, both local and national The term Charitable Community
activities. Benefit Society will henceforth be
abbreviated to simply ‘CBS’
The aims of the new CBS are:
1. To greatly increase the number of people cycling using various experiential
techniques based on try-out opportunities and tuition.
2. To do so by improving existing assets, materials and delivery methods
so that all engagements are more attractive, effective and revenue-
enhancing.
3. To additionally develop unique new cycling support attractions especially
those which are suitable for all-season use.
4. To establish a new mobile unit (College of Cycling) working at York Sports
Village and also touring the towns, villages, community centres and schools
of Yorkshire, and providing, for pre-booked groups, day-classes covering
interactive cycling advice, riding skills, bike try-out opportunities and repair
and maintenance tuition.
5. To expand the provision for disability cycling holidays for individuals,
support groups and special schools: these have already been successfully
pioneered by Get Cycling CiC.
6. To provide an attractive membership participation and benefits
programme for those who support Get Cycling through community shares,
and to develop a strong and well supported volunteer base.
3
supportgetcycling.org.uk Get Cycling CBS Business Plan
Executive
Summary Continued.
The directors/trustees of both social The additional target may well be
enterprises judge that, pending reached by the end date of 11th
valuation of assets transferring, a March 2020, but the trustees of the
sum of £200K in withdrawable shares CBS have requested the agreement
would be sufficient to achieve these of existing subscribers to an earlier
aims. This will allow the new CBS to drawdown if necessary, based on the
carry working capital of £105K to working capital requirement being
facilitate growth, and to finance at reduced from £105,000 to £95,000,
£95K the transfer from Get Cycling on some minor alterations to the
CiC of all tangible and non-tangible pace of development, and on other
assets. It will also protect Get arrangements made possible by
Cycling CiC from the significant concessions from Get Cycling CIC.
and permanent loss of its non-retail The profit and loss projection shows
income streams. Aside from this minimal effect on profitability.
consideration, it is a condition of Get
Cycling CiC’s loan from their charity Financial projections within this share
lenders that no major assets can be offer document have been revised
transferred without their permission, accordingly.
which will entail a partial pay-down
of their loan. This also needs to be This earlier drawdown will allow
covered by the above payment. Get Cycling CBS to invest in a
timely fashion in staff and assets
No individual Both organisations are asset locked
social enterprises: no individual in
to maximise performance for the
coming sales.
in either either organisation will profit from
any aspect of the transfer of assets, The share offer remains active
organisation staff, activities, nor from anything
related to them.
and promoted until the 11th March
and many further investors are
will profit from The trustees had anticipated match-
anticipated. The share offer is
based on the social enterprise
any aspect of funding of £100,000 from the Big
Society Capital Crowdmatch Fund.
crowdfunding platform operated by
Ethex.
the transfer
This fund closed unexpectedly to
all applicants, so Get Cycling CBS
of assets.
is in the process of replacing the
missing £100,000 matchfunding with
ongoing share subscriptions from
private individuals. This is going very
well in one sense, with an achievable
£60,000 to raise in the final month.
4
supportgetcycling.org.uk Get Cycling CBS Business Plan
Executive
Summary Continued.
It is intended that three of the current Get Cycling CBS has the status of
sixteen staff of Get Cycling CiC, a charity. It has been approved by
those who specialise in events and HMRC for Social Investment Tax
Get Cycling programmes, will transfer to the new
CBS, followed by the recruitment of
Relief (SITR) at 30%, with additional
advantages for anyone needing to
CBS has the further staff. To save costs, current
premises will be shared, but with
offset Capital Gains Tax. This comes
on top of the 4% interest for investors,
status of a
an investment in increasing the starting Year One, as Get Cycling CBS
internal capacity of the building to will ‘hit the ground running’ in terms
charity.
accommodate growth of both social of ongoing trading. An initial annual
enterprises. turnover of £228K is forecast, with
growth from there. To give context:
The new CBS will pay a pro rata the 2018 turnover of Get Cycling CiC
share of the general overheads was £919K. It has traded profitably
(rent, utilities, IT, bookkeeping, etc). in seven of its last eight years and
There will be much mutual support, has made a modest profit in its 2019
but both social enterprises have trading year.
independent boards, management,
finances, assets and operations. The founders of Get Cycling, Jim and
The CiC will retain its existing Sally McGurn, are committed to the
debtors, creditors, loans etc. The success of Get Cycling CBS and will
CBS will begin trading with no such also purchase a significant number
complexities and obligations. of community shares, as will one of
the other current directors of Get
Cycling CiC and one of the Trustees.
Jim will transfer to the CBS with
other staff. He will work in business
development and grant funding. It
is intended that, within the first year,
a new General Manager or Chief
Executive will be appointed, so that
Jim can concentrate on revenue-
raising activities with social impact.
Regular customer, Tom Cowan, rides with support organisation Go Get
5
supportgetcycling.org.uk Get Cycling CBS Business Plan
Our Vision
All the ingredients are in place to make this charity a unique
and dynamic cycling support organisation.
Our vision is “to become a focus for engaging more people in regular
cycling, adding pioneering initiatives and support programmes to
our existing well-developed operations. By doing this we will help our
communities become more cycle-friendly, more active, more healthy,
more equitable, more practically mobile and more environment-friendly.”
We will build on what we do already Through the creation of our new
but bring in new ideas and initiatives. Charitable Community Benefit
We have the skills, assets and Society we will ensure that our
commitment: we need the power shareholder members have a say
of the community behind us to take in how our services develop, for the
everything to a new level. benefit of all users, members and
communities.
Our Senior Cyclists Club out for a winter ride
6
supportgetcycling.org.uk Get Cycling CBS Business Plan
Background
Our History
Get Cycling Community Interest Get Cycling borrowed wisely to
Company (CIC) was established invest in change, and that essential
in 2008. It began with almost total borrowing is still a brake on growth.
dependence on contracts from Also, management have focused
a public sector client base (local attention on capital intensive
authorities, schools, universities). disability retailing in recent years
Much of this fell away due to public and there is a need to better
sector cuts and this activity area has manage resources and time to
continued but at a lower level than grow events and support systems,
before. a sector which has tremendous
opportunities. This is best done
It is time to However, Get Cycling took the bold
step of rapid diversification into
within a well-financed CBS operating
separately.
reinvigorate two new trading areas with little
dependence on the public sector: The events and programmes
this events and establishing a highly specialised
disability retail trading arm, serving
department has still done some
impressive work. It has put many
promotions a national clientele, while also
founding a local bike shop for the
hundreds of thousands on bikes,
often for the first time. It has created
work through
people of York. This diversification cycling promotion concepts, events
has been successful, and retail and programmes which are widely
investment.
makes up around 75% of activity admired by cycling promotion
and sales within Get Cycling CiC. professionals.
It is now a centre of excellence for
disability cycle retailing and support It is time to reinvigorate this events
with clients (individuals and support and promotions work through Get
groups from all over the UK). Cycling CBS, with new products,
new equipment, new client groups,
and additional staff. This will be
combined with a new emphasis
on more local work which is
economically delivered, higher
frequency, and balanced against
some continuing national work
emphasising longer regional tours.
7
supportgetcycling.org.uk Get Cycling CBS Business Plan
Background Continued.
Some achievements of Get Cycling CIC over recent years.
• Companion Cycling programme • Cycling appreciation and activity
for people with dementia roadshow which has visited over
800 schools
• Opportunity Bikes giving work to
offenders • Employment and support of
people with learning difficulties.
• A national promotion and try-out
roadshow for disability cycling • Workplace & community bike loan
and cycle training programmes:
• Unibikes: a cycling support over 7 years in Sheffield
package for University of York
students and staff • Cycling promotion and
consultancy work at six major
• Cycling Festival in York over 7 workplaces of Glaxo-Smith-Klein.
years. A try-out event for 4000
visitors. • Cycling holidays with full support
for people with disabilities,
• Disability cycling festivals with 1400 including a trip to Germany
active participants on over 80 of
our cycles • A year of cycling tuition and
guided bike rides for students of
• Specialised bikes and support for Selby High School.
a limbless veterans tour of New
Zealand • Senior cyclists club
• The Dynamo Activity Challenge • Yorkshire Bike Library: special
behaviour change programme for needs bike loans.
schools
• Support and free bike loans for
• National Standards cycle training refugee support charities
delivered in 30 West Yorkshire
Even though delivered over 11 years, colleges • An initial fleet of cycles and
in circumstances of better public consultancy support for Estonia’s
sector finance and high staffing • GreenLink pedal-powered first ever cycling promotion group.
levels, our list here strikes us as an distribution and delivery services.
over-diverse ‘CV’. Not all of these are Sold to our young local operators • Contract publishing of 14 regionally
currently operating, and most will and still going strong (Darlington customised cycling guides for
not fit into the development policy and Luton, with Greenlink York local authorities, some in Welsh.
of the CBS. Our ambitions are now operating under our branding
simpler and more focused. licence)
Family fun on one of our try-out tracks at the annual York Festival of Cycling
8
supportgetcycling.org.uk Get Cycling CBS Business Plan
Community
Share Offer
Offer Summary
We seek to raise £200K investment in The return on investment of 4% may
withdrawable shares in Get Cycling seem generous but Get Cycling CBS
CBS: a Community Benefit Society would need to pay more than 8%
with charitable objects registered should it opt to finance development
with the Financial Conduct Authority through an overdraft or commercial
(Number 8016). loan. The best rate available from
charitable social lenders is 6%.
The minimum investment per
person or organisation is £750. Get The crowdfunding investment facility
Cycling CBS has been additionally opened on the 15th November 2019
approved by HMRC to be recognised and closes on the 11th March 2020.
as a charity for purposes of tax
relief. Taxpayers who invest £1000 Statutory notice. This offer is not
or more will be issued with an HMRC protected by the Financial Services
certificate for immediate Social Compensation Scheme and
Investment Tax Relief (SITR) at 30%. investors have no recourse to an
This comes on top of the 4% interest, ombudsman. You should only ever
starting Year One, and a personal invest as much as you are prepared
benefits package for member- to lose.
shareholders, which will support
them in their cycling. This package is
still under development.
How do we finance this benefits
package for members? It is possible
because Get Cycling CBS will work as
a trading charity to provide services,
mostly through third party clients, to
the benefit of the larger public. These Member Benefits:
services generate incomes with Get Cycling CiC offer all CBS
surpluses attached. These surpluses members 10% off all two-wheeled
finance all Get Cycling’s overheads. cycles, accessories, repairs and
On top of that they finance specific bike hire
cycling support for all investor- • Members-only events, rides,
members, over and above their social events and classes.
annual return on investment. Many
• Members-only cycling
charities raise finance through their weekends and holidays in the
trading arm. A charitable community UK and the Netherlands
benefit society simply finances its
work using a different route. • Bike breakdown rescue service
• Exclusive cycling advice line
• Legal aid from cycling solicitors
with preferential members-only
success commission.
• Newsletter
• An annual report on the impact
we are achieving as a result of
this investment
Member benefits are subject to
review every 12 months.
9
supportgetcycling.org.uk Get Cycling CBS Business Plan
Community
Share Offer Continued.
Greater range and delivery of activities and services.
Essentially we send out roadshows providing bike try-out opportunities and
learning experiences. We choose the specialised staff, the appropriate cycles
and the required techniques to match the tasks and venues we are given:
public squares, parks, schools, workplaces, universities etc. We will continue
to develop and expand all current activities, but add items which we have
successfully experimented with, but never had the finance to develop. All
such development will be ‘organic’.
Bike try out events, pedal-powered arcade, festivals
The cycles, equipment, staff and ongoing trading which the CBS will take over
from Get Cycling CiC are used for the provision of bike try-out roadshows,
locally and nationally. The cycle fleet combines the practical with the exotic
(the latter serves to draw people in and break the ice). We give the chance
for beginner or hesitant cyclists to try out cycling on a defined and well
managed track, in an atmosphere of fun, in city centres, parks, sports halls,
at festivals/fetes, etc. Anywhere away from trafficked roads. We encourage,
advise, support, and give out our free 32-page guide for beginner cyclists.
These events can be anything from a few cycles to a major event such as the
annual York Festival of Cycling in Rowntree Park, where we provide around 100
cycles on several different themes try-out tracks. Almost all this events work is
financed by local authorities from their sustainable transport budgets.
The menu Get Cycling currently offers includes:
• The main bike try-out event at various sizes
• Fun track for the under-sevens
• KMX karts track for all ages
• Choice of up to three multi-seat megabikes (CircleCycle, Pedalbus,
Maximus trishaw)
• ‘Arcade’ of static pedal-powered fun machines, such the competitive
velodrome racing game, smoothie-maker, gramophone, ride simulator
and scalextric racing. Almost all of these pedal-powered devices have been
developed in-house, and the development of a pedal-powered bubble
machine and lights-board game is almost complete.
Investment in this activity area will:
• Improve the quality and attractiveness of all events
• Finance purchase of a portable pump track
• Help complete the development of our range of pedal-powered arcade
devices
• Improve sales and marketing, with new website, to greatly increased
booking rates.
• Recruit additional staff to drive growth and operational capacity.
10supportgetcycling.org.uk Get Cycling CBS Business Plan
Community
Share Offer Continued.
Workplaces
Get Cycling has also specialised in services for workplaces and has strong
links with many York and Yorkshire businesses. Get Cycling has also worked
for several major companies nationally, sometimes financed by local
authority budgets and sometimes directly.
Workplace services include:
• Workplace cycling seminars
• Team-building events
• Bike doctor visits
• Get-into-cycling sessions
• Commuter bike loan programmes
Investment in this activity area is not needed for equipment (most of which
is covered by the above investment in bike try-out event enhancement).
However, investment will:
• Help us offer annual supported fun rides/picnics for all staff and families
• Improve sales and marketing to this specific sector.
Schools Work
Get Cycling has provided over 850 The buzz created by our visits
schools activity days nationwide, at increases parental awareness
primary and secondary level. These of cycle training options for their
give children a chance to ride a wide children and helps local cycle
selection of cycles, improve their training recruitment.
riding skills, learn cycle maintenance,
and enjoy educational classroom Get Cycling has a new contract for
activities, based on our own highly delivering weekly cycling activity
developed teaching materials. We at Selby High School, and we have
can give an hour of intensive cycling been asked to consider similar
experiences to up to 300 pupils per engagements in other secondary
day in a typical primary school. schools, mainly working with children
in danger of school exclusion.
Investment in this activity will:
• Finance an electrically powered inflatable track to allow indoor work in
school halls to extend the season into the winter months.
• Finance a set of children’s cycles to be rented by primary schools needing
cycles for Level 1 Bikeability training, which our own trainers can also supply,
sometimes working alongside local trainers.
• Develop an offer to primary schools for a supported annual all-school bike
ride and picnic, as is common in the Netherlands. Additional bikes and
entertainments supplied by us, and with the children’s families invited.
• Improve sales and marketing to schools.
11supportgetcycling.org.uk Get Cycling CBS Business Plan
Community
Share Offer Continued.
Inclusive Cycling
Although disability cycle retail The inflatable cycle track detailed
is staying with Get Cycling CiC, under the general schools section
there is still a demand for disability will be particularly appropriate for
cycling events. Get Cycling CBS will special school use in sports halls over
take over this work, and there is a winter, since children with special
specialised fleet of cycles for this needs get less exercise than other
amongst the cycles transferring children when weather is cold.
from Get Cycling CiC.
This also applies to our pedal-
Our activities and capacities in powered static machines, most
this area are unique, and we wish of which we can adapt for hand-
to develop them on the basis of cranking, to the benefit of children in
investment. We regard this as a wheelchairs.
priority.
We wish to expand, our offer of
supported residential cycling
Our past and current experiences holidays for special schools and
encompass: colleges, basing them in York, and at
the disability-friendly Youth Hostel in
• Activity days in special schools.
the National Forest, which we have
• Supported rides for disability used for this purpose before. Almost
support groups, all specialised all special schools aim to provide a
cycles included. residential activity each year and we
• Disability cycling as paid-for are advised that some of the funding
additions to local authority- can come out of PE budgets as well
financed bike try-out as schools’ central funds.
roadshows
• Companion cycling for people We wish to reinstate our successful
with dementia programme of companion cycling,
including for those with dementia.
• Inclusive residential cycling
This will entail us joining the
holidays in the UK and Europe,
international Cycle without Age
with cycles supplied.
movement and acquiring a two-
seater bike taxi and using our existing
companion cycles.
Very few special schools acquire
their own specialised cycle fleet. We wish to explore the appetite
Reasons include unfamiliarity, which care homes might have
staff antipathy, maintenance/ for paying for regular visits with
liability worries, insurance, storage specialised cycles.
and (above all) funding problems.
Therefore an alternative which In some cases clients will struggle
the CBS can offer is a regular visit, to afford the true cost of the service
bringing all the right cycles for the they require. As a charity we will be
children of that school at that time, in a strong position to seek grant
and coming out of the PE budget, support (to match-fund clients’
or financed by grant support from contributions), and to reduce costs
Children in Need or similar. Finding 12 by calling on a number of suitable
Yorkshire special schools, and visiting volunteers to work alongside our
one each fortnight, would mean staff. This applies, for example, to
we can employ a new, specialist, the need for volunteers to help
permanently busy unit dedicated to with disability cycling holidays and
the purpose. companion cycling.
12supportgetcycling.org.uk Get Cycling CBS Business Plan
Community
Share Offer Continued.
College of Cycling
We will use our mobile assets and The College of Cycling is ideal for
experience to launch a College of direct bookings by community
Cycling, touring Yorkshire, but also groups, or neighbourhood support
taking up contracts for multi-week groups, who can apply for Awards
tours of specific regions on behalf of for All grants, supplemented by
local authorities, and in support of contributions from participants. This
their sustainable transport initiatives. day course will also be offered to
Where our bike try-out roadshows the people of York, with discounts for
can put 1000 people a day on bikes shareholder members.
in a busy city centre, the College
of Cycling will bring very different Investment will help us finance the
techniques and resources to engage purchase of a large new vehicle,
with 15 to 20 people in a day, giving large marquee, new cycles and
them intensive support in the areas equipment so that College of Cycling
of cycle skills training, get-into- can be mobile in its nature. We have
cycling advice, try-out of sample applied for a £20K grant to part fund
bikes, and cycle maintenance. this equipment.
The unit will run these classes partly
at York Sports Village, and otherwise
visit the towns, villages and suburbs Bike Recycling
which would otherwise have poor
access to such a facility. It will We have been asked by many
sometimes involve participants whether Get Cycling CBS will take up
bringing their cycles to the course on bike recycling. Recycling of cycles is
the day, so that we can help them a worthwhile activity, bringing work
maintain and repair, alongside with opportunities to many who need
other learning experiences. This is support. However, it is an activity
in a sense the reorientation and area which we will not address
rebranding of what we already do: unless considerable funding support
but using staff with the ability to is secured, enabling operations at
engage happily with pre-booked scale with strong management.
small groups over a full or half day. It is otherwise not a commercial
proposition, and so has been
removed from our initial aspirations
as a major project but is likely to be
Weddings and Funerals a background activity unless major
funding can be found.
We have regular bookings for our
wedding rickshaw plus driver, and
we want to extend our offer towards
guests also using specialised
pedal-powered wedding transport.
We also wish to supply a cycling
service for funerals, based on the
development of a pedal-powered
hearse. Not all cyclists want to make
their final journeys in a motor vehicle,
and many mourners will want to
accompany the hearse on cycles we
can supply.
13supportgetcycling.org.uk Get Cycling CBS Business Plan
Business Context
Last Year, This Year, Next Year
The following comparison shows how the events and programmes
department has performed in terms of basic trading within Get Cycling CiC
in 2018 and 2019. It also shows how it is forecast to perform as an independent
CBS January to December 2020 (very modest growth within this development
year.). The ten year financial forecast for Get Cycling CBS is set out later in this
business plan.
Get Cycling Events and Programmes
Performance 2018, 2019 and 2020
2018 2019 2020
2018 and 2019 show events and Complete For first 9 months, plus As CBS. Includes cost of
programmes still within the CiC, £5K forecast as new new staff and rebuilding
and 43% of total fixed costs sales for final 3 months costs: all yet to manifest
(overheads) allocated to events, as extra profits
with 57% taken up by retail.
Income 275800 235745 227500
Direct costs 104000 60229 75075
Total income less direct costs 171800 175516 152425
% margin 62% 74% 67%
Allocation of fixed costs 163056 132956 143960
Trading surplus 8744 42560 8465
Cycling in York
York has a population of just under According to Government figures,
200,000 within the local authority York is one of the most popular
boundary (2011 Census). Most cycling cities in the United Kingdom,
residents live within the outer ring with 25% of adults cycling at least
road but there are some outlying once per week, against a national
villages, some of which have good average of 12% (Department for
cycle routes into the City. Cycling is Transport – 2016 / 17). After a sharp
a popular leisure activity and many drop in cycling nationally in the
residents cycle on a regular basis. mid-20th Century, participation has
risen steadily since the 1990s, and
continues to rise. There is therefore
a strong and growing market for
cycling participation in York.
14supportgetcycling.org.uk Get Cycling CBS Business Plan
Business
Context Continued.
Other Cycling Organisations
There are several local organisations – charities, community groups and social
enterprises – offering a range of cycling activities across the City. Get Cycling
is keen to work with and support these groups, complementing their own offer
for the benefit of the City’s residents. We have explained our plans to the main
cycling organisations in York and received many expressions of support and
ideas for co-operative ventures.
Potential Partners
York Sports Village Locality
We are working with YSV to establish Get Cycling CBS is has become
a format for a four-hour course a member of Locality, a national
involving all the cycling facilities support organisation for social
there, including the closed circuit: enterprises. We will learn from other
under our College of Cycling brand. members, share our experiences
with them, and perhaps find
Sustrans partners for joint bids for project-
We have good relationships with specific funding.
Sustrans at both national and local
level and have recently advised Probation Service
them on disability cycling. We will Our relationship with the
approach them about joint ventures. Probation Service (Community
Payback) ceased in 2014 due to
British Cycling the disorganisation following
We are in discussion with British privatisation. We await full
Cycling about ways of working reintegration of the service back into
together and have applied to their the public sector before researching
Places to Ride fund for grant support possibilities for working with them
for our College of Cycling initiative. again. If funded we would look at
Motability community payback opportunities:
We have approached Motability bringing recyclable bikes, parts
regarding the services we can offer and tools to local community halls
their 650,000 disabled members. and other venues so that offenders
The first step has been to help them can learn new skills working with
with a feature on cycling in their our mechanics, producing working
members’ magazine. We hope to run cycles to be left in the community for
regional bike try-out events for their local primary schools, community
members. groups etc. This would be under the
College of Cycling brand, but with a
Welcome to Yorkshire community payback emphasis. This
Get Cycling are members of WTY will need to be securely funded and
and supply them with a range of will depend on the disposition of the
services, including being their Bike Probation Service.
Library for the area. We in turn
receive support services from them. Local charities
Get Cycling is also member of Visit We are well known locally, and will
York. seek joint enterprise partnerships,
so that their and our objectives
Local Authorities can be met, whether by joint grant
We have relationships with many applications or otherwise.
client local authorities and public
sector bodies.
Top: One of our megabikes in action
Bottom: Our KMX Karts at a local fete
15supportgetcycling.org.uk Get Cycling CBS Business Plan
Business
Context Continued.
Demand for cycling events and programmes
The greatest demand for events The demand for events and
comes from opposite ends of the programmes is less than half of
spectrum. There is a demand within what it was before public sector cuts
York and Yorkshire, from the public took effect. None of these bedrock
sector and community groups, for activities activity areas are likely to
low cost, smaller events, with two regain their previous prominence
staff. Cost is kept down due to the in the short term, but with better
local nature of this work. The barrier equipment, innovative ideas and
to expansion in this area has been strong marketing they can begin to
largely lack of marketing. At the other grow from the current baseline of
end of the spectrum, we have clients, around £230K. This all gives financial
especially in Scotland, who engage underpinning, but it is the newer,
us for week- or month-long tours, additional initiatives which will cause
or book us for high value cycling significant growth.
festivals. These events require us
to bring up to 10 staff (mostly well Many of these activities are simply
trained and trusted casual workers new applications of existing skills
who have been with us for years). and assets, acting as a base for
expansion again, but in innovative
There is a Schools have also been a traditional
market segment for us. They now
ways. Our events activities have also
been affected by our concentration
demand have very little spare budget, but we
are finding that local schools seem
on the diversification strategy (retail),
and by the lack of a proactive sales
within York willing to fund our work out of PE
budgets. Schools have expressed a
and marketing force for events and
programmes. There has been little
and Yorkshire,
need for the provision of cycles for innovation over the last four years
cycle training (a service supplied by in events and programmes, with
from the public
local cycle trainers), and we wish to most energy applied to the rapid
meet that demand. In general, our development of retail.
sector and
schools work needs external funding
support if it is to meet its full potential. Despite this, events have rendered
This can be from grant support or the same overall profit as disability
community from the support of an acceptable
national sponsor.
retail, even though the events
sales level is half that of the retail
groups, for low department. Events have fewer direct
costs. It is time for us to put new
cost, smaller energy and resources into the broad
range of Get Cycling activities which
events. are not retail. This is why we have
established the CBS, so that it can
have special attention and be able
to develop services which go beyond
the foundation activities which it
already has. That is why the founder
and Chief Exec of Get Cycling CiC is
moving over to work within the new
Get Cycling CBS. He has managed
the build up a very strong disability
retail department and he is putting
that department in the hands of the
retailing staff who have made such a
success of it and can take it further.
16supportgetcycling.org.uk Get Cycling CBS Business Plan
Business
Context Continued.
Demand for Disability Cycling Events and Support
Feedback from special school We have previously pioneered
headteachers tell us that there successful inclusive cycling holidays
will be a demand for a cycling unit with bikes and volunteers supplied.
visiting schools with specialised Since this is an offer unique in the
cycles: weekly, fortnightly or monthly. UK we anticipate a strong demand,
We believe it will not be difficult to which (as with special schools visits)
find 12 such Yorkshire special schools. will entail repeat custom. Almost all
We doubt they would pay more than special schools and colleges seek to
£390 per day or £250 per half day. provide a residential activity holiday
Regularity and high turnover, helped each year, and our offer more than
by background grant funding, will ticks all the boxes. We will give
make this financially viable. The new prominence to this activity, as it is
inflatable indoor track and static fun unique and meets so many needs
devices will help extend this activity/ at once. When we took a party of
income over winter. disabled clients on a cycling holiday
in Munster, Germany. We found that
With funding from the Joseph most had never cycled before, most
Rowntree Foundation Get Cycling had never been on a ship before, and
pioneered a successful dementia most had never been abroad before!
cycling scheme in 2014 (featured on We intend these holidays to be a
Look North Television). Our experience major growth area.
shows that there is considerable and
growing demand for this service, with
side by side cycles and taxi-bikes for
family groups, older couples, the care
sector, etc.
Demand for College of Cycling
Get Cycling’s bike shop is often asked A local sports facility have asked us
by customers about cycling tuition to look at a mobile College of Cycling
and maintenance classes. We have facility operating occasionally at
also been told by a cycling social their closed circuit cycle track.
enterprise in a nearby city they have
a hugely successful formula for this The demand for direct bookings from
kind of work, which we cannot set neighbourhood/community groups/
out here for reasons of commercial workplaces/universities is untested,
confidentiality. so caution is required.
Informal conversations with relevant
local authority officers tell us that a
College of Cycling visit could be of
use to them if its activities integrate
their own cycle trainers. This is as it
should be.
17supportgetcycling.org.uk Get Cycling CBS Business Plan
Business
Context Continued.
Fundraising and Donations
Get Cycling CiC have attracted grant support at only a around £2000 per
year: in the last accounts it made up 0.2% of income. Get Cycling CBS, with its
charitable status, will attract grant and donation support of an estimated 12%
of revenue. This estimate is based on the following considerations:
The normal steps approaching • The unique nature of disability • Our volunteer base adding value
grant making trusts are: cycling holidays, attracting grant as match funding
1. Identify the major potential support in that it is a major need
• The person responsible for
funders - detailing name, not met, and incorporating the key
identifying and pursuing grant
income, grant giving structure, emphases of inclusion, physical
support is Jim McGurn who has
key decision makers, policy activity and cycling.
over many years been responsible
guidelines. • The credibility we have previously for winning many large contracts
achieved by doing so much from local authorities. These
2. Review possible funders to
without grant support. skills are transferable: securing
assess their giving potential.
charitable funding for specific
it is important to have target • One large fundraising charity
projects requires the same basic
donations set at the outset to ride per year, with loans to
skills as for winning local authority
make sure you hit your target. participants of the exotic cycles
contracts.
Have a timetable planned. owned by the CBS.
3. Draft a case for support – half
brochure, half business plan,
this will demonstrate the value Fundraising and grant support will “Get Cycling’s new charitable status
of the project and the need for subsidise commercial revenue has in our opinion the potential to
charitable donations. It will be causing demand and uptake to attract new funds both nationally
specifically designed to meet increase. Grant funding will support and regionally. From our discussions
the funders’ needs. our financial margins where clients it appears that one of the most
such as schools do not have the full promising sources are grant making
4. Revisit desk research - if more
funding themselves for our visits. trusts. There are 4,500 grant making
funders are needed
trusts in the UK which give away £3bn
5. Build relationships and We are looking to engage each year. Knowing this market well it
credibility – e.g. find friendly Tarnside Consulting as fundraising seems to us that there will be interest
introductions to key decision consultants. (subject to due in the work you do (as you will recall
makers at funders and build diligence, negotiation and approval we have worked extensively with the
relationships and align goals. of the board). They are specialists Calvert Trust including helping them
This can be labour intensive but in fundraising for small charities. raise the money they needed for a
increases chances of success.
For the purposes of this business fleet of accessible bikes).
6. Stage one applications plan Tarnside have provided this
initial summary of how they see The stronger your story the greater
7. Answering queries Get Cycling CBS’s potential for level of success you will enjoy.
fundraising. The typical return on investment
8. Stage 2 applications for this sort of work is between
9. Answering further queries £4- £7 raised for every £1 spent. It
does however require you to spend
10. Monitoring and evaluation time carrying out the research and
making the applications before you
enjoy the returns. Grant making
trusts typically take 3-5 months
processing applications.”
18supportgetcycling.org.uk Get Cycling CBS Business Plan
Financials
Profit and Loss
The following profit and loss forecast shows how Get Cycling CBS will
produce modest trading surpluses for two years while it invests in new staff,
equipment, infrastructure and partnerships. During this period it will operate
effectively while putting everything in place for long-term growth. See the
next page for explanations of each item.
Ten Year Profit and Loss: Starting April 2020 9 months Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income
Sale of one-off bike try-out events & bike doctors 50,000 85,000 95,000 100,000 110,000 120,000 125,000 130,000 135,000 140,000
Cycling support programmes 25,000 40,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Disability events 20,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000
Schools activity days 20,000 35,000 40,000 45,000 45,000 45,000 45,000 45,000 45,000 50,000
College of Cycling small group coaching 25,000 35,000 40,000 45,000 50,000 50,000 50,000 50,000 50,000 50,000
Inclusive Cycling Holidays 9,000 30,000 35,000 45,000 55,000 65,000 65,000 65,000 65,000 65,000
Other 6,000 10,000 10,000 10,000 10,000 12,000 12,000 14,000 14,000 15,000
Grant funded contracts 30,000 33,000 36,300 39,930 43,923 48,315 53,147 58,462 64,308 70,738
Total sales income 185,000 298,000 336,300 369,930 403,923 435,315 450,147 467,462 483,308 505,738
Variable cost of sales
64,750 104,300 117,705 129,476 141,373 152,360 157,551 163,612 169,158 177,008
and grant fulfillment at 35%
Overheads
Salaries 63,500 90,000 100,000 110,000 121,000 133,100 146,410 161,051 177,156 194,872
1/3 of fixed costs Hospital Fields Rd
plus other fixed costs 42,750 58,140 59,303 60,489 61,699 62,933 64,191 65,475 66,785 68,120
To Get Cycling CiC for bike maintenance 3,750 5,500 6,050 6,655 7,321 8,053 8,858 9,744 10,718 11,790
Launch costs inc design, marketing, platform fees 1,633 1,033 1,033 1,033 1,033 1,033
Total fixed costs no salaries 48,133 64,673 66,386 68,177 70,052 72,018 73,049 75,219 77,503 79,910
All fixed costs inc salaries 111,633 154,673 166,386 178,177 191,052 205,118 219,459 236,270 254,659 274,782
EBITDA 8,617 39,027 52,209 62,277 71,497 77,836 73,136 67,580 59,491 53,948
Depreciation (estimated) 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500
4% intst on £140K plus then £155K then £170K
then plateau 6,200 6,800 7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400
PBT (after depreciation and interest) -9,083 20,727 33,309 43,377 52,597 58,936 54,236 48,680 40,591 35,048
EBITDA 8,617 39,027 52,209 62,277 71,497 77,836 73,136 67,580 59,491 53,948
EBITDA PLUS £15k P A NEW SHARES INCOME 23,617 54,027 67,209 77,277 86,497 92,836 88,136 82,580 74,491 68,948
DEBT SERVICING
£15K p a share by-back
15,000 15,000 15,000 15,000 15,000 15,000 15,000
(matches new shares coming in)
Pay Get Cycling delayed asset purchase 23750 23750
4% intst on £140K plus then £155K then £170K then
6,200 6,800 7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400
plateau
DEBT TO SERVICE 29,950 30,550 7,400 22,400 22,400 22,400 22,400 22,400 22,400 22,400
EBITDA : DSC RATIO 0.8 1.8 9.1 3.4 3.9 4.1 3.9 3.7 3.3 3.1
19supportgetcycling.org.uk Get Cycling CBS Business Plan
Financials Continued.
Our Profit and Loss Forecast Explained
We show sales of bike try-out events Our school activity days are shown
& bike doctors at about the same as as starting at £35K per first full year
the current level in the first year and and rising by £5K per year, before
rising gradually as higher staffing hitting a plateau of £45K. Our current
levels take effect. It is still a modest successful secondary school work,
growth. This is a modest growth, delivered one day each week, will,
reflecting lack of investment in sales we anticipate, be replicated in other
over recent years, set against new local secondaries on the other four
investment in the quality of our days. If we succeed in this secondary
events and more marketing enabled school work alone we will have sales
by higher budgets and staffing levels. of £35K annually, in itself accounting
for the early years sales target.
We show here sales of longer term
cycling support programmes. This It is hard to predict is the success of
shows us reaching a modest plateau our College of Cycling: small group
and staying there. This reflects our coaching at base and pre-booked
policy of concentrating on smaller, course at York Sports Centre and
more local and less complex events. visits to towns, villages and suburbs.
We do not show significant growth in We have it starting at 25K per year,
such national programmes. rising to £50K.
Our disability cycling events, start We have asked many disability
at £30K of sales in the first full year support groups what they think
and rise steadily by £5K per year. This of our intentions for Inclusive
is modest assumption given that Cycling Holidays. The response
these events are a central plank in has convinced us of a strong
This reflects our development aims. We will sign
up special schools, colleges and
demand, especially if we work with,
and perhaps partner with, specific
our policy of community groups wanting a regular
monthly visit, and adding one-off
national support organisations
who can market these holidays
concentrating visits elsewhere. Some of these
events, in larger formats, can be
to their members (eg the Multiple
Sclerosis Society and its 100,000
on smaller, charged out at £1000 per day, using
local authority special needs activity
members). Just two such holidays,
each for a different national support
more local and budgets for regional events. group, would meet our targets in
the first two years of operations.
less complex
Note that these are not planned to
begin before 2021, to give us time
events.
to develop the project and create
partnerships.
20supportgetcycling.org.uk Get Cycling CBS Business Plan
Financials Continued.
Our Profit and Loss Forecast Explained
There will always be other incomes. Having enough sales is one thing:
These are unexpected. For example, but keeping costs down is just as
the directors of as local charity have important. There are obviously two
come to us with a proposal for a £15K types of cost. Every time we make
grant from them for us working in a sale of an event or engagement
innovative ways with children with we need to pay for staff, travel,
mental health and other problems. accommodation etc. An analysis
of these variable costs for 2019,
We forecast a level of grant which include pre-event project
funding at roughly an eighth of all management, show a lower cost
income. We believe this is a modest figure than we have forecast for the
expectation. This means we start at first year of the CBS. This is to give us
£30K starting in year one, compared leeway to cut prices if we need to, or
to the negligible £2K obtained by to increase activity levels. The CBS
Get Cycling CiC over recent years. will also be able to decrease costs
Fundraising and donations will also by using well trained volunteer staff
be helped by our charitable status, at local events. (Get Cycling CiC has
by the intrinsic attractiveness to only ever used paid professionals).
grant givers and of our ability as This also gives us confidence that
events specialists to organise an variable costs can be kept low.
annual charity ride or other cycling
event to raise funding/donations Our general overheads, also
for our disability work. We also take known as fixed costs are long term
into account the positive prognosis commitments which need to be paid
supplied by Tarnside Consulting whatever happens: such as rent,
reproduced in this business plan. insurance, vehicle and equipment
For the sake of prudence we have maintenance. The figures in our
treated donations as project- forecast are based on 11 years of
specific, as if they were grants, and trading experience, and we are
therefore with a fulfilment cost confident they will be accurate.
allocated to them. Please note that the cost goes up
for 2021 since we envisage a move
to separate premises, meaning
that some costs such as rent will no
longer be shared with Get Cycling
CiC. Salaries are also a fixed cost,
and we have matched the staffing
levels to the amount of work in hand
each year.
21supportgetcycling.org.uk Get Cycling CBS Business Plan
Financials Continued.
Our Profit and Loss Forecast Explained
The term EBITDA, as used in the PBT, stands for Profit Before Tax and
profit and loss forecast, means is essentially what is left after interest
Earnings Before Interest, Taxes, and depreciation have been applied
Depreciation and Amortization. It is a to the accounts. Since, as a charity,
measure of Operational Efficiencies the CBS pays no corporation tax on
as it reveals trading performance its profits, the ‘before tax’ does not
before financing costs. In year one apply to us.
the EBITDA figure is positive but a bit
low. This is because of investment The term DSC Ratio is a measure of
in people and other assets in Year how many times financing costs are
One which do not help increase covered by operational efficiency.
profit until the following year and In our case the DSC (Debt Service
onwards, and we show strong cash Coverage) indicates we will be able
reserves to cover this. to meet our debt commitments
including a margin of safety.
The term depreciation has more
to do with cost allocation than
with loss of value. Accountants use
depreciation to ensure that the
costs of revenue are matched to
the revenue those costs helped to
bring in for each time period. So an
amount of value has to be taken
off the annual accounts by our
accountant in recognition of this. It
is an accounting formula and not
real money disappearing.
We bring cycling experiences to secondary schools
22supportgetcycling.org.uk Get Cycling CBS Business Plan
Ten Year Cashflow
9 months Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Opening Cash Balance - 76,750 68,510 120,352 167,263 223,394 285,863 342,600 393,780 436,871
Cash in
Shareholders £140K then
155,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
£15K during each year
Bike try-out events & bike doctors 50,000 85,000 95,000 100,000 110,000 120,000 125,000 130,000 135,000 140,000
Cycling support programmes 25,000 40,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Disability events 20,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000
Schools activity days 20,000 35,000 40,000 45,000 45,000 45,000 45,000 45,000 45,000 50,000
College of Cycling
25,000 35,000 40,000 45,000 50,000 50,000 50,000 50,000 50,000 50,000
small group coaching
Inclusive Cycling Holidays 9,000 30,000 35,000 45,000 55,000 65,000 65,000 65,000 65,000 65,000
Other 6,000 10,000 10,000 10,000 10,000 12,000 12,000 14,000 14,000 15,000
Grant Funding 30,000 33,000 36,300 39,930 43,923 48,315 53,147 58,462 64,308 70,738
Total cash in 442500 323000 361300 384930 425923 455315 475147 487462 493308 500738
Cash out
Payment to Get Cycling CiC,
tangible asset transfer 23,750 23,750
Payment to Get Cycling CiC, 23,750 23,750
goodwill
Buy new equipment and vehicle 25,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
Event delivery costs 64,750 104,300 117,705 129,476 141,373 152,360 157,551 163,612 169,158 177,008
Salaries 63,500 90,000 100,000 110,000 121,000 133,100 146,410 161,051 177,156 194,872
3rd fixed costs paid to CiC 42,750 58,140 59,303 60,489 61,699 62,933 64,191 65,475 66,785 68,120
Payment to CiC for maintaining
3,750 5,500 6,050 6,655 7,321 8,053 8,858 9,744 10,718 11,790
bike fleet
Launch costs inc design, marketing,
9,800
platform fees
Shareholders requesting buy back
of their shares. 15,000 15,000 15,000 15,000 15,000 15,000 15,000
4% intst on £140K plus then £155K
then £170K then plateau 6,200 6,800 7,400 7,400 7,400 7,400 7,400 7,400 7,400 7,400
Total cash out 263,250 321,240 299,458 338,019 362,792 387,846 408,410 431,281 455,216 483,190
Net cash movement 76,750 -8,240 51,842 46,911 56,131 62,470 56,736 51,180 43,091 37,548
Closing cash balance 76,750 68,510 120,352 167,263 223,394 285,863 342,600 393,780 436,871 474,420
The ten year cashflow shows the cash position at the beginnings and
ends of each year. From a reading of this we anticipate revenue to be
sufficient on yearly basis to cover both operating costs to the business and
the finance costs. It is highly unlikely that the charity will wish to retain
such a high cash balance over time and will most probably invest in new
projects. However, it is not appropriate for us to propose investment in
future projects which are not within our current business plan. Please note
that the cashflow will within any of the years 2 to 10 be slightly worse than
shown due to timings of incomes and expenditures.
23supportgetcycling.org.uk Get Cycling CBS Business Plan
We love
Cycling
We created Get Cycling
over a decade ago to
help people discover or
rediscover cycling
24supportgetcycling.org.uk Get Cycling CBS Business Plan
Organisational
Structure
Status of a charitable Community Benefit Society
We decided to create a CBS in order to:
• Better attain our social enterprise ambitions
• Give us a strong supporter and volunteer base
• Enable us to raise capital through a Community Share Issue
• Use this capital to invest in growth and development to
serve a wider range of users
• Increase revenues from a wider range of activities
• Benefit investors and users alike.
• Make it easier to obtain grants due to charitable status.
Trustees
Trustees will ensure that Get Cycling CBS will be an open, democratic, inclusive
and community-minded social enterprise. It will give workplaces to people with
barriers to employment, and bring huge practical benefits to members, and to
the community generally. We begin with a strong board of trustees, consisting
of unpaid individuals with backgrounds in social enterprise, business, financial
management, the education sector, HR, marketing and fundraising.
John Graham, MBE Professor Peter Thompson
John has a Masters in Business Peter has always been involved in
Administration, was voted promoting cycling, and can now
Entrepreneur of the Decade by do more, having just retired from
Businesslink, won the Queen’s Award being professor of psychology at
for Innovation, and his company the University of York. It is a neat
was named Technology Company synergy that Peter was the motive
of The Year. On selling that £5 force, and the designer, of the Solar
million turnover company he has System Ride, from York to Riccall,
concentrated on giving a large along Sustrans’ Route 66. This is the
part of the income away, via his most popular route for people hiring
charity, the Little Society, supporting bikes from Get Cycling! He is a STEM
disadvantaged children. That task schools ambassador and has been
is coming to an end and he is now a governor at two local schools. He
bringing to Get Cycling CBS his skills, is also a National Teaching Fellow
wisdom and connections. and Sustrans volunteer ranger.
25supportgetcycling.org.uk Get Cycling CBS Business Plan
Organisational
Structure Continued.
Trustees
Emma Frost Dr Andy Sharp Diane Wilkinson
Emma Frost is the Founder and Andy is relinquishing non-exec Diane has a had a formidable
Director of Bikes in Need, a social directorship of Get Cycling CiC career in public service, including
enterprise started in 2016. It sources to become non-exec trustee twelve years as the Support Staff
unwanted bikes from the public and of Get Cycling CBS. In the most Training Manager with Leeds
gifts them to refugees, homeless recent part of his working life Community Healthcare NHS Trust,
people living in hostels and anyone he has been an environmental and as Vocational Centre Manager
in financial need in York. Emma consultant, working on projects to for National Police Training, with
currently works as a consultant reduce greenhouse gas emissions responsibility for quality assessment.
having worked in the Internet in developing countries. Andy She has a masters in Training and
industry for the last 20 years in also has considerable lecturing Evaluation, a diploma in Business
various organisations including not- experience. Amongst other Administration, and a degree in
for-profits, higher education and initiatives he founded the Friends Mindfulness. She is a daily cyclist
both public and private sector. This of the Old Railway. He is also a very and became involved with us simply
included a role at Yorkshire Forward keen cyclist, and supported Get by being a very happy customer.
where she participated at board Cycling’s bike recycling project
level, working on funding for various in Scarborough, starting 2014,
not-for-profit organisations. giving workplaces to offenders on
restorative justice programmes.
Andy is the Chairman of Get
Cycling CBS
We are expecting that one or
two further trustee places will
be filled by exceptional people
from amongst the upcoming
community of shareholders.
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