Managing Social Enterprise

Question: Explain. Develops the set-up plan for social enterprise. Answer: Aims and Objectives The main purpose of this research paper is to provide relevant domestic market information to social enterprise producers those want to protect women and girls from the Domestic Violence. The main aim of this paper is to develop the setup business plan of Sisters Freedom Association to evaluate the future success of the enterprises. The following are the main objectives of this paper: To identify the social need of Sisters Freedom Association To evaluate the future sales and future success of Sisters Freedom Association Introduction and Background Domestic violenceis a complex issue which affects a lot off woman in the society. With one woman in four physically abused by their partner at some point in their life. Sisters Freedom Association will target all woman in the borough of Croydon my aim is to provide services such as counselling, refuge, trips , money advise, support groups and educational support (WOMEN, 2014). Sisters Freedom Association will target all woman in the borough of Croydon my aim is to provide services such as counselling, refuge, trips , money advise, support groups and educational support. Currently theres only one organisation that helps out women who have been a victim off abuse they are called Family Justice Croydon. Sisters Freedom Association will stand out from other organisations because it will be offering a lot of services such as camping trips and prizes to children and mothers also babies (Refuge, 2015). A good way to stop Domestic Violence is by educating as many women as possible about Domestic Violence. This can be done in collaboration with the local Domestic Violence shelter or womens organisation or police community outreach officers who can work with the community, local schools and local companies to organise and implement talks, town halls meetings and other group sessions to talk about this issue (Weygandt, Kimmel Kieso, 2009). Market Research- Business /Social Need/Market Failure Sisters Freedom Association will target all women because between the ages of 16 till older age 15-76 % of women are targeted for physical or sexual violence in their lifetime, according to the available country data. Most of this violence takes place within intimate relationships, with many women (ranging from 9 to 70%) reporting their husbands or partners as the perpetrator. Across the 28 States of the European Union, a little over one in five woman has experienced physical or sexual violence from a partner (UN WOMEN, 2014). 2 women are killed every week in England and Wales by a current or former partner (Homicide Statistics, 1998) 1 woman killed every 3 days 1 in 4 women experience domestic violence over their lifetimes and between 6-10% of women suffer domestic violence in a given year (Refuge, 2015). These statistics clearly show that women in the community are at higher risk from suffering from domestic abuse thats why they are my target market Sisters Freedom Association believe it can reduce these numbers by educating all women on time making them aware of health and mental issues also how this can affect children. Sisters Freedom Association plan to reach my target audience by: Providing a wide range of services to meet the diverse needs of abused women and children A public awareness programme for children and young people also women A strong response from the police and criminal justice system to show that violence is unacceptable and that abusers will be punished Posters Social network Workshop The market research and social need indicates the Sisters Freedom Association is need to protect the women and girls from the domestic violence over their lifetimes. The enterprise is played major role in educate the women and girl, so they re protected self from domestic violence over their lifetimes (Weygandt, Kimmel Kieso, 2009). Human Resource Sisters Freedom Association is finding volunteer that can advise women those have suffered from domestic abuse or who are likely to suffer educating each individual about the services and information available. Asking the local borough to provide professionals that can help with counselling the women and girls, so they able to protect self from domestic violence (Refuge, 2015). Volunteers and professionals are the main human resources of Sisters Freedom Association because these are mainly contributed into the success of the enterprises. In addition, general public also played role into the success and effectively implement the Sisters Freedom Association programs. Governance, Legal and Management Structure Sisters Freedom Association is a social enterprise, so it will be needed to follow all the laws and government guidelines related to the women and girls to achieve its business objectives. Moreover, for a social enterprises and NGOs, it is necessary to follow government regulations and all laws to maintain their registration and to successful run their businesses or operations for long time (Davis Media, 2015). In a social enterprise and NGO, organizational structure or hierarchy level is very low. Sisters Freedom Association will only have management level and after that staff, volunteers and general public are included in the second level of enterprises. Marketing The below table and graph indicates the Sisters Freedom Association total marketing expenses ($1500) on the different activities. It indicates the enterprise expenses around 50% of marketing on communication to educate the women and girls about the domestic violation. Sisters Freedom Association will spend around 14% of total marketing expenses on the advertising and marketing research (Hughes, 2004). Moreover, it will spend approx 13% of total marketing expenses on events to encourage people to connect with the enterprise. Furthermore, it will spend about 3% on promotion 6% on public relation of marketing expenses to create awareness and attract the women and girls in the target market. SISTERS FREEDOM ASSOCIATION Marketing Budget Forecast Receipts Amount Research 210 Networking 0 Advertising 210 Promotion 45 Public relations 90 Events 195 Communication 750 Total Marketing Expenses à ¢Ã¢â‚¬Å¡Ã‚ ¹ 1,500 (Source: Tracy CPA, 2008) Finance Sales Forecast, Cash-flow, and Budget The below table indicates the cash inflows and cash outflows of Sisters Freedom Association: SISTERS FREEDOM ASSOCIATION First Year Cash Flow Forecast Receipts Amount Cash sales 22100 Collections from credit sales 0 Capital Introduced (owner) 3000 Capital Introduced (investor etc) 0 Loans received 7000 Other Business Income 0 Total Receipts 32100 Payments Cash purchases 0 Payments to creditors 0 Salaries and wages 0 Employee benefits 0 Payroll taxes 0 Rent 7800 Rates 3000 Utilities 1440 Repairs and maintenance 0 Insurance 0 Travel 0 Telephone 0 Postage 0 Office supplies 0 Advertising 0 Marketing/promotion 0 Professional fees 0 Training and development 0 Bank charges 0 Miscellaneous 0 Owner's drawings 0 Loan repayments 3000 Tax payments 0 Capital purchases 0 Other 0 Total Payments 15240 Cash flow Surplus/Deficit (-) à ¢Ã¢â‚¬Å¡Ã‚ ¹ 16,860 (Source: Tracy CPA, 2008) Revenue budget is responsible to indentify the each source that is expected to generate revenue within the budget year. The main purpose of revenue budget is to estimate revenue over a specified future period of time. Revenue budget is also prepared to measure the adequacy of revenue against the expenditure so that effective decision could be taken for the future of business. For example: an organization estimates different revenue sources in a year. By comparing this revenue source from the annual expenditure budget, an organization is enabled to determine the operational efficiency. If the annual revenue budget is counted less than annual expense then company enables to find other sources of revenue on prior basis. In contrast, if the annual expense budget is estimated less from revenue budget then company enables to choose appropriate investment decisions (Rasmussen, Eichorn, Barak Prince, 2003). In both situations, revenue source help organizations for building future. Non production expenses such as marketing, research or development and general administrative costs can contribute in the success of a company. Company can expand money of non-production expenses and service costs to improve its ability to meet demand and survive in market. Marketing and research or development mainly provides result for company in long period that help company to meet long-term goals (Weygandt, Kimmel Kieso, 2009). Budgeting of non production expenses helps firm to control the costs of operations and reduce the production cost that can contribute to the company success. Budgeting of non-production cost is beneficial for firm to reduce expenses and maintain cost-effective production. It can help firm to takes decisions about products prices, production levels and product mix. Company engages in budgeting of non-production expenses to determine the effective and efficient strategies for making money and expanding its assets. Budgeting can help a company to effectively use its limited financial resources and improve its ability to meet long-term goals (Waagen, 2000). Budgeting of marketing expenses plays a greater role in a companys success in market. Without effective budgeting of marketing expenses firm cannot utilize and control its marketing activities. Budgeting of marketing expenses can help firm in the development of long-term marketing strategies to attract the customers. An expenditure that incurs to facilitate the motive of long-term advantage for the business can be defined as capital expenditure. On the other hand, funds that are spent by organization to acquire or upgrade the fixed assets such as buildings, machinery etc. can be termed as capital expenditure. There are basically two ways from which the capital expenditure incurs in an organization. By acquiring an asset or by increasing the capacity of revenue earning, organizations are engaged to incur capital expenditure. It is a creational expenditure and due to this, it is associated with the capital. This type of expenditure is incurred within organizations either for adding value or generating more revenue accordingly. The tax over capital expenditure cannot be deducted in the year in which they are incurred within the organizations (Tracy CPA, 2003). Capital expenditure can be defined as expense that incur due to purchase and upgrade of physical assets such as equipment, property, or industrial buildings etc. In current business environment, organizations operate with an aim to achieve customer satisfaction and profit maximization accordingly. The funds that an organization spends to acquire or upgrade the asset help in improving the business performance at greater extent. The additional assets can help an organization to increase production and to reduce cost simultaneously. It would be beneficial for an organization to provide quality product in less cost comparatively (Crowther). With this, organization would be enabled to increase consumer base and profit accordingly. At the same time, with an appropriate expenditure on capital, organizations are enabled to achieve investment objectives effectively. This type of expenditure is quite significant value in the asset that increases the competency of organizations balance sheet (Hughes, 2004). This can be used by organizations to attract investors and to raise more capital for business. Income Generation/Fundraising Strategy Income generation: The below table indicates the sales, expenses, and profit of Sisters Freedom Association that expressed the income generated by the enterprise in the first financial year: SISTERS FREEDOM ASSOCIATION First Year Income Statement Forecast Sales 22100 Administration Expenses Rent, rates utilities 12240 Depreciation and amortization 0 Marketing expenses 1500 Other operating expenses 0 Operating profit 8360 Financial income 0 Financial expense 3000 Net financial expense 3000 Profit before taxation 5360 Taxes @ 35% 1876 Profit for the financial year à ¢Ã¢â‚¬Å¡Ã‚ ¹ 3,484 (Source: Tracy CPA, 2008) Funding strategy: Embedded model needs to be mentioned to state what this means in practice business model simply means how you intend to generate income clearly state why it is needed. However, Sisters Freedom Association plans to raise money on a daily basis to cover expenses. Sisters Freedom Association will open up a cafe that can be used to generate money and while it will have a counselling room at the back that will be an embedded model. Sisters Freedom Association will need 10000, so it will get a 7000 will be a bank loan and the remaining 3000 savings and money from family and friends (Rasmussen, Eichorn, Barak Prince, 2003). Exit/Sustainability Strategy On the basis of the above sales forecast, profit loss forecast and cash flow forecast, it can be suggested that Sisters Freedom Association would use the sustainable strategy rather than exit strategy from the market. First year profit and cash flow surplus situation indicates the Sisters Freedom Association should sustainable in the market and prepare the long-term sustain strategy of business (Hughes, 2004). Conclusion On the basis of the above discussion, it can be concluded that new social enterprise of Sisters Freedom Association would be appropriate decision of owner to create aware and protect the women and girls from the domestic violence. First year forecasting of the business indicates Sisters Freedom Association would be achieved profit and cash flow surplus in the first year, so it support that the new social enterprise set-up decision would be appropriate decision of owners. References Crowther, D. (n.d.). Managing Finance. UK: Routledge. Davis, S.S. Media, D. (2015).What Is a Charitable Organisation? Available:https://smallbusiness.chron.com/charitable-organization-796.html. Last accessed 23/02/2015. Hughes, V. (2004). Becoming a Director: Learn the Basics and Become an Effective and Successful Director. UK: How To Books Ltd. Rasmussen, N.H., Eichorn, C.J., Barak, C.S. Prince, T. (2003). Process Improvement for Effective Budgeting and Financial Reporting. USA: John Wiley Sons. Refuge. (2015).Get Help now.Available: https://www.refuge.org.uk/get-help-now/what-is-domestic-violence/domestic-violence-the-facts/ Last accessed 22/02/15. Refuge. (2015).Get Help now.Available: https://www.refuge.org.uk/get-help- now/what-is-domestic-violence/how-can-we-end-it/. Last accessed 22/02/15. Tracy, J.A. CPA (2008). Accounting For Dummies (4th ed.). USA: John Wiley Sons. UN WOMEN. (2014).Fast facts: statistics on violence against women and girls.Available: https://www.endvawnow.org/en/articles/299-fast-facts-statistics-on-violence-against-women-and-girls-.html.Last accessed 22/02/15. Waagen, A.K. (2000). How to Budget Training. USA: American Society for Training and Development. Weygandt, J.J., Kimmel, P.D. Kieso, D.K. (2009). Managerial Accounting: Tools for Business Decision Making (5th ed.). USA: John Wiley Sons.