1.6.2 Pre-start initiatives
There are four main challenges facing all community business pre-start initiatives:
- developing a robust, competent development team capable of taking the idea forward to start-up
- establishing the business case for the proposed enterprise; testing the business viability of the idea and showing that the enterprise will be profitable; ensuring that the proposed development is in scale with the target community
- identifying the target community for the initiative; establishing contact with this community, and winning their support for the initiative; engaging the community in the development process
- obtaining the resources to pay for the pre-start development costs, which can amount to at least 5% to 10% of the capital costs at start-up.
A lack of resources is probably the greatest barrier for pre-start initiatives, with some new societies taking three or more years to become investment-ready.
If you have any questions or suggestions for new information you would like to find in the Handbook, contact the team by email at [email protected]