Need help with paying for our services? Here are the top 4 ways clients fund our work:
Money from government or charities.
Usually this is money pulled from a few different pots within the organisation.
You pay us nothing upfront. We do all the work first, then get 10% of whatever increased revenue we create.
Your supporters buy shares in your new or relaunched hostel.
Here are the most common grants our clients have used:
- Big Lottery (specifically Investing in Ideas and Growing Community Assets)
- Heritage Lottery Fund
- Local Council grants (see your Council’s website)
- Local windfarm grant
We do the work for no fee. When our work bears fruit, we take 10% of the surplus.
What our clients like about profit-sharing is that they have nothing to lose. If we don’t make more money for them then they’ve not lost anything.
Here’s an example:
Your hostel is lovely and welcoming, and packed out all through the summer. Problem is, it’s dead in winter. You struggle to pay the bills. You have to lay off staff in the winter because you can’t afford to pay them.
Then you hire us to come in for 3 weeks. We work with your staff to increase bookings, we do a quick and cheap makeover of your hostel to show off its best assets, then we do a huge marketing drive. This would normally cost£14,000.
A month later, we’ve got you £19,000 in new bookings in the off-season thanks to our campaign. You pay us 10% of the revenue from those new bookings.
A year later, you’ve earned £122,000 more than you did last year. You pay us 10% of that increase in revenues minus your first payment. All done.
One of our clients had already tapped out Big Lottery and their local Council’s funds when they approached us. They wanted us to turn their hostel around through a pilot project costing £15,000, but didn’t have the funds to pay for it.
What they did have was a large circle of dedicated supporters. That’s just what you need to run a successful community shares offer. You’re asking your supporters to invest in your hostel.
We approached Big Lottery on their behalf and discovered that they would be willing to fund a business plan for a refurbished hostel on the condition that a portion of it was funded by community shares. This is because community shares are still new and the government is keen to support their take up.
So if you’ve already exhausted grant funding and have a base of support established for your organisation, consider getting your community to invest in your hostel via community shares.