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Fire Services Fundraising Shop CIC

Fire Services Fundraising Shop CIC

Situation

The Fire Services Fundraising Shop is a Community Interest Company (CIC) that was set up in 2010 to raise much-needed funds for the Fire Service by organising events and selling memorabilia. In 2016, an opportunity to diversify the business and significantly increase its income generating potential, became apparent.

The Fundraising Shop had historically bought the toy helmets it sold from a company called Moorland Plastics however they were decommissioned by the local council. This gave them the opportunity to purchase the necessary equipment to manufacture these helmets themselves, which would save the CIC money in the long run whilst generating new income through the sale of helmets to other organisations, such as the Police Service.

Whilst this successful CIC had the funds to purchase the equipment, it required working capital to purchase the plastic needed to make the helmets. In effect, it needed a quick bridging loan to see it past the first three months of manufacturing.

Solution

The business plan’s financial forecasts were realistic with the projected income based on achieving two thirds of what they believed was possible. All costs were accounted for and, even if the sales did not quite achieve the projected figures, the business was still viable. The potential seasonality of the business (many of its sales are made at summer fetes and events) and other risk factors had been considered.

Success

Securing 3 full time jobs of the CIC Directors (all former fire fighters), the loan helped The Fire Services Fund Raising Shop to maintain its income from the sale of toy helmets at fund raising events and online, and to expand its income by selling toy helmets to other organisations.

Loan: £6,500

Term: 3 Months

Jobs: 3 Saved

Website: www.fireserviceshopkeepers.net

Fire Services Fundraising Shop directly benefited from the use of CITR funds invested by our members. You can help to support more businesses like theirs by investing in Foundation East.