en en en en en id en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en cs en en cs en en cs en en cs en en en en en en en es en en es en en en en en en en en en en en en en en en en en en en en en en de en en
Big Issue Invest Regional Investment Manager, Alan Tudhope shares several focus points for social enterprises to raise social investment.
It would be very easy to be prescriptive about what makes a good case for investment – a history of generating surpluses, strong balance sheet, detailed business plan, 3-year forecasts with cash flow, strong leadership team, complimentary skillset etc. Of course, if every social enterprise or charity had a track record of generating a sustainable income stream, had healthy reserves and were able provide this level of detail there would be no need for Social Investors as the organisations seeking investment would just approach their local bank.
From our experience, many – of course not all – of the social enterprises and charities that approach us for investment, are under resourced, operating at a loss, have weak balance sheets, low cash balances and have been turned down by their local bank. This does not mean we shouldn’t be investing in them, it just means our due diligence will take a little longer as we try to understand the organisation and the reasons they have found themselves in this position. In fact, I would argue these are exactly the types of organisations that we should be investing in.
Why else are we here, if not to enable high impact social enterprises and charities to work their way out their current predicament. Of course, they need to convince us that their proposal is viable, our investment will be repaid and the vision they have for the organisation is the right one.
To do this there are several key focus points I would suggest make a good case for social investment which includes
and perhaps the most under estimated bringing everything together – story telling.
Being able to tell a compelling story about the organisation’s history, performance and plans is incredibly important. Financial information often tells us the what has happened but not the why. The context is fundamental. This means being open, transparent and collaborative.
To find out more on how to prepare your company for investment watch the webinar below with Good Finance on ‘Why is storytelling important for raising social investment?’. I delve into how we look at social enterprises compared to high street banks.
Alan Tudhope is a trusted Regional Investment Manager. For more insight you can get in touch with Alan at alan@bigissue.com.
Bigger Issues need bigger solutions
Big Issue Group is creating new solutions through enterprise to unlock opportunities for the 14.5 million people living in poverty to earn, learn and thrive. Big Issue Group brings together our media and investment initiatives as well as a diverse and pioneering range of new solutions, all of which aim to dismantle poverty by creating opportunity. Learn how you can change lives today.
Local theatre company receives £104K in investment from Big Issue Invest
Local theatre company receives £104K in investment from Big Issue Invest
ESG, Regulation and Data reporting  – should we be implementing an Impact Balance Sheet?
ESG, Regulation and Data reporting  – should we be implementing an Impact Balance Sheet?
Milton Keynes-based community interest company receives £50K in funding from Big Issue Invest to help empower disadvantaged communities
Milton Keynes-based community interest company receives £50K in funding from Big Issue Invest to help empower disadvantaged communities
Bristol-based charity that tackles social exclusion receives £40K in funding from Big Issue Invest
Bristol-based charity that tackles social exclusion receives £40K in funding from Big Issue Invest
How much will the Queen's funeral cost?
How much will the Queen's funeral cost?
The internet's best reactions as Kwasi Kwarteng cuts taxes and lifts the cap on bankers' bonuses
The internet's best reactions as Kwasi Kwarteng cuts taxes and lifts the cap on bankers' bonuses
From benefit claimants to bankers: Here’s what the mini-budget means for your pay packet
From benefit claimants to bankers: Here’s what the mini-budget means for your pay packet
5 ways anti-homeless architecture is used to exclude people from public spaces
5 ways anti-homeless architecture is used to exclude people from public spaces
Skip to headerSkip to main contentSkip to footer
Get The Big Issue in your inbox today
Sign up to our newsletter for regular updates
By signing up, you agree to our privacy policy and terms of use, and to receive messages from The Big Issue and our partners.
Copyright © The Big Issue Limited 2021. All rights reserved.
To mark our new Arctic Monkeys exclusive interview, we’ve picked out some of our best band and musician interviews from the past, featuring Arctic Monkeys (2018), When Jarvis met Bowie, The Specials, Debbie Harry and more. Sign up to our mailing list to receive your free digital copy.