@socinvestscot is providing free consultation sessions on social investment and other options to creative entrepreneurs each Wednesday, in partnership with @WeAre_CEC. I'm just about to jump onto a free consultation with someone now! https://creativeentrepreneursclub.co.uk/advisor/social-investment-scotland/

WOW! Just had a wonderful discussion with someone looking to set up a creative social business as part of our @socinvestscot/ @WeAre_CEC FREE Wednesday advice clinics. I've had two enquiries this week & they have both started with people asking about what legal structure to have?

Don't start with your legal structure as the first consideration - this is usually the advice given by funders (of all kinds) for obvious reasons as they give funds. 1) social businesses are called social businesses for a reason. you need to deliver social impact and make money.

The person I spoke to said to me 'i'm not interested in taking a loan or a grant as I want to start trading from the get-go. WHERE HAVE YOU BEEN ALL MY LIFE!? (Paradoxically, saying that to a funder makes them want to through money at you. Hot tip!)

If you are starting a social business, how are you going to make money through trading? If you think your model has the potential to be sustained by trading alone, while making a significant social impact, you may want to think about a structure that is not potentially limiting.

If you think the model is more charitable & will continuously need some philanthropic support, later down the line when you've a tested idea, maybe a more charitable structure is for you, as it will give you access to certain funds/donations/tax relief or incentives for investors

It should be noted however, the Third Sector is going through, and will continue to go through a difficult time post-COVID-19, and the more charities and social enterprises there are, will not necessarily mean levels of funding in the sector will increase.

If you haven't thought about your trading model and how you can be as sustainable as possible through trading, my suggestion during the current climate is that you really need to put this front and centre alongside how the model can be as 'lean' as possible.

Charity and social enterprise leaders that I know have been planning for this pre-COVID, as experience has shown them access to funding reduces the more mature an organisation gets. Stiving for growth which also entails higher overheads is not sustainable. Lean growth models are.