A Self-Employment Success Story for Ex-Offenders, you can help.

•  Combined reported sales revenue was down 27% on the previous quarter
•  All six businesses continue to trade
• Over the first six months total revenue is nearly four times the start-up grant
• All the ex-offenders remain off benefits
• None have reoffended
• They need more work - you can help.

The revenue dip of 27% is partly because one of the businesses has not submitted a return (as yet).  Also the two construction businesses report lower income.  Turnover is up in the other three businesses.  Many would be pleased to report such results in the current financial and economic climate (perhaps storm would be a better word).

Background

The project was reported in detail in a previous TLJ occasional paper.

[ http://www.thelearningjourney.co.uk/enterpriseday13march08 ]

Value generated

A total reported turnover of £38,950 has been generated over the first half year from a grant of £10,000 given by the Government Office for London.    I say ‘reported’ because one of the businesses has yet to feed back their results.  The window cleaning business in question moved location to follow a sizable contract.  The Start-Up mentor supporting this client is at the time of writing still pursuing a response more detailed than: “I’m still in business and things are fine.” 

The revenue of the two construction businesses in the project is down significantly.  For one of them this is due to difficult trading circumstances.   Much work came as sub-contracts from another company that lost a major contract.

For the other the result is better than is seems.  The client has taken a full time job in construction with which he is well pleased (see the next section).  So the income from their start-up has been reduced to work done in spare time.

Collectively the other businesses (in removals, graphic design and fitness training) reported revenue up by 63%, from £4,200 to £11,350.  This is a creditable result.

What has gone well?

There has been some successful marketing activity:

• “I recently won a permanent contract to deliver and collect items for ******, with the possibility of more contracts… I’m just really glad there is a regular and solid flow of work.”
• “I have introduced Boxercise which has been very popular and largely increased my client base.”
• “Following a presentation and sample work to a client I have been awarded a large contract to provide Interior enhancement to a residential hotel building. … I have sufficient work to keep me active for a further 3 months.”
• “Since the end of July I have been employed by a large building firm in London.  I am gaining in experience and confidence with them and hope to be placed on a number of courses to increase my skills.” 

What needs improving?

The most common improvement need is for a wider client base.  This is unchanged from the first quarter.  There are problems with the market, housing and personal injury to contend with. Here is some of what they said:

• “At the end of July I was knocked off my push bike and injured my wrist.  This has had a large impact on the classes I have been able to take and consequently I have lost a number of clients.  My wrist is now much better and I am working hard to regain my clients… Ramadan has also influenced the number of clients attending my classes.”

• “I no longer have a steady stream of work through my relationship with ******.  They did not make their second deadline with a large developer and have since had the contact withdrawn without payment.” 

• “My accommodation situation has been a large hurdle for me.  I am moving back into a large shared house that I previously lived in but this is in no way ideal.”

Plans for the next quarter

The objectives include increasing sales and marketing activity to increase the customer base, control of paperwork and investment in vehicles.  Here are some of their reports:

• “Increase the customer base, refine the range of products and produce advertising appropriately targeted… Develop a web site…Invest in further equipment (scanner and print finishing equipment)….Establish a systems database for tracking and accounting for orders.”
• “I think a new van is needed in the next 6 months… I just have to try and stay on top of the admin part of things.”
• “I hope to dedicate some time each week to complete my paperwork so that it is always up to date…increase the amount of classes I run.”
• “I hope to pass my driving test…With the support of Startup I have made an application to the Royal London Society for funding for a vehicle.  I believe this independence is the key to my business becoming a success.”

Conclusions

Progress is mixed.  This is to be expected.  One of the construction businesses may be sliding away into full time employment.  But in itself that may be no bad thing.  The other construction start-up is facing an uncertain market.  Three of the reports cited the input of their mentors specifically as an important support and benefit.

The general tone of the responses is resilient and upbeat, with plans for further investment.  Overall the continued employment of all of the participants and the generation of four times the originating grant money in the first six months are real achievements in difficult market conditions.

These people need our support.  Are you looking for:

• A builder?
• A fitness trainer?
• A graphic designer?
• A man-with-a-van?

ask@thelearningjourney.co.uk and we will pass the request along.

TLJ is compiling a list of companies willing to trade with ex-offenders.  Please give us your input to ask@thelearningjourney.co.uk .