‘Cutting your costs’ (business plan response)
BUSINESS PLAN SECTION: ‘cutting your costs’ (page 17. £10,000/yr)
Here’s what Taunton BID are proposing, their headline ideas, and underneath bullet pointed are some suggestions of what you may want to consider when analysing the ideas presented. You are of course entitled to provide your own feedback to and ask questions of any member of the Taunton BID steering group, and we encourage that.
Taunton BID will find ways to reduce your costs.
Cut costs by working with utilities' brokers to negotiate better rates for insurance, energy, telecoms etc.
What does ‘work with’ mean? What it usually means for a BID is pay a consultancy such as Meerkat Associates (who Minehead BID use) to try and get better deals for levy payers. This involves paying the consultancy £10-12,000 each year upfront to do the research and negotiation work (a very different service to doing it yourself or using a commissioned broker). Note BID didn’t say who will work with the brokers, and the BID levy payers will have to part with a lot of money before even £1 is saved, irrespective of whether savings can be made or not. Ask BID whether they have costed for a consultancy service like Meerkat, or use no fee brokers? If you look at a 5 year cost for this, for 440 “businesses” it will amount to over £100 each, is that value for money for everyone, when only a few will likely take BID up on the offer and possibly benefit. We had a general message from a Minehead BID levy pay on early February 2020, so nearly 2 years after the BID was established and he said ”I’m still waiting for the cheap energy deals we were promised”.
Cut costs by finding ways to reduce the costs and improve the commercial waste collection service with Somerset Waste Partnership. Have they spoken with SWP to get ideas of what sort of initiatives could be undertaken, and if so any possible associated costs?
Training and support. Business support training in crime reduction & prevention, first aid, digital marketing, customer service skills etc.
Presumably this means BID are going to arrange and pay for such training, so businesses don’t need to? If so, fair enough, but how much have they budgeted for?
Cheaper fares. Working with First Bus to develop a scheme for discounted Park and Ride fares for BID members and their staff.
What does ‘work with’ mean, have they spoken with First to get ideas of what sort of initiatives could be undertaken, and if so any possible associated costs?
BUDGET: £10,000
This seems an ill conceived budget for their ambitions here. Saving businesses money will cost money upfront and this budget doesn’t even seem enough to pay a consultancy like Meerkat Associates for their utility cost reduction services, let alone any left over to maybe consider reducing waste costs, subsudising Park & Ride fares, pay for training or any other cost reduction initiatives.
Here are more of our business plan response articles for you to read.
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