THE BUSINESS PLAN

WORK COLLABORATE LEARN Mission Statement...

“To create a workspace and community that inspires, supports and encourages start-ups, micro businesses, growth businesses and next generation entrepreneurs to work, play and build their businesses in . In doing so, to attract, train and keep the best business talent the north has to offer.”

Goals and Objectives

• To develop new flexible commercial co-working space in an iconic Burnley building aimed at young high tech businesses in a supportive and collaborative environment.

• To provide a launchpad and incubator to develop Burnley’s next generation of businesses supporting the growth and promotion of Burnley’s wider digital sector, linking into and complementing other emerging digital assets.

• To operate as a profitable business in order to ensure a sustainable and long term solution for Burnley’s business community

Our Values...

Community - Openness - Collaboration - Accessibility - Sustainability

Company Details

• Legal status: Private Limited Company • Company Name: The Landmark Burnley • Directors: Dave Walker, Mark Crabtree OBE • Key Advisors: Mark Crabtree OBE – Managing Director of AMS Neve and Chairman of Burnley Bondholders; Steven Cochrane – Director Growth ; Anthony Walker – Managing Director of WRM & RRS; Pam Smith – CEO Stockport, former CEO of Burnley • Key Roles: Experienced Centre Manager (Full Time), Maintenance (Full Time), Admin/Reception (Part time) The “Why”

Co-Working Collaboration, satellite offices, hot desking, swarm companies, virtual offices and co-working are all on the rise UK wide. Burnley must ensure it does not fall behind when these trends emerge. In order to support a growing number of new starts and high growth business, there must be the places to work which buzz with excitement…day AND night.

Attracting the Best Recruiting the best people is a well-documented challenge of Burnley’s high tech and digital industry. With the bright lights of cities like Manchester and Leeds within a stones throw. Therefore Burnley must create its own centres of excellence, the hubs, the buzz places, the networks…it must create its own bright lights and its own opportunities.

Key Strengths

The strength of the business lies in our ability to tap into the many emerging digital businesses in the town and provide them with a space to fulfil their potential. Our extensive networks through Digital Burnley, Burnley Bondholders, Digital Lancashire and existing business relationships has demonstrated demand for Burnley’s first co-working space. We will draw on our own experience of growing successful businesses from home and put in place a space that would have accelerated our growth, and build a sense of community and collaboration to foster greater innovation.

Our strong core competency of marketing will provide us with a competitive advantage and route to market to sustain demand levels.

Key Links

We have already established strong links with similar set-ups in Preston & Manchester, including media city. Inter-area will be facilitated, providing Burnley businesses access to new areas of business where they may previously been unable to penetrate without this facilitation. We are currently in the process of formalising support links from Uclan and to ensure students are not only able to benefit from The Landmark but to ensure employers in the area have links into the key educational institutes in the area. Economic Context

Figures released by the ONS Business Register and Employment Survey in 2016 showed that Burnley ranked an impressive second place for digital jobs growth in Britain. The survey also showed Burnley continues to buck regional and national trends in overall private sector jobs growth. Albeit from a lower base, during 2014-15 the town experienced 161.8% growth in digital jobs, against NW growth of 30% and national growth of 2.8%.

Experian analysis show that the proportion of B-class jobs in the borough has decreased steadily, falling from 49% of all jobs in Burnley in 1997 to 35% in 2012. This overall decline masks differences within the B-Class sectors. For instance, extensive losses of employment within industrial sectors (-43% over 1997-2012) has been partially offset by a growth in office jobs (+26% over the same period). Experian data showed that the number of people employed in professional & other private services has risen by a third between the period 2009 – 2015, and the sector now employs 1,630 people.

It is considered that the greatest demand for office space is still within Burnley Town Centre, particularly if larger premises or cheaper rents are being sought.

Agents have reported that some businesses prefer to be based in the town centre as it is close to labour, services and amenities and more easily accessible for employees relying on public transport to/from work. It is also reported that town centre heritage refurbishment projects also have a certain appeal with small occupiers in the creative sector.

There are currently over 60 digital businesses from the area that comprise the Digital Burnley forum, insight has been given by the group to help influence key decisions regarding future infrastructure projects. The forum has identified that there is currently a gap in provision for digital start-up business space, and would welcome a communal hub to share ideas and develop new business relationships. Several leading members of the Digital Burnley group have comitted to relocate to the landmark

In the centre of London several million sq ft of co-working space is already available and it is estimated that by the end of 2017 over 200,000 sq ft of co-working space will be available in Manchester City Centre. The office space industry is going through a shift as the younger, more digital savvy generation begin to start their own companies within a flexible and supportive environment.

[citation] http://www.manchestereveningnews.co.uk/business/co-working-revolution-coming-manchester-12195232 Market Context

The Old Grammar School would be Burnley’s first digital co-working space; it is not aiming to be a normal business centre.

Co-working is a cost effective way to bring creative people together to create a community environment to share ideas and support each other. Flexibility is key - different packages will be available, including: • Day pass Day pass bundles Full Time Pass Part time pass • Permanent desk Office space Virtual office

A key aim of the project is for the Grammar School to complement the nearby Vision Park, providing the first steps on a ladder of accommodation for growing hi-tech businesses in Burnley. The proximity of Vision Park and Old Grammar School to the Burnley College and UCLan education campus will benefit business as they tap into the skills, research and knowledge being developed at the Centre of Engineering Excellence.

An overview of other office accommodation in the town is highlighted in the following table, perhaps the closest to the Old Grammar School in terms of co-working is the Hub located at Burnley Football Club, however opening hours are limited to 9am-5pm and it offers no business support or services. The Landmark project will differ through fostering a community of like-minded individuals in both a work and social setting.

Site Details Type of Space Rates Occupancy Level Slater Terrace - Weavers Triangle 540sq ft - 4,000sq ft - Grade II Listed - 9 Self-Contained Units - 24-hour Access Lancashire Digital - Located on Innovation Drive 150sq ft - 5,000sq ft £15 per sq ft (inc service Technology Centre - 24/7 Access charge) - Managed Office Space Lodge House - Town Centre Location 150sq ft - 2,500sq ft £8.25 + £4.15 service charge 80% - Virtual Office/Telephony Service Northbridge House - Office, Storage & Workspace 1 person office - 20+ £8.80 - £19.73 70% - Managed Offices - Flexible Terms - Virtual Office/Telephony Service Burnley FC Business Hub - Over 100 Workstations Workstations 100+ memberships - 9-5 Mon-Fri - Free Parking - Café - Meeting Rooms Business First Burnley - Modern Environment 250sq ft - 10,000sq ft From £13 per sq ft Est 70%+ - Offices/Hot Desks/Virtual Offices - On Site Gym - Inclusive facilities management - 24/7 Access - Meeting Rooms Group First House - Modern Environment 500sq ft - 3,500sq ft Est 70%+ - Offices/Hot Desks/Virtual Offices - On Site Gym - Inclusive facilities management - 24/7 Access - Meeting Rooms Burnley Council’s Employment Land Demand Study recognises the changing demand nationally for employment space over a longer-term period taking account of key drivers and macro trends that are likely to influence the type, scale and locational requirements for employment space in the Borough, these include:

• Space-less growth: national trends show the number of office workers outpacing office floor space. Use of office floorspace has become increasing efficient, sometimes configured to allow dedicated, complementary amenity space and collaborative work space.

• Technology: Increasingly sophisticated technology is changing the way in which firms and employees interact with each other and reduces the need for a fixed workplace.

• Rise of the Self-Employed: Self-employment nationally is at an all-time high which is driving demand for different work space. Burnley’s self-employment rate of 9.1% compares favourably with regional levels (9.2%), although it should be noted that this is taken from a relatively small sample via the Annual Population Survey. Case Studies

There is an increasing number of co-working spaces appearing across the North West, each has its own characteristics and reflects the changing demands in a particular locality.

The Landing The Landing is a hub at the heart of MediaCityUK for high- growth technology and digital start-ups, scale-ups and SMEs. It provides workspace (offices and co-working), incubator programmes, user testing labs, Barclays Eagle Labs, and has an exclusive lounge and bar; On The 7th. The Landing provides the technical infrastructure and connectivity to ensure its 100+ companies can turn new technologies into happy, sustainable businesses

Media Factory UCLan’s Media Factory provides creative students with a fully-equipped, state-of-the-art building dedicated to providing realistic exposure to the media world. The Media Factory is of great benefit to performing arts students who have access to a series of inter- connectable theatre spaces which house dance, theatre and music shows. UCLan’s media production students enjoy access to a digital television studio with control galleries, a film and photographic studio, video editing rooms and industry standard Apple Mac suites. Within the Media Factory’s state-of-the-art business incubation facility, UCLan graduates with creative business ideas can grow their enterprises alongside other university graduates and entrepreneurs from across the North West. Based on the top floor of the building, the facility helps turn creative ideas into commercial reality. Open 24/7, the incubation workspace is equipped with new PCs and high-speed internet access for over 25 new businesses and virtual incubation for many more. Located alongside the business incubation spaces is the Media Innovation Studio, a ground-breaking ideas centre for the digital and creative industries. Media Innovation Studio provides a catalyst to solve business problems, generate new ideas and exploit business opportunities. To help fire the imagination and stimulate debate, users have access to facilities such as a nine metre wide computer projection screen that can be used independently and simultaneously by up to 20 users. Case Studies

Society 1 Society 1 in Preston is perhaps the closest in terms of philosophy to the Old Grammar School project. Opened in 2017 Society 1 provides a state of the art, stylish office space at low rates. No contracts, no bills, no fees, no office logistics. They promote simple flexible price plans in a modern environment, which includes a pool table and free coffee, through an online members portal.

“Society1 – a place where ambition, talent and problem solvers come together to make things happen. This is a space that is built around you and what you need. Inspiring, stylish, creative and brave. You deserve the space that is worthy of your talent and an office you are proud to call your own”

They also provide workshop spaces, huddle rooms, quiet spaces and breakout areas.

“A supportive and friendly community at your finger tips. Work alongside potential advisors, new hires, mentors, clients and investors. No hard sells just good people working hard to get to where they want.” The Site

The former Burnley Grammar School comprises a series of buildings and monuments that are of enormous cultural significance to the town of Burnley. They lie of a triangular site bounded by Active Way, the northern bypass, on the west, Church Street, running from the commercial centre, on the east, and School Lane and the adjacent in its steep cutting to the south. The site is identified as a key gateway in Burnley’s Local Plan proposals map. The building is listed Grade II, in total there are five listed buildings or monuments on the site. There are numerous other listed buildings in the immediate vicinity, one of which, St. Peter’s Church, is listed Grade II*i.e. as outstanding. Consequently, there is a very high ‘group value’ of listed buildings. This is complemented by good quality unlisted buildings, such as the former Sparrow Hawk Hotel and Talbot Public House. The area is designated as the Top O’ Th’ Town Conservation Area. The site is also extremely prominent with major traffic flows passing the building. Fortunately, the Grammar School was designed as a landmark and sits very comfortably centre stage. The site has significant townscape buildings facing in all direction: the 1873 Grammar School faces south-west to Active Way, its elevated gable end is the focus of School Lane; the 1901 Classroom Wing is a landmark on Church Street; and, a detached building defines the south-east corner. The northern corner has become less of a landmark since the pair of Russian Guns was removed in 1941, but nevertheless provides an attractive garden and welcome area.

The 1863 Grammar school was designed by Burnley Architect William Waddington and is the principle heritage asset of the listed school.The style is a blend of Gothic and Elizabethan and the skillful composition has considerable medieval ornament, sometimes with touches of humour. This building offers considerable marketing potential, especially one in the technology sector where there is a long-standing cultural relationship between Gothic romance and computer technology/communication.

The main rooms could accommodate modern technical forms and furniture provided they are sensitively integrated. In the public areas, there is the opportunity to integrate the old with the new, something which could be extended to the outside in the form of sculpture/advertising. The 1901 Classroom Wing will more easily accommodate change and alteration. It is a straight forward robust building with large structural spaces that have been subdivided in different ways over time. The grounds of the School have historically been well maintained, though not so recently. They should need little change, provided basic maintenance is undertaken in the meantime. The triangular garden to the north requires thinning out of trees and basic maintenance as a minimum. The Russian Cannons located in the northern quarter of the site were removed for the Second World War effort and their vacant pedestals are a reminder of the sacrifice of the wartime generation. Bringing this fact to the public’s notice, along with details of the other monuments adds to the charm and marketing potential of the building. The Marketing Plan

Utilising Influencers Utilising the significant influence and network of the directors and key advisors The Landmark fully expects to have a number of headline companies installed in the centre from day one. These companies will not only raise the profile through their own PR efforts, but will offer free or discounted support services to the businesses within The Landmark. Each of these companies will offer support in some of the core problem area’s for growth businesses; sales & marketing support, accountancy & cashflow support, financing & legal, IP. In addition to the influence of these businesses we will also lean on the extensive networks of the directors, key advisors and key roles to add prestige to the organisation and create desire.

6 Months Lead Up There will be a 6 months marketing, PR and sales period leading up to the opening of The Landmark. This will provide vital time to raise the profile, build the social media presence and generate extensive PR through television and media contacts.

Bondholders/Launch Event to announce the plans & do a tour Local & trade press Social Media Begins Hype up new sign-ups Begin monthly networking events Early bird deals/offers

A Community

The success of The Landmark lies in the strength of the community. From day one, the rooms will be designed to bring people together, the atmosphere will promote a sense of community and the support networks will be established to encourage collaboration.

“Coming together is a beginning; keeping together is progress; working together is success.” - Henry Ford The Marketing Plan

Footfall

It will be the role of the Centre Manager to ensure there is a steady stream of footfall through the building. Ways to do this include, but are not limited to; - The Landmark Networking events & clubs - The Landmark free training & conferences - Conferencing facilities - External Networking organisations hosted on site, such as 4Networking, BNI, Shout, Bondholders - Provide access to open days for things such as Angel Investors & free support - Education days/events through partners Uclan and Burnley College

PR

A full PR campaign will be run in the 6 months build up and continued thereafter reporting on progress, the opportunities, the success stories. This will also add great value to the users of The Landmark.

Social Media

Utilising the strengths of +24 available to The Landmark will mean social media can play a strong part in building the business community. The Landmark social media will build a presence which promotes all business and encourage all business within the area. Generating an influential profile and an open, honest and genuinely interested social media presence will help to build the following and ultimately sales. The Benefits

As well as inspiring work space, flexible rental and co-working options, a great location with fantastic services on offer – there will be a host of additional benefits customers of The Landmark will have access to.

Wider Network & Friendship Agreements

Friendship agreements are already in place to enable members of The Landmark utilise their membership in business centres in Preston and access to The Landing in Media City. It will encourage integration, giving access to people and opportunities Burnley’s business community may not easily get access to under normal circumstances.

Angel Investors & Financing

The Landmark will work with agencies and investors alike to ensure any funding or financing available the members are the first to know about it. It is also proposed investors will be on hand at certain times throughout the year to hear the pitches from the high growth potential businesses within the co-working community.

Business Support and Mentoring

Links with Burnley Council, Uclan, Burnley College and private training and consultancies will mean that the members will have access to a host of training and consultancy both free and paid. If a business at The Landmark has some challenges, The Landmark will know exactly where to find the help they need.

Support with Recruitment

A core challenge of Burnley Businesses is access to the best people and attracting talent to Burnley. Through links with the education sector, the PR work of The Bondholders and the links with recruitment agencies and the wider network, The Landmark will provide support for both the talent and the businesses to find the right match!

Networking & Business Events

A whole host of networking events, business events, mini-expo’s and a vast array of conferences will be on offer in the conferencing wing of The Landmark.

Community

Building on the strength of the Burnley community, The Landmark will support and encourage collaboration and community. Finances

Finances Overview

The finances for The Landmark do not include the renovation expenses incurred as the building and initial renovation will be completed by private investment pension fund which will receive rental income moving forward from The Landmark Burnley Ltd.

The rental income and co-working income has been estimated at the current market rate which would be the slightly upper market of office space in Burnley. The prices of co-working are based on the closest comparisons possible from area’s such as Preston and Blackburn.

The costs are estimated on figures provided by Burnley College, initial quotations and comparable operations already in place at the directors businesses.

Cashflow Forecast

A 3 year cash flow estimate will be produced upon approval of the planning application.

Risks

There are a number of risks to take into account, the two most obvious being that sales are not as high (either in number or value) as expected or the estimated costs are higher than expected.

Whilst the existing competition has been analysed and is not deemed a threat at this stage, an adaptation by a competitor or a new business may cause another risk.

Reducing the Risk

Sales & Marketing will commence 6 months prior to the launch and several fixed office spaces will be pre-rented off plan. This will add vital income from day one, reducing the strain on cashflow.

The ability to have flexible workspace meaning the use of each room & co-working area can be changed and adapted without the requirement of any physical changes. This would enable us to be adaptable to the market and ensure the space is occupied as quickly as possible. The Landmark will ensure there is an extremely large business footfall by hosting a great quantity of events and networking. The ability of the directors and supporters to excite, engage and influence potential customers, the local market and attract inward investment will ensure there is always good news to promote The Landmark. It will also offer opportunities that would be difficult to replicate due to the friendship agreements in place with our partners. Project Outcomes

The project will achieve a number of outcomes: • Bringing an historic Grade II listed building back into use on a key gateway into town. • Creating of many new jobs and an attraction to the town for existing businesses. • Increased GVA • Attracting circa £800k private investment • Uplift in business rates following a 3-year rate window • Providing a significant marketing opportunity for ‘brand Burnley’ • Providing key infrastructure to support jobs growth in a priority sector for the borough. Generating networking opportunities for Burnley businesses across the whole North West. Providing and giving access to facilities otherwise unobtainable to Burnley’s micro businesses. Providing access to angel investors.