The Barge Inn Alliance Ltd Business Plan Our Mission To restore this vibrant, much loved and unique pub to its rightful place at the heart of the community, safeguarding its success for our future generations. Contents I. History II. Vision III. Key Elements IV. The Barge Inn Operation Assumptions V. Profit and Loss Projections VI. Staffing VII. Drinks Strategy VIII. Food Strategy IX. Other sources of income X. Controlling Costs XI. Membership XII. Marketing XIII. SWOT Analysis I. History Built in 1820 to coincide with the opening of the Kennet and Avon Canal, the Grade 2 listed Barge Inn at Honeystreet has 200 years of serving the local and wider communities. Situated in the North Wessex Downs Area of Outstanding Natural Beauty and described by Pevsner as the best canal side scenery in Wiltshire, it’s unique and beautiful setting draws people, not only from the local villages of Honeystreet, Alton Barnes, Alton Priors, Woodborough, Stanton St Bernard, All Cannings and Pewsey but also from diverse groups such as ramblers, the boating communities, canal holiday makers, cyclists and visitors to the ancient sites of Avebury, West Kennet long barrow and Stonehenge, crop circle enthusiasts and musicians. Over the years, a hugely popular campsite has been added at the rear of the pub and the barn has been rebuilt as a space for community use. More recently, the pub and campsite have been gradually wound down with the intention of private residential development. The most recent owner, having been blocked by both an Asset of Community Value and planning application, both of which having prevented change of use, the refurbishment of the barn for private use and the relocation of an ancient byway, has now put the pub up for sale. The campaign to save the Barge is not just six months old. It began three years ago, when the owner at that time began to market the barn and the pub separately contrary to planning legislation. A small group of us identified that the pub needed protection from speculators, having witnessed its slow decline over the years, and that’s when we decided to do something about it rather than to accept and lament its demise. We knocked on doors and canvassed the local community to support an application for an Asset of Community Value (ACV) which was subsequently successfully registered with the Council. Since then we were notified by the Council of the current owner’s intention to sell the freehold and concluded that we had possibly the only opportunity to finally put the pub into safe hands through community ownership. The dedicated community group responsible for ensuring the registration of the ACV has now registered their interest to utilise the six-month moratorium, triggered by the notification of sale to buy the pub freehold, as a Community Benefit Society, via the sale of community shares. The experience of past tenants has shown the pub to be a viable going concern. We have chosen the Community Benefit Society route to enable us to raise the capital using community shares, and then own, manage and direct the pub using the democratic structures of a society, and to benefit from the statutory asset-lock to ensure that the pub is protected for as long as the community of owners wishes it to be. The Barge Inn closed its doors in January 2018 and the community has felt the impact of the closure profoundly. Most significantly, there is a no longer a community hub where the diverse community of people can come together to benefit from the social interaction and cohesion that pubs traditionally provide, particularly in such a rural setting. Many of the tourists and regular visitors to the area have stopped coming and groups such as the International Crop Circle fraternity have lost their epicentre as well as the ramblers, cyclists and canal users that visit this pub as a pit stop or to simply stop to enjoy lunch in a beautiful canal-side setting. Local businesses (including hire boat companies) have been very supportive of our campaign to bring back this busy tourist destination and have reported a distinct drop in trade and overall loss to the local economy over the past year. The Barge Inn is a well-known music venue which has a tradition of launching the careers of new and talented local musicians. The Barge Inn has a strong reputation for giving bands a captive audience to help promote their material. Many of the bands are frequent visitors because of the enthusiasm of the audience and friendliness of the pub’s culture created over the years. II. Vision 1. To reinstate and secure the Barge Inn and campsite as a homely, welcoming and traditional country pub to be run by The Barge Inn Alliance Ltd for the benefit of the community and for all to enjoy. 2. To facilitate the purchase, The Barge Inn Alliance Ltd is seeking to raise the necessary funds through a share offer. 3. To run a successful business, The Barge Inn Alliance Ltd understands that the business operations need to be founded on a realistic and achievable business plan. This business plan has been prepared on the premise that The Barge Inn Alliance Ltd will secure an experienced manager to run the pub once it re-opens. III. Key elements of the business 1. We have enlisted the services of a surveyor/valuer. We are currently looking to raise £1,100,000 subject to valuation which could include share capital, donations, mortgage and loans. This will cover the offer price and set up costs of the business. We recognise there is a need to renovate the interior and campsite, so we will need to negotiate to hold back funds for this work 2. At the approximate asking price of £895,000 (subject to valuation), an estimated total capital budget of £1,280,000 is required to cover the purchase of the pub, pay VAT on the purchase price, Stamp Duty, legal fees, Crowdfunding fees etc to enable the purchase of stock and remedial repairs. 3. With income from shares at the optimum target of £1,100,000.00 together with grants, return of VAT on purchase and donations less set up costs, it is estimated that the end of year balance will show a loss of -£24,001 at the end of the first year. At the end of year two we are projecting a healthy profit of £49,538 and £50,879 at the end of year three. It is the intention of the Society to reinvest excess profit, over and above maintaining a healthy cash flow and liquidity, to safeguard the future of its assets. 4. If our optimum target is not achieved solely through the share equity then we may consider a bridging loan to help with the purchase cost, and/or a long term mortgage or peer to peer loan. 5. There is an Economic Rural Development grant which, following research, we would be considered for once the pub has been successfully purchased. They are unable to fund the purchase of the building but can help to fund development of the campsite, kitchen, cellar and B&B rooms up to £100,000. 6. The pub is to be run by an experienced live in, full-time manager employed by The Barge Inn Alliance Limited, with a full-time chef, up to 3 full-time equivalent trained casual bar staff waiting staff and kitchen porter. This will fluctuate seasonally and thus be reflected in the staffing costs. Feedback from the community suggests there is likely to be an element of voluntary work but as this is not quantifiable it is not reflected in this plan. 7. Our strategy will be to reinvest the profits from the business to make repairs to the property and to develop the business to ensure future prosperity. Business, Marketing and Financial Plan The following document outlines the business, marketing and financial plan associated with the reinstatement of the Barge Inn under community ownership. The plan seeks t • Identify operational matters in terms of management structure, operational days and hours, staffing requirements, and the different supplies and materials required • Stipulate the target markets and how these are to be attracted to the pub • Identify the 12-month profit and loss and cash flow forecast to include set up costs and projection forecast over a three-year period • Stipulate the capital investment requirements and sources • Identify the preferred sources of funding The Barge Inn Alliance Ltd (the Society) has set up a Community Benefit Society with the sole purpose of purchasing and managing The Barge Inn Public House in Honeystreet, Wiltshire for the good of the community. The interim directors of the Society are to be formed from the founding members. Founding members: Nel Lingard (Company Secretary), Andrew Lingard, Sarah Huggins and Sharyn Jarvis. Helen Lingard (Nel Lingard informally) is a Project Manager and her day job is running operational teams in the Financial Services sector with a career span of over 20 years. Nel is the Company Secretary and she ensures that every part of our offer documentation, business plan and understanding of how to create a successful community business is professional, compliant and thorough. Sharyn Jarvis has twenty plus years’ experience in the pub trade, including working for The Barge Inn, and is fully conversant with pub management and operational budgets. She knows how a successful pub runs from day to day, from stock control to staffing and punter management along with her eye firmly on the future and next events. In layman’s terms, she knows how to get money out of people for good causes and has a very bossy finger! Andy Lingard (who is at his happiest looking under the bonnet of his VW) has applied his logical thinking and problem-solving skills coupled with his drive and passion for the project to succeed.