BUSINESS PLAN STRUCTURE The Business Plan for the TCBL Foundation covers four periods: from 1 July through end 2019 and then the full years of 2020-2022. In the attached tables, the first section keeps track of the Endowment Fund, which in addition to the required minimum amount of € 30.000 can provide operational cash reserves for the Foundation. The starting value is the sum of contributions deposited by the First Founding Members. Following the first half-year period, the Endowment Fund is increased by contributions of new Founding Members, while incorporating the positive or negative results from the previous year (the Foundation is nonprofit). The operational balance for the Foundation is to be achieved between: •
•
Revenues: o Income from yearly fees of Participant members (see the Membership Fee structure) o Grants and donations. Costs: o Fixed/recurrent costs necessary for the basic management and communication. o Non recurrent/project based costs of operations, including direct funding of innovation projects for Labs and Associates as well as expenses for network promotion and development activities.
TCBL POPULATION An important element of the TCBL Foundation’s Business Plan consists of the yearly fees from Labs, Associates (including Startups) and Supporters. As a result, it is important to estimate variations in the number of members of each type from year to year. The starting figures are based on informal surveys among the network of Labs and Associates built during the TCBL Project, leading to an estimate of 50 Labs and 120 Associates, of which a third is estimated to qualify as Startups. From there, the growth estimates for the following years are based on three factors: •
•
•
Network effects: this factor captures word-of-mouth and social network based subscriptions and is represented as a year-to-year percentage of the size of the existing community. This is estimated at 5% for Labs, 10% for Associates, 20% for Startups, and 20% for Supporters. Recruitment: this factor results from active recruitment by TCBL Foundation members, generally in their own territories of reference. The estimates are based on recruitment results during the project lifespan, reduced to reflect the drop in funding. Recruitment for Supporters includes the discount bundled with the conference fee. Turnover: this factor captures those leaving the network, due to ending activity, loss of interest, etc. It is estimated at 5% for Labs, 10% for Associates, 30% for Startups, and 30% for Supporters.
This leads to the following population estimates for the years 2020-2022. Population estimates 2020-2022 Labs Labs from previous year Entering (network effect) Entering (recruited) Leaving Total population
2020 50 3 5 3 55
2021 55 3 10 3 65
2022 65 3 15 3 80
Associates Associates from previous year Entering (network effect) Entering (recruited) Leaving Total population Welcome Service (total entering)
2020 80 8 10 8 90 18
2021 90 9 25 9 115 34
2022 115 12 40 12 155 52
Startups Startups from previous year Entering (network effect) Entering (recruited) Leaving Total population Welcome Service (total entering)
2020 40 8 10 12 46 18
2021 46 9 20 14 61 29
2022 61 12 30 18 85 42
Supporters Supporters from previous year Entering (network effect) Entering (recruited) Leaving Total population
2020 20 4 50 6 68
2021 68 14 100 20 161
2022 161 32 150 48 295
FEE STRUCTURE The fee structure applied to the different membership levels, together with the services offered for each, is shown below.
Annual fee
Labs Must be registered as an accredited TCBL Lab.
Associates Must be registered as an accredited TCBL Associate (companies).
Start-ups Defined as company for less than 5 years in business.
Supporter Accounts for individuals or citizens sharing TCBL goals.
€25 per year
€250 per year
€150 per year
€25 per year
€200
€100
One-time Welcome Service fee including 6month subscription to Thela Be part of the community
✓
✓
✓
✓
Eligible to the TCBL Foundation’s Steering Committee
✓
✓
✓
# Member logins with Weeave
3
3
2
1
Annual #TCBL event tickets
3
3
2
Discounted by €25
Access to directory and member-only web content
✓
✓
✓
✓
TCBL accreditation and use of logo
✓
✓
✓
Listing in directory
✓
✓
✓
Possibility of being selected to speak at annual #TCBL event
✓
✓
✓
Potential access to funding opportunities
✓
✓
✓
Discounted access to
✓
✓
✓
✓
✓
✓
business services Access to free or paid TCBL Lab events
✓
Following are the forecasts for the four periods from July 2019 through 2022, based on the fee structures and population estimates above.
JULY-DECEMBER 2019 TCBL Foundation July-December 2019 Endowment Fund Number Amount First Founding Members
€5,000.00
8
Operational Summary
Balance €40,000.00
Income
€27,750.00
Base costs
€22,500.00
Operations Year's result
€5,000.00 €250.00
Income Item
Number
Cost
Total
Lab fee Associate fee
50 80
€25.00 €250.00
€1,250.00 €20,000.00
Startups fee
40
€150.00
€6,000.00
0 0
€200.00 €100.00
€0.00 €0.00
20
€25.00 €10,000.00
€500.00
Welcome fee (Associates) Welcome fee (Startups) Supporter fee Donations
Item
0
Base costs Number Cost
€0.00
Total
Secretariat/accounting
3
€2,500.00
€7,500.00
Brand/membership mgmt Website and Social Media
2 2
€2,500.00 €5,000.00
€5,000.00 €10,000.00
Conference
0
€5,000.00
€0.00
Operations Item
Number
Cost
Total
Innovation projects
0
€10,000.00
€0.00
Network development
1
€5,000.00
€5,000.00
This first period foresees the constitution of the Foundation in September-October 2019 with a conservative estimate of 8 First Founding Members (about one half the current number of Launch Committee Members) and thus € 10.000 of available reserves beyond the minimum € 30.000 in the Endowment Fund. This will probably be required to cover cash flow requirements related to administration and website hosting, as the main cost elements. Several Launch Committee members have confirmed that their contributions to activities (membership management, website and communication, network development, etc.) can take place on a voluntary basis as a follow-up to the TCBL project, at least until end 2019. The income from Labs, Associates and Individuals is considered for the estimated initial population, though caution is in order as members adapt to the fee system in addition to the fact that the invoices will be issued only in December. Beyond that, as this is basically a transition period, no income is foreseen from donations and no expenditures for innovation projects, though network development is considered a necessity from the outset. The year result is substantially a break-even.
2020 PERIOD TCBL Foundation 2020 Endowment Fund Number Amount New Founding Members
€5,000.00
€10,000.00
€40,000.00 €250.00
€50,000.00 €50,250.00
2
Previous year's fund Previous year's result
Operational Summary
Balance
Income Base costs
€37,875.00 €32,500.00
Operations Year's result
€15,000.00 -€9,625.00
Income Item
Number
Cost
Total
Welcome fee (Associates) Welcome fee (Startups)
55 90
€25.00 €250.00
€1,375.00 €22,500.00
Supporter fee Entry fee
46 18
€150.00 €200.00
€6,900.00 €3,600.00
Entry fee startups Individuals
18 68
€100.00 €25.00
€1,800.00 €1,700.00
0
€10,000.00
€0.00
Donations
Base costs Website and Social Media
Number
Cost
Total
Secretariat/accounting
2
€2,500.00
€5,000.00
Brand/membership mgmt Website (ed)
1 3
€2,500.00 €5,000.00
€2,500.00 €15,000.00
Conference
2
€5,000.00
€10,000.00
Operations Item
Number
Cost
Total
Innovation projects
1
€10,000.00
€10,000.00
Network development
1
€5,000.00
€5,000.00
2020 is the first period covering the whole scope of Foundation activities necessary to provide visibility of what the Foundation is and does in order to scale-up, in particular by launching the call for the first funded innovation project. At the same time, we do not foresee any donations yet, so these activities are still at a limited scale and drawing on the cash reserves of the Endowment Fund, foreseeing a negative result of about € 10.000. We do foresee however two additional Founding Members joining us, so that keeps the Endowment Fund at a healthy level both for 2020 and the following year. The increase in income is based on initial population growth as foreseen, for which the Welcome Service fee takes effect. In addition, we expect an increase in Supporter subscriptions linked to the discount offered for the conference registration fee.
As far as the base costs are concerned, brand and membership management continue to be based on the voluntary contributions of Founding Members, while the communications costs are partially covered. The conference is foreseen to be held with a minimum budget of ₏10.000, which will be required in addition to a relatively low entry fee (minus free entries and discounts). For operations, it is foreseen to fund one project from the Foundation’s funds with ₏ 10.000. Network development and lobbying continue, in order to obtain the donations that we expect to begin receiving in the following year.
2021 PERIOD TCBL Foundation 2021 Endowment Fund Number Amount New Founding Members Previous year's fund Previous year's result
Operational Summary
Balance
€5,000.00
€10,000.00
€50,250.00 -€9,625.00
€60,250.00 €50,625.00
2
Income Base costs
€63,250.00 €45,000.00
Operations Year's result
€25,000.00 -€6,750.00
Income Item Welcome fee (Associates) Welcome fee (Startups) Supporter fee Entry fee Entry fee startups Individuals
Number
Cost
Total
65 115
€25.00 €250.00
€1,625.00 €28,750.00
61 34
€150.00 €200.00
€9,150.00 €6,800.00
29 161
€100.00 €25.00
€2,900.00 €4,025.00
1
€10,000.00
€10,000.00
Donations
Base costs Website and Social Media
Number
Cost
Total
Secretariat/accounting
3
€2,500.00
€7,500.00
Brand/membership mgmt Website (ed)
5 3
€2,500.00 €5,000.00
€12,500.00 €15,000.00
Conference
2
€5,000.00
€10,000.00
Operations Item
Number
Cost
Total
Innovation projects
2
€10,000.00
€20,000.00
Network development
1
€5,000.00
€5,000.00
In 2021 the Foundation begins to move towards full-scale operations, reaching break-even in the following year. We again foresee two new Founding Members joining us, helping to maintain the Endowment Fund at an appropriate level. Income grows as the network of Labs, Associates and Individuals expands on a constant path. In addition, we foresee receiving our first donation of € 10.000 that can directly fund innovation projects (above and beyond co-branding projects independently funded by third parties). The base costs increase as a result, in particular the costs of brand and membership management as the payment to the Welcome Service enters into full swing (i.e. directly covered by the entry fees). The website and conference continue with the basic funding as per the previous year. Most importantly, funding is available for two innovation projects. The year’s result is foreseen to be again negative, though in the order of a loss of € 7.000.
2022 PERIOD TCBL Foundation 2022 Endowment Fund Number Amount New Founding Members
€5,000.00
€15,000.00
€50,625.00 -€6,750.00
€65,625.00 €58,875.00
3
Previous year's fund Previous year's result
Operational Summary
Balance
Income Base costs
€95,475.00 €60,000.00
Operations Year's result
€35,000.00 €475.00
Income Item Lab fee Associate fee Startups fee Welcome fee (Associates) Welcome fee (Startups) Supporter fee
Number
Cost
Total
80 155
€25.00 €250.00
€2,000.00 €38,750.00
85 52
€150.00 €200.00
€12,750.00 €10,400.00
42 295
€100.00 €25.00
€4,200.00 €7,375.00
2
€10,000.00
€20,000.00
Donations
Base costs Website and Social Media
Number
Cost
Total
Secretariat/accounting
5
€2,500.00
€12,500.00
Brand/membership mgmt Website (ed)
5 4
€2,500.00 €5,000.00
€12,500.00 €20,000.00
Conference
3
€5,000.00
€15,000.00
Operations Item
Number
Cost
Total
Innovation projects
3
€10,000.00
€30,000.00
Network development
1
€5,000.00
€5,000.00
The 2022 period sees the TCBL Foundation reach its full scope of activities with break-even, thus attaining long-term sustainability. The number of Founding Members grows again by 3 to reach 15 members. The network of Labs continues to grow, and the number of Associates (including Startups) returns to the level reached during the TCBL project. Supporters begin to reach a sizeable number (300), and we also foresee at total of € 20.000 in donations, in part based on the visibility of results from the previous years’ innovation projects together with the network development activities. The costs for the secretariat, brand/membership management, and website are now fully covered by income (no longer requiring voluntary contributions). The conference budget is also increased to the more generous levels seen in the TCBL project. Finally, three innovation projects are funded as network development activities continue.
DOCUMENT INFORMATION This document is Annex III to TCBL Deliverable 6.13, “Value Exchange and Governance Framework – Version 4”. Jesse Marsh, City of Prato; Paolo Bergmann, Studio Bergmann / eZavod; Thanos Contargyris, MIRTEC.
REVISION HISTORY REVISION
DATE
AUTHOR
ORGANISATION
DESCRIPTION
V0.1
04/07/2019
Jesse Marsh
City of Prato
First draft
V0.2
14/07/2019
Jesse Marsh
City of Prato
Final version incorporating comments.
STATEMENT OF ORIGINALITY This deliverable contains original unpublished work except where clearly indicated otherwise. Acknowledgement of previously published material and of the work of others has been made through appropriate citation, quotation or both.
COPYRIGHT This work is licensed by the TCBL Consortium under a Creative Commons Attribution-ShareAlike 4.0 International License, 2015-2016. For details, see http://creativecommons.org/licenses/by-sa/4.0/ The TCBL Consortium, consisting of: Municipality of Prato (PRATO) Italy; German Institutes for Textile and Fiber Research - Center for Management Research (DITF) Germany; LINKS Foundation (LINKS) Italy; Skillaware (SKILL) Italy; Oxford Brookes University (OBU) UK; IMEC (IMEC) Belgium; Tavistock Institute (TAVI) UK; Materials Industrial Research & Technology Center S.A. (MIRTEC) Greece; Waag Society (WAAG) Netherlands; Huddersfield & District Textile Training Company Ltd (TCOE) UK; eZavod (eZAVOD) Slovenia; Consorzio Arca (ARCA) Italy; Unioncamere del Veneto (UCV) Italy; Hellenic Clothing Industry Association (HCIA) Greece; Sanjotec - Centro Empresarial e Tecnológico (SANJO) Portugal; Reginnova NE (Reginnova) Romania, Centexbel (CTB) Belgium, Institut Français de la Mode (IFM) France, IAAC (FabTextiles) Spain, Cleviria (Cleviria) Italy, and Sqetch (Sqetch) Netherlands.
DISCLAIMER All information included in this document is subject to change without notice. The Members of the TCBL Consortium make no warranty of any kind with regard to this document, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. The Members of the TCBL Consortium shall not be held liable for errors contained herein or direct, indirect, special, incidental or consequential damages in connection with the furnishing, performance, or use of this material.
ACKNOWLEDGEMENTS The TCBL project has received funding from the European Union's Horizon 2020 Programme for research, technology development, and innovation under Grant Agreement n. 646133.