Self-Employed ex-offenders are bucking the trend after one year of trading.

Headlines:

• All of the six ex-offenders are doing well
• In the first year they have generated revenue 7.5 times larger than the initial grant input
• None of the group has been reported re-offending
• All continue to emphasise the benefits of mentoring support
• Four of the businesses continue as planned at the outset
• Two of the group have gone on to other activities with which they are satisfied
• The fitness instructor is doing particularly well
• The builder reports improvements despite the recession.

Background

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

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

Value generated

Total revenue of £75,100 has been reported over the first year from an initial grant of £10,000.  In the final quarter of their first year of trading, the businesses reported a 60% overall increase in revenue on the previous quarter, from £13,490 to £21,560. 

The builder reported flat and low revenue, but he had other grounds for feeling positive as reported below.  The bulk of the rise was the result of a three-fold increase in revenue from the fitness instructor.

What has gone well?

This is good news from the fitness instructor who reports:

• In this last quarter I have concentrated on building up my clients for one to one personal fitness tuition.  I am now averaging 5 clients per day, working 6 days per week and am immensely happy with my increased sales revenue as a result.

·         I have decided to specialise in this as it is much better paid.

·         For the first time since beginning this business, I feel that I am up to date and in control of my finances. 

Business life has not been so rewarding for the builder; small wonder given the current economic climate.  However, progress has been reported there too:

·         I have had great support from my mentor who has assisted me with my continued housing dilemma.  I am now settled in my own flat which I have always believed is the key to gaining steady work.

·         In the last few weeks I have been undertaking a large plastering job which will keep me in full time work for the next few weeks.  I hope this contact will lead to more contracts and enable me to stay off benefits.

·         I am pleased to finally be in a situation where I can solely concentrate on building up my business.

The delivery and removals business is also establishing itself:

·         I have developed a strong business relationship with the district manager of ****** where I had begun to earn contracts last quarter.

·         I now have a contract with him that provides me with an average of 3 working days per week.

·         He has stated that he would be happy to introduce my business to other … districts [in the organisation] on the basis that [my business] increases its capacity to ensure that the service I offer to his area is not compromised.

·         My life over the last year, both personal and business has gone from strength to strength.  I am most grateful for the opportunity Startup has given me to reintegrate back into society and become a valued member of my community once again.

The graphic designer reports:

·         My mentor continues to provide outstanding support in all areas.  The work that I am doing is of great benefit to me.

What needs improving?

The fitness trainer has sensible and practical plans for maintaining and improving quality:

• I would like to take some more courses to improve my knowledge.

• I would like to research my competition in the one to one personal fitness tuition market to ensure that I am offering a high standard of service and am up to date with the ever changing fitness trends.

The builder is concerned with getting new customers:

• I hope to increase my work load and will be sending local builders my business cards.

·         I hope that more work will be generated from my current plastering work.

·         I will be advertising my services in local shop windows.

The graphic designer is also in search of a wider audience:

• [I need to] develop new products and proposals to widen [my] customer base.

Transport is an issue for both the builder and the delivery and removals business. 

The builder reports:

• My application [for a grant] to ****** is ongoing but I hope to be successful in obtaining funding for a vehicle.  This will enable me to undertake work further afield.

Delivery and removals says:

• …my current van will need replacing.  If I am to gain another contract with a different district of ***** I will need a second van to meet the increased workload. 

• I have been researching my options and have found some very attractive finance and leasing deals.

• Following the purchase of the van/s I will need to invest in signage which I have found to be a powerful advertising tool.

Conclusions

The main conclusion is that over the first year the investment of £10,000 has delivered very good value for both our beneficiaries and society as a whole.  It has generated more than seven times its value.  There has been no reported reoffending.

Further, despite historically difficult trading conditions, the ex-offenders have kept their nerve and they all have positive stories to tell.  In some cases the stories are of significant growth and business success.  There is a need for working capital to finance growth, particularly with the large ticket item of motor transport.

Again the availability of mentors to help advise and support these new businesses has been reported as of crucial value.  It is not just business issues that are important.  As the builder testifies, help getting stable living accommodation can be just as important.