Stage 1 – Incubation
This model operates during the first 2 years of the fund’s life, while it is receiving support from NWDA in covering its operational costs and providing seed funding for delivery activity. Marketing work is outsourced through a contract, to reduce overhead expenditure at this stage and to take advantage of the positioning work done in preparation to the launch of the fund. This model is also likely to require a further element of outsourced work in setting up systems and processes, and other costs associated with business start up. This model is scaleable, in that the fund will be able to be launched with a lesser number of staff, but we would advise careful consideration of the balance between reducing costs during the early phase of activity, where such costs can be met through startup funding, and securing additional development capacity that early investment in staffing will bring, to secure business opportunities for the future. There is also a key issue in that during this phase of development, the organisation will be managing NWDA funding, which brings with it an administrative and financial accounting burden which necessitates a well developed support service.
Groundwork Northwest
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